KEK Mandalika can Absorb Up to 587,000 Jobs

KEK stands for Special Economic Zone. Mandalika was designated as a KEK through government regulation Number 52 of 2014 to become a Tourism KEK.

Located in Central Lombok, the Mandalika KEK covers an area of more than a thousand hectares with a vast coastline and a unique marine economy, making it a popular destination for tourists. With such natural conditions, Mandalika actually has a good economic growth rate even without being a KEK. However, with government support, Mandalika's economy is advancing further due to more complete facilities.

Foundation of Mandalika KEK

In addition to PP Number 52 of 2014, the Mandalika KEK is also supported by the NTB Governor's Decree Number 912-825 of 2014 regarding the Establishment of the Regional Council Secretariat and the Central Lombok Regent's Decree Number 512a of 2014 concerning the Administrator of Mandalika KEK. The development and management business entity of Mandalika KEK is also protected by the Central Lombok Regent's Decree Number 513a of 2014.

The central team structure of Mandalika KEK consists of the National KEK Council chaired by the Coordinating Ministry for Economic Affairs and the Secretariat of the National KEK Council. The provincial area has the KEK Regional Council Secretariat. The district area is managed by the KEK Administrator and the Development and Management Business Entity (BUPP).

Concept of Mandalika KEK

The Mandalika KEK attracts many investors to inject funds for the development of regional facilities. This is due to the mature concept offered by Mandalika KEK. The concept is to develop the area into an environmentally conscious tourism area that has the development of tourist attractions while still maintaining its orientation for the preservation of environmental values and quality for the welfare of the community. This concept is appealing because it involves the renewal of the area while still considering the livelihoods of the community and the naturalness of the region.

With its beautiful coastal areas, Mandalika is considered a twin of Bali and attracts many tourists. Not only local tourists but also international tourists because Mandalika has been designated as a region encouraged to advance as a world tourist destination.

Becoming a Darling for Investors

Not only offering natural tourism, but the culture in Mandalika also becomes a unique attraction for the success of this Mandalika KEK. Songket fabric, the famous Sasak tribe, local cultural attractions, and local architectural buildings are special attractions for tourists.

The beautiful scenery of the area and the interesting culture are also supported by the strategic location of Mandalika. It can be reached within just 30 minutes from Lombok International Airport, many local and international tourists target Mandalika as a holiday destination. With this fact, there are already eight investors who have invested a total of IDR 13 trillion to develop Mandalika KEK even more impressively.

This area was first proposed to become a KEK by PT Pengembangan Pariwisata Indonesia, which has developed Nusa Dua, Bali, and successfully increased tourist visits to two million international tourists in 2019. A fantastic visit number that has attracted many investors, leading the government to project that Mandalika KEK could absorb investments of up to IDR 40 trillion and is planned to create 587,000 jobs by 2025.

Mandalika KEK seems to be a new light as the first KEK area, serving as a model for KEK development in other regions. Mandalika KEK shines even brighter with the extension of the cooperation contract with MotoGP, allowing Indonesia to host the event every ten years. In 2021, Mandalika will be the venue for MotoGP 2021. The circuit is under construction and is planned to be completed by January 2021.

Author: Nisa Maulan Shofa