Mandalika MotoGP: The Cost for Building Mandalika Circuit Is Very Expensive, Really?

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Mandalika Special Economic Zone

The nominal funds needed to build the Mandalika circuit, Lombok Indonesia, by some observers are considered too expensive.

Figures announced to make the MotoGP circuit reach Rp 14 trillion (USD 1 billion). Let’s look at the comparison with the cost of building a MotoGP circuit in Spain.

This information was immediately revealed from David Garcia, owner of the Almeria circuit, Spain. David Garcia had a dialogue when he met with President Jokowi (at that time he was still the Governor of Jakarta), 7 November 2013 ago.
“The overall cost of building the MotoGP circuit is around 4 million US dollars,” said David Garcia, owner of the Almeria circuit, Spain.
“If it is converted into rupiah, this value reaches around IDR 440 billion (Dollar rate in 2013). It’s not expensive, “explained Jokowi while still serving as the Governor of Jakarta.

Then where does the 14 trillion rupiah figure come from? Is it true that the circuit really costs so much?

Read the explanation from the Director of the Indonesian Tourism Development Corporation (ITDC) as the holder of the Mandalika Special Economic Zone management rights:

Construction of the MotoGP circuit in the Mandalika Special Economic Zone, West Nusa Tenggara, Indonesia will begin in September 2019. With the contractor is Vinci Construction from France.

Abdulbar Mansoer, Managing Director of the Indonesia Tourism Development Corporation (ITDC), said that the contractor’s investment commitment was USD 1 billion or equivalent to Rp 14 trillion (exchange rate of Rp. 14,000 per 1 USD).

“Vinci has a commitment to invest US $ 1 billion, equivalent to Rp. 14 trillion for 15 years,” Mansoer said at the Bogor Palace, West Java, on March 11, 2019.

The investment value of IDR 14 trillion is not only for the MotoGP circuit in Mandalika. But also other devices that support the running of the race for Valentino Rossi Cs.

“Vinci knows the details, the ITDC only provides basic infrastructure. Vinci builds circuits, convention centers, hotels, special hospitals for MotoGP accidents. If an accident occurs, there is an emergency response and burn treatment,” he said.

Construction of the circuit began in September 2019 and is targeted to be completed by the end of 2020.

ITDC, said Mansoer, has built a road of 11 kilometers (km) which Vinci can later use in building MotoGP circuits and facilities in Mandalika.

“ITDC provides basic facilities, Vinci makes circuit facilities,” he said.

Isn’t that clear? the cost of 14 trillion rupiah is not only for the circuit and will be spent in the span of 15 years in the development of the Mandalika area.