The Asian Infrastructure Investment Bank (AIIB) has clarified that its investment in the Indonesia Mandalika Urban and Tourism Infrastructure Project (Mandalika Project) is in compliance with environmental and social standards.

The AIIB clarified that the concerns were raised by complaints from a nearby MotoGP circuit, which is not connected to the Mandalika project. The AIIB has monitored the implementation by its client, the Indonesia Tourism Development Corporation (ITDC), of the Bank's Environmental and Social Framework.

The project aims to provide sustainable basic infrastructure for the development of the southern region of Lombok, Indonesia, as a tourism destination, stimulating local businesses and creating jobs for the population. The project will promote sustainable development in Mandalika and in Lombok more generally and contribute to poverty reduction on the island.

The project includes:

• Construction of core infrastructure in Mandalika (internal roads, streets, landscaping, and drainage; water supply, sanitation, sewerage and wastewater treatment; solid waste management; electricity distribution; disaster risk management facilities; public facilities and public open space);
• Infrastructure improvements to neighboring communities (water supply and sanitation, drainage, solid waste management, transport, disaster risk reduction facilities, protection of natural and marine assets, and community facilities).