Santika secures foreign loans to build new hotel<\/p>\n
JAKARTA (JP): PT Hotel Santika Nusajaya, the property division
\nof media giant Kompas Gramedia Group, has secured loans from a
\nnumber of foreign lending institutions to construct a four-star
\nhotel in Central Jakarta.<\/p>\n
Kurnia Munaba, an executive at Hotel Santika Nusajaya, said
\nthe construction of the planned 12-story hotel on Jl. A.K. Sasuit
\nTubun, will cost US$40 million.<\/p>\n
\"We expect $27 million to come from loans and the remainder
\nfrom equity,\" Kurnia said after the signing of loan and
\ninvestment agreements between his business group and two
\ninternational lending agencies.<\/p>\n
Jacoeb Oetomo of the Kompas Gramedia Group, Antonio David of
\nthe International Finance Corporation (IFC), an affiliate of the
\nWorld Bank, and Angelito Chua of the Asian Finance and Investment
\nCorporation (AFIC), an affiliate of the Asian Development Bank,
\nsigned the agreements here yesterday.<\/p>\n
Kurnia said that the IFC is committed to extending a loan of
\n$14 million with a 10-year maturity, and that AFIC has offered $3
\nmillion with an eight-year maturity. He declined to reveal the
\ninterest rates of the loans, saying only that they were slightly
\nabove the London Inter-Bank Offered Rate.<\/p>\n
He added that his company had also secured loans of $5 million
\neach from the Nederlanse Financiering-Maatschappij Voor N.V. of
\nthe Netherlands and the Deutsche Investitions und
\nEntwicklungsgesellschaft GmbH. of Germany. These loans have a 10-
\nyear maturity.<\/p>\n
Charles Himawan, a legal advisor for Hotel Santika Nusajaya,
\nnoted that it was actually quite expensive for an Indonesian
\ncompany to raise funds overseas.<\/p>\n
He said that when an Indonesian firm raises funds abroad, it
\nhas to pay a number of fees, including arrangement and commitment
\nfees, to foreign lenders. \"This is simply because they don't
\ntrust our legal system and law enforcement.\"<\/p>\n
\"Nevertheless, raising funds overseas is currently much
\ncheaper than raising them domestically because of high local
\ninterest rates,\" Charles said.<\/p>\n
He explained that his party had negotiated for two years with
\nthe lending institutions to obtain better terms.<\/p>\n
Speaking on the hotel project, Kurnia explained that the
\nplanned hotel, on a 11,000-square-meter plot, was currently under
\nconstruction and is expected to be ready by July next year. It
\nwill have 311 rooms.<\/p>\n
Hotel Santika Nusajaya currently owns and operates five hotels
\nin Jakarta, Bandung in West Java, Semarang in Central Java,
\nYogyakarta and Bali. It also manages two hotels in Cirebon, West
\nJava, and in Manado, North Sulawesi. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/santika-secures-foreign-loans-to-build-new-hotel-1447893297",
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"sponsor": "Okusi Associates",
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