BPGS declines offer from owner of Hilton

JAKARTA (JP): The Gelora Senayan Management Board (BPGS) will not accept an offer from PT Indobuildco, owner of the Hilton International Hotel, to lengthen its lease until the company accepts certain conditions set by BPGS.

The chairman of the Gelora Senayan Executive Board, Yasidi Hambali, said on Monday PT Indobuildco offered to pay US$50,000 in annual fees, or 3 percent of its land-use permit for 30 years.

"BPGS can't accept their offer because it's too small. We are still negotiating the matter. BPGS has already set up a special team comprising of banking analyst I Nyoman Moena, economist Winarno Zein and sports expert Imam Sujudi to oversee the negotiations," said Yasidi after meeting with the team.

"As the holder of the land-use permits, BPGS wants companies leasing the land to give something in return. Their contributions can be used to build new venues and contribute to sports development in the country," he said.

PT Indobuildco sent a letter dated Jan. 18 to BPGS saying it could only pay Rp 56 billion in fees for leasing the land.

"The fees will be decided by the state secretary, the state minister of youth affairs and sports and the chairman of the National Sports Council (KONI)," he said.

BPGS has yet to meet with representatives of PT Indobuildco, which leases 14 hectares for a hotel, apartments and the Jakarta Convention Center. The lease will expire in 2001.

"State Minister of Youth Affairs and Sports Mahadi Sinambela will meet with PT Indobuildco representatives to discuss the matter soon," he said.

BPGS provided KONI with Rp 4.5 billion to finance its preparations for the 1999 Southeast Asian Games in Brunei and Rp 2 billion for the 2000 Olympic training program.

"BPGS has received the commitment of the Indonesian Bank Restructuring Agency (IBRA) that PT Indobuildco, as an IBRA debtor, must agree with the requirements set by IBRA to extend its land-use permit," Yasidi said.

He also said BPGS received Rp 6 billion (US$810,810) per year in revenue from the land its leased to various companies.

"There are so many companies who failed to fulfill their obligations. Only PT Indobuildco, PT Senayan Trikarya Sempana (the owner of Plaza Senayan) and PT Lingga Hamparan Krida (Hotel Atlet Century Park) always pay their annual fees," he said.

"We should have been able to earn Rp 20 billion a year; Rp 10 billion from sports venues and another Rp 10 billion from leased land."

Yasidi said he accompanied State Secretary Bondan Gunawan to a hearing with House of Representatives Commission I for defense, foreign and political affairs last week to explain the situation with Indobuildco.

"I just clarified the matter to the commission members. I said there was an effort to extend the land-use permit but we still had yet to reach a deal."

Discussing KONI's suggestion the Gelora Senayan sports complex be managed by the council, Yasidi said there was a difference between what KONI and its provincial chapters wanted from Gelora Senayan.

"There is also a dispute about who has the right to manage Gelora Senayan among the state secretary, the state minister of youth affairs and sports and the chairman of KONI," he said. (yan)