Long overshadowed by its superstar neighbour across the Lombok Strait, there’s a steady hum about Lombok that catches the ear of travellers looking for something different to Bali. Blessed with exquisite white-sand beaches, epic surf, a lush forested interior, and hiking trails through tobacco and rice fields, Lombok is fully loaded with equatorial allure.
“Selong Belanak is a welcome antidote to the uncheked development, overcrowding adn waste management concerns that blight more established Asian touris resorts. The board bay ticks all the boxes: luminous turqoise seas and sand as white as washing powder. Think pucket 30 years ago.”
– SCMP (Nov, 2016)
Construction of the Pullman hotel is already under way with Club Med, Royal Tulip, Paramount Hotels and X2 resorts all due to start building throughout 2017.
The recent opening of Lombok International Airport in 2011 has led
to a 200% average annual increase in visitors. Mandalika will be THE five-star Asian destination to visit starting in 2018.
Supporting Regional Infrastructure
With its natural beauty and cultural authenticity, Mandalika has high potential to become the next world class tourism destination. Delivering a 1175ha of tourism-related mixeduse products, Mandalika is positioned as an ecotourism destination incorporating environmentally friendly technologies, such as solar farms, SWRO plants. and allocating more than 51% as dedicated ‘green space’.
Overview SEZ Mandalika
The Mandalika project is in the status of Special Economic Zone (SEZ) for the agricultural and ecotourism industries which were newly launched by the government of Indonesia in 2014. It has benefits for investors in terms of fiscal and non-fiscal incentives. With a total area of 1250ha, it offers natural beauty, panoramic views, and other tourist attractions. Mandalika is located in south Lombok and is managed by Indonesia Tourism Development Corporation (ITDC) PT Pengembangan Pariwisata Indonesia.
Source: Indonesia Tourism Development
Corporation, Information Deck 2017
The Green Future
Under ITDC’s masterplan, the solar power plant will
utilise the land under the solar panels as a greenhouse
to grow crops organically.
The company will develop the solar power plant in
stages and targets it to reach full capacity by 2019.
The power plant, which occupies up to 50ha
of land, will help supply half of the resort’s
power demand, projected to reach 110
megawatts by 2025.
Three factors behind our decision to invest in Lombok
Location is often cited as the main determining factor in the value of any given property. The same concept applies when considering the Indonesian islands. This exclusive piece of paradise is just a 2 hour 30 min flight from Singapore, or 30 min from Bali. Located in the middle of the warm, blue Indian Ocean, Lombok boasts a climate that seldom sees temperature above 33C or below 21C.
This means glorious sunshine and perfect days for exploring the stunning beaches, diving in clear aquamarine oceans, and enjoying your holidays in a true tropical paradise. Lombok is the most popular destination in Nusa Tenggara, Indonesia, with the fabled Gili Islands drawing visitors for action both in and out of the water. The mighty Mount Rinjani, Indonesia’s second highest volcano (3726m) is also a lure for trekkers, with the big breaks on the south coast a magnet for surfers.
– – Lombok-tourism.com
“Indonesia is the third fastest growing economy in Asia and the fastest within South East Asia. While Bali’s tourism industry is world famous and has been booming for the best part of two decades, the entire region is undergoing touristic development and the nominal per-capita GDP is expected to quadruple by 2020.”
– Standard Chartered
Social and Economic Stability
Indonesia has experienced consistent economic growth of around 5-6% YOY since 2010 and this is expected to continue this year.
The rising domestic demand of Indonesian investors and tourists is an additional factor.
The new emerging middle class is creating a boom for consumer companies in the
country from hotels and airlines to cars and mobile phones. This is boosting domestic
wealth, which is fnding its way into the property market, in the form of land purchases and developments.
Overflow from other popular tourism markets completes the picture. The closest
comparable market is Bali, which is frequently considered over-developed and
overpriced having performed strongly over the last two decades. Other regional markets
like Koh Samui and Phuket in Thailand also contribute, as do high prices in developed
markets such as Australia, Hong Kong, Singapore and Malaysia.
Indonesia continues to forge ahead as one of the world’s largest
democracies, with very few tensions within the existing political power
structures, which are unlikely to impede significant reforms and
economic growth. Following the ten-year administration of Susilo
Bambang Yudhoyono, Joko Widodo was elected to office in July 2014
with a voter turnout of 70.6%. Significantly, this was one of the largest
turnout rates to date and showed an increased participation by
Indonesian citizens in the process, suggesting a strengthening of the
Development of the island in recent years has sped up with the new international airport helping to increase arrivals, and both private and governmentbacked resort projects already open for business.
This provides a unique window of opportunity for investors to buy into a market that is on a steep upward curve, yet remains exclusive and available at unbelievable value.
With the opening of the new international airport, the development of boutique resorts and continued work on general infrastructure we continue to see great upside potential in Lombok on a three to seven year view.”
The island, considered in the top 5 emerging investment spots in Asia for 2015 by property report, is strategically located near the tourism epicenters that are Bali and Komodo Island, and is blessed with spectacular natural beauty. Its beaches are considerably less crowded and more pristine and tranquil than those of its neighboring sister, and its volcano Mount Rinjani, second highest in Indonesia, is considered by many as one of the most beautiful volcanoes on the planet.
In the past 10 years, there has been a significant rise in the population in Bali on both a local and foreigner level, resulting in a serious rise in motor traffic and pollution of its beaches and a general loss of its charm on the land.
Its distinctive cultural mosaic, which is a blend of the main Sasak culture alongside Balinese, Javanese and other minority cultures is another favorable characteristic for the development of tourism.
The unprecedented level of growth is mainly attributed to the island’s increasing popularity as an alternative holiday destination to Bali. As Bali faces challenges of oversupply and soaring land costs, investors are turning to Lombok as an attractive alternate site for land and property investments.
Source: Google Map and Jones Lang LaSalle, 2017
According to Tourism Solutions International, Lombok tourism is set to double: “The island is also fast gaining interest from foreign real estate investors and individuals seeking an alternative to the increasingly saturated Bali market for property purchases. Lombok’s land prices are still very competitive with potential for extremely good returns”.
Development is still mainly concentrated along the north-west coastline, near the famous Gili islands of Meno, Air and Trawangan – Lombok’s most popular destinations. However, many of Lombok’s untapped locations still have the potential for big investment and tourism development.
Source: Google Map and Jones Lang LaSalle, 2017