Indonesian Political, Business & Finance News

Bakrie embarks on resort project in Lampung

| Source: JP

Bakrie embarks on resort project in Lampung

JAKARTA (JP): The Bakrie Group will join with the government
in developing a resort area geared to adventure tourism in
Kalianda, Lampung.

They have established PT Krakatau Lampung Tourism Development
Corporation (KLTDC) to develop the 340-hectare resort with an
investment of US$50 million.

KLTDC, 90 percent owned by Bakrie and 10 percent by the
Lampung administration, began construction of the project last
Wednesday.

Company president Bambang Irawan said the resort area would be
developed in two stages.

The initial phase would include the construction of
infrastructure and tourist facilities on a 145-hectare plot.

The facilities are expected to begin operation by August to
coincide with the Krakatau festival, he said.

The second phase would include golf courses, camping sites,
resorts and international hotels on the remaining land area, he
said. "KLTDC will sell a number of lots on the 195-hectare land
to subdevelopers or other investors."

When completed in 1999, the marine resort will serve as an
example of the government's efforts at encouraging private
companies to invest in areas earmarked for development as tourist
zones.

Lampung, the home province of the Bakrie family, will need a
bigger airport if it expects to see more visitors. Currently, the
Branti airport can only serve narrow-bodied aircraft. Land
transportation across the province is time consuming.

Last year, 110,413 domestic tourists and 62,015 foreign
tourists staying at start-rated hotels and other accommodation in
Lampung. Domestic tourists stayed an average of 1.98 days in
Lampung, while foreign tourists spent 2.9 days.

Indonesia had 5.03 million foreign tourist arrivals last year,
up by 16.42 percent from 1995.

As if January, there were 123 hotels in Lampung with 2,604
rooms. These include six star-rated hotels with 457 rooms.

Indonesia plans to develop a number of tourist resorts in
various areas across the archipelago following the success of the
Nusa Dua Tourist Resort in Bali, which was developed by the
state-owned tourism development company PT Bali Tourism
Development Corporation (BTDC).

Concept

The concept of Nusa Dua was born out of the Bali Master Plan
drawn up in 1971 and aimed at reinvigorating the country's
economy. The government then assigned BTDC to develop and manage
the 100-hectare resort.

Nusa Dua's dozens of luxury hotels and resorts are now popular
for domestic and international visitors.

The development of Bali as a tourist center has been supported
by necessary facilities, including the international airport.

The government plans to develop more than 15 tourist zones,
including those Pangandaran in West Java and Baturaden in Central
Java.

Investors continue to be wary of investing in designated areas
because few tourists visit them due to poor transportation
facilities, particularly airport.

International standard airports and direct international
flights have proved to be the only way to attract tourists.

The government has failed in recent years to get private
companies to invest in its tourism projects, including those
located in Nias, North Sumatra, Gunuang Padang Ale Malih, West
Sumatra, Belitung, South Sumatra, Lombok, West Nusa Tenggara,
Tanjung Bunga in Ujungpandang, South Sulawesi, and Marauw in
Biak, Irian Jaya.

Several private firms are currently developing tourist resorts
alone. PT Ranati, controlled by President Soeharto's youngest son
Hutomo Mandala Putra, is developing the 1,070-hectare Belitung
Indah Resort on the northeastern coast of Belitung Island. It is
scheduled to be completed in 2005.

PT Banten West Java Tourism Development Corp, a consortium
controlled by Sudwikatmono, a cousin of President Soeharto, is
developing a 1,500-hectare tourist area in Tanjung Lesung near
Banten, West Java. (icn)

View JSON | Print