Lombok property: Investment potential for Australians

Guide to Invest in Lombok Property for Australians

  • InCorp Editorial Team
  • 25 June 2025
  • 5 minutes reading time

The Lombok property is an enticing opportunity for Australians in the real estate market. Lombok offers captivating landscapes, pristine beaches, and a booming tourism industry. This Indonesian island has piqued the interest of astute investors looking to capitalize on its untapped potential.

This article will delve into the investment potential of Lombok property, highlighting the factors that make it an attractive choice for Australian investors seeking to diversify their portfolios and reap the rewards of this emerging market.

Lombok as an emerging investment destination

The Ministry of Tourism and Creative Economy organized a recent training program in Lombok, West Nusa Tenggara. The program is designed to enhance the region’s tourism and creative economy businesses. 

As one of the Super Priority Tourism Destinations, Lombok is undergoing infrastructure development in Mandalika, necessitating improving human resources. The program targeted 320 participants from various sectors to enhance business image, customer reviews, and tourist trust. 

The fruit of the program was seen at the ASEAN Summit last May. The training equipped owners with tools to seize opportunities and improve service quality in hospitality, housekeeping, food and beverage, and complaint resolution. 

Additionally, mentoring and coaching sessions will still be provided by the ministry to enhance online businesses, held in Super Priority Tourism Destinations like Lake Toba, BYP (Borobudur-Yogyakarta-Prambanan), Lombok, Labuan Bajo, BTS (Bromo-Tengger-Semeru), and Wakatobi.

The growing interest from Australian investors in Lombok

Lombok property: Investment potential for Australians

Tourism in Lombok and the areas around it are experiencing a surge in activity and popularity, thanks to various sports events like MotoGP, MXGP, IronMan 70.3, Shell Eco Marathon, WSBK, and others. This positive trend has attracted the attention of potential investors, particularly in the Mandalika area.

Several investors have started to arrive in Mandalika, Central Lombok, to explore the potential for investment in various fields. The tourism sector, in particular, has been a popular choice for investors due to attractions like the Mandalika Circuit, which draws both tourists and investors.

Samsul Bahri Sega, the Chairman of the Mandalika Hotel Association, confirmed that investors have been surveying the area and considering investment opportunities. The focus has primarily been on tourism-related investments such as hotels and villas. Australian investors have shown interest, although their plans are still in the exploratory stage.

Read more: Investing in Lombok: Top Reasons to Buy a Villa on the Island

Why should you invest in Lombok?

Lombok’s prospects are currently even more promising than in 2019. Designated as a “super-priority destination” by Indonesia’s Ministry of Tourism & Creative Economy, the southern area of Mandalika has witnessed significant investments in modern infrastructure. 

Moreover, introducing a new long-term residency visa has attracted foreign buyers seeking an alternative lifestyle away from busy cities. New flights and the return of significant events, including the FIM Superbike World Championship and the upcoming Indonesian MotoGP race, further support the revival of international travel to Lombok. 

These exciting events, combined with Lombok’s natural attractions and diverse activities, such as guided tours and world-class diving, make it an excellent investment choice.

Investment opportunities in Lombok for Australians

Lombok property: Investment potential for Australians

The Indonesian government has been eager to support and welcome Australian investors to Lombok. It is clearly illustrated through the new route, allowing flights to fly Lombok-Australia. 

The immigration aspect has also been revamped to support regional investment and tourism. The convenient pick-up for residence permits and passport services evidences this. Electronic Visa on Arrival is also set up for the same purpose of streamlining processes.

All such efforts have received positive feedback from foreigners and Indonesian citizens, as it increases ease and comfort. It is also particularly welcome Australian investment in Lombok. 

Reasons to consider Lombok property investment

The following are reasons why Australians should consider investing in Lombok property.

1. Strategic location

Due to its convenient access, Lombok is often preferred for events and vacations. Singapore and Bali are both only two hours away from Lombok.

2. Variety of tourist attractions

Popular tourist destinations, including the Gili Islands, Tiu Kelep waterfall, Kalak hot springs, Senggigi, and stunning beaches, consistently draw more visitors yearly. Lombok is now known as the “next Bali” because of this, drawing surfers, tourists, beach lovers, visitors, and investors.

3. Easy access

Silk Air, Garuda Airlines, and Air Asia offer frequent flights to and from Lombok domestically and internationally. Flights to Lombok are also run by other airlines, including Garuda Indonesia, Citilink, Lion Air, and Wings.

4. Appealing alternative

Lombok provides investors with affordable land alternatives, an appealing alternative to Bali, which has had excessive and over-indulgent tourism issues.

Guide to Doing Business in Bali & Lombok

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Conclusion

In conclusion, the government has reflected the region’s commitment to promoting investment and tourism. The government aims to provide convenience and efficiency to foreign nationals and Indonesian citizens by streamlining residence permits and passport services. 

As Lombok continues prioritizing convenience and accessibility for travelers, it is poised to attract more visitors and investors, solidifying its position as a thriving destination in Indonesia. Investors seeking to invest in Lombok may seek assistance from InCorp Indonesia (an Ascentium Company) for land and property ownership and company registration to ease the process further.

Verified by

David Susandi

Branch Manager – Bali Office at InCorp Indonesia

Holding 11 years of experience in various roles, including project manager, operational manager, and corporate strategist, David Susandi is a prominent figure for many entrepreneurial organizations expanding in Indonesia.

Frequently Asked Questions

    Register the product with BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). The type of testing and document requirements depend on the type of product you want to register. Also, the time frame for registration could vary between 3 to 15 months.

    A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances.

    • Import facilities
      Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production.
    • Tax holiday
      The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status.
    • Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy.

    • Tax allowance
      For companies in certain designated areas or regions, the government may provide the following tax concessions:
      Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration.
      Accelerated depreciation and/or amortisation deductions
      An extension of tax losses carried forward for a maximum of ten years
      A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents
      The applicant eligible has to meet high-level-criteria for the above tax facilities:
      High investment value or for export purposes
      High manpower absorption
      High level of local content
    • Investment allowance
      The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project.
    • Super deduction
      This facility could be granted to certain businesses, such as:
      60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame.
      Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities.
      Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia.

    A limited liability corporation is required by Indonesian company law to have two or more shareholders, who may be either a legal entity or an individual. The foreign investor must find a second shareholder to own shares in the PMA firm for investments that are 100% open, which could be an affiliated party.

    A foreign-owned company (PT PMA) in Indonesia is a popular choice among foreigners to set up a business. Foreign investors must check Indonesia’s Positive Investment List to see which businesses are open to foreign direct investment.

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