Introduction To understand how investment conditions have become so favourable to South Lombok we must first look at: the opening of a the International Airport, in 2011, the Central Goverments investment into The Mandalika Project, as part of a broader development for Indonesia, and the positive Macro economics. Finally the unique investment and develpment opportunities of land, in the The Greater Selong Belanak Region and specifically the Hills of Jabon.The Mandalika Development, backed by the Indonesian central government, has been selected as Indonesia's top priority for tourism development and is a special economic zone(KEK). President Joko Widodo officiated the inauguration of Mandalika economic zone in October 2017. KEK Mandalika is developing the infrastructure worth Rp15 trillion ($US18.5 million) in capital. With new roads, infrastructure and a major beachfront redevelopment, the project is in full swing.The development target for the Mandalika area is expected to reach Rp2.2trillion (US$159.5 million) with up to Rp28.64 trillion (US$2.2 million) government and private investment. There are 3 investors currently building at the location namely: Pullman, Paramount and Royal Tulip with Club Med and X2 Hotel to come. Mandalika is estimated to absorb at least 58,700 tourism workers.The Mandalika site covers an area of 1,000 hectares. South Lombok has seen 100% gains YOY for the past 5 years showing an upward curve in investment and a continued committment on infrastructure.

INVESTMENT GUIDE

BUILD ON YOUR DREAMS

VISI JABONJalan Pariwisata, Pujut – Kuta, Lombok Tengah, West Nusa Tenggara, Indonesia 83573

www.visi-jabon.com

Indonesia has the Fastest Growing Tourism Market World- Wide 12mil in 2015 & 20 mil by 2019.

Indonesia's Macro - Economics

Indonesia is performimg well on the world market. For 2017 as a whole, GDP growth rose 5.1 percent the highest in 4 years. (GDP growth is expected to rise to 5.3 in 2018) The stronger outturn was partly due to stronger investment and net exports, continued recovery in commodity prices, strong global growth and trade flows and still relatively supportive global financing conditions. see cdn.indonesia-investments.com/documents/World-Bank-Report-Economic-Quarterly-March-2018-Indonesia-Investments.pdf Future Outlook: Indonesia's economy is entering a "Sweet Pot" by 2050 Indonesia projected to be 4th largest economy.

VISI JABONJalan Pariwisata, Pujut – Kuta, Lombok Tengah, West Nusa Tenggara, Indonesia 83573

www.visi-jabon.com

In the Greater Selong Belanak Region (GSB) that spans roughly 12 kilometers and includes various suburbs and beaches, over the last 5 years savvy investors have been busily buying up the available beachfront and a lot of the hillsides. Land prices in general are still priced 40% lower than Kuta but are closing the gap and now have some momentum due to the size/scale of developments under construction and on the way.

This region of south Lombok has already established itself as a higher end villa destination, with a large catalyst operating development in the hills above Selong Belanak bay being the Selong Selo Residences.

Investment interest within the GSB has been centered around suburubs neighboring Selong Belanak beach, Jabon, Serangan, and Torok Aik Belik (TAB). Please Refer to our map below.

Recent upgrades to road infrastructure have improved accessibibility throughout many areas in the GSB, Lombok's international airport (avg 35min), Kuta/Mandalika (avg. 30min), and West Lombok's Seketong region (avg 1hr).

The entire South Lombok coast has seen strong capital gains over the past several years beginning with the international airport opening and when the Mandalika Development started gathering momentum. However, from this point we expect to see divergence and specific beaches and locations start to out-perform others. Due to higher prices, investors are now needing to be more active with their purchases and turning to subdivision and development to get their returns. Sizes go down, prices per m2 go up. Hence access and infrastructure have become primary considerations. Furthermore, a completely undeveloped area needs a significant development to act as a catalyst before others, especially smaller residential, feel comfortable moving in providing liquidity and price momentum.

Although we remain positive on the overall property market in South Lombok, we have specific focus areas, based on this renewed investment criteria, which we expect to out-perform the general market over the next 5 years.

VISI JABONJalan Pariwisata, Pujut – Kuta, Lombok Tengah, West Nusa Tenggara, Indonesia 83573

www.visi-jabon.com

The Greater Selong Belanak Region

Jabon is located in the foot hills centered in the middle of Selong Belanak over-looking the bay. Originally the quiet hillside area caught the intention of investors due to its stunning views.

In recent years it has seen the highest concentration of investment of all suburbs of the GSB as investors recognize the advantages of consolidating in one focal area, creating economies of scale, and act as cooperating developments that work closely with each other and the local community to create a unique up-market tourism destination that has been dubbed ‘Lombok’s Golden Mile’. The growth of developments in the Jabon hillside area, versus other south Lombok hillside suburbs, has also been supported by already available supporting infrastructure including sealed roads, high voltage power lines, 4G mobile reception, and installation of high speed fiber optic lines. Property values amongst the hills surrounding Selong Belanak bay on average grown approximately 700% over the last 9 years.

