JAKARTA, 16 OCTOBER 2019 - PT Indonesia Tourism Development (Persero) or Indonesia Tourism Development Corporation (ITDC), a SOE developer and manager of the Mandalika Tourism Special Economic Zone or The Mandalika and The Nusa Dua, continue to be committed to developing The Mandalika as a destination World-class sportainment tourism in Indonesia and supporting the Government's target to make tourism a new leading industrial sector.
Since the inauguration of the operation of The Mandalika by President Joko Widodo on October 20, 2017, the development of The Mandalika has progressed rapidly. Until now, ITDC has bagged a Real Estate Investment commitment of USD 1.3 billion to build a number of hotels and sports & entertainment clusters. The sport & entertainment cluster, including the Mandalika International Street Circuit, was developed in partnership with a global company from France, the Vinci Construction Grand Project (VCGP).
The overall construction of the Mandalika International Street Circuit is ongoing with the Ground Work process reaching 30 percent and it is planned to begin paving for the track in December 2019. The Mandalika International Street Circuit itself is targeted to be completed by the end of 2020 for immediate testing and can be used for the MotoGP Mandalika event 2021. In addition, in order to increase the sense of security for visitors and forms of disaster mitigation, ITDC is also preparing the construction of 12 units of shelters, evacuation routes and preparing for disaster response SOPs.
Through the Mandalika MotoGP 2021 event, ITDC estimates the economic benefits that can be felt by the people of NTB and Indonesia, including creating direct employment for around 7,500 people, providing an additional local investment of 150 million US dollars, increasing the number of foreign tourists visiting Indonesia to reach 300 thousand people / year and is expected to encourage an increase in tourist spending to reach 40 million US dollars per year. The magnitude of the MotoGP event is also very large, with an estimated MotoGP show reaching almost 430 million viewers worldwide.
"We believe that organizing the MotoGP event will be able to create strong branding and positioning for Indonesia as a leading sportainment destination in the Asian region. This is important in order to increase the added value of tourism in Indonesia, so that it can enlarge the contribution of the tourism sector to the national economy, "said ITDC President Director Abdulbar M. Mansoer
In terms of accommodation, in the future 10 hotels will be built at The Mandalika. 2,485 rooms are targeted to be completed by the end of 2021. Hotels currently under construction are Pullman Hotels that have achieved 37% progress, Paramount Hotels that have begun piling, and the Golden Tulip and Beach Club Hotels, which are four-star group hotels Sheraton, which has started building a beach club first.
ITDC believes the existence of The Mandalika will be a catalyst for economic development and be able to bring a large economic multiplier effect for the people of NTB, especially the people around the region. Since ITDC has carried out intensive infrastructure development in the core zone of the region, there have been at least 10 new business units in the form of homestays, restaurants, cafes and retail shops starting businesses in the Western zone of the region.
"We believe that an increase in the number of hospitality businesses in the surrounding area of The Mandalika will continue to grow in line with the area's development activities and ongoing projects. We also believe The Mandalika will be able to absorb almost 5000 local workers gradually in the next five years, "added Abdulbar.
Other developments are that until now ITDC has provided public facilities in the Mandalika area, namely Kuta Beach Park, Mandalika Bazaar with a capacity of 303 lots to accommodate business people from the MSME sector and hawkers around the area, and a Central Parking with a capacity of 500 cars. The three public facilities are increasingly complementing existing public facilities at The Mandalika after previously ITDC has opened the Nurul Bilad Mosque since 2017.
The Nurul Bilad Mandalika Mosque whose architecture adopts local wisdom values from the Bayan Mosque, North Lombok Regency and the Beleq Sembalun Traditional Building was built on a 5-hectare land area consisting of a mosque building, a corridor, a courtyard and a plaza that can accommodate up to 5,500 congregations.
In order to increase investment attractiveness in the Mandalika region, ITDC has prepared a number of basic infrastructure, including 11 km of regional highways, clean water distribution pipelines and the PLN electricity network. ITDC has also completed the construction of the clean water treatment plant with Sea Water Reverse Osmosis (SWRO) phase I and has been operating since November 2016.
The acceleration of the development of The Mandalika is expected to increase after funding support from Asian Infrastructure Investment Bank (AIIB) for tourism infrastructure development at The Mandalika. Loan Agreement funding agreement under the umbrella of the Mandalika Urban & Tourism Infrastructure Project (MUTIP) program worth USD 248.4 million or equivalent to IDR 3.6 Trillion (1 USD = IDR 14,500, -) was officially signed on 31 December 2018 and now This has entered stage I drawdown.
Meanwhile, the acceleration of the development of The Mandalika, especially in welcoming the MotoGP event starting in 2021, received full support from the Central Government, the NTB Provincial Government, and the Central Lombok Regency Government. The Central Government has committed to increase accessibility to the region through infrastructure development, in the form of preparing direct access road / Bypass along the 17 KM from Lombok International Airport (LIA) to The Mandalika, extension of the runway at Lombok International Airport (LIA), development of the Gili port Mas became a cruise terminal.
"In addition to support from the central and regional governments, the rapid development of the Mandalika region, especially in preparation for the implementation of the Mandalika MotoGP 2021, is also inseparable from the support of SOE colleagues. As a form of SOE Synergy, at present, we have collaborated and received full support from a number of SOEs, namely PT Telkom Indonesia Tbk (Telkom) for the provision of digital connectivity, PT Waskita Karya (Persero) Tbk, PT Wijaya Karya (persero) Tbk / WIKA, PT Adhi Karya (Persero) Tbk, PT PP (Persero) Tbk., PT Angkasa Pura 1 (Persero), PT Pelabuhan Indonesia III (Persero) / Pelindo III, PT PLN (persero), PT Pertamina (persero), PT. ASDP Indonesia Ferry (Persero) / ASDP, and Perum DAMRI, "closed Abdulbar.