Indonesian Political, Business & Finance News

Mentawai to Develop 5,000-Hectare Integrated Tourism Zone

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
Mentawai to Develop 5,000-Hectare Integrated Tourism Zone
Image: MEDIA_INDONESIA

The Government of the Mentawai Islands Regency, West Sumatra, has partnered with Riyadh Group Indonesia (RGI) to develop an integrated tourism destination area spanning approximately 5,000 hectares. The collaboration is directed towards building an international-standard tourism zone that prioritises environmental sustainability.

The partnership was marked by the signing of a Memorandum of Understanding (MoU) between Mentawai Islands Regent Rinto Wardana and RGI President Director Bally Saputra Datuk Janosati in Jakarta on Monday (10/8). Under the agreement, RGI is appointed as the master developer responsible for investment, development, and marketing of the area. The destination is designed with an eco-green concept that combines tourism, business, commercial, technology, and supporting infrastructure within a single zone.

The development also aims to open investment opportunities for national and global investors from Europe, the Middle East, China, South Korea, and Japan. Opportunities are also open to developers affiliated with Realestat Indonesia (REI).

Regent Rinto Wardana stated that the local government is pushing for the tourism zone and its infrastructure to be included as a National Strategic Project (PSN) and/or designated as a Special Economic Zone (KEK). "We want to push for this tourism destination area and its supporting facilities to become a competitive National Strategic Project and/or Special Economic Zone," Rinto said.

He explained that the development will use an integrated ecosystem approach covering energy, water, transportation, tourism, and other supporting sectors. Economic intelligence and artificial intelligence (AI) technology will also be utilised in the planning, construction, and management of the area. Planned infrastructure includes new and renewable energy (EBT) power plants, such as solar power plants (PLTS) and wind power plants (PLTB), along with their electricity networks. The zone will also be equipped with a data centre, communication networks, clean water processing facilities, and digital-based support systems.

In the economic sector, development is directed to include fisheries and marine aquaculture along with downstream industries. The transportation sector will be supported by the construction and development of ports, fibre vessels, and an airport. The Mentawai Islands Regency Government will facilitate land legality aspects and road infrastructure development, and has promised to ease the licensing process according to its authority. This step is expected to provide certainty for investors while increasing confidence in the area’s development.

RGI President Director Bally Saputra Datuk Janosati stated that as the master developer, his company will prepare schemes for the purchase, rental, or cooperation in land utilisation for the zone’s development.

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