Government to Optimise Hotel Sultan as State Asset, Plans Major Redevelopment with Danantara

Minister of State Secretary (Mensesneg) of the Republic of Indonesia, Prasetyo Hadi, has explained that Hotel Sultan in the Gelora Bung Karno (GBK) complex in Jakarta will be optimised to increase state revenue.

Prasetyo said the government is currently coordinating with Danantara to redesign the management of the Hotel Sultan area.

“We have been and are currently coordinating with Danantara to redesign the management of the Hotel Sultan area and its surroundings so that we can optimise its use, and thus we hope it will also add revenue for the state,” Prasetyo Hadi said during a joint meeting with Commission XIII of the House of Representatives (DPR RI) on Wednesday, 15 July 2026.

He also stressed that the Hotel Sultan issue has been ongoing since 2018. In the process, he said, Hotel Sultan is a state-owned asset in accordance with a court ruling.

“Because the entire legal process determined that Hotel Sultan belongs to the state, and its management by a third party has ended. So we are simply following the legal process based on the court’s ruling,” he said.

As previously reported, Chief Executive Officer of the Danantara Investment Management Agency, Rosan Roeslani, revealed that the former Hotel Sultan building in the Gelora Bung Karno complex in Jakarta will be demolished. In its place, a new icon of Indonesia will be built in the area.

He explained that the change is certain to be carried out comprehensively in order to deliver a real impact on the Indonesian economy and its people.

“At this moment I may not be able to say, but the plan is for it to become a new area. Eventually, yes (it will be demolished),” Rosan said at the Presidential Palace complex in Jakarta on Monday, 22 June 2026.

Rosan said the international-standard redesign plan targets the former Hotel Sultan area and also covers the entire Gelora Bung Karno complex. “Not only in this GBK area, but the whole area will be redesigned, including the golf course and the GBK area, which is roughly 200 hectares in size,” he said.

He further added that commercial accommodation facilities will still be built within the new area.

Rosan assured that the development will provide more accommodation than before to support public facilities in the city centre. “Later, among other things, there will certainly be hotels too. And not just one. So this will certainly become a new icon for Indonesia,” Rosan said.