Kodel Group to expand into services business

JAKARTA (JP): The diversified Kodel Group will expand into the hospitality, restaurant and sport businesses next year, making a total investment of Rp 63.7 billion (US$27 million).

Soegeng Sarjadi, an executive of the business group, announced yesterday that his group would build a three-star hotel and open a hotel school, a catering service and training program, a coffee shop, and a bowling center.

"We are going to open in Bandung a hotel school called Widyawisata in September next year and a commercial three-star hotel of 120 rooms called Puri Dago early in 1998," he said. The integrated project will cost $22 million.

Widyawisata school, accredited by the Singaporean Hotel Association SHATEC, will train 600 students a year and give them apprenticeships in the Puri Dago hotel, he said.

"We should create qualified and well-trained hotel personnel to anticipate the government's plan to reduce expatriate hotel personnel," he said.

According to a new government regulations, hotels must have no more than three expatriate managers in their ranks by the year 2000.

Kodel will cooperate with the U.S. companies in managing the catering service and training program, the coffee shop and the bowling center, he said.

Soegeng said the catering service and training program will be run in cooperation with the American catering company Adela.

The coffee shop will be a franchise of the U.S. company Starbucks, he said. Starbucks coffee is actually imported from Indonesia.

The 40-lane bowling center at the Pluit Mall in North Jakarta is being built in cooperation with Brunswick, he said.

Soegeng himself plans to open two restaurants early next year and manage the already-existing TGI Friday's restaurant in cooperation with Cicip S Soetardjo and Antony Salim, under a joint venture with PT Tri Saga Sarana.

"Including the take over of the TGI Friday's franchise, the total investment will reach Rp 11 billion ($4.6 million)," he said.

He said the other two restaurants were the Italiani Restaurant in Kemang, South Jakarta, and the Front Row restaurant near Senayan.

"Front Row is the biggest sport and entertainment restaurant in the country where you could watch sport programs in television channels as you eat" he said.

Kodel Group franchises several restaurants and manages sport facilities and hotels, including Regent Hotel and Ibis Tamarin. (04)