Commercial rights holder DORNA Group said it had signed an agreement with the state-owned Indonesia Tourism Development Corporation (ITDC) to host the event on the tropical island near Bali.
Lombok will also host a race in the Superbike world championship in 2021, DORNA said in a media release.
"What a unique project this will be, having an urban, world class circuit in a country where MotoGP has such a huge following," DORNA chief executive Carmelo Ezpeleta said.
"Indonesia is a key market for us with a considerable percentage of motorsport fans living here and the MotoGP atmosphere will be even stronger once the circuit is complete."
The races will be held on a new street circuit at Mandalika, a special economic zone at the south of the island, in a bid to boost tourism, the ITDC told local media.
Indonesia hosted grand prix races in 1996 and 1997 at the Sentul International Circuit in West Java.
(Reporting by Ian Ransom; Editing by Nick Mulvenney)
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