Hotel Indonesia deep in the red

JAKARTA (JP): PT Hotel Indonesia International and Natour suffered a deficit of Rp 13.4 billion (US$5.9 million) during the first five months of this year due to the tight competition in the hotel businesses, a company source says.

The loss will likely make it even more difficult for the company to go public because it also suffered a deficit of Rp 13.7 billion in 1993 and Rp 25 billion in 1994, the source said, Antara reported on Saturday.

The company, which is a merger of PT Hotel Indonesia International and PT Natour under a government ruling of 1993, plans to go public to raise funds for its improvement programs, including the renovation of its old hotels, at a cost of about Rp 300 billion.

The source also said that to improve its service, the company is looking for cooperation with foreign management hotel companies, such as Travel Lodge, Sheraton, Accor and Radison, in the management of its hotels.

A spokesman for Hotel Indonesia International and Natour, Arifin Pasaribu, said the company will soon have a shake-up of its board of directors.

"Minister of Tourism, Post and Telecommunications Joop Ave will, most likely, install the company's new directors next week," he said.

Arifin said Indra Setiawan, from PT Indosat, will probably replace Widjaja Sugarda as the company's president, while Marketing Director Gde Rai will be replaced by F. Purwono, who is now head of the Indonesia Tourism Promotion Center in Taiwan.

According to Arifin, Gde Rai will be promoted as president of PT Bali Tourism Development Corporation to replace Nadir Zein, who will be installed as an official of the Ministry of Finance.(31)