Djarum to invest in hotels<\/p>\n
Ferdinand Nainggolan, a deputy at the Office of State Minister
\nof State Enterprises, said that the government was considering a
\nproposal from PT Djarum, Indonesia's second largest cigarette
\nproducer, to jointly manage two ailing state-owned hotels: Hotel
\nIndonesia and Hotel Wisata.<\/p>\n
He said that Djarum had submitted a proposal to inject around
\nRp 1.7 trillion (US$202 million) with a request in return of
\nmanaging the hotels for 30 years.<\/p>\n
In the proposal Djarum also asked a permission to build a new
\nshopping mall that would connect the two hotels, he said.<\/p>\n
However, Ferdinand explained that currently the ministry was
\nstill seeking the best cooperation scheme with Djarum. The best
\noptions would either be in a revenue-sharing operation or
\nprivatization scheme.<\/p>\n
The government owns 100 percent stake in the two hotels.<\/p>\n
Ferdinand said that the five-star Hotel Indonesia last year
\nbooked a loss of Rp 3 billion.<\/p>\n
In order to revive the hotel's competitiveness, the government
\nneeded around $250 million to renovate its shabby appearances.<\/p>\n
\"Hotel Indonesia doesn't look like a five-star hotel. It has
\ndifficulty to compete with its nearby competitor such as Hotel
\nGrand Hyatt and Hotel Nikko. To attract more guests we need to
\nrejuvenate the entire hotel,\" he said. -- JP<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/djarum-to-invest-in-hotels-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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