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)