Media Press Breifing of Annual Meeting IMF-WB 2018 by Indonesian Ministers on Monday - Photo by the Committee

JAKARTA (TheInsiderStories) – Indonesian government offered an investment worth of Rp200 trillion (US$13.79 billion) in 21 state-owned enterprises (SOEs) projects, said one spokesman on Monday (08/10). To coordinate the incoming investment, PT Bank Mandiri Tbk (IDX: BMRI) has appointed as an intermediary between hundreds of investors and the SOEs, said the bank in a written statement.

One of the projects to offer are hospitality and tourism sectors. Based on data from the Ministry of SOEs, the total value of projects in the hotel and tourism sector reached $3.6 billion with an investment opportunity of $3.1 billion.

The government is now developing the potential of 10 new tourist destinations or the so-called ‘New Bali’, namely Lake Toba, Tanjung Kelayang Belitung, Special Economic Zones (KEK) Mandalika, Bromo Tengger Semeru, Borobudur Temple Areas, Tanjung Lesung, Labuan Bajo, Wakatobi National Parks, Morotai, and Thousand Islands.

One of the destinations developed by the SOEs is Mandalika Tourism Special Economic Zone. The development of a tourism-specific economic zone which was inaugurated in 2017 is carried out by PT Indonesian Tourism Development or ITDC, a state company in the tourism development sector.

Along with the effort to develop Mandalika, the SOEs ministry had encouraged PT Angkasa Pura I to develop the wide apron and runway at Lombok International Airport, so that wide-body aircraft could land. Also the development of the port by PT Pelabuhan Indonesia III which is planned to be completed in 2019, so that later the port can be boarded by cruise ships.

ITDC President Director Abdulbar M. Mansoer added, in August 2018, his party had signed a Master Land Utilization and Development Agreement with Vinci Construction Grands Projects (VCGP), for the utilization and construction of an area of ​​120 hectares in the Mandalika.

The signing is the beginning of the realization of the Vinci investment plan in the Mandalika, which will build an integrated entertainment & sports district in the Mandalika. VCGP itself is a subsidiary of Vinci SA, a global Construction and Infrastructure company from France.

The signing of the agreement for an area of ​​120 ha following the Mandalika street race circuit will bring investment of US$1 Billion in a 15 years period.

“At present, Vinci’s investment commitment is the largest investment commitment in the Mandalika and shows evidence that the investment climate in Indonesia is attractive to foreign investors,” said Mansoer.

Based on the agreement, the construction of an integrated entertainment & sports district will begin no later than the end of 2018, with the start of the construction of Shaza Resort and Hotel Mysk as the first project. Both hotels, which are five and four star sharia hotels operated by Shaza Hotels, are expected to start operating by the end of 2020 by providing 400 rooms.

In addition to street race circuit, this entertainment & sport district will include 10 hotels with a capacity of around 2500 rooms, Convention, Exhibition, Building, Hospitals and Water Park with international standards.

Mandalika’s street race circuit, which was built with FIM and FIA standards, is targeted to start operating in 2020 and is planned to host the world racing championship.

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