Indebted hotels under IBRA

BANDUNG: Three hotels owned by the West Java administration are now handled by the Indonesian Bank Restructuring Agency (IBRA) due to unpaid debt, a councillor said on Wednesday.

The hotels are the Hyatt and Preanger in Bandung and Hotel Salak in Bogor, Gatot Cahyono from the Council's Commission C on finance, told journalists.

The commission recorded that the Hyatt and Preanger Hotels each has some Rp 220 billion (US$23.2 million) and Rp 20 billion ($2.1 million) worth of debt to the Indonesian Development Bank (Bapindo). While Hotel Salak loaned some Rp 15 billion ($1.6 million) to another private bank.

"We hope that the IBRA won't auction it because if they do, we'll lose our assets," Gatot said.

Commission C, he said, is now approaching the IBRA and three separate partners of building use permit holders who have pledged the hotels' land for security of debt payment.

He hoped the partners could reschedule their debt payment. (25/hdn)