The Mandalika Kute Special Economic Zone, Central Lombok, West Nusa Tenggara, is now in the process of revamping its supporting facilities and infrastructure. A clean scene is seen at the beach, which used to be polluted by waste. President Joko Widodo inaugurated the Mandalika Special Economic Zone on Friday (20/10).
PRAYA, KOMPAS — The construction project of seven global-chain five-star hotels, a convention center and a 3,000-cubic-meter per day seawater distillation installation with a total investment of Rp 4.1 trillion has started to drive the special economic zone of Mandalika. The special zone, which also serves as the Strategic National Tourism Zone, in Central Lombok regency, West Nusa Tenggara, is projected to absorb an investment of Rp 726 trillion by 2020.
The development of the special economic zone (KEK) Mandalika is expected to directly absorb 58,000 workers and drive the local economy. President Joko Widodo officiated the operation of KEK Mandalika at Kuta Beach, Mandalika, Central Lombok, on Friday (20/10). The ceremony was attended by Coordinating Economic Minister Darmin Nasution, Cabinet Secretary Pramono Anung, State-Owned Enterprises Minister Rini Soemarno, Tourism Minister Arief Yahya, Agrarian and Spatial Planning Minister Sofyan Djalil and West Nusa Tenggara Governor Zainul Majdi.
The President said the project that has been agreed upon must be realized soon. “There must be a clause in the contract that construction must start within six months. The contract signatories cannot only obtain land and leave it,” said President Jokowi.
Investors that abandon the land will have their license revoked and contract cancelled. The project would then be handed over to other investors.
Integrated
Mandalika offers soft white sands with clear seawater. The government has setup a state company, the Indonesia Tourism Development Corporation, for the development of a tourism zone to develop Mandalika into an integrated area.
The President said the development of KEK Mandalika must bring benefits to the local people.
KEK Mandalika started operations after being abandoned for almost 29 years. The government assigned ITDC as the operator in 2015 after the area, which has a coastline of 1.6 kilometers, was declared as KEK Mandalika.
As many as 18 investors have cooperated with ITDC and mostly have signed cooperation agreements and obtained licenses to develop the land. Others, 12 investors, have signed memorandums of understanding.
Hiramsyah S. Thalib, chairman of the working group for the acceleration of 10 priority tourist destinations, said Mandalika was seen as one of three most ready priority tourist destinations along with Lake Toba and Borobudur temple.
Hiramsyah said there has been foreign direct investment (FDI) of Rp 13.1 trillion. That investment includes Hotel Pullman (Rp 650 billion), Clubmed (Rp 1.1 trillion), Paramount (Rp 1 trillion), X2 (Rp 300 billion) by PT Elmar Mitra Perkasa, Royal Tulip (Rp 250 billion) by Lees International (South Korea), Lot H7 (Rp 900 billion), Shaza (Rp 2 trillion) and Vinci Development Cluster (Rp 6.7 trillion). Hotel Paramount will be developed by PT Perusahaan Resort Indonesia-America. Additionally, there is PT Mosaique Jiva One Sky (India), which will develop Hotel M JOS and Sky Wealth from Malaysia.
KEK Mandalika is projected to have 10,000 hotel rooms with a target of 2,000 rooms by 2019. It will also have a world class MotoGP race circuit and a convention center to be realized in 2019.
Darmin said the development of KEK Mandalika aims to create a new growth center in the region. This strategy will involve local people to maximize the existence of KEK as an instrument to deal with the prosperity gap.
Government target
By utilizing the state capital injection of Rp 250 billion, ITDC has recorded an investment of Rp 13.1 trillion. The ongoing investment value is Rp 4.1 trillion. National Council for Special Economic Zone secretary Enoh Suharto Pranoto said the government targeted to realize 25 special economic zones by 2019. So far, there have been 12 KEK, eight of which are manufacture zones while four are for tourism.
The Office of the Coordinating Economic Minister has targeted by the end of 2017 to operate two more KEK, namely KEK Lhokseumawe and KEK Galang Batang in Bintan. Six other KEK are expected to operate in the first half of 2018.
In a bid to support Lake Toba tourism, road development in North Sumatra will be expedited. Other progress includes the opening of Silangit Airport to serve international and national flights. The airport will see the maiden Singapore-Silangit flight on Oct. 28.
Hiramsyah said the infrastructure to support Borobudur temple tourism has also become a government priority. One of them is the Kulon Progo Airport, Yogyakarta, whose first-stage construction will start in early 2018.