Jabon

These two suburbs are a focal commercial area with cafes, restaurants, accomodation and will become perhaps the hub of the residing expat community.

Most of the early growth was attributed to developments in the Sempiak Hills just behind the immediate beachfront, however, these days the primary catalysts are within Jabon and being driven by large developments such as Selong Selo Residences & Aura Lounge, Hotel Milu, Coconut Creek, as well as private developments within Visi Jabon project area such as Selong One80. Even with these well-established projects in the area, entry level property prices still remain attractive and competitively priced on avg. approximate 50% less than Kuta hillside properties surrounding the Mandalika area.

VISI JABONJalan Pariwisata, Pujut – Kuta, Lombok Tengah, West Nusa Tenggara, Indonesia 83573

www.visi-jabon.com

Just behind the immediate beachfront are two geographical suburbs that we have labelled as the Sempiak Hills and Estuary Flats. The Sempiak Hills overlook the beachfront and already have recognisable up-market marquee establishments, while the Estuary Flats area is the low laying land on either side of the road from Kuta just before the beachfront have a number of new developments underway as well as exisiting operational venues.

The fine white sand and gentle rolling beach break makes this beach unique to South Lombok and a sought after location, voted "the best beach in Asia"- South China Morning Post, there are two exclusive venues Sempiak Villas and Laut Biru currently operating and are current focal area of the beach. In the coming years we expect to see eco-friendly resort projects come on-line along the beachfront.

Selong Belanak Beachfront

VISI JABONJalan Pariwisata, Pujut – Kuta, Lombok Tengah, West Nusa Tenggara, Indonesia 83573

www.visi-jabon.com

Beachfront and hillside pricing in TAB was once only a fraction of Selong Belanak, most of the available land was large expansive wholesale blocks sold by local sellers that were purchased by developers whom are now turning out notable projects in both the beachfront and the hills.

Pioneering the new wave of estate developments in the area are Kirana, Jogo Hills & Jogo Beach, both of which have already completed a substantial amount of access construction throughout their hillside projects. Starting May 2018 a new beach resort from branded Origin Resorts based out of Hong Kong is scheduled to break ground on a 86 room commercial development.

Only a stones throw away from Serangan, another small bay with similar features as Serangan, yet a better quality beach stands Torok Aik Belik TAB). It is the last bay that is part of the central Lombok coastal road that directly links far eastern reaches of Mandlika/Kuta and the GSB region.

Torok Aik Belik (TAB)

Although only 5km in distance from Selong Belanak, for years it was a distant destination due to lack of feasible direct access from the rest of the GSB. Similar to Serangan, it also benefitted greatly from new roads and electricity extensions to the area in 2015 and 2016, spawning a new wave of investment from large scale developers to the area.

Unlike Selong Belanak or Kuta, beachfront properties are still available and priced at a whopping 60% discount to Selong Belanak. Likewise the hills are priced at a 25 % discount and yet walking distance to the beach unlike those in Selong Belanak. Serangan also just happens to have one of Lombok’s top surfing waves, which although appealing to only to a small niche (surfers) has proven a leading indictor in many locations in Indonesia such as Uluwatu and Canggu the most expensive real estate in Bali. On a comparative basis it is basically the only beach-front land available for sale within 30mins of the airport in all of South Lombok, hence only a matter of time before the first developer breaks ground and prices jump.

Electricity was just extended into the Serangan in 2015 and the road linking Selong Belanak was completed in late 2016, the area is now set to for developments to start construction and property values to realize their full potential.

That brings us to the sleepy and salty beach of Serangan. Long overshadowed by Selong Belanak due to its difficulty of access and slightly lesser beach. Serangan is in various advanced stages of planning. For example NTB Capital have already purchased a 3M USD 15Ha property and spent over 500K USD planning /pricing a 20M USD 6 star hotel. They’ve even signed a MOU with Alila Hotels, arguably Indonesia top high end hotel chain. Naga-Indo has purchased a 13Ha beachfront block and onsold sections of it to private investors. The developers of Selong Selo also have a second hillside subdivision named Serangan Indah already out to market.

Serangan

VISI JABONJalan Pariwisata, Pujut – Kuta, Lombok Tengah, West Nusa Tenggara, Indonesia 83573

www.visi-jabon.com

With the Mandalika hotel projects now starting coupled with substantial money coming in from the central government for infrastructure to support the growing tourism industry, there’s been a strong surge in large land sales (500K-1M USD) that started late 2017, its strongly advisable to at least lock down the land component now before prices step higher.

With a fast moving market and multiple catalysts, the best way to keep in touch is via our website and sales newsletter. Log onto www.visi-jabon to sign up.

Future Growth

With momentum picking up across the board driven by the Mandalika Development and positive macro economics, we are expecting all beaches to develop quickly.

However with large commercial developments in these areas either under construction or about to start, we expect out-performance in the short term to medium term.

For land-banking its advisable to be buying in and around these developments yet to start construction. For developments its advisable to be buying around these developments due to lower infrastructure costs and overall ease of logistics.