Mandalika explained: what the special economic zone means for property buyers

If you look at land in South Lombok, you will hear "Mandalika" in every conversation. This guide separates what the zone is and what it has delivered from what is still planned. Rupiah is converted at about IDR 18,000 to the US dollar.

What Mandalika is

The Mandalika Special Economic Zone (Kawasan Ekonomi Khusus, or KEK) covers about 1,035 hectares of coast east of Kuta, including the beaches of Kuta, Serenting, Tanjung Aan, Kelieuw and Gerupuk (Coordinating Ministry for Economic Affairs). It is developed and managed by ITDC, the state tourism development company now part of the InJourney group, which also built Nusa Dua in Bali.

A special economic zone gives investors inside it lighter procedures and some tax relief. ITDC prepares land and infrastructure, then leases lots to hotel and villa developers under a master plan.

What has been built

• The Pertamina Mandalika Circuit. A street-style racetrack that has hosted MotoGP since 2022. The contract runs for ten years, to 2031 (detikOto).
• International hotels, including Pullman and Novotel, alongside local hotels in and around the zone.
• Roads and utilities, including the bypass from the airport, which is about 30 minutes away.
• New villa projects. In January 2026, ITDC announced a Spanish investor's IDR 54 billion villa project on two lots (InvestorTrust).

The numbers

The lower 2025 target reflects ITDC adjusting its development phases, with work planned to continue to 2029 (detikBali). It is a reminder that the zone is being built in stages, not all at once.

What it means for buyers

Demand you can see

The circuit gives South Lombok something few emerging destinations have: international events that fill every bed for a few weekends a year, and global television coverage. Around them, the steadier demand comes from surfers, remote workers and holidaymakers drawn by the improved access. Our rental income model uses actual Kuta data, events included.

Inside the zone or outside it?

Inside the zone, land is controlled by ITDC and offered to developers in lots, under the master plan and its design rules. Government Regulation 40/2021 on special economic zones allows foreigners and foreign companies to own residential property in a zone, and provides for reductions in acquisition duty and land tax (SmartLegal summary). In practice, buying inside means buying from a developer that holds a lot, on its terms. Ask how your right is registered, for how long, and what happens at the end of the term.

Outside the zone, in Kuta village and the hills to the west and north, land is held by private owners and bought through the usual routes: lease, Hak Pakai or PT PMA. This is where most villas for individual investors are, and where the zone's spillover is felt most: views over the bays, short drives to the circuit and beaches, and prices below the coastal lots. See Kuta, Selong Belanak or Torok for how the areas compare.

Risks to weigh

• Pace. Large parts of the master plan are still to be built, and targets have been revised. Value what exists.
• Concentration. Events create peaks, not a year-round base. Do not build a business plan on race weekends alone.
• Change around you. Construction can continue for years near some plots. Check what is planned on neighbouring lots.
• Beyond 2031. The MotoGP contract has a fixed term; renewal is not guaranteed.

Questions to ask before buying near Mandalika

1. Is the plot inside or outside the zone, and who holds the land right?
2. What does the zoning, inside the master plan or the regency's spatial plan, allow next door?
3. How far is it, by road, from the circuit, the beaches and Kuta's restaurants?
4. How did comparable villas perform outside event weeks?
5. Is there road noise or event traffic on the access road?

Want to see plots with views over the Mandalika bays? Ask us on WhatsApp.

FAQ

This article is general information as of October 2026. Development plans and event contracts can change. See our investment disclaimer.