Indonesia's experience hosting the MotoGP Mandalika, one of the world's most thrilling motorcycle racing events, has significant economic potential, estimated to generate IDR 500 billion. Following an internal meeting with President Joko Widodo at the Presidential Palace Complex in Jakarta on Tuesday, 9 July 2024, Minister of Tourism and Creative Economy Sandiaga Uno highlighted the economic benefits of international sporting events. He emphasized that by 2025, these events should focus on driving the local economy, with the Mandalika MotoGP series serving as a prime example. Given the limited fiscal space in 2025, the orientation towards the local economy at the event site is crucial. "Efforts are being made to be more flexible in 2025 to address economic challenges," stated Sandiaga Uno. He also mentioned that the estimated cost for hosting several international events in Indonesia next year ranges from IDR 500 billion to IDR 1 trillion. These events include the World Surf League, MotoGP, MXGP, F1 Power Boat, Aquabike, UFC, and Gymnastics.
Minister Sandiaga Uno clarified that these international sports events will be carefully selected, and their operational and hosting costs will be calculated separately to avoid burdening the 2025 budget. According to the meeting results with the President, the Indonesia Quality Tourism Fund (IQTF) and a portion of the 2025 State Budget (APBN) will be used as part of the funding mechanism. President Joko Widodo has directed the formation of the IQTF, with an endowment fund allocation of IDR 2 trillion managed under the Ministry of Finance's control. "The President's directive is to bring high-quality sports events within the framework of sport tourism. These international events do stimulate the economy, but their organization must be as efficient and effective as possible," explained Sandiaga Uno. However, this tourism fund is not solely aimed at sports-based tourism. It also includes entertainment elements related to the World Water Forum and other activities expected to attract more international tourists to Indonesia.
