Is now the right time to invest in Lombok, or should you consider investing in Bali instead? After years in Bali’s shadow, Lombok is gaining momentum, attracting tourists and investors who are tired of Bali’s over-tourism and traffic.
This article provides a detailed comparison, examining the clear signals of government support in Lombok through significant infrastructure projects, including a new special economic zone (SEZ) at Tanjung Aan Beach, and how Lombok’s beautiful landscape directly contrasts with Bali’s congestion.
We’ll delve into Lombok’s unique advantages, from its uncrowded beaches and scenic topography to a more affordable market with opportunities for freehold properties. While Bali’s market shows signs of saturation, the investment trend indicates that Lombok offers a more promising ROI due to lower acquisition costs and less competition.
Ultimately, investing in Lombok requires a cautious approach. Despite strong government backing, the market is still developing, with issues such as unclear land certificates and an unprofessional real estate sector. Therefore, engaging a reliable partner to conduct thorough due diligence is essential to secure your investment in this promising new market.
This is where ILA Global Consulting excels. For years, we’ve helped hundreds of international clients, including those investing in property in Bali and Lombok, precisely navigate Indonesia’s legal, taxation, and investment complexities.
Our team’s blend of deep local knowledge and international best practices ensures compliant, strategic solutions, making us a trusted advisor for anyone building a sustainable presence in Indonesia.
Is Lombok the new Bali?
In summer 2025, Lombok has seen significant tourism growth, with flights fully booked days in advance, compared to Bali. Some tourists and investors feel that Lombok has the spirit that Bali lost in the last few years.
Complaining about Bali traffic, over-tourism, and a loss of authenticity, tourists and investors are looking at other opportunities and places to spend time and invest. While a few years ago, South Lombok was not on the itinerary, more and more tourists are placing Lombok on their bucket list during their time in Indonesia.
All this leaves the question: will Lombok be the new place to invest?
Investing in Lombok: How Are Government Projects Fueling Growth?
The Indonesian government is heavily promoting tourism beyond Bali, with substantial investments in infrastructure on other islands, particularly South Lombok.
A significant new project, comparable to Bali’s Nusa Dua, is now underway at Tanjung Aan Beach in South Lombok, designed to accommodate a surge in tourists and further infrastructure development. To attract major companies to start property investment in Lombok, the government is also establishing a free economic zone in Lombok.
In addition, the government has improved road access to areas beyond Tanjung Aan Beach. Roads connecting the airport to Selong Belanak and Kuta Lombok are wide and offer quick access to these tourist destinations, a stark contrast to Bali’s often congested roads that can cause hours of traffic delays.
The signal from the government is clear: we want South Lombok to be a top destination for tourism. Long considered a backpacker surfing spot, the government intends to upgrade tourism in South Lombok to attract local tourists and international tourists with their families or individuals.
Here are the key terms that define this government-backed growth:
| Term | Definition |
|---|---|
| Free Economic Zone | Also known as a Special Economic Zone (SEZ), these are specific areas designated by the government to attract major companies and investment. They offer special tax incentives, streamlined regulations, and infrastructure tailored for tourism or other industries. |
How to Make Navigating Real Estate in Indonesia Easy?
Save time and money by letting ILA Global Consulting’s team of experts guide your real estate journey in Indonesia. We can assist with due diligence, land title transfers, notary services, contract drafting and review, building permits, SEZ licence, and more.
Please find more information about our comprehensive range of real estate services, or contact us today for a complimentary consultation.
What Makes Lombok the New Investment Hotspot?
Lombok stands out as a prime location for property investment in Indonesia, offering distinct advantages over Bali. Its pristine white-sand beaches and clear blue waters are ideal for both safe family swimming and international-class surfing, accessible by short boat rides.
The island’s coastal hills provide a natural canvas for developing luxurious villas and hotels, boasting breathtaking views of the Indian Ocean.
Unlike Bali, where new villa developments often resemble “small cages” with limited views of neighboring properties, Lombok presents an unspoiled landscape. It meets all essential criteria for a booming property market:
- Optimal Topography: Ideal for construction, offering stunning natural scenery.
