New ruling on int'l hotel to be introduced<\/p>\n
By I. Christianto<\/p>\n
BALIKPAPAN, East Kalimantan, (JP): The government will require
\nforeign hotel management firms to establish subsidiaries in Indonesia
\nwhen they want to operate hotels in the country, a minister said
\nyesterday.<\/p>\n
Minister of Tourism, Post and Telecommunications Joop Ave said
\nthat the new policy, which will possibly be made in the form of a
\nministerial decree, will enhance the development of human resources
\nin the hotel industry in Indonesia.<\/p>\n
"I will very soon issue a decree related to government
\nregulation No. 20 that allows foreign investors to own up to 100
\npercent shares in a company that they wish to establish in
\nIndonesia," he said. "At the present time, international chains do
\nnot have any company in Indonesia in spite of the introduction of
\nincentives."<\/p>\n
Joop, who officially opened a four-star Dusit Inn hotel here
\nyesterday, said that more international hotel management firms are
\nwelcome to enter Indonesia but they will have to do business through
\na locally-incorporated company.<\/p>\n
"Very soon, in 1995," he said when asked when the planned ruling
\nwould be issued.<\/p>\n
There are currently about 34 international hotel management
\nchains operating in Indonesia.<\/p>\n
"We have to admit that hotels run by international chains have
\nso far supported Indonesia's tourism industry and most of them have
\nbetter capability in the marketing strategy as they own worldwide
\nnetworks," Joop said.<\/p>\n
The minister said recently that by establishing subsidiaries in
\nIndonesia, international hotel chains will have to increase
\ninvestments in the country.<\/p>\n
Meanwhile, chairman of the Indonesian Hotel and Restaurant
\nAssociation Ponco Sutowo, who also attended the ceremony yesterday,
\ntold The Jakarta Post that the minister's idea was actually input
\nfrom the organization.<\/p>\n
"So far, we can't immediately solve problems such as strikes
\nbecause international hotel management firms operating in the country
\nhave no bases in Indonesia," he said.<\/p>\n
He said strikes are usually solved by the owners of the hotels,
\nthough the employees are recruited by the management firms.<\/p>\n
Hotel<\/p>\n
The 191-room Dusit Inn which was inaugurated yesterday is owned
\nby PT Sinarwisata Permai, a subsidiary of PT Duta Pertiwi. Duta
\nPertiwi is the real estate division of the widely diversified Sinar
\nMas Group.<\/p>\n
The five-story hotel is the first in the country to be operated
\nby Pacific Hotels and Resort, a subsidiary of Dusit Thani of Thailand
\nwhich runs several hotels in the Thai cities of Phuket, Bangkok and
\nChiangmai and in Dallas of the United States.<\/p>\n
Duta Pertiwi's president, Muktar Widjaja, said that the hotel
\nwas constructed in 20 months on a 19,100 square-meter plot with an
\ninvestment of Rp 48 billion (US$21.8 million).<\/p>\n
"The hotel started its soft operation on June 9 and we are now
\nconstructing the second Dusit Inn at Mangga Dua in Jakarta which is
\nexpected to open next year," he said.<\/p>\n
The hotel's general manager, David Good, told the Post that
\nduring the nine-month soft operation, the occupancy rate of the hotel
\nreached 50 percent and will probably reach 55 percent next year.<\/p>\n
He also said that Dusit Inn is now classed as a major hotel in
\nEast Kalimantan, a province with emerging tourist destinations
\nincluding eco-tourism, adventure tourism and natural habitats.<\/p>\n
Meanwhile, East Kalimantan Governor M. Ardans said the province
\nwill receive more foreign visitors in the coming years as the
\nSepinggan airport now accommodates international flights.<\/p>\n
He said that early this month Royal Brunei started flights
\nlinking Balikpapan and Brunei Darussalam, while Malaysian Airlines is
\nexpected to start its service to Sepinggan airport early next year.<\/p>",
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"sponsor": "Okusi Associates",
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