Should I Invest in Lombok?
High-growth potential, lower entry prices, and strong long-term returns
12/23/20252 min read
If you’ve been wondering where the next big property opportunity in Southeast Asia is, stop looking. It’s already here, and it’s called Lombok.
A New Chapter for Indonesian Investment
For years, Bali has been the go-to destination for property investors. But as the island becomes more saturated and expensive, smart investors are setting their eyes just across the water, on Lombok, a quieter, more authentic island that’s now undergoing massive transformation.
The Indonesian government has invested over €8 billion into Lombok’s Mandalika Project, an ambitious development plan focused on sustainable tourism and infrastructure. Think new roads, an international airport, a MotoGP circuit, five-star resorts, and a steady increase in global visibility.
Since 2022, tourism in Lombok has grown by more than 250%, and international arrivals continue to rise each month. What this means for investors is simple: demand is outpacing supply, and that’s where the opportunity lies.
Why Lombok Makes Sense for Investors
Unlike Bali, where prime land is scarce and property prices have soared, Lombok still offers incredible value, especially in areas like Kuta, on the island’s southern coast. Kuta has become the epicenter of growth: a lively beach town filled with cafés, yoga studios, and boutique resorts, attracting both travelers and digital nomads.
Here’s why investors are paying attention:
High ROI Potential: Tourism demand is growing faster than new accommodation supply, resulting in strong occupancy rates and premium nightly prices.
Long-Term Capital Appreciation: Land and property prices in Kuta are steadily increasing each year, offering a dual return, income and appreciation.
Legal Security for Foreigners: Through a PT PMA (foreign investment company), foreigners can legally own and operate villas under a secure structure.
Lifestyle Bonus: Beyond the financial gains, Lombok offers what Bali once did — unspoiled beaches, local charm, and a more relaxed pace of life.
Understanding How It Works
Most foreign investors in Indonesia purchase property through leasehold or Hak Guna Bangunan (Right to Build) titles under a PT PMA. These structures allow you to legally own the building and operate it as a business, renting it out short- or long-term.
Operational management is straightforward, many local companies handle everything from maintenance and staff to guest bookings. Investors receive monthly returns directly into their company bank accounts, and with tourism numbers climbing, average returns between 10–20% per year are realistic depending on property type and usage.
The Bottom Line
Lombok isn’t just “the next Bali.” It’s a new investment chapter altogether, a place where early investors are positioning themselves ahead of the curve. With strong government support, a booming tourism industry, and still-accessible property prices, the island offers a rare mix of growth potential and lifestyle appeal.
So, if you’ve been wondering whether to invest in Lombok, the answer might be simpler than you think: the best time was yesterday, the next best time is now.
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