foreign investors for the Mandalika
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Tourism SEZ: Queueing of foreign investors on the Mandalika Special Economic Zone

A number of foreign investors are keen on investing in tourism business in Mandalika Special Economic Zone (SEZ), Lombok, which was just officiated six months ago. The investment commitment in the area is said to even reach beyond Rp13.5 trillion.

Recently, EBD Paragon tapped into PT Pembangunan Perumahan (Persero) Tbk. to build 7.65-hectare Paramount Lombok Resort and Residence providing 500 rooms. The investment cost amounts to Rp1.2 trillion.

EBD Paragon is owned by a Saudi Arabian company which also owns Paramount Pictures in the United States. This project is set to complete by December 2020.

“Paramount Hotel & Resort will be the third five-starred hotel built in Mandalika,” said PT Indonesia Tourism Development Corporation (ITDC) President Director, Abdulhar M. Mansoer on the sideline of ground-breaking ceremony for the hotel construction, Wednesday (18/4).

ITDC and PT Pengelolaan Pariwisata Indonesia (Persero) as the developers of Mandalika SEZ, have also secured a commitment from Vinci Grand Project, an SOE from France, to developing Mandalika Street Race Circuit Cluster.

The cluster project with an investment value of US$950 million over an area of 120 hectares will add up to a collection of international-level accommodations in the Mandalika.

Moreover, Qatar Investment Authority also plans to work on a project over an area of 250 hectares with an investment of US$2 billion. The company is now processing its investment as promised by President Joko Widodo.

After being abandoned for 29 years due to land dispute, Mandalika SEZ finaly started running in October last year. Jokowi also encouraged committed investors to immediately develop the area which is said to be the Next Nusa Dua.

Commitment to developing Mandalika area comes after the construction of numerous starred hotels which have kicked off earlier. Previously, there was a Pullman Hotel equipped with 270 rooms which was built in October 2017, Mansoer continued. There was also an investor from South Korea, List International, who worked together with Hartono Group to build a Royal Tulip Hotel with a capacity of 198 rooms, the ground-breaking of which took place on 26 March 2018.

Further, ITDC Director Edwin Darmasetiawan said the upcoming projects include building X2 Hotel with a planned capacity of 240 rooms, Grand Mercure Hotel  with 342 rooms, and Aloft by Marriot with 173 rooms.

EDB Paragon Director Wajih Malki said Paramount Lombok Resort and Residence is the first Paragon property project in South East Asia and the first hospitality investment project in Indonesia.

“We hear a lot about Mandalika. Even, we are told not to invest in Mandalika as it isn’t ready yet. But, we want to see it with our own eyes and it turns out I’m confident that making an investment here is the right choice,” said Wajih.

The development of many resorts, hotels, and residences will complement infrastructure that has been built, such as 11-km road in the area, coast arrangement, and other infrastructure.

SOEs Minister Rini Soemarno said Mandalika development will be backed by the development of Lombok Airport, such as the construction of two new aprons and runway extension to 3,000 metres.

On top of that, Rini continued, Pelindo III will also prepare a dock for cruise ships. The construction is expected to complete by the end of 2019. The government is also planning to build a bypass access connecting Lombok International Airport and Mandalika Area.

 

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Article Source: https://www.pwc.com/id/en/media-centre/infrastructure-news/april-2018/foreign-investors-queueing-for-Mandalika.html

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