A lesser-known Indonesian island is becoming a popular alternative to Bali for Australians looking to escape the cost-of-living crisis.
Karstan and Maxine Smith relocated to Lombok with their two young daughters, Zuri, seven, and Zena, three, nine months ago, and say the island has become the perfect place to call home.
The family spent years travelling around Australia before buying five acres of land in the Byron hinterland in 2025, intending to build their dream home.
But the cost of the process and the mountain of paperwork proved overwhelming, prompting them to reconsider their plans.
'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.'
Earlier this year, the family visited Lombok and fell in love with the lifestyle. With their plans to build in northern NSW facing ongoing delays and setbacks, they eventually decided to relocate after recognising the opportunities the island had to offer.
'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 relocated 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 to build their dream home, but mounting costs and red tape forced them to rethink their plans
The family visited Lombok and fell in love with the lifestyle, eventually deciding to relocate after recognising the opportunities the island offered
The family said everyday expenses were also significantly cheaper than in Australia, from eating out to filling the fridge.
'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.
Diesel was another major saving, with the family saying subsidised fuel cost around 6,000 rupiah, or about 50 cents, per litre.
Their experience comes as more Australians look to Indonesia for a cheaper way of life, with some also seeing the region as an opportunity to invest in property.
Tom Merrett, principal of Reef Property Lombok, said that the proportion of Australian investor-buyers among his clients had surged from 15 per cent to 50 per cent in just two years.
Australians are reportedly paying around $350,000 for a two-bedroom villa within walking distance of central Kuta – Lombok's main tourist town – and up to $1.2million for a five-bedroom property with ocean views.
By comparison, Sydney's median house price is $1.66million, according to Domain's September 2026 House Price Report.
The family say their grocery shop costs just $15 to $20 in Lombok, compared with $150 in Byron Bay
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.'
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