Lombok, West Nusa Tenggara. Indonesia Tourism Development Corporation (ITDC), the state-owned tourism developer behind the Mandalika Special Economic Zone, has signed a land utilization and development agreement with Kleo Mandalika Resort to develop a five-star luxury hotel on Tanjung Aan Beach, a prime coastal area in the Mandalika region.

The deal, announced on Tuesday, is valued at Rp 2.1 trillion ($124.45 million) and marks a major step in promoting Mandalika’s profile as a premium tourism destination. Under the agreement, Kleo Mandalika Resort -- a joint venture of companies from Indonesia, Japan, and Dubai -- will develop a high-end property on a 101,000-square-meter plot.

“This partnership adds significant value to the eastern Mandalika area and demonstrates global investors’ confidence in the long-term potential of Indonesia’s tourism sector,” said ITDC President Director Ari Respati.

He added that the development would help diversify and elevate the accommodation offerings in Mandalika while stimulating local economic growth.

The hotel project is part of broader efforts by the Indonesian government and ITDC to transform Mandalika into a world-class tourism destination. The area, already home to the Pertamina Mandalika International Circuit that hosts MotoGP and World Superbike events, has been undergoing rapid infrastructure development, including upgrades to roads, utilities, and an international airport nearby.

Kleo Mandalika Resort CEO Satoki Okazaki described the project as a long-term commitment and a reflection of shared vision with ITDC. “We believe the project will create jobs, drive investment, and enhance Indonesia’s global tourism appeal.”

The LUDA agreement spans 30 years, with the option for a 20-year extension and a subsequent renewal. 

The luxury hotel is expected to attract high-spending tourists and generate positive spillovers for the local economy, including job creation and increased revenue for supporting industries.