The Mandalika absorbs Rp17 T investment
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - The Mandalika Serap Investasi Rp17 T
21 November 2018
By Imam Mudzakir
Mataram — PT Pengembangan Pariwisata Indonesia (Persero)/Indonesia Tourism Development Corporation (ITDC) declared that the investment it has spent on the development of The Mandalika in Lombok, West Nusa Tenggara (NTB) amounts to Rp17.7 trillion. The investment is also aimed at supporting the government’s program to achieve the target of 20 million foreign tourist visits in 2019.
“To date the investment that has been allocated for The Mandalika reaches Rp17.7 trillion. The investors come from foreign and national companies, and their number is rather plenty,” disclosed President Director of PT ITDC Abdulbar M. Mansoer on the sideline of ITDC anniversary ceremony in Kuta Mandalika area, Lombok, on Saturday (18/11).
Out of the Rp17.7 trillion investment, in detail, around Rp3.2 trillion is earmarked for building seven hotels. And the rest comes from Vinci Construction Grands Project (VCGP) worth US$ 1 billion or equivalent to Rp14.5 trillion with the assumption of Rp14,500 per US dollar.
According to him, ITDC area covers a land of 1,175 hectares (ha). Since three years ago, international-level tourism supporting facilities has been developed in a rapid pace.
The interconnected tourism complex will be built under the green concept. The area is supported by several facilities including hotel, golf course, hospital, theme park, and international-level meeting hall.
“The construction and development of The Mandalika has a different concept from The Nusa Dua. Mandalika offers natural tourism concept coupled with sport entertainment,” he said.
World-Class Facility
After the government assigned the development of Mandalika Special Economic Zone (SEZ) to ITDC, ITDC is optimistic that it can develop it into a world-class tourism destination. The optimism comes from ITDC experience and success in managing and developing The Nusa Dua in Bali. “We’re certain that the Mandalika area will be one of the world’s [tourism] destinations like the Nusa Dua area in Bali,” said Mansoer.
On the other side, ITDC has teamed up with VCGP, a subsidiary of Vinci – France-based international company. The cooperation was established following the signing of the Master Land Utilisation and Development Agreement (LUDA) in August 2018.
“The implementation of LUDA over 131 ha [of land] that offers The Mandalika street race circuit is set to commence at the end of this year. The project will lure foreign investment funds of at least US$1 billion or equivalent to Rp14.5 trillion. The construction will be carried out in stages until the next 15 years,” he said.
In the initial stage, said Mansoer, the work will be on the construction of Shaza Resort and Mysk Hotel. The two five-starred and four-starred hotels with sharia concept will start running in late 2020 with a capacity of 400 rooms.
“A number of hotels in Mandalika area are currently under development, namely Pullman Hotel, Royal Tulip and Paramount Hotels & Resort. ITDC aims that five hotels with 1,200 rooms will have started operation in 2019,” he explained.
ITDC Construction and Operational Director A. A. Ngurah Wirawan added that in a bid to support the world’s tourism [destination], the management has completed the construction of multiple infrastructure and basic facilities. Such facilities are road improvement in the area that spans for 11 km, construction of Nurul Bilad Mosque with a capacity of 4,000 people, as well as delivery of new attraction called Kuta Beach Park, complete with supporting facilities for children and tourists including a supporting security surveillance post. Moreover, Bazaar Mandalika has been ready for operation with the physical project construction reaching 95% completion. “We provide Bazaar Mandalika with a capacity of 303 lots for MSME,” said Ngurah.
The area around the Bazaar will also have a parking area for vehicles and buses with a capacity of 513 cars, 17 buses, and 393 motorcycle units. The location of Mandalika Bazaar is highly strategic since it is located between Nurul Bilad Mosque in Kuta and Mandalika Beach Park.
Bazaar Mandalika also has huge potential considering the number of tourist visits per day reaches 5,000 visitors. Tourists coming to Lombok are not only from the Middle East or Muslims, but also tourists from a range of different backgrounds, ethnicities, religions and cultures. It is projected that they will continue to come and enjoy the beauty of tourism destinations in West Nusa Tenggara.
