General information, not legal advice. This guide sets out the general rules as I understand them. It has not yet been reviewed by an Indonesian notary, and the rules change. Before you sign or pay anything, confirm every point with your own independent notary (PPAT) or lawyer.
What Mandalika is
Mandalika is a special economic zone for tourism (in Indonesian, KEK Mandalika) in Central Lombok. It covers more than 1,000 hectares of coast and hills around Kuta, from the beaches west of the town to Tanjung Aan in the east.
The zone is developed and managed by ITDC (InJourney Tourism Development Corporation), a state-owned company that also built the Nusa Dua resort area in Bali. ITDC holds most of the land, lays the roads and utilities, and leases plots to hotel and resort investors. It reports that around 30 investors have signed up so far.
This page is about the zone itself. For the town, its restaurants, surf and wider rental market, read the Kuta Lombok guide.
The circuit and race weekends
The Pertamina Mandalika International Circuit is a street circuit inside the zone, close to the beach. It has hosted the Indonesian MotoGP each year since 2022. The 2026 race ran on 9–11 October. ITDC and the series organiser have said the current agreement runs to 2031, though the hosting fee has been under discussion.
The circuit also hosted World Superbikes from 2021 to 2023, and holds national and Asian series races through the year. Check the circuit's own calendar for what's actually booked.
On a MotoGP weekend, accommodation across Lombok fills up. Hotel associations reported occupancy around 90% around Mandalika for the 2025 race, and local families rented out rooms and houses from Kuta to Sengkol. Prices rise sharply. Traffic and road closures near the circuit are part of the deal too.
Hotels and what's being built
The zone already has international resorts on the beachfront, including a Pullman and a Novotel, along with smaller hotels and the circuit. ITDC's plans include a large golf resort and a district of high-end hotels at Tanjung Aan.
Progress has been slower than the plans. Several hotel plots announced years ago haven't been built, and in 2025 the local regent publicly asked investors to start construction. When you see a masterplan for Mandalika, ask which parts exist today, which have started, and which are drawings.
Inside or outside the zone
This is the biggest difference between Mandalika and the rest of the south coast.
Inside the zone, most land is held by ITDC under an HPL (Hak Pengelolaan), a right to manage state land. ITDC doesn't sell that land. It grants investors a building right, usually HGB, on top of its HPL for a fixed term. ITDC has described this as 30 years, extendable. Extensions, transfers and changes generally need ITDC's consent, and lawyers advise that the right to extend should be written clearly into the agreement. HGB is normally held by an Indonesian company, including a foreign-owned PT PMA, not by a foreign individual.
So if you're offered a villa inside the zone, ask what title sits underneath it. Is there an HGB on HPL in the developer's company name? What does the developer's agreement with ITDC allow? And how long is left on it? Your lease can't outlast the right it's carved from.
Just outside the zone, in villages such as Kuta, Sengkol and towards Gerupuk, land is mostly privately held, often as SHM freehold owned by Indonesians. Foreign buyers usually take a leasehold over it, as they would anywhere else on the south coast. You get the zone's roads and visitors without ITDC's layer of approvals, but also without its planning control over what gets built next door.
The land titles guide explains SHM, HGB and Hak Pakai in more detail.
Prices and short-let demand
Land and villas close to the zone are generally priced at the top of the South Lombok market, and asking prices have risen with the circuit. There's no reliable public price index here. Ask your notary what nearby plots actually sold for, not just what's being asked.
For rentals, the zone draws event visitors, resort guests and people visiting Kuta. ITDC has cited hotel occupancy in the zone of around half across the year. Race weekends are very busy, but they're a few nights a year. A villa that only works financially in race week doesn't work. Test any projection with the rental income guide, and compare it against the many villas already listed nearby.
The risks
- Event-driven demand: MotoGP brings a spike, not a season. Calendars, contracts and hosting fees can change.
- Land disputes: some residents have long disputed how land in the zone was acquired and compensated. Indonesia's human rights commission made recommendations in 2020, civil society groups were still raising unresolved cases with the zone's lenders in 2025, and the clearing of beach stalls at Tanjung Aan in July 2025 was contested. Make sure the plot you're looking at has no claim on it.
- Construction pace: big plans have often run behind schedule. Don't pay a premium for amenities that don't exist yet.
- Another party in the chain: on HPL land, ITDC's consent and terms sit above your developer's. If the developer's arrangement with ITDC fails, your position may be weak.
- Busy neighbours: noise, crowds and closures near the circuit on event weekends.
What to check
- Whether the plot is inside or outside the zone, confirmed on the zone map and the certificate
- Inside the zone: the HGB on HPL certificate, who holds it, its expiry date, and the developer's agreement with ITDC
- Outside the zone: the SHM certificate, checked at the Central Lombok land office (BPN)
- Any land claim or dispute on the plot, checked by your notary and with the village head
- Zoning and building permits, and whether a tourism licence is possible if you plan to rent
- What's planned on the plots next to yours, and what's actually been built
- The usual checks from how foreigners can buy and the off-plan checklist
Property near Mandalika
I'm vetting developers in and around Mandalika now. If it's your preferred area, tell me your budget and I'll let you know what's available. Any site visit is run by the developer, in person or by video call. Meanwhile, compare it with Gerupuk to the east and quieter Tampah to the west.
Common questions
Can a foreigner buy property inside the Mandalika zone?
Most land inside the zone is held by ITDC, the state-owned zone manager, under a management right called HPL. Investors usually get a building right granted on top of that HPL, normally through a company, rather than buying the land outright. Whether an individual can lease a villa on a particular plot depends on that plot's title and ITDC's terms, so ask a notary to check before you pay anything. The foreigners guide covers the general routes.
What is HPL land?
HPL (Hak Pengelolaan) is a right to manage state land, held by a government body or state company. The holder can grant other rights on top of it, such as HGB, for a fixed term. Extensions and transfers usually need the HPL holder's consent, so the written agreement matters as much as the certificate.
Can I rent a villa out during MotoGP?
Yes, and race weekends are the busiest days of the year around Mandalika. But it's one weekend. Build any rental estimate on the other 360 or so nights, and read how to test rental projections.
Is Mandalika the same as Kuta Lombok?
They're next to each other. Kuta is the town; Mandalika is the government-backed tourism zone along the coast around it, with the circuit and the big hotels. See the Kuta guide for the town itself.