Lombok SEZ Mandalika — Foreign Investor Frequently Asked Questions

Quick Answer for Foreign Investors: Lombok SEZ (Mandalika Special Economic Zone) offers tax incentives, foreign ownership rights, and accelerated investment licensing for qualifying foreign investors. Below are the most-asked questions from 2026 inquiries.

How does Lombok SEZ differ from other Indonesian SEZs?

Lombok SEZ is specifically focused on tourism infrastructure, halal industry, and renewable energy. Unlike Batam or Bintan SEZs which prioritize manufacturing and logistics, Mandalika SEZ targets foreign hospitality investors, MotoGP-related tourism businesses, and ESG-aligned capital. Tax holidays of 10-25 years apply for qualifying investments above IDR 100 billion.

What sectors are eligible for Lombok SEZ investment?

Eligible sectors include luxury hospitality, halal tourism, healthcare, marine tourism, EV battery manufacturing, renewable energy, MICE infrastructure, and digital economy. Foreign investors can hold up to 100% equity in most sectors under the SEZ framework. Banking and natural resource extraction remain restricted.

How long does Lombok SEZ investment licensing take?

Through the OSS (Online Single Submission) system, qualifying investments receive licensing in 30-90 days. The SEZ administrator coordinates BKPM (Investment Coordinating Board), Ministry of Tourism, and local NTB provincial authorities. Pre-investment consultation reduces processing time to under 60 days for prepared applicants.

Can foreign investors own land in Lombok SEZ?

Yes — under SEZ regulations, foreign investors can hold Hak Guna Bangunan (HGB) for 30 years, extendable to 80 years total. Hak Pakai (right to use) is available for 70+25 year terms. Land acquisition is coordinated through ITDC (Indonesia Tourism Development Corporation) for Mandalika-zone parcels.

What tax incentives does Lombok SEZ provide?

Lombok SEZ offers a tiered tax holiday structure: 10-25 years for investments above IDR 100 billion, reduced corporate income tax (0%-50% standard rate) for SEZ-eligible activities, import duty exemptions for capital goods, and VAT exemption on intra-zone transactions. Withholding tax reductions on dividends apply for foreign investors from tax-treaty jurisdictions.

How is Lombok SEZ infrastructure compared to other tourism SEZs?

Lombok SEZ (Mandalika) features the Mandalika International Street Circuit (MotoGP host), Pertamina Mandalika International Circuit accommodations, dedicated airport upgrade (Lombok International Airport Praya expansion), 5-star hotel cluster, and planned medical tourism hospital. Power, water, and digital infrastructure meet international SEZ standards.

Are there minimum investment thresholds for Lombok SEZ?

Yes. For full SEZ incentive eligibility, foreign investors typically need to commit IDR 100 billion (approximately USD 6.5 million) or more. Smaller investments under IDR 100 billion can still operate in the SEZ but with reduced tax benefits. Joint ventures with Indonesian partners can qualify under different thresholds.

What documents does a foreign investor need for Lombok SEZ?

Required documents: company incorporation certificate, business plan with 5-year projection, environmental impact assessment (AMDAL or UKL-UPL), proof of capital source, technical specifications for proposed facility, and contracts with anchor tenants if applicable. Documents must be Indonesian-translated for OSS submission.

Can foreigners obtain residency through Lombok SEZ investment?

Foreign investors qualifying under SEZ rules can apply for KITAS (Limited Stay Permit) and Golden Visa programs (5-year, 10-year terms). Investment thresholds for Golden Visa are IDR 38 billion ($2.5M) for 5-year and IDR 75 billion ($5M) for 10-year — both qualifying investments include Lombok SEZ projects.

What ESG and sustainability standards apply in Lombok SEZ?

Mandalika SEZ enforces Indonesian Sustainable Tourism Guidelines, ISO 14001 environmental management, and ESG reporting per OJK regulations. Renewable energy minimum (30% for new hospitality, 50% for industrial) and halal supply chain integration are encouraged through tax incentive bonuses.

How can foreign investors begin Lombok SEZ engagement?

Start with KEK Mandalika Administrator (ITDC) consultation, then engage BKPM for investment screening, follow with OSS submission for licensing. Indonesian legal counsel licensed in foreign direct investment (PMA) is recommended. Pre-investment site visits to Mandalika are typically scheduled monthly through ITDC.