A little-known Indonesian island is emerging as a more affordable alternative to Bali for Australians feeling the pressure of the cost-of-living crisis.
Karstan and Maxine Smith moved to Lombok with their daughters, Zuri, seven, and Zena, three, nine months ago. They now believe the island offers the ideal place to raise their family.
The couple had spent years travelling across Australia before purchasing five acres in the Byron hinterland in 2025, planning to build their dream home.
However, escalating costs and an avalanche of paperwork soon made the project far more difficult than they had expected, forcing them to rethink their future.
‘We bought land to build a house, which we thought was the Australian dream, but the reality was roadblock after roadblock of rules, permits and reports,’ Ms Smith, 37, said.
‘We’ve spent close to $100,000 trying to get our development application approved and the land ready to build on. It hasn’t been exciting, it’s been stressful.’
The family travelled to Lombok earlier this year and quickly embraced its slower pace of life. As delays and setbacks continued to stall their northern New South Wales building plans, they chose to move after seeing the opportunities available on the island.
‘It is very untouched and there’s more opportunity. It’s more natural than Bali, there’s more land and it’s growing,’ Mr Smith, 39, said.
Karstan and Maxine Smith moved to Lombok six months ago with their daughters, Zuri, seven, and Zena, three (pictured)
The couple bought five acres in the Byron hinterland in 2025 intending to build their dream home, but rising costs and complex regulations forced them to reconsider
After visiting Lombok and falling for its lifestyle, the family decided to relocate and pursue the opportunities they saw on the island
The Smiths said the cost of everyday life was also dramatically lower than in Australia, whether they were dining out or buying food for the family.
‘A meal out can cost just over $1,’ Mr Smith said.
‘A grocery shop would cost us at least $150 in Australia, but here we can go to a local market and pay around $15 to $20 and stock up the fridge,’ he added.
Fuel has delivered another significant saving. The family said subsidised diesel costs about 6,000 rupiah per litre, equivalent to roughly 50 cents.
Their move reflects a broader trend, with more Australians considering Indonesia as a lower-cost place to live and, in some cases, an appealing property investment market.
Tom Merrett, principal of Reef Property Lombok, said Australian investor-buyers now account for half of his clients, up from 15 per cent just two years ago.
Australians are reportedly paying about $350,000 for a two-bedroom villa within walking distance of central Kuta, Lombok’s main tourist town. Larger five-bedroom homes with ocean views can sell for as much as $1.2 million.
The contrast is especially stark against Sydney, where the median house price reached $1.66 million, according to Domain’s September 2026 House Price Report.
The family said a grocery shop costs only $15 to $20 in Lombok, compared with about $150 in Byron Bay
ALSO READ: Indiana University Mass Shooting Hurts at Least 7 at Homecoming
Lombok has seen a surge in Australian property investors, according to real estate agent Tom Merrett (stock image)
The Smiths say rising living costs in Australia played a major role in their decision to move overseas
Mr Merrett said Lombok’s appeal was partly driven by growing frustration with Bali due to its overcrowding and traffic congestion.
‘About a million Australians go to Bali each year and I think a lot of people are just bored with it and they’re looking for somewhere new and Lombok offers that feeling, it’s a bit of a cliche, but they say it’s Bali 30 years ago,’ he said.
The Smiths said Lombok’s growing property market was another major drawcard, with increasing development creating new opportunities for investors.
‘Big developers are moving over here. There is a continuation of growth and a lot of opportunity coming,’ Mr Smith said.
The couple had previously invested in Australian property but said government policies and rising costs had made it increasingly difficult to achieve the returns they wanted.
In Lombok, however, they believe the potential rewards are considerably greater.
‘We can double or triple our returns on investment in Lombok,’ Mr Smith said.
He also pointed to the Indonesian government’s creation of special economic zones, saying the development was contributing to the island’s investment appeal.
Mr Merrett said Lombok’s appeal was partly driven by growing frustration with Bali, which has faced criticism over overcrowding and traffic congestion (stock image)
The couple say their daughters attend an international school in Lombok, where they have the opportunity to meet children from all over the world
Mr Smith said Indonesia offered better business opportunities than Australia, with Lombok emerging as a growing investment hotspot after being designated a special economic zone
The couple said they planned to start a business helping other Australians navigate the process of moving abroad, something they believe is entirely possible for families like theirs.
They said the growing expat community meant their children’s education did not have to suffer, with the girls thriving at international schools and meeting ‘kids from all over the world’.
However, the couple stressed the importance of understanding Indonesia’s immigration rules and ensuring they had the correct visa before making the move.
‘You can’t just jump on a tourist visa. You have to do your due diligence and go through the correct visa process – for us, this was the investor visa process,’ they said.
The couple said Australia would always be home and, while they had no plans to return permanently in the near future, they looked forward to spending Christmas there.
‘Australia is still our home and we can appreciate both worlds. Indonesia has its pros and cons, as does Australia,’ they said.
‘We still return regularly, but Lombok is where we are meant to be right now. In November, we are back for some tourism work and will be in Australia for Christmas.’