Foreign companies eye state-owned hotel projects

JAKARTA (JP): Twenty-five foreign firms are interested in joining the program of PT Hotel Indonesia International Corporation and Natour, a state-owned hotel operator, to refurbish and extend its hotels.

The company's chief commissioner, Dorodjatun Kuntjoro-Jakti, said yesterday: "We have negotiated with 25 leading firms from Malaysia, Singapore, Australia and Japan. We will select some of the firms for the projects which are estimated to cost US$500 million."

Between $213,000 and $426,000 will pay for new facilities at our hotels, including a 2,000-seat convention center at the Grand Bali Beach hotel, Antara news agency quoted Dorodjatun as saying at a ceremony to mark the 30th anniversary of the Grand Bali Beach Hotel in Sanur, Bali.

Hotel Indonesia International Corporation and Natour was formed in 1993 as a holding company for PT Hotel Indonesia International and PT Natour to improve their efficiency. Hotel Indonesia International Corporation and Natour now has Rp 90 billion ($38.3 million) in outstanding loans.

Hotel Indonesia International, established 1962, runs seven hotels with 2,329 rooms. Natour, established 1953, manages 10 hotels with 1,065 rooms.

Hotel Indonesia International, has lost more than Rp 22 billion ($9.3 million) a year since 1993 and is likely to lose Rp 27.59 billion this year.

Natour made a Rp 2.6 billion profit in 1995 after suffering a Rp 2.2-billion loss the previous year.

Hotel Indonesia International Corporation and Natour's president, Indra Setiawan, said recently his company was planning to spend millions of dollars refurbishing its old hotels.

Private firms have been invited to join the refurbishment projects under a build, transfer and operate scheme or a build, operate and own arrangement. They may also establish joint ventures with the company.

"Private firms are invited to set up joint venture companies to refurbish Ambarukmo Hotel in Yogyakarta, to expand Hotel Wisata and Hotel Indonesia in Jakarta under a build, transfer and operate scheme and to expand Dibya Puri Hotel in Semarang, Central Java, and Darma Deli Hotel in Medan, North Sumatra, under a joint operation scheme," he said.

Minister of Tourism, Post and Telecommunications Joop Ave has reiterated that the schemes are the best way for Hotel Indonesia International Corporation and Natour to undertake the projects.

He said the state would give no more capital to Hotel Indonesia International Corporation and Natour, which is trying to restructure its finances.

"The era of government-equity support in state-owned enterprises has ended," the minister said. (icn)