"The agreement was signed by Vinci Construction Grands Projets and ITDC in front of President Joko Widodo and French President Francois Hollande," Luhut said here on Saturday.
The French President visited the country earlier this week.
Luhut said under the agreement the French state company would build hotels and Moto GP circuit at Mandalika, which is owned by state owned PT ITDC.
ITDC President Abdulbar Mansoer said the French company would invest Rp6 trillion in projects of seven hotels and Moto GP circuit in Mandalika.
"We have signed the investment agreement worth US$500 million or round Rp6 trillion for seven hotels and a Moto GP circuit, Mansur said.
The project will occupy a 120 hectare plot of land in a location that would be the next Nusa Dua, the world famous beach resort area in Bali designed and built by ITDC .
The fund would also be used to build a convention hall to facilitate MICE tourists, he added.
He said the construction of the projects is expected to take two years for completion in 2019.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2017