Lombok property: Investment potential for Australians

Guide to Invest in Lombok Property for Australians

  • InCorp Editorial Team
  • 22 August 2023
  • 5 minute 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.

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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 for land and property ownership and company registration to ease the process further.

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.

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Frequent Asked Questions

When a foreigner or their heir move to another country and have not stayed in Indonesia within one year, they must relinquish or transfer ownership rights to someone that meets Indonesian land or property ownership requirements in Indonesia.

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.

It should take between 30 to 45 days.