While thinking about investment locations in Indonesia, Bali has long been the darling of each local and foreign buyers. But Lombok is an island that is quietly attracting attention across the Lombok Strait. Known for its pristine beaches, pristine scenery and rapidly developing infrastructure, Lombok is evolving from a tropical retreat into a lucrative investment destination.
Here are a few reasons why adding Lombok to your portfolio is important, regardless of your level of experience or familiarity with Indonesian industry.
1. Strategic Location and Government Support
Lombok is part of the West Nusa Tenggara province, situated east of Bali. Its proximity to one among Southeast Asia’s most famous vacationer locations makes it ideal for overflow tourism and complementary enterprise sports.
The Indonesian authorities has recognized Lombok’s capability and certain Mandalika—a unique economic zone (SEZ) at the island—as a national priority project. With billions invested into infrastructure, which includes roads, water systems, and telecommunications, the area is now home to international-class activities like MotoGP and is targeted to come to be a prime tourism and economic hub.
2. Cost Advantage Compared to Bali
Lombok gives significantly lower land and property costs than Bali. For example, top beachfront land in Bali may cost a little up to four or five times extra than comparable land in Lombok. This charge differential lets in buyers to accumulate large plots, develop more bold tasks, or genuinely enjoy higher margins especially in the hospitality, residential, and ecotourism sectors.
Moreover, the lower cost of residing and wages in Lombok similarly reduces operational overhead, making it an appealing destination for startups and businesses looking for cheap enlargement.
3. Expanding Infrastructure and Tourism
Lombok International Airport’s completion has already improved accessibility and allowed foreign visitors to visit the island. Direct flights from Singapore, Kuala Lumpur, and Jakarta have made the island less of a secret.
Additionally, government-sponsored marketing, growing hotel and villa constructions, and the emergence of health retreats have all contributed to the Mandalika SEZ’s increase in both local and foreign tourists. In order to further diversify revenue streams, the proposed extension of the Lombok marina and port facilities also seeks to capitalize on the growing interest in yachting and cruise tourists.
4. Legal Paths for Foreign Investors
Indonesia has made efforts to facilitate foreign investment. Foreigners and businesses can use processes like the PT PMA (foreign-owned limited liability company) to lawfully own businesses and get long-term land usage rights in Lombok.
Even though regulations are always changing, foreign investors can ensure full legal compliance by navigating the legal framework with the help of qualified experts, especially with regard to licensing, property buying, and tax reporting.
5. Diverse Investment Fields
Although Lombok is a tourism area, it offers more than just a place to stay for tourism. There are many things that investors are interested in including eco-friendly resorts, renewable energy, and agribusiness. The island places a high priority on sustainable development, companies that uphold social and environmental responsibility are very well positioned to thrive there. Entrepreneurs in the digital services and remote work infrastructure sectors also see potential as the post-pandemic transition to a digital lifestyle increases demand for co-working spaces, fiber internet, and technology-focused communities.
Ready to discover Lombok’s investment landscape?
Lombok’s combination of natural appeal, rising infrastructure, and investment-friendly guidelines makes it considered one of Indonesia’s most promising frontiers. While Bali will usually preserve its enchantment, savvy buyers are actually turning to Lombok for its first-mover blessings and untapped growth capability.
However, navigating Indonesian legal, assets, and enterprise regulations requires local expertise. That’s where ILA Global Consulting can help. With in-depth experience in foreign investment structuring, due diligence, legal compliance, and local partnerships, ILA global Consulting gives tailored guide to help you invest in Lombok with confidence.
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