The $500 million Vinci motoGP circuit that is being built in Mandalika Kuta, Lombok Island will brighten the Indonesian tourism future.

France’s Vinci Construction has closed a $500m deal to build a 120-hectare tourist complex and a motorbike racing circuit in the Indonesian island of Lombok, the eastern neighbour of Bali, set to become a new Bali.

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The investment agreement was signed with the state-run Indonesia Tourism Development Corporation (ITDC). The race track complex will be located in a special economic zone south of Lombok area, on the west of the island.

French President Francois Hollande and President Joko Widodo of Indonesia were present at the ceremony at the time of the MoU. Hollande was on a state visit to the country.

Abdulbar Mansoer, the head of ITDC, said the French company would invest 6 trillion rupiah, or $500m, building seven hotels and a Moto GP circuit. The site of the project is owned by the ITDC.

The project will occupy a plot of land next to Nusa Dua, the world famous beach resort area in Bali, which was designed and built by ITDC.

The complex will also have a convention hall to facilitate “Mice” tourists, he added. Mice is an acronym standing for “meetings, incentives, conventions and exhibitions”.

Construction is expected to take two years, for completion in 2019.

The new Vinci Motogp circuit is set to become a tourist magnet, and the first projections are reported to be around the 100,000 tourist per event.