ITDC Invites French Construction Company to Invest in Mandalika

INDUSTRY.co.id - Jakarta - PT Tourism Development Indonesia (Persero) or Indonesia Tourism Develoment Corporation (ITDC) invites French construction company, Vinci Construction, to invest in a special economic zone, Mandalika, Lombok.

Director of ITDC Abdulbar M. Mansoer said both parties had signed a memorandum of understanding in March 2017. As a follow up, ITDC and Vinci will form a joint venture to manage and operate an area of ​​120 hectares.

"We get an assignment to manage the Mandalika area of ​​1,000 hectares to develop this area, we need funds amounting to Rp3.3 trillion for 10 years," Abdulbar said at the Ministry of SOEs, Jakarta, Monday (9/10/2017).

Of the 1,000 hectares, Vinci will rent about 120 hectares of planned hotels and MotoGP circuits. To finalize the project, Vinci will invest US $ 500 million or Rp6.7 trillion (BI rate Rp13,504 per US dollar).

In the early stages, Vinci will build the MotoGP circuit and followed by the hotel. The entire project is expected to be completed by 2019, so that by 2020 the circuit can be used.

In this joint venture, the ownership of minority ITDC shares and controlled by Vinci. Thus, the revenue-sharing in the project is also adjusted to the share of its ownership.

While the remaining land will be developed in Mandalika, ITDC continues to seek other strategic partners. With the assignment to build Mandalika area, the net profit of ITDC is estimated to decrease or become Rp60 billion compared to last year's achievement of Rp80 billion.

While the revenue post is projected to increase or become Rp260 billion per end of 2017 from last year Rp240 billion. "Although the profit fell, but assets increased due to the assignment of this government," he said.