Mandalika: A Money Magnet

Tucked in the east coast, Mandalika is gathering steam as one of the leading tourist destinations and an important SEZ

Indonesia is bursting at the seams with business, economic and leisure activities, courtesy of the recently launched slew of special economic zones to harness the potential of its varied regions.
Each region and zone is distinct. Tucked in the east coast of the country, Mandalika on Lombok Island is one of the most promising projects gathering steam as a leading tourist destination and an important special economic zone.

Mandalika was recently set forth as a special economic zone by the Indonesian government, which means that development in that area will be prioritised and special taxation policy and other incentives will be given to the investors. These include exemption from value-added, luxury sales tax, excise duty, import income tax and tax agency incentives.

Infrastructure

The region scores well on many fronts. Infrastructure, for instance, is readily available, which means companies planning to set up businesses here can hit the ground running. Mandalika district is connected to Lombok International Airport, and has a network of well laid out roads. Furthermore, the government has provided 1,200 hectares of wide area to be developed as hotels and resorts.
The region's proximity to domestic and international centres of trade and commerce is also a boon: Bali can be accessed in 20 minutes; Jakarta in half an hour, and Singapore is merely two hours away. The region is also strategically accessible to various important places such as Kalimntan, Sulawesi, Maluku, Papua, Malaysia and the Philippines.

Government support

Both the central as well as local government are leaving no stone unturned to make Mandalika a success. The National Electricity Company has been asked to provide uninterrupted electricity supply to the area. In order to achieve target deliverables, the government is hoping to keep a constant tab on the progress of the zone by conducting regular supervision of the work of PT Indonesia Tourism Development Corporation as the in-charge company for Mandalika SEZ.
Plans are also afoot to set up a Tourism Academy in Mandalika to nurture talent for future employability.

Natural resources

Mandalika's geographical position and wealth of natural resources make it a natural choice for the government to develop the region commercially and economically. Facing the vast India Ocean, the zone has 7.5 kilometres of white sand beach and is quite popular with surfers and divers throughout the year. Various coral reefs lay under the water of Mandalika's beaches, which also offer visitors with amazing spots for diving and snorkelling.
The SEZ does not only aim to maximise tourism potentials but also develop as a centralised food production zone, which includes agriculture, cattle, and maritime. Its location in the hills of Rinjani Mountain offer a geographical competitive advantage to be developed as a geothermal energy exploration site.

Strong economic fundamentals

Indonesia is primed for economic take-off, which makes the success of special zones like Mandalika certain. With a debt-to-GDP ratio of as low as 27 per cent, the IMF forecasts the economy to expand to $1.5 trillion by the end of 2015. It also projects Indonesia to be among the top three in the G20 group of countries to have the fastest economic growth.
Considering such positive forecasts and presence of strong growth drivers, businesses in special economic zones are surely tipped to grow manifolds.

Investment options

1. Agro tourism

• Theme park
• Residential plantation
• Farming and harvest
• Agro trial

2. Ecotourism
3. Mangrove Tour
4. Natural flora
5. Eco trail
6. Eco lodge
7. Eco hotel and resort

• suneeti@khaleejtimes.com