Buying a property in Indonesia — whether it’s a villa or a modern house in Lombok — often involves working directly with developers. While many projects look attractive on the surface, not all developers offer the same level of transparency or legal protection. If you're not careful, you could end up investing in a property that lacks permits, clear land rights, or even legal ownership.

To avoid costly mistakes, here are 5 essential questions you should ask before signing anything or making a payment to a property developer in Indonesia.

1. Do you have complete and valid land certificates?

This is the most crucial question. Ask the developer to provide clear documentation proving their ownership or legal rights to the land — whether it's a Hak Milik (freehold), Hak Guna Bangunan (HGB), or Hak Sewa (leasehold). Make sure the land certificate is not under dispute, not under mortgage, and matches the actual land being sold. A legal consultant can verify the authenticity and status through the National Land Agency (BPN).

2. Are all building and development permits in place?

Don’t just assume that the building is legal. In Indonesia, developers must obtain an IMB (Building Permit), or its updated version, the PBG (Building Approval), along with other documents like site plans, environmental permits, and zoning clearances. Many buyers are surprised to learn their villa or house was built without proper permissions, which can lead to future fines or demolition orders.

3. What’s the payment structure and refund policy?

A professional developer should present a clear, transparent payment schedule — typically broken down into down payment, installments, and final payment. You also need to ask: What happens if there’s a delay? Is there a refund policy? Are payments held in escrow? If there are no safeguards for your money, it’s a red flag. Our legal team at Lombok Legal Consultant can review the sale agreement before you commit.

4. When will the project be completed — and is it guaranteed?

Many developments are sold off-plan, meaning construction hasn’t started yet. Ask for realistic timelines and whether there are any penalties or guarantees if delays occur. Get everything in writing — including clauses for force majeure and your rights if the project stalls indefinitely. Without this, you risk putting your funds into a never-finished project.

5. Who will handle legal documents and property registration?

Some developers include legal and notary fees in their offering — but not all. Ask: Who is responsible for registering the property? Will I receive a valid sale and purchase deed (AJB)? Will my name or my company’s name be on the land certificate or lease agreement? Many foreign buyers don’t realize until it’s too late that their name isn’t listed as the legal holder — creating major issues down the line.

No matter how reputable the developer seems, never skip legal due diligence. At Lombok Legal Consultant, we specialize in helping foreign buyers and overseas Indonesians verify every aspect of their property transaction. From certificate checks to reviewing contracts, we ensure your investment is secure and legally sound.

Buying property in Indonesia can be a beautiful investment — but only if done with full legal clarity. Always ask the right questions before you buy, and work with a legal partner who protects your interests from start to finish.

Reach out to us for a free property document check or consultation. Better safe now than sorry later.