NTB Clarifies Risk-Based Licensing Rules for Investors

Indonesia’s investment authorities are sharpening the practical understanding of risk-based business licensing in West Nusa Tenggara (NTB), the province that includes Lombok. For investors, the message is less about a single new opportunity than about the value of getting licensing, regulatory interpretation and documentation right from the outset.

A focused discussion on licensing certainty

On 9 July 2026, NTB’s Investment and One-Stop Integrated Services Office (DPMPTSP) held a focus group discussion in Mataram on risk-based business licensing policy. The stated aim was to give businesses and stakeholders a more comprehensive understanding of the latest direction of the policy.

The session was opened virtually by Dr Riyatno, Deputy for Investment Climate Development at Indonesia’s Ministry of Investment and Downstreaming/BKPM. He said the refinement of licensing regulation forms part of the government’s effort to create a more conducive investment climate in support of the Indonesia Emas 2045 vision.

The discussion centred on risk-based business licensing, regulatory updates and the practical use of Indonesia’s Online Single Submission system.

For a market such as Lombok, where investment decisions may combine hospitality, property development and operating businesses, that emphasis is material. The commercial case for an asset and the legal route used to own, develop or operate it are separate questions; both need a coherent answer.

The policy changes officials highlighted

According to the NTB DPMPTSP account, the government is continuing regulatory reform through improvements to risk-based business licensing policy. The changes cited include Government Regulation Number 28 of 2025 and Minister of Investment and Downstreaming Regulation Number 5 of 2025, described as refinements of earlier provisions.

The official account identified three broad elements of the reform:

• simplification of the regulatory structure;
• optimisation of the Online Single Submission, or OSS, system; and
• refinement of technical provisions intended to provide greater certainty and ease of doing business.

The source does not set out a new timetable, a list of sector-specific obligations, or an assessment of how individual applications will be treated. Investors should therefore resist reading a general policy discussion as a substitute for transaction-specific advice. What it does show is that the authorities are actively focusing on how the rules are understood and applied.

OSS remains central, but understanding remains the issue

H. Irnadi Kusuma, Head of NTB’s DPMPTSP, said there are still many questions and obstacles among the public concerning the use of OSS and business-licensing processes. In his account, these difficulties do not always arise from the system itself; they can also reflect limited understanding of regulations and policy changes that continue to develop.

That distinction is important. Digital licensing systems can make procedures more accessible, but they do not eliminate the need to identify the correct business activity, supporting documentation and legal structure. A filing pathway may be digital while the underlying decision remains a legal and commercial one.

Foreign investors considering Lombok should also keep the property framework distinct from business licensing. Foreigners cannot hold freehold, or Hak Milik/SHM, which is reserved for Indonesian citizens. Available routes include leasehold, Hak Pakai for eligible residents, and a foreign-owned PT PMA holding Hak Guna Bangunan/HGB. Nominee arrangements, in which an Indonesian citizen holds freehold on a foreigner’s behalf, are illegal and void in court.

Why this matters in Lombok

The official discussion did not announce a Lombok-specific property policy. Its relevance lies instead in the operating environment around investment: a clearer understanding of risk-based licensing and OSS is useful where investors are evaluating businesses, projects or operating structures in NTB.

For South Lombok property, legal diligence remains inseparable from the investment thesis. Land values vary markedly by location, with the overall spread in the verified market data running from about Rp 30 million to Rp 400 million per are. Kuta, the leading demand and liquidity zone, is cited at Rp 300 million to Rp 400 million per are, while Are Guling is cited at Rp 120 million to Rp 180 million per are.

One are equals 100 square metres; local market convention is to quote land in Rp per are.

Those differences make site-specific checks essential. They also underline why an investor should not treat a business licence, a land title, zoning review and operating readiness as interchangeable documents. Each serves a different purpose in the transaction chain.

For legal structures, due diligence and title-transfer processes, HubLombok’s advisory partner TerraNusa Advisory provides an independent licensed-notary and legal desk for foreign buyers in Lombok. Its stated scope includes checking SHM/HGB certificates, ownership history, zoning and encumbrances, as well as PT PMA setup, taxes, deeds and title transfer at BPN.

What this means for investors

The immediate takeaway is procedural rather than speculative. The NTB event suggests that the authorities recognise continuing confusion around licensing rules and OSS, while the central government is presenting the 2025 regulations as part of a wider effort to improve certainty.

Investors assessing a Lombok business or property-linked project should focus on a disciplined sequence:

• establish the intended investment and operating structure before committing funds;
• confirm whether the relevant activity requires licensing through OSS;
• verify land rights, zoning, ownership history and encumbrances independently;
• ensure deeds are executed by a licensed PPAT notary; and
• budget for applicable transaction costs, including BPHTB, which is about 5% of assessed value for the buyer.

For those examining developments like Samudra Villas in Are Guling, South Lombok, the same principle applies: a property’s design, projected income and location may be attractive, but the legal and licensing architecture deserves equal scrutiny. HubLombok is the editorial arm of Samudra Villas, an active developer in Are Guling, South Lombok.

The policy direction described in Mataram is encouraging in intent, but careful execution will remain the investor’s responsibility as the regulatory framework develops.

Stay informed — subscribe to our free weekly Lombok market intelligence for analysis like this delivered every Sunday.