Jakarta – National Development Planning Minister/National Development Planning Board (Bappenas) Head Suharso Monoarfa said he fully supports the construction of the International Green Circuit in Bintan, Riau Islands Province, with a private investment financing scheme.
“The results of the construction are expected to support the national and international racing events such as Formula 1,” the minister noted when receiving a visit from the management of the Bintan International Green Circuit as quoted from his Instagram account @suharsomonoarfa in Jakarta on Sunday.
Furthermore, he hoped that the implementation of the mega sports event will become a tourism growth pole and attract tourists to visit the circuit.
He noted that Bintan’s strategic location has good market potential since it is close to Singapore and Malaysia.
In addition, the implementation of the event must be targeting high-spending tourists by prioritizing aspects of sustainability, he said.
“Learning from the implementation of the Mandalika MotoGP, the event was able to provide high economic benefits for Mandalika and West Nusa Tenggara (NTB) Province,” the minister remarked.
He outlined some of the economic benefits brought by MotoGP in Mandalika. Among them were an increase in government spending (state budget) for road accessibility, airports, and arrangement of tourism areas and attractions, as well as increased circuit investments by PT Mandalika Grand Prix Association (MGPA) and PT Indonesia Tourism Development Corporation (ITDC).
There were also an increase in demand for accommodation in star hotels, non-star hotels, homestays, and accommodation in residents’ homes, as well as an increase in government revenue through taxes (Value Added Tax/VAT and Income Tax/Corporate Income Tax) and local government through entertainment services.
Moreover, there were an increase in business expansion and new job opportunities, including businesses outside the NTB Province, and a direct involvement of some 800 micro, small, and medium enterprises (MSMEs) in organizing the MotoGP.
“In aggregate, based on the Institute for Development of Economics and Finance (INDEF) data for 2022, the growth of the NTB Province’s Gross Regional Domestic Product (PDRB) reached 7.8 percent compared to the projected 4.5 percent without MotoGP,” Monoarfa added.
Source: Antara News