Central Lombok Refuses to Pay MotoGP Mandalika 2025 Fee

MotoGP, Sportrik Media - The Lombok Tengah Regency Government in Nusa Tenggara Barat (NTB), Indonesia, has decided not to contribute to the hosting fee for the 2025 MotoGP Mandalika at the Mandalika International Circuit. Regent Lalu Pathul Bahri emphasized that the payment responsibility lies with the Mandalika Grand Prix Association (MGPA) and Indonesia Tourism Development Corporation (ITDC). Instead, the regency will optimize promotion efforts for the international racing event to boost local tourism. Through in-depth analysis, this decision reflects a strategic collaboration approach that prioritizes economic benefits without direct budgetary burdens.

Regent Pathul's statement was made on Tuesday (August 26, 2025), ahead of preparations for MotoGP Mandalika 2025. Nevertheless, the regency remains committed to contributing through intensive promotion, including potential ticket purchases by government employees as in previous years.

Hosting Fee Authority and APBD Limitations

Regent Lalu Pathul Bahri clarified that the hosting fee for MotoGP Mandalika 2025 is not the responsibility of Lombok Tengah Regency, but rather MGPA and ITDC as primary organizers. “That (hosting fee) is already under the authority of MGPA or ITDC, as the government has no obligation to facilitate this hosting fee,” he stated. He added that if the NTB Provincial Government or the 10 regencies/cities were required to pay, it would need to be discussed jointly with the Provincial and Regency/City Regional People's Representative Councils (DPRD).

The government cannot decide unilaterally without the approval of people's representatives, given that such payments would burden the Regional Revenue and Expenditure Budget (APBD). “How can we prepare the budget when even discussions with them (DPRD) haven't happened, since paying this would use APBD,” asserted Regent Pathul. This approach aligns with the region's fiscal constraints, where budget priorities are directed toward local development programs.

Collaboration via BUMN and BUMD

Regent Pathul recommended that hosting fee payments be handled through partnerships between State-Owned Enterprises (BUMN) and Regional-Owned Enterprises (BUMD). “The collaboration should be between business entities to ensure mutual benefits,” he said. This method is expected to foster synergy where BUMN like ITDC lead financing while BUMD support local operations.

Such collaborations have proven effective in past MotoGP Mandalika events, generating significant economic impacts for NTB. Thus, Lombok Tengah Regency stays involved without bearing the primary financial load, allowing APBD allocation for other sectors like infrastructure and basic literacy enhancement.

Promotion Optimization as Contribution

Although not paying the hosting fee, Lombok Tengah Regency is committed to collaboration through aggressive promotion of MotoGP Mandalika 2025. In previous years, government employees participated by purchasing tickets, which not only increased attendance but also enhanced Mandalika's image as a super-priority tourism destination. “For this year's plan (employees buying MotoGP tickets), we haven't discussed it again yet,” explained Regent Pathul.

These promotion efforts are anticipated to drive domestic and international tourist visits, maximizing economic benefits from the event. The Mandalika Circuit, which recently hosted an MGPA racing event last week with hundreds of spectators, demonstrates its strong potential as an international venue. Through vigorous promotion, the regency aims to boost hotel occupancy, local trade, and public awareness of Lombok Tengah's beauty.

Economic Impact and Prospects for MotoGP Mandalika 2025

MotoGP Mandalika has become a tourism magnet for NTB, with the 2024 event generating an economic turnover of up to Rp4.8 trillion according to Kemenparekraf data. The regency's decision to focus on promotion without hosting fee contributions is seen as strategic, considering full regional involvement in financing could strain limited APBD resources. However, collaboration with MGPA and ITDC remains essential to ensure the event's smooth execution until 2040 per ITDC's license.

Amid previous hosting fee controversies in 2024, this approach could serve as a model for other regions hosting major events. With BUMN-BUMD synergy and regional promotion, MotoGP Mandalika 2025 holds potential for greater success, strengthening Indonesia's position in the global MotoGP arena. For the latest updates on MotoGP and Mandalika tourism, visit Sportrik.