The Minister of State-Owned Enterprises (BUMN) Erick Thohir said that the MotoGP in Mandalika, West Nusa Tenggara, will encourage investment in Indonesia, especially in the automotive sector. Erick believes that the international racing event will boost the growth of the motorcycle industry. “This is a win-win for us (MotoGP) organizers from Dorna. In the future, we encourage the Ministry of Investment so that Indonesia opens up as much investment as possible from abroad, especially the automotive industry," Erick said at a press conference, Sunday, March 6, 2022. Indonesia will host MotoGP for the next ten years. The government has invested USD 3.8 trillion for the construction of the MotoGP circuit and its supporting infrastructure in the Mandalika Special Economic Zone, West Nusa Tenggara. Erick said that the MotoGP event would strengthen Indonesia's branding as a sports tourism destination. Like the ASEAN Games, this motorcycle racing event is expected to have a long-term economic impact. On the other hand, Erick sees that Indonesia has great potential as an automotive market. In the future, the country will develop two types of motorcycles, namely those with fossil fuels and electronic or battery-based vehicles.
"Indonesia will become a big country and have a big brand," said Erick. Previously, the Ministry of Industry noted that the total investment in the automotive sector reached USD 140 trillion in 2021. The number of domestic production of four-wheeled vehicles or more is 2.35 million units per year with a workforce of 38 thousand people. To maintain the automotive industry ecosystem, the government provides incentives for sales tax discounts on luxury goods borne by the government (PPnBM DTP) for four-wheeled vehicles during the Covid 19 pandemic. the automotive component industry sector, including small and medium industries," said the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in a statement last February.
