BPGS declines offer from owner of Hilton
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)