Asian Infrastructure Investment Bank Gives Thumbs Up to Mandalika
ITDC recently received funding from the Asian Infrastructure Investment Bank (AIIB) amounting to US$248.4 million (Rp3.6 trillion), the fund earmarked to finance infrastructure development at Mandalika.
“ITDC is chosen as the first tourism development institution in the world to receive funding from AIIB. This shows trust in ITDC and the prospect of The Mandalika and global community’s trust in Indonesia’s economic potential, especially in the tourism sector,” said ITDC President Director Abdulbar M. Mansoer.
Mr. Mansoer said the details and structure of the deal took place throughout 2018 securing approval from AIIB’s Investment Committee in October.
AIIB is ready to support the financing through Mandalika Urban & Tourism Infrastructure Program (MUTIP) and is the first standalone financing made by AIIB in Indonesia as well as the investment bank’s first financing for a tourism infrastructure development project in the world.
AIIB will also partner up with ITDC to supervise the development of Mandalika, ensuring that it will operate according to its plan as a leading tourism destination of international standard.
Mr. Mansoer added that the development of Mandalika into a recognized tourism destination will bring significant socio-economic impact to Lombok. “With the support of all stakeholders and the endeavours we have made, we are optimistic that the construction of Mandalika Tourism SEZ will meet its target of 20 million foreign tourist visits set by the government.”
The Asian Economic Community (AEC), claim global tourism currently contributes over 10 percent of global gross domestic product and is linked to 10 percent of jobs across the planet.
According to Tempo, tourism has the potential to be Indonesia's leading foreign exchange earner with Bank Indonesia predicting the country will earn more than US$17.5 billion from tourism in the coming year, up from US$14 billion.
AIIB Vice President and Chief Investment Officer, D. J. Pandian said “AIIB is mandated to foster sustainable economic development in Asia by investing in infrastructure. Mandalika reflects the synergy of AIIB’s efforts and initiatives of the Government of Indonesia in promoting sustainable tourism development in the country.”
AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, the bank began operations in January 2016 and have now grown to 93 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, the bank “better connects people, services and markets that over time will impact the lives of billions and build a better future.”
In addition to Mandalika, AIIB has committed to Indonesia a strategic irrigation modernization and rehabilitation project in RI. The project helps rehabilitate and modernize Indonesia’s irrigation sector by increasing participatory development, improving service levels and upgrading infrastructure and sustainable management.
Frontiers reporting with sources: PWC; Investor Daily