Question 1

Can foreigners own property in Indonesia?

Accepted Answer

Foreigners cannot own freehold land in Indonesia. However, through a PT PMA (foreign-owned company) structure, the company holds an HGB (Hak Guna Bangunan, Right to Build) title over the land and building for up to 80 years (30+20+30, extension not automatic). Fully legal. We handle the entire legal setup for you.

Question 2

What rental yields have comparable villas achieved?

Accepted Answer

Comparable premium villas in the Senggigi area (northwest Lombok) have achieved net rental yields ranging from 7–14% annually, depending on villa type, price point, and occupancy. Premium villas with private pools typically command ADRs of EUR 130–180, with occupancy rates of 50–60% year-round. This figure reflects income from guest bookings alone — before factoring in property appreciation. These are observed results from comparable assets, not forecasts. Actual results may vary.

Question 3

What about asset appreciation and total returns?

Accepted Answer

Beyond rental income, Lombok’s land and property values have shown strong appreciation driven by new infrastructure (Mandalika, international airport expansion) and rising tourism demand. When combining observed net rental yields (7–14%) with estimated asset appreciation trends, our scenario models suggest combined returns may range from 12–18% under base-case assumptions. These are projections — not guarantees. We provide detailed scenario modelling in our investor reports so you can assess both income and capital growth.

Question 4

How is the property managed?

Accepted Answer

We provide full property management including guest booking, cleaning, maintenance, and accounting. Our management fee is 15% of net revenue (after OTA commissions and applicable taxes). You receive monthly income reports and can track performance through our dashboard.

Question 5

What are the tax obligations?

Accepted Answer

Rental income is subject to two taxes: PBJT (local hotel tax) at 10%, collected from the guest and not deducted from your returns, and Corporate Income Tax. Indonesia applies a 22% base CIT on net profit, but PT PMAs qualifying under the PP23 SME regime pay a reduced 0.5% final tax on gross revenue during the first three years. We handle all tax filings through the PT PMA.

Question 6

What is the construction timeline?

Accepted Answer

From purchase to handover, the typical timeline is around 9 months, up to 14-15 months maximum. This includes 2 months for permits and design finalization, 7 months for construction, and 2 months for furnishing and commissioning. You receive monthly photo updates throughout.

Question 7

Can I use the villa myself?

Accepted Answer

Yes. Most investors reserve 2–4 weeks per year for personal use. We simply block those dates in the booking calendar. Personal use periods are excluded from the occupancy and yield calculations in our projections.

You Asked, We Answered