The Mandalika SEZ will receive an ulterior boost from Infrastructure financing | Invest Islands

The Mandalika SEZ will receive an ulterior boost from infrastructure financing

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Tourism Minister Arief Yahya welcomed the plan of the Indonesia Eximbank (LPEI) to participate in financing basic infrastructure for the Special Economic Zone (SEZ) of Tourism through the National Interest Account (NIA) expected to commence in the first half of 2018.

Minister Arief Yahya requested that LPEI be in line with the President’s instruction, that is, focusing on developing 4 of 10 Tourism Priority Destinations (DPP) this year. These are Lake Toba, Borobudur, Mandalika, and Labuan Bajo.

“Lake Toba, Borobudur and Labuan Bajo already have a business entity that will become a BLU [Public Service Agency] after the APL process is completed, which focuses on the development of attractions and attracting investments. The interest of investors in various priority destinations in Indonesia is often constrained by infrastructure issues, hence requiring financial assistance, so that no longer occurs the term ‘Which came first, chicken or egg?’” explained Minister Arief Yahya, in a press release on Sunday (4/29/2018).

“In addition to the 4 DPPs as the main focus, there are 2 DPPs namely Tanjung Kelayang (Belitung) and Tanjung Lesung (Banten) where investors are ready to go in. Hotel and restaurant (Sheraton) development is underway at Tanjung Kelayang, while Tanjung Lesung it has existed since past,” added Arief Yahya.

Director of LPEI Sinthya Roesly said that the National Interest Account scheme could be used to finance transactions or projects, including non-bankable but feasible tourism projects.

“The tourism sector must be supported by all parties,” said Sinthya explaining about the growing tourism sector in Malaysia as all parties support primarily financial institutions.

Mandalika SEZ is the first project of export financing of LPEI in tourism sector. It considers the Mandalika SEZ one of the most prepared to be developed in the project of Indonesia 10 New Bali destinations. This is marked by efforts to bring investors and infrastructure funding. She hopes that the financing of tourism exports can be done through the synergy of SOEs in the field of financing.

According to LPEI Managing Director I Dwi Wahyudi, the construction of basic infrastructure of Mandalika SEZ in Lombok, West Nusa Tenggara (NTB) requires funding of IDR4.5 trillion, for example for roads, power lines, water treatment and other utilities within the area. “Meanwhile, LPEI will allocate IDR1 trillion to IDR1.5 trillion in financing assistance, targeted to be realized in the first half of 2018. The financing of basic infrastructure will be proposed through a special export assignment scheme or NIA. LPEI’s move will be a pioneer in financing the tourism services sector”, he said.

Currently, Mandalika SEZ is getting ready to welcome tourists. This area is more easily accessible because it has built a direct road. Traveling distance to Mandalika is now just 30 minutes from Lombok International Airport.

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