City-owned hotel gets fresh injection of funds
City-owned hotel gets fresh injection of funds
JAKARTA (JP): City-owned hotel company Wisata Niaga Jaya will
receive an injection of Rp 192.5 billion over a number of years
to expand its building capabilities.
The city council yesterday approved a provincial decree which
increases the company's equity from Rp 7.5 billion (US$3.26
million) to Rp 200 billion.
"The company has the potential to be a major contributor to
city revenues and it is appropriate to increase its equity and
assets," said Soeyono, the spokesman of the council's commission
C for finance affairs.
The meeting was chaired by the city council's deputy chairman,
Sugeng Prijatna, and attended by the deputy governor for economic
and development affairs, Tb. M. Rais.
Soeyono said the company needs fresh funds so it can improve
its facilities and renovate its older hotels. The company plans
to build several three- and four-star hotels as well as
convention centers. It also hopes to form travel companies.
Governor Surjadi Soedirdja, in a speech read by Rais, said
that the step was taken to improve the company's competitiveness.
"The city administration will restructure all of its companies
as well as their managements so they can compete with other
companies," he said.
Surjadi also said that his administration plans to include
private companies in sectors which are handled by city-owned
companies.
Under the decree the company has also been given a plot of
land measuring 18,495 square meters on Jl. TB. Simatupang, South
Jakarta, worth Rp 46.23 billion. The Rumah Indonesia handicraft
store that used to stand on the lot burned down last year.
Rais said that the company will build a four-star hotel,
equipped with convention hall, on the location. We will also
include a room for handicrafts, he said.
"Jakarta needs more big convention halls because the Jakarta
Hilton Convention Center is the only one we have. This is an
attempt to support Jakarta as a convention city," Rais told
reporters after the meeting.
Rais said that businesses want convention centers that are
close to hotels, which makes them reluctant to use the convention
center in out-of-the-way Kemayoran, Central Jakarta. (yns)