Inaugurated By President Jokowi, The Indonesian Export Financing Agency Finances The Mandalika SEZ Development

Illustration. (Photo: Doc. LPEI)

JAKARTA - President Joko Widodo inaugurated the Pertamina Mandalika Street Circuit, on November 12, 2021.

This inauguration also marks the first use of the national pride circuit in the World SuperBike Championship. The event also became the first International Superbike automotive championship in history that took place in Indonesia.

The Indonesian Export Financing Agency (LPEI), which has the mandate to increase the country's foreign exchange, has participated in financing the development of the Mandalika Special Economic Zone, especially in the circuit area. The LPEI has provided financing for the construction of hotel facilities in the Mandalika circuit area, basic infrastructure development in the circuit arena, as well as the construction and arrangement of the bazaar area that can accommodate local MSME products.

The LPEI Executive Director D. James Rompas on a separate occasion said that the LPEI was proud and grateful to be able to participate in the development of the Mandalika area, especially in the circuit arena.

"From the start, we were committed to the success of the development of this region from various sides, especially those capable of generating foreign exchange for the country," said James, in a written statement, Tuesday, November 16.

James added that the financing carried out by the LPEI to the area manager, namely PT Indonesia Tourism Development Corporation (ITDC) used the National Interest Account (NIA) / Special Export Assignment (PKE) scheme to develop the Mandalika area.

The LPEI's financing commitment in the development and development of the Mandalika area is also given in the form of guarantees to investors who will invest in this area. Previously, LPEI had provided guarantees to the hotel, restaurant, and cafe (HOREKA) industry for hoteliers in Bali.

This financing is a realization of the mandate carried out by the LPEI according to Law No. 2 of 2009 concerning the LPEI, where one of the tasks of this institution is to provide financing to domestic business actors so that they can generate foreign exchange for the country.