Indonesia had previously hosted World Championship motorcycle racing at the Sentul International Circuit near Jakarta from 1994 to 1997, but the country's program was suspended following the Asian financial crisis. The Mandalika circuit was conceived as part of the broader development of the Mandalika Special Economic Zone, a 1,175-hectare resort project managed by Indonesia Tourism Development Corporation (ITDC) intended to boost tourism on Lombok.
Planning began in earnest in 2016. In January 2017, the first circuit layout sketches were produced by Mark Hughes of Mrk1 Consulting, and in November 2017 Vinci Grand Construction Projects signed a contract to build the circuit. Construction was originally targeted for completion by June 2020 but was delayed. The track, measuring 4.301 km with 17 corners and a straight that generates significant top speeds, was formally inaugurated by Indonesian President Joko Widodo on 12 November 2021. Funding came partly via loans from the Asian Infrastructure Investment Bank, with total infrastructure investment in the Mandalika SEZ planned at 3.6 trillion Indonesian Rupiah.
Pertamina, the Indonesian state oil company, paid US$7 million for naming rights to the circuit, renaming it the Pertamina Mandalika International Street Circuit. The circuit received FIM Grade A homologation on 18 March 2022, upgrading from the Grade B status it held during the November 2021 World Superbike rounds.
The circuit hosted a MotoGP pre-season test from 11 to 13 February 2022. During the test, multiple riders reported serious concerns about the track surface. Jorge Martin described gravel in the run-off areas as too sharp, while Aleix Espargaro, Andrea Dovizioso, Alex Rins, and Francesco Bagnaia all complained about dust and loose material on the racing surface. Chaz Davies, who had raced at Mandalika during the 2021 World Superbike round, confirmed the problem stemmed from the type of aggregate used in the asphalt, which was finer than specified and had not been properly compacted.
A section of the circuit — from before Turn 17 to after Turn 5 — was repaved, with work completed on 9 March 2022. However, during practice for the inaugural Indonesian motorcycle Grand Prix on 20 March 2022, new holes appeared in the repaved surface. Both the Moto2 and MotoGP races were shortened as a result, and the MotoGP race itself was delayed by heavy rain. Riders were hit by flying stones during the event. Despite the surface problems, the circuit's layout earned praise: Repsol Honda's Marc Marquez described it as a simple layout that produced interesting racing conditions due to limited overtaking lines, while Pol Espargaro noted that it had its own character.
The Indonesian motorcycle Grand Prix has appeared regularly on the MotoGP calendar since 2022, typically scheduled in the October slot. The circuit also hosted the World Superbike Championship and Supersport World Championship in 2021, 2022, and 2023, and the Asia Talent Cup.
The circuit was designed as a street-circuit concept, with the outer roadways intended to be open to public traffic when no racing is taking place, providing access to the resort facilities. The main race track itself is not accessible to general traffic.
Construction of the Mandalika circuit generated significant controversy over land rights. Local residents, including members of the indigenous Sasak community, were displaced from their land during the project. In April 2019, the United Nations Human Rights Council published a report documenting alleged human rights violations during construction, including reports of residents being removed without adequate compensation. The Indonesian government disputed the characterisation, describing it as a false narrative, but acknowledged outstanding land compensation cases.
Individual cases included Gema Lazuardi, whose land was acquired by ITDC and who was subsequently sued for using his own land without permission — a case he eventually won on appeal — and Masrup, who lost 1.6 hectares of land despite being found innocent of criminal charges. Land disputes had not been fully resolved by early 2022, with compensation cases still pending for parcels that had been incorporated into the circuit.
A fatality occurred during the 2023 Mandalika Asia Road Racing Championship round, when competitor Haruki Noguchi died following an accident.
The Mandalika Circuit established Indonesia as a significant host in the world motorcycle racing calendar after a gap of more than 25 years. Despite persistent surface quality concerns in its early years, the circuit demonstrated that purpose-built facilities in emerging motorsport markets could attract and sustain premier-class events. Its combination of a challenging layout, a scenic island setting, and substantial government backing positioned it as a long-term fixture in the Asian portion of the MotoGP calendar.