Uncovering Hidden Wealth: Invest in Lombok, Indonesia's Best-Kept Secret

The Ministry of Investment is steadfast in its commitment to simplifying the investment process in Indonesia. By offering end-to-end support, the ministry aims to attract a substantial influx of foreign capital.

The Ministry of Investment is steadfast in its commitment to simplifying the investment process in Indonesia. By offering end-to-end support, the ministry aims to attract a substantial influx of foreign capital. This strategic approach includes assistance in exploring investment plans, providing consultation services, licensing support, and facilitating communication with relevant parties. Investors are only required to bring their capital and technology, while the Ministry of Investment handles the licensing.

Streamlined Investment Process Indonesia
Deputy for investment cooperation at the Investment Ministry, Riyatno (third from the right), at the Indonesia-China Investment Promotion Seminar in Jakarta on Tuesday (May 14, 2024). (Image Source: ANTARA/Muzdaffar Fauzan)

Key Advantages for Investors

  1. Simplified Investment ProcessThe Job Creation Law has been pivotal in making the investment process simpler and faster. This regulation integrates investment licensing for all foreign companies entering Indonesia into the Online Single Submission (OSS) licensing system, managed by the Ministry of Investment. This system ensures a seamless and efficient process, reducing bureaucratic delays and fostering a business-friendly environment.
  2. Sectoral OpportunitiesIndonesia offers extensive opportunities across various sectors, including mining, oil and gas, agriculture, and fisheries. The government's commitment to downstreaming in these sectors is set to attract significant investments, with an estimated requirement of $618 billion until 2040. These sectors are ripe for development, promising substantial returns for discerning investors.
  3. Tax Incentives and Free Trade AgreementsOne of the significant advantages of investing in Indonesia is the host of tax incentives available. These include tax holidays, which exempt pioneer industries from company income tax for 5 to 20 years, depending on the scale and strategic importance of the investment. Additionally, Indonesia benefits from free trade agreements (FTAs) with at least 22 countries, including major economies like China, Japan, Korea, India, and Australia. These FTAs facilitate easier access to global markets, enhancing the profitability of investments.
Read More: Investing in Lombok and Indonesia: A Bridge to Opportunity for Foreign Investors
Streamlined Investment Process Indonesia
Torok, Lombok (Image Source: Invest Islands)

The Investment Landscape in Lombok

Lombok, an island in Indonesia, is becoming a hotspot for investment due to its burgeoning tourism sector and sustainable development initiatives. Known for its pristine beaches, stunning landscapes, and cultural heritage, Lombok offers unique opportunities for investors looking to tap into the tourism and real estate markets.

  1. Tourism and Real Estate: The Indonesian government has identified Lombok as a priority tourism destination, with substantial investments in infrastructure and hospitality projects. The Mandalika Special Economic Zone (SEZ) is a prime example, featuring luxury resorts, entertainment facilities, and supporting infrastructure. This development is set to boost Lombok's appeal to international tourists, driving demand for real estate and hospitality services.
  2. Sustainable Development Initiatives: Sustainability is at the core of Lombok's development strategy. Projects like the Mandala eco-village emphasize green technologies and sustainable materials, ensuring that growth is both environmentally responsible and economically viable. These initiatives not only enhance Lombok's attractiveness to eco-conscious investors but also promise long-term sustainability and community benefits.

Government Support and Investment Projects

The Ministry of Investment is actively promoting 81 investment projects with a combined value of approximately $14.84 billion. These projects span various sectors and regions, providing diverse opportunities for investors. Detailed information on these projects can be accessed through the Indonesia investment opportunity map, available online.

  1. Tax Relief Policies: To support these investment targets, the government has introduced several tax relief policies. These include exemptions from company income tax for pioneer industries, aimed at encouraging large-scale and strategic investments. Such policies significantly enhance the financial viability of investments, ensuring higher returns and reduced risk.
  2. Investment Guarantees: Investment guarantees in free trade areas provide additional security for investors. These guarantees ensure that investments are protected against political and economic uncertainties, fostering a stable and predictable investment environment.
Streamlined Investment Process Indonesia

Investing in Indonesia, and particularly in Lombok, presents a golden opportunity for investors seeking high returns and sustainable growth. The Ministry of Investment's comprehensive end-to-end support, coupled with favorable regulatory frameworks and abundant sectoral opportunities, creates an unparalleled investment landscape. As Indonesia continues to streamline its investment processes, the future looks promising for investors ready to capitalize on this emerging market.

For more information on investment opportunities in Indonesia and to explore the investment projects available, visit Indonesia Investment Opportunity Map.

Recent Articles