Indonesian Political, Business & Finance News

New $17.5m hotel planned for S. Sulawesi

New $17.5m hotel planned for S. Sulawesi

UJUNGPANDANG, South Sulawesi (JP): Businessmen have collaborated with the local administration to establish the 250- room Sedona Makassar International hotel here at a cost of Rp 40 billion (US$17.5 million).

"The 10-story hotel, now under construction, is 30 percent owned by the local administration, 35 percent by local businessmen and the remainder by a Jakarta-based businessmen," the president of PT Metropolitan Tatanugraha, Tanri Abeng, said this week.

"Under the agreement, we provided an option for the local administration to buy more shares in the hotel," said Abeng, a native of the province.

Lippo Group president James T. Riady told the press here that his equity participation in the hotel is aimed to attract foreign investors.

He added that he has 10 percent equity in the hotel.

James said Strait Steam Ship of Singapore will operate the Sedona hotel, which should open next June.

SilkAir

James and Tanri, the president of PT Bakrie & Brothers, visited the province to witness the inaugural SilkAir direct flight linking Singapore and Ujungpandang on Monday.

SilkAir, a subsidiary of Singapore Airlines, cooperates with Bouraq Airlines to serve the route on Mondays, Thursdays and Saturdays with a Fokker-70 jet.

This is the eighth Indonesian destination after Jakarta, Medan in North Sumatra, Padang in West Sