Entering the New Phase, KEK Mandalika is Driven to Become an Economic Engine Based on Sportstainment

JAKARTA - InJourney Tourism Development Corporation (ITDC) said that the Mandalika Special Economic Zone (KEK) entered the next phase of development as the intensity of event and activity in the area increased.

Director of Finance and Risk Management as well as Acting Director of ITDC, Ahmad Fajar, emphasized that Mandalika is no longer only positioned as a tourist destination, but rather a sustainable sports-based economic engine through the utilization of the Pertamina Mandalika International Circuit as a traffic puller in the region.

A number of strategic initiatives have been prepared, ranging from the entry of international brands, the development of marinas to strengthen maritime connectivity, the establishment of the eastern premium zone, the strengthening of the central zone as a host of global events, to the commercialization of residential areas and retail-lifestyle.

"Mandalika is not only positioned as a tourism destination, but as an engine for the region's economic growth. Every activation on the circuit and the region is designed to create a real multiplier effect, ranging from increased tourist visits, strengthening local economic circulation, to labor absorption," he said in a statement. official, Wednesday, December 17.

ITDC emphasized the strategic role of the Pertamina Mandalika International Circuit as the main traffic puller of the region. Various international events held at the circuit are considered to have a significant economic impact.

The Indonesian MotoGP, for example, recorded a trend of increasing the number of spectators with a total of 140,324 people and generated an economic impact of up to IDR 4.96 trillion and a media value of IDR 1.33 trillion, as well as absorbing more than 3,000 local workers.

In addition to hosting world-class racing, the Pertamina Mandalika International Circuit also recorded more than 309 activations per year which include international sports, entertainment, culture, and community activities.

This ongoing activation encourages the growth of the business ecosystem in the Mandalika area, ranging from 128 homestays, 965 hotel rooms, dozens of restaurants, MSMEs, to various other tourism support facilities.

To maintain the continuity of these economic impacts, ITDC has prepared a structured event calendar throughout 2026, including through the implementation of the Mandalika Racing Series and the Mandalika Festival of Speed, which are held in several rounds throughout the year.

A number of other flagship events such as the GT World Challenge Asia, the Pertamina Mandalika Racing Series, to the Grand Prix of Indonesia (MotoGP), are still positioned as anchor events to maintain the visibility of the Mandalika KEK on the global stage while providing market certainty for industry players and investors.

"Major events become anchors, but the real impact is reflected in the continuity of the region's activities. This is reflected in the growth of MSMEs, the increasing occupancy rate of hotels which is now in the range of 54 percent per year, and the increasing investor confidence in KEK Mandalika as a tourism KEK," said Ahmad.

Until the fourth quarter of 2025, the total investment that entered the Mandalika Special Economic Zone was recorded at Rp. 5.73 trillion with an estimated internal rate of return (IRR) of 11.2 percent. This achievement strengthens the position of the Mandalika Special Economic Zone as a competitive and sustainable tourism investment destination.

English:

English:

KEK Mandalika which is managed by ITDC has an area of 1,175 hectares with a coastline along 16 kilometers, and is supported by an integrated strategic infrastructure. The Mandalika area is equipped with an international-standard circuit, hotels, commercial areas, and adequate connectivity through the Lombok International Airport bypass.

KEK Mandalika also obtained various fiscal and non-fiscal facilities, such as tax incentives, import duty exemptions, and long-term land use schemes of up to 80 years, which provide certainty and attractiveness for investors.

In addition, KEK Mandalika is designed as a sportstainment ecosystem that is integrated into one masterplan, including the development of motorsports, watersports, golf courses, to equestrian, so that it is able to expand the segmentation of the tourism market while opening up cross-sector investment opportunities.

ITDC hopes that the experience of managing the Mandalika SEZ can become a best practice for the development of other SEZs in Indonesia, as well as strengthening the position of the Mandalika SEZ as an icon of national tourism transformation based on events, investments, and real economic impact.