- Modern Infrastructure: Featuring an international airport with direct connections to Singapore and Kuala Lumpur.
- Accessible Beaches: Numerous beautiful beaches are easily reachable.
- No Traffic Congestion: Enjoy serene travel without the usual urban snarls.
- World Class Tourism: A diverse array of attractions, including volcanoes, waterfalls, renowned surf spots, and opportunities for island hopping.
Key Terms for Investing in Lombok
| Term | Definition |
|---|---|
| Unspoiled Landscape | A natural environment that remains largely untouched by development and urban sprawl. The article contrasts Lombok’s unspoiled views with the over-development of some areas in Bali, which can lead to limited views and a sense of being in “small cages.” |
| Investment Hotspot | An area that is rapidly gaining popularity and experiencing significant growth in property value and market activity, making it a highly attractive location for investors. |
What Makes Lombok’s Freehold Property Market So Attractive to Investors?
Investors and developers in Bali are struggling now to overpromise the Bali property market. Developers who leased land a year ago are now in a situation where they need to overpromise high returns in Bali, knowing the return on investment will drop in the next few months and years.
The market is saturated with significant developments in progress, while other investors are starting to have difficulty filling the villas on Airbnb outside of the high season. Some property investors now have to fill out the villas by offering them on a monthly rental basis to try to attract a different type of clientele, especially for those who have bought a property outside the main areas. Investors now need to find other places to invest where other promising ROI are reachable.
While Bali mainly offers leasehold properties, developers in Lombok offer freehold properties at a price lower than the leasehold in Bali. As the acquisition cost is still much lower than in Bali, even if the occupancy rate can be slightly different from Bali, the Return On Investment starts to be much more attractive in Lombok than in Bali.
- Freehold property is more attractive in Lombok
- Cheaper cost of acquisition
- Less competition than Bali
- All properties are located near beautiful beaches
- The payment plan is more favorable in Lombok
Key Terms for Lombok’s Freehold Market
| Term | Definition |
|---|---|
| Return On Investment (ROI) | A performance measure used to evaluate the efficiency of an investment. It is the ratio of net profit to the cost of the investment. The article argues that Lombok offers a more attractive ROI than Bali. |
| Freehold Property | The outright and permanent ownership of a property and the land it is on. The text highlights that Lombok’s market offers more opportunities for foreigners to acquire freehold properties. |
| Leasehold Property | The right to use a property for a specified period of time (e.g., a long-term lease), but without ownership of the land itself. The article notes that Bali’s market is now primarily offering leasehold properties to foreigners. |
| Cost of Acquisition | The total cost to acquire a property, including the purchase price and all associated fees. Lombok is noted for having a much lower cost of acquisition than Bali. |
Should You Invest in Bali or Lombok?
While Bali remains a strong investment opportunity, particularly in areas like Bingin, careful consideration of location is crucial. It’s advisable to monitor development trends and maintain a realistic outlook, as developers may ultimately see greater returns than individual villa investors, who might face rental challenges in the coming years.
Lombok presents an attractive opportunity for property investment in Indonesia, particularly with the development of projects featuring common areas like spas, which are expected to draw significant tourist interest. The Marina Bay project has further brought Lombok into the spotlight.
However, it is crucial to approach investment in Lombok with caution and ensure maximum protection through robust contracts and thorough due diligence. As a developing market, the professionalism of some brokers, developers, and real estate agencies in Lombok still requires improvement. Issues such as land sales lacking proper certificates, unclear zoning definitions, or ambiguous land access still exist.
Even with notaries providing approvals, recent due diligence conducted by ILA Global Consulting has revealed some unclear projects or structures, necessitating a cautious approach. Therefore, while investing in Lombok is recommended, it is essential to proceed with prudence and engage a reliable partner to guide the process.
Don’t let the complexities of land regulations, due diligence, and contracts deter you. Contact ILA Global Consulting today to ensure your investment in Lombok is protected and optimized for long-term success.
