Investing in Lombok Real Estate

Lombok may be less known than its neighboring island Bali but has plenty of property investment opportunities regardless

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Investing in Lombok property

Lombok is a rising star in tourism in Indonesia and offers many business opportunities. This is why many investors are looking at Lombok real estate.

Below we discuss what makes Lombok a prime location for foreign investment. We will also share insights about what you need to know to safely buy property in Lombok.

Why Invest in Real Estate in Lombok

Lombok, an island in Indonesia, is often referred to as “Bali’s little sister.” In fact, it is part of the Indonesian government’s 10 New Balis initiative. The goal of the project is to develop other tourist destinations in Indonesia. With Lombok still under development, there isn’t much competition on the island.

Development in Lombok

A major development in Lombok was the opening of its international airport in 2011. Since then, tourists have been arriving on the island in droves. Lombok also has a seaport that can accommodate commercial and tourist ships. These points of entry increased the demand for short-term accommodations in Lombok.

The government has also been improving infrastructure in the area. This includes building new roads for easy access to different parts of the island.

Tourism in Lombok

Lombok is an island about 120 kilometers east of Bali. Traveling between Lombok and Bali is easy because of the multiple public ferry routes between the two. The island is home to about 4 million people with the Sasak people making up most of the population.

Lombok has a natural beauty that attracts tourists. Visitors often enjoy diving, surfing, or hiking in the area. Below are some notable attractions in Lombok.

Property investments in Gili Air
Gili Air

Gili Islands

Gili actually means “small island” in the Sasak language. However, the term Gili Islands refers to three specific islands northwest of Lombok. These islands are Gili Trawangan, Gili Meno, and Gili Air. Swimming, snorkeling, and diving are popular activities for tourists visiting these islands.

Mount Rinjani property investments
Mount Rinjani

Mount Rinjani

Mount Rinjani is an active volcano on mainland Lombok. It is the second-highest volcano in Indonesia. Tourists frequently take trips to hike up the volcano or to visit the surrounding area.

Long Beach property investments in Kuta Lombok
Kuta Lombok

Desert Point and Kuta Lombok

Desert Point is popular among advanced surfers. Advanced surfers go to this area for its big swells. Kuta Lombok, on the other hand, can cater to surfers of varying levels of experience.

Business Opportunities in Lombok

Lombok has much to offer to investors. Investing in Lombok real estate is suitable for the following businesses.

Accommodations and Short-term Rentals

The number of tourists visiting Lombok has been steadily increasing. The demand for accommodations increases along with this. You can get land to build a hotel from the ground up. You can also buy an existing villa for short-term rentals

Co-living Space

Another option is to set up a co-living space or kost as it is locally known.  Co-living spaces typically accommodate digital nomads or remote workers. Co-living spaces are common in larger cities. However, they are also becoming popular in tourist destinations in recent years.

Restaurants and Cafes

An increase in tourists also increases the demand for restaurants and cafes. Foreigners have the opportunity to be the first to offer their culture’s food to the local market.

Surfing and Diving Centers

Lombok is an up and coming destination for surfers. Desert Point can cater to seasoned surfers. Meanwhile, beginners can look to the Kuta Lombok area to learn how to surf. Lombok is a suitable location for surfers who wish to set up a surfing center.

Many tourists also visit Lombok for diving and snorkeling. Tourists often go to the Gili Islands to dive and snorkel because of the abundance of sea turtles in that area.

Spas and Wellness Centers

To cater to tourists who are not into water sports, foreign investors can look into establishing a spa or wellness center. You can set up a spa or wellness center within your accommodation business, or have it as a standalone business.

Set up a business in Lombok.

Register your company in Lombok with Emerhub.

How Foreigners Can Buy Property in Lombok

Can foreigners own land in Lombok?

In Indonesia, there are different types of land certificates. The type of certificate determines the rights of the holder in relation to the property. The Hak Milik or Right to Own land certificate is not open to foreigners. However, there are alternatives for foreigners who wish to invest in Lombok real estate.

For business purposes, the Hak Guna Bangunan or Right to Build certificate is the most suitable land certificate. With the Right to Build certificate, the property will be under the name of the company. This certificate is valid initially for 30 years and is renewable.

If you intend to buy property for personal use, you should get a Hak Pakai or Right to Use certificate. To get a Hak Pakai, you must have a valid stay permit (KITAS). This certificate is also initially valid for 30 years and is renewable.

The Right Way to Buy Land in Lombok

Before buying land in Lombok, it is important to do the following to ensure that there will be no issues with your property.

  • Check the land ownership. You must make sure that you are dealing with the actual owner or an authorized representative.
  • Zoning. There are zoning laws in Indonesia that prohibit certain business activities in certain areas. For example, you cannot construct buildings in green zones. Check the zoning of the property to ensure that you will be able to operate your business there.
  • Building permit. If you are purchasing a property with an existing building, you need to check if it has the permits necessary to operate a business.
  • Payment of taxes. You will not be able to apply for permits and licenses if your land has unpaid taxes. Unpaid taxes on the property will also affect the price.
  • Infrastructure. Much of Lombok is still under development. As such, some areas may not have access to power or water.

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