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Mandalika Special Economic Zone

The economic zone is developed to conduct economic functions, such as creating a conducive economic environment to develop investments and to ease the trade process for economic growth. (Rustidja et al., 2017). Conceptually, an economic zone is made to increase economic growth and accelerate investments, and eventually improve the welfare of the locals. Despite the positive advantages through the development of the economic zone, should the development process include the concern for its sustainability, especially to the environment. Indonesia adopted the ‘special economic zone’ and implemented it since 2009, to develop the region and sector. Namely ‘Kawasan Ekonomi Khusus Mandalika’ in West Nusa Tenggara. This paper will discuss how Mandalika is promising for Indonesia to develop its national branding as soft power in the region of Indo-Pacific.

Source: Liputan6.com

The name ‘Mandalika’ itself is derived from a legendary figure, Princess Mandalika which was famous for her beautiful face. Annually, the local people would celebrate the Bau Nyale ritual. Bau Nyale is an annual event to praise Princess Mandalika by finding seaworms that is believed as a reincarnation of the princess. (Dewan Nasional Kawasan Ekonomi Khusus Republik Indonesia, n.d.). This annual event could eventually impress foreigners and later will increase the presence of Mandalika to the world. The creation of this Special Economic Zone is constituted based on the PP No. 52/2014. This zone is developed to organize an advanced yet sustainable economic zone through balanced and integrated environment in order to create the West Nusa Tenggara province to be one of Indonesia’s main tourism destinations. Mandalika is 1.035,67 ha wide and is located in Pujut District, Central Lombok and is aimed to be the image of Lombok tourism. (PP No. 52 tahun 2014). Mandalika has many potentials such as the geo-economic advantages including exquisite marine tourism, cultural uniqueness of its native people; and geo-strategic superiority of environmental-friendly tourism development. 

To make this zone is more appealing, the Indonesian government has developed many key infrastructures such as 18,2 km of Penunjak-Kuta national road, Lombok International Airport, Lembar Harbor, 150 Kv electricity in Kuta, and Jai Praya Clean Water Management with Sea Water Reverse Osmosis. By these already-built infrastructures, this special economic zone also has many investment opportunities in many sectors, such as: 1) accommodation and MICE (meeting, incentive, conference, and exhibition) sector in residential, hotel, convention, and resort; 2) food and beverage services in restaurants, bars, and café; 3) entertainment and relaxation in the plaza and commercial centers like golf-courses, racing circuit, nature park, and natural tourism; 4) infrastructure sector in solar cell farm, gas terminal, health facility, and waste management; and 5) art and cultural sector in art exhibitions, cultural attraction, and cultural sites. (Dewan Nasional Kawasan Ekonomi Khusus Republik Indonesia, n.d.).

In order to maximize its existence to promote trade, tourism, and investment, we must optimize existing potentials to integrate with the flow of information. For example, West Nusa Tenggara is famous for Lombok because of its nature which foreign tourists are dazed by its beauty. This existing potential should be taken as an advantage to inform the world that West Nusa Tenggara has another ‘destination’ namely the Mandalika Circuit. Thus, the tourists will know West Nusa Tenggara not only with Lombok but also Mandalika. To create the presence of this Mandalika Special Economic Zone in the Indo-Pacific region, the Indonesian government shall promote it. Promotion is a public presentation, which generates persuasive power and expressiveness, which later will grant the promoted incentive and publicity. (Gitosudarmo, 1997).

With this, the government of Indonesia could also somehow promote other things to increase their presence in the Indo-Pacific market. Partially the investment promotion, the effectiveness of this investment promotion to attract investors’ desires toward Mandalika Special Economic Zone is determined by how the government delivers the information of the zone. Should the Indonesian government wrap this zone as appealing and promising for the investors. If this promotion is successful, we will gain not only nation branding but also an increase in many sectors such as trade, tourism, and investments. As for tourism is one of Indonesia’s economic diplomacy main objectives, Indonesia should focus to promote its tourism as its creative economy potential.


References

Dewan Nasional Kawasan Ekonomi Khusus Republik Indonesia. (n.d.). KEK Mandalika. Retrieved August 31, 2021, from https://kek.go.id/kawasan/kek-Mandalika

Gitosudarmo, I. (1997). Manajemen Pemasaran. BPFE Yogyakarta.

PP No. 52 tahun 2014 tentang Kawasan Ekonomi Khusus, (2014). https://peraturan.bpk.go.id/Home/Details/5491/pp-no-52-tahun-2014

Rustidja, E. S., Purnamawati, A., & Setiawati, R. (2017). Investment Promotion for Community Economic Development of Special Economic Zone: Study of Sez Mandalika and Bitung in Indonesia. European Journal of Economics and Business Studies, 8(1), 138. https://doi.org/10.26417/ejes.v8i1.p138-147


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