Garuda to privatize subsidiary

Garuda to privatize subsidiary

JAKARTA (JP): The country's flag carrier Garuda Indonesia is
to sell up to 60 percent of its shares in its wholly-owned
subsidiary PT Aerowisata, which operates hotel and catering
services, to private firms.

Minister of Transportation Haryanto Dhanutirto said over the
weekend that the plan is part of a program to improve Garuda's
financial structure.

He said the sell-off is expected to be conducted by the end of
this year.

Aerowisata currently operates six hotels -- the Sanur (100
percent owned by Aerowisata) and Nusa Dua Beach Hotels on Bali,
the Preanger Hotel in Bandung, West Java, the Pusako Hotel in
Bukittinggi, West Sumatra, the Senggigi Beach Hotel on Lombok,
West Nusa Tenggara, and the Biak Hotel in Irian Jaya.

The company plans to manage at least three more hotels in the
next few years, including the Resor Sekar Nusa in Bali, Biliton
Hotel on Belitung island, South Sumatra, and a four-star hotel on
Jl. Saharjo, South Jakarta.

Aerowisata, founded in 1973, sold one of its properties,
called the Nusa Dua Beach Hotel on Bali, in 1990 to a Brunei-
Indonesian joint venture company but it still manages the hotel.

The company also runs airline catering services through its
subsidiary PT Angkasa Citra Sarana, a travel agency through PT
Satriavi and bus transportation services through PT Mandira
Ekajasa.

The company's profits increased from Rp 20.4 billion in 1994
to Rp 27.5 billion in 1995. (icn)