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)