MNC Land, a property developer arm of media conglomerate MNC Group, has set aside Rp 700 billion ($61.6 million) to develop the first phase of an integrated tourism resort in Lombok.
Daniel Yuwono, a director at MNC Land, said on Thursday that the first phase of the Mandalika Resort would involve developing 164 hectares of land for a golf course, hotel and resort buildings.
This is just a fraction of the 1,250 hectares of land allotted for the entire resort.
The project will see MNC Land, controlled by businessman Hary Tanoesoedibjo, join hands with Gobel International, a holding company of fellow tycoon Rachmat Gobel.
“The development will be done gradually. The first phase needs around Rp 500 billion to Rp 700 billion. The financing will come from external and internal sources,” Yuwono said.
The Bali Tourism Development Corporation, tasked by the government to seek investors for the development, appointed MNC Land to build the project.
International tourism resort operator Club Med will operate the Mandalika resort once it is open.
Yuwono said investors had asked the government to build supporting infrastructure, such as decent roads linking the resort to the surrounding area.
Mandalika is known for its beautiful coastline and beaches.
The area already has some existing developments, including a five-star Novotel, which was built in the 1990s.
However, further development has stalled due to lack of investment and promotion of the area’s potential.
In 2011 the government announced plans for the development of the region in partnership with the private sector.
In October 2011, President Susilo Bambang Yudhoyono earmarked Rp 27 trillion for the development of the area, to include five-star hotels, a convention center, sports and health facilities, a lagoon and a marina for yachts.
Mandalika is strategically located only 16 kilometers from the new Lombok International Airport and just 40 kilometers from Mataram, the provincial capital.
MNC Land has been making a series of resort projects acquisitions, including the Bali Nirwana Resort and Lido Resort, both previously owned by the Bakrie Group.
Yuwono said MNC Land would develop Bali Nirwana’s 100 hectares of land bank, adding a new hotel, villas and mini theme park to the extant hotel and golf course.
MNC Land now owns a 44.09 percent stake in Bali Nirwana Resort and is expected to buy the remaining stake.
Shareholders at MNC Land have already approved the management’s plan to acquire the remaining 55.91 percent stake in Bali Nirwana.
However, the management has yet to unveil details on how the deal will eventually be financed.
MNC Land’s finance director, Dipa Simatupang, said MNC had 12 months to complete the acquisition.
MNC Land is also preparing itself to work on a mega-project worth more than Rp 10 trillion, including an integrated entertainment center in Lido, Sukabumi.
MNC’s Hary is among Indonesia’s wealthiest individuals and a vice presidential candidate in next year’s election.