Tourism SEZ: Queueing of Foreign Investors on the Mandalika Special Economic Zone

Wednesday, 13 May 2026

A few years ago, many people still saw Lombok as Bali’s quieter neighbor. Beautiful beaches? Yes. Amazing surf? Absolutely. But global investors? Not really on the radar. Now, things are changing fast.

The Mandalika Special Economic Zone in South Lombok has become one of Indonesia’s hottest tourism investment destinations. Foreign investors from the Middle East, Europe, and Asia are lining up to enter the area, bringing billions of rupiah into hotels, resorts, entertainment projects, and tourism infrastructure.

The Indonesian government officially launched Mandalika as a tourism SEZ to attract international investment and turn Lombok into a world-class destination. And honestly, the momentum has been huge.

One of the biggest signs of confidence came from Saudi Arabian-backed company EBD Paragon, which invested around Rp1.2 trillion into the Paramount Lombok Resort and Residence project. The development includes hundreds of rooms and luxury facilities aimed at international travelers.

France’s Vinci Grand Project also committed major investment for the Mandalika Street Race Circuit cluster, while the Qatar Investment Authority reportedly planned a massive tourism project worth around US$2 billion.

That kind of money doesn’t enter an area without reason. Investors are looking at Mandalika because the region has several things working in its favor. First, the natural beauty is undeniable. White sand beaches, rolling hills, warm weather, and world-class surf spots create a tourism product that basically sells itself.

Second, infrastructure development has accelerated quickly. The government expanded roads, upgraded Lombok International Airport, and improved access to tourism areas. Major international events like MotoGP also pushed Mandalika into the global spotlight.

And third, the SEZ status gives investors attractive incentives. These include tax benefits, simplified permits, and easier regulations for tourism businesses. For many foreign companies, that makes Mandalika much more attractive compared to traditional tourism markets that are already crowded and expensive.

Hotels have started appearing one after another. Brands like Pullman, Royal Tulip, Club Med, and other international hospitality names have either entered or planned developments in the area.

What makes this story even more interesting is the timing. Global tourism is shifting. Travelers today want destinations that still feel authentic and less overdeveloped. Mandalika offers exactly that balance: luxury potential without losing the tropical island charm that people are searching for.

Of course, rapid development also brings challenges. Some researchers and local discussions have raised concerns about sustainability, land use, and how local communities can benefit fairly from the tourism boom.

Mandalika is no longer just a future project or a government dream. It’s becoming a real tourism ecosystem that continues attracting international attention year after year. And judging by the growing queue of foreign investors, many believe Lombok’s biggest chapter is only getting started.