Indonesia missing out on sports tourism boom as Mandalika extension in limbo

Indonesia is missing out on a lucrative sports tourism boom, capturing only a mere 0.4 percent of the estimated Rp 9.5 quadrillion market. The country is struggling to capitalize on this multibillion-dollar opportunity, as major sporting events are becoming an attractive avenue for growth. The latest setback stems from the uncertain future of MotoGP at the Mandalika circuit in Lombok, West Nusa Tenggara, raising concerns that the nation could lose another high-profile event following the discontinuation of Formula E and F1 Powerboat races.

Youth and Sports Minister Erick Thohir revealed that the decision to extend MotoGP's contract, which expires this year, remains undecided. The final choice will depend on President Prabowo Subianto's direction and an evaluation of the event following the initial five-year contract term. "Hopefully, he will be the one to announce it," Erick stated, while expressing support for the continuation of the event, which he claims has helped reduce poverty in surrounding areas by nearly 3 percentage points.

Dorna, the event's organizer, has indicated a willingness to continue the partnership with Indonesia. According to a Detik report from Oct. 6, the company has a five-plus-five-year agreement with the Indonesian government and plans to remain in Mandalika until at least 2031. However, Dorna's commitment does not guarantee the extension has been formally approved by the Indonesian government.

The ITDC (InJourney Tourism Development Corporation), Indonesia's state-owned tourism developer, clarified that while Dorna has given its approval, the final decision rests with the Indonesian government. Troy Reza Warokka, operations director of the state-owned tourism developer, emphasized that as the government and a state-owned enterprise, they cannot make a unilateral decision.