NTB Provincial Government Urged to Help Resolve Moto GP Mandalika Hosting Fee

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A month before the implementation of the Indonesian Moto GP Series at the Pertamina Mandalika International Circuit, Central Lombok, West Nusa Tenggara (NTB), there is still the issue of hosting fees that must be paid to Dorna Sports amounting to Rp231 billion. The NTB Provincial Government is urged not to let go. Moreover, the organization of the most prestigious motorcycle racing event in the world is a bet on the country’s credibility.

Economic observer who is also a lecturer at the Faculty of Economics and Business, University of Mataram, M Firmansyah, said that regional and central governments must be able to collaborate for the success of the world-class racing event.

“Hosting fees can be paid through collaboration between the central government and local governments, as well as other business institutions. Including PT Injourney Tourism Development Corporation or ITDC. All parties need to be willing to do this,” said Firmansyah.

He said the Moto GP event is a gamble for Indonesia. Don’t let the world think that Indonesia wants to hold a big event but doesn’t have the money.

Therefore, according to Firmansyah, the central government needs to sit down together with the regional government. Then discuss how much remaining budget is there and how much can possibly be paid. So that MotoGP this time can be carried out well without any obstacles.

Professor of Sociology at the University of Mataram, Lalu Wiresapta Karyadi, added that the implementation of the Mandalika Moto GP is not only a matter of economics or sports business. It has also become the image and dignity of the Indonesian nation.

Also read: Together with UMKM Association and Undang Chef, ITDC Holds Cooking Class Program

“Mandalika, Lombok Island, NTB and Indonesia are increasingly getting world attention because of the Moto GP event. This is also a promotion for tourism development and others. So in our opinion as NTB residents, the implementation of Moto GP 2024 is a necessity, it must be implemented,” said Lalu.

Since it was first held in 2022, the Moto GP event at the Pertamina Mandalika International Circuit has had a significant economic impact on Indonesia and NTB.

In 2023, the national MotoGP multiplier effect will reach IDR 4.3 trillion and IDR 4.5 trillion in 2022. The 2023 Mandalika MotoGP will have a positive impact on the performance of the tourism sector and the absorption of 24 thousand workers.

Also read: Complete schedule for MotoGP Mandalika 2023 in Lombok

Currently, ITDC has a license to organize Moto GP until 2040. In this regard, the company requires support from the central government and local governments to pay hosting fees for organizing MotoGP.

Hosting fee or commitment fee is a fee that must be paid by the promoter to hold Moto GP to Dorna Sports as the exclusive commercial rights holder of MotoGP. The hosting fee for MotoGP 2024 is 12,849,638 Euros or Rp231.29 billion including PPh and PPN. Apart from that, there is still an organizer fee of around Rp100 billion which is always the responsibility and paid by ITDC.

On a separate occasion, NTB Acting Governor Hassanudin ensured that the Mandalika Moto GP would still be held. He asked all his staff to help prepare for the racing event.

“We want to make sure all preparations go well by learning from experiences in previous years,” said Hassanudin. (Ant/Z-11)

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