What does the open contract mean for Mandalika land prices?

Mandalika land is quoted at Rp 100-150 million per are, about USD 6,100-9,100 per are at roughly Rp 16,500 per USD. These are ranges from verified market data, not a forecast. Buyers should ask how much of any price premium depends on the event, and test the purchase without it.

What net yield should investors expect from South Lombok villas?

The honest net rental yield is 7-12% after management fees of 18-22% of gross revenue, booking commissions and realistic occupancy. Developer gross figures of 12-22% exclude these costs and should not be compared with net returns. Treat every return figure as an estimate.

Mandalika's MotoGP Contract Is Still Open, and Investors Should Take Note

Q: Is the MotoGP contract at Mandalika confirmed beyond this year?

Not in the reporting. Indonesia has not yet decided whether to extend the contract, which expires this year. The promoter Dorna says it plans to stay until at least 2031, but the state tourism developer ITDC says that is not a formal approval. Treat the extension as unconfirmed until the government announces it.

Quick answer: Indonesia has not yet decided whether to extend its MotoGP contract at the Mandalika circuit, which expires this year. The promoter, Dorna, says it plans to stay until at least 2031, but the state tourism developer ITDC says that intent is not a formal approval. For Lombok investors, the open contract is a variable to price in, not a settled fact.

Indonesia wants a share of the sports tourism boom, and Mandalika has been its most visible showcase. Yet the country's flagship motorsport event now sits in a contract gap, after two other international races were already discontinued. For anyone weighing land or villas in South Lombok, that gap deserves more attention than the headline about a race.

The Context

The Jakarta Post Business reports that countries increasingly chase sports tourism by hosting major sporting events, a market it describes as a multibillion-dollar opportunity. Indonesia's record is mixed. Formula E and the F1 Powerboat races have been discontinued, and the MotoGP round at Mandalika now faces the same question.

The race held on 11 October drew a record 157,000 spectators. The country's Youth and Sports Minister said the government had not yet decided whether to extend the contract, which runs out this year. He did not say when, but he said the decision depends on the President's direction and on an evaluation of the event as its initial five-year term closes. The minister also argued that the event had helped reduce poverty in surrounding areas by nearly 3 percentage points. That is a claim made by a government official, and the source does not independently verify it.

Mandalika is not the same place as Kuta. It is a special economic zone (SEZ) built around the circuit, and it is priced as a separate market. An investor can reasonably ask how much of any price premium depends on the event, and how much rests on the zone's own fundamentals. The reporting does not settle that question, so the answer has to come from the buyer's own analysis.

Two Signals That Point in Different Directions

Dorna's position is clear. Its deputy chief executive said the company had a five-plus-five-year agreement with the Indonesian government and planned to remain at Mandalika until at least 2031, as quoted by Detik on 6 October. The promoter is signalling continuation, not exit.

The state side is less settled. ITDC said Dorna's commitment does not mean the extension has been formally approved by Indonesia. Its operations director put the gap in plain terms:

“Dorna has said go, but Indonesia has not. We are the government and a state-owned enterprise, so we cannot make a unilateral decision.”

Read together, the two statements describe a deal that is ready on one side and procedurally open on the other. In summary:

Promoter (Dorna): willing to continue, with a planned horizon to at least 2031.
Government: no decision yet, dependent on presidential direction and a formal evaluation.
State tourism developer (ITDC): Dorna's commitment is not a formal approval.
Timing: the current contract expires this year.

The outcome matters in both directions. If the contract is extended, the event calendar continues. If it is not, the demand indicators discussed below would need to be read again with the race removed from the picture.

Mandalika's MotoGP Contract Is Still Open, and Investors Should Take Note · Illustration: HubLombok (AI-generated)

What the Mandalika Numbers Show

The source does not give property prices, so the figures below come from the verified South Lombok market data for 2026. Land is quoted per are (1 are = 100 m²), the local convention, with approximate US dollar values at about Rp 16,500 per USD.

| Zone | Land price (Rp per are) | Approx. USD per are | Note | |---|---|---|---| | Kuta | Rp 300-400M | $18,200-24,200 | Town, demand and liquidity leader | | Mandalika | Rp 100-150M | $6,100-9,100 | SEZ around the MotoGP circuit |

Demand indicators point in the same direction as the event narrative. Foreign arrivals have risen roughly 40-50% year on year, a trend that combines tourism recovery with the MotoGP effect. Villa rates in Kuta and Mandalika are up about 38% year on year. These are strong readings, but they mix several drivers, so attributing them to a single race would overstate what the data shows.

A headline growth rate does not become a return. The honest net rental yield for South Lombok villas is 7-12% after management fees and realistic occupancy. Management fees run at 18-22% of gross rental revenue, online booking commissions at 15-20%, and stabilised occupancy in years one to three sits at 55-70%, against 70-85% in Bali. Developer-quoted gross yields of 12-22% exclude these costs, so they cannot be compared with net figures. Any return figure should be read as an estimate.

What This Means for Investors

For investors, the open contract is a question to test, not a verdict. Four checks follow from the reporting:

Separate the event premium from the base case. Model a villa's net income with and without a race calendar. If the return only works with the event, the risk sits with the contract.
Track the decision, not the rhetoric. The formal step is a government approval after presidential direction and evaluation. Statements from the promoter or from officials are signals, not decisions.
Stress-test occupancy. Use the 55-70% stabilised range, not the peak-season rates that appear in promotional material.
Check title and structure first. Hak Milik is reserved for Indonesian citizens. Foreign buyers work through leasehold (Hak Sewa), Hak Pakai, or a PT PMA holding Hak Guna Bangunan (HGB). Each route needs verification of certificates, ownership history, zoning and encumbrances before any deposit. Independent notary and legal advisers, such as TerraNusa Advisory, cover due diligence, PT PMA setup, taxes and deed transfer at the land office.

The decision on the contract belongs to the Indonesian government, and the current agreement expires this year. Until a formal decision is published, any Mandalika premium should be treated as an open variable. Investors who keep their underwriting tied to net, verified figures will be less exposed to whichever outcome arrives.

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