Indonesia — with its rich natural beauty, growing economy, and diverse regions — is becoming one of the most attractive real estate markets in Southeast Asia. Whether you’re seeking beachfront land for sale, tropical plots for eco-tourism, or high-growth areas for development, this island nation offers a wealth of opportunities for savvy investors.
This guide explores the best places to invest in land in Indonesia in 2025, highlighting key regions, investment potential, and what makes each location unique. We’ll also link to some of our in-depth regional guides and keep you informed on how to buy land in Indonesia as a foreigner, covering essential legal considerations.
Why Indonesia?
Indonesia is the fourth most populous country in the world and boasts over 17,000 islands. Its rapidly growing middle class, booming tourism industry, and government investment in infrastructure make it a hotbed for Indonesia land investment.
From tropical land for sale to beachfront plots, the country offers both high-yield opportunities and long-term stability.
Key Investment Drivers:
- Growing tourism economy (10% of GDP and growing steadily)
- High demand for vacation and digital nomad rentals
- Land prices still relatively low compared to Thailand or Vietnam
- Legal structures available for foreign investors through leasehold and PT PMA
- Infrastructure projects improving connectivity across islands
1. Bali – A Perennial Favorite with Global Appeal
Despite being well-known, Bali remains one of the best places to invest in land in Indonesia due to sustained international demand, strong rental yields, and rapid infrastructure development.
Why Invest:
- 5.3 million international tourists in 2023
- 6–12% annual growth in land value in areas like Canggu, Uluwatu, and Berawa
- Expanding airport and toll road networks
- Strong demand for both residential and rental villas
Learn more: Why Bali Remains a Top Destination for Land Investment in 2025
Investment Tip: Look for land in North Bali, Tabanan, or Sidemen — quieter regions with lower land prices but strong long-term growth potential.
2. Sumba – The New Eco-Tourism and Luxury Retreat Hotspot
Once off the radar, Sumba is now an emerging property market in Indonesia. Investors are drawn to its untouched landscapes, rising eco-tourism, and increasing global interest in sustainable development.
Why Invest:
- Major hotel chains (e.g., Cap Karoso, NIHI) already operating
- Beachfront land for sale at significantly lower prices than Bali
- Government and private investments in roads and air transport
- Ideal for high ROI land investments in hospitality or eco-villas
Dive deeper: Discovering Sumba: The Next Big Land Investment Opportunity in Indonesia
3. Labuan Bajo (Flores) – Gateway to Komodo and Adventure Tourism
Labuan Bajo is fast becoming a tourist and investor favorite, thanks to its proximity to the Komodo National Park and ongoing infrastructure development.
Why Invest:
- New international airport terminal and upgraded seaport
- Komodo tourism attracts thousands of monthly visitors
- Land values rising 15–20% annually in prime zones
- Focus on sustainable tourism and eco-resorts
Related reading: Is Labuan Bajo the New Bali? Why Investors Are Buying Land Here
4. Rote Island – Surf Culture and Solitude
Rote Island offers the perfect blend of serenity and surf — and investors are taking note. With new infrastructure projects and rising tourism, this once-hidden gem is being explored for both vacation homes and resort development.
Why Invest:
- Direct ferry and flight access expanding
- Premium surf spots attract niche international visitors
- Beachfront land still undervalued
- Excellent choice for long-term safe land investments abroad
Read more: Why Rote Island Is Indonesia’s Best-Kept Secret for Land Buyers
5. Lombok – Bali’s Quiet Neighbor with Big Potential
Lombok has been on investors’ radar for years, and with the development of the Mandalika Special Economic Zone, interest is intensifying. The Indonesian government is investing billions into transforming Lombok into a major tourism and business hub.
Why Invest:
- Government-backed tourism development zone
- New international airport and circuit for MotoGP events
- Low-cost land compared to Bali, but rising rapidly
- Leasehold and freehold land options available
Legal Tips for Buying Land in Indonesia
Foreign investors should understand the legal structure before buying land. While freehold land in Indonesia is reserved for citizens, leasehold land in Indonesia (up to 80 years) is accessible to foreigners. Setting up a PT PMA (foreign-owned company) also opens up more flexibility.
Key Steps:
- Understand zoning laws (tourism, green zone, residential, etc.)
- Work with a licensed notary and legal advisor
- Verify land certificates (SHM, HGB, or Hak Pakai)
- Ensure the seller has legal rights to sell
- Register the transaction officially
Detailed resource: Leasehold vs Freehold Land in Indonesia: What Investors Need to Know
What Makes These Islands the Best for Land Investment?
| Island | Type of Investment | Growth Potential | Ideal for |
| Bali | Villas, resorts | High | Short- and long-term rental |
| Sumba | Eco-retreats, hospitality | High | Luxury eco-tourism |
| Labuan Bajo | Resorts, hotels | High | Adventure tourism |
| Rote | Surf lodges, villas | Moderate to high | Niche tourism, low-density |
| Lombok | Mixed-use, residential | High | Early-stage investors |
Final Thoughts
Indonesia is a diverse market full of untapped opportunity. From the vibrant energy of Bali to the raw beauty of Sumba and Rote, each island offers unique advantages for real estate investors looking for tropical land for sale, safe land investments abroad, and high ROI land investments.
The key to success? Do your research, work with trusted legal advisors, and choose the location that aligns with your goals.Ready to take the next step? Start your journey by exploring our full island property guide and discover land for sale in Indonesia that fits your vision.