Looking to invest in Indonesia property? Indonesia offers diverse opportunities beyond Bali, which has long been on the bucket list of investors. Indonesia is arguably one of the last countries in the world where it’s still possible to buy and develop land directly on a pristine beach.
While other investors still try to develop the last piece of land in Bali, the investment trend for this year shows a shift towards areas further East, where investors are already securing great returns.
We explore below the different areas and sectors of opportunities in which ILA can accompany you to study and invest safely in Indonesia real estate.
Best Places to invest in Indonesia property in 2025
1. South Lombok from Kuta to Selong Belanak
Lombok has found its time. After decades of discussion, developers are finally right. South Lombok has emerged and provides stunning white sand beaches, great infrastructure with less traffic than Bali, good new restaurants, and a peaceful environment.
The airport now serves destinations like Singapore and Kuala Lumpur directly, meaning tourists are not transiting Bali anymore.
Lombok offers several opportunities to develop restaurants, gyms, properties, tourism activities, co-working spaces, etc. With the current development, the number of opportunities is equivalent to Bali, and the growth of the tourism industry brings other connected activities.
Lombok starts to attract digital nomads and also families relocating there, with Lombok developing its own community. If you’re looking for the best locations to buy property in Indonesia, especially beyond Bali, South Lombok is a prime candidate.
Investing in Lombok has some risks and legalities, and documentation is sometimes difficult to understand. We recommend entering the market cautiously to avoid scams.
2. Sumbawa
This island, located East of Lombok, is a big island with still developing infrastructure. North of Sumbawa has long been invested in by some big brands like Aman on Moyo Island, and some surf investors in the south.
Sumbawa now sees some investors invest in properties. While the land price is still accessible, the investment still stays a bet, and we recommend focusing on one segmentation: luxury tourism.
With its beautiful landscape and remote beaches, Sumbawa offers beautiful places to develop luxury hotel projects and exclusive tourist activity.
The current projects in Sumbawa are not yet fully developed, but a few are starting to rise on the west and south coast.
We however recommend being cautious with the legality of the project and to conduct proper due diligence in Sumbawa and ensure a strong contract to protect your investment if you purchase from a local developer or for an off-plan project.
Also Read: How to Open a Business in Indonesia for Foreigners
3. Sumba
The island of Sumba is clearly the gem in the East of Indonesia. The beautiful south coast of Sumba is already home to the most beautiful resorts such as Nihi and others.
At 1h flight from Bali and its international airport, Sumba offers the opportunity to develop luxury villas, properties, hotels, and other tourist attractions. Sumba is divided into 2 sectors, and most of the activities and investments are located in the south.
Good opportunities now include purchasing hectares of land in smaller pieces to resell off-plan or use the surface to develop the land, particularly for villa investment.
Some issues however have emerged regarding the ownership of the land. Before investing in Sumba, it is crucial to conduct proper due diligence by requesting the BPN (land office) to confirm the measurement and topography of the land to avoid disputes.
4. Flores and Labuan Bajo
Komodo and Labuan Bajo attract thousands of tourists every year. The liveaboard industry and dive centers understood the opportunity of Komodo decades ago.
Government development and investment now make Labuan Bajo a place to not only take a boat but also a place to stay during your holidays.
Developers are now offering villas and apartments to invest in Indonesia property with sea views and access to one of the most iconic national parks.
This area is becoming one of the best places to invest in real estate in Indonesia for expats. However, as with the rest of the islands, we recommend not trusting any documentation without double-checking its veracity.
Unfortunately, we have seen a lot of documents issued by the village but not recognized by the land office and the central government, as sometimes the land belongs to the government itself.
5. Batam
This place is certainly the one for people looking at investment close to Singapore. This island sees thousands of Singaporeans every weekend going to spend their time here.
The market is mature but still has opportunities. The special economic zone makes Batam a great place of investment, in trading, tourism, and other activities. Batam also presents itself as an area of real estate that is most profitable in Indonesia for certain segments.
Start your investment journey in Indonesia the right way
With so many diverse investment opportunities in Indonesia, you need to make sure you’ve got the right setup to do business here.
Get help from our team of experts to register your company, navigate the real estate market and secure your visa and stay permit.
Schedule a free call with us today to plan your next steps with ILA.
How to invest in Indonesia Property in 2025
Indonesia has thousands of islands, and investing in Indonesia’s remote areas can be challenging. Unfortunately, sometimes land ownership is not clear, and despite what some locals or village heads might mention, some land is disputed between families or with the regional government.
We strongly recommend investing cautiously and following some steps. If you buy investment property in Bali (or elsewhere in Indonesia) or want to develop a business, the law is clear: as in many countries, you cannot generate income if you do not own a company, especially as foreigners.
Foreigners are not allowed to generate income and work in Indonesia without the proper permits and company structure.
It is possible to invest in Indonesia through a structure called PT PMA. This type of company is a limited liability company which will obtain business licenses to run the activity. The company can own or lease land/property.
Before investing in any asset, we strongly recommend following these steps:
- Ensure the land is suitable and conduct proper due diligence.
- Draft strong contracts and protect your interest, and never pay before having a contract reviewed by a lawyer.
- Ensure you obtain all necessary permits and licenses (building permit, business license, etc.).
- Never invest under your personal name for tax purposes and legalities.
- Do not use the name of a local person, as it is not necessary in 90% of activities in Indonesia. Nominee arrangements are illegal and can lead to loss of your investment, as most disputes arise once the business becomes successful. We have seen many cases with nominees, even with family members or friends people have known for a long time.
- Contact a lawyer and legal counsel before taking any decision and establish a proper business plan before investing.
