Interview: Indonesia's Lombok Island looks forward to more Chinese investment

JAKARTA, Dec. 16 (Xinhua) -- Indonesia's Lombok Island looks forward to increased investment from China to develop the tourism sector in Mandalika, a flagship tourism destination project developed by the Indonesian government, said Ari Respati, CEO of PT Pengembangan Pariwisata Indonesia (ITDC), in a recent interview with Xinhua.

With hopes of attracting more investors to establish businesses in the Mandalika area over the next five years, Respati expressed strong confidence in China as one of the largest investment markets in the world.

"We not only see potential in the tourism sector but also in trade, thanks to the benefits of the Mandalika Special Economic Zone (SEZ). We offer trade opportunities, particularly as we are currently finalizing plans to develop a port. This presents a great opportunity for Chinese businesses to consider Mandalika as a trading hub in eastern Indonesia," said Respati.

Mandalika was first established in 2014 by the government as a special economic zone, offering various incentives such as tax and licensing flexibility. The idea to transform Mandalika, which was once a dense forest, into a priority tourism destination, emerged as part of the Indonesian government's long-term effort to provide alternative attractions beyond the already famous island of Bali. Since 2019, the government has developed infrastructure in Mandalika, including highways and accommodations.

"We hope that Chinese companies will invest here. This will bring significant progress, not only for the tourism sector but also for the broader global economy," said Respati.

Currently, the 1,175-hectare Mandalika area is widely recognized for its international circuit, which annually hosts the MotoGP races. The 2024 MotoGP event attracted over 120,000 spectators.

"We are also working to encourage investors to continue developing hotels, villas, golf infrastructure, dormitory, seawater reverse osmosis, waste management facilities, electrical facilities, jetty/marina, and equestrian facilities as part of our grand plan to expand tourism infrastructure in the area. Additionally, we plan to start marina development within one to two years," Respati added.

Beyond infrastructure, Respati identified connectivity as the biggest challenge for ITDC in maintaining the tourism ecosystem, with the government's efforts on improving the airport.

"We understand that accessibility, including a well-connected airport, is key to a destination's success. The more flights that land here, the more tourists will come to Lombok," he said.

Respati noted that currently, there are only eight to 10 round-trip flights per day. He hopes this number will increase, particularly from China, Malaysia and Singapore, three countries that, according to Indonesian statistics, contribute the highest number of foreign tourists to Indonesia.

He also mentioned that Indonesia has collaborated with the Asian Infrastructure Development Bank (AIIB) to accelerate the development of basic infrastructure as part of the Mandalika project.

Respati emphasized that every development or investment project must involve local communities, as the Indonesian government aims to ensure that the local population benefits, especially through job opportunities.

"Wherever we build or develop tourism destinations, we must involve the local community in those projects. This is part of our social responsibility to the people living around Mandalika," he added.

Respati also highlighted ITDC's ongoing efforts to empower local communities by providing skill development programs, prioritizing local labor and supporting small businesses in the area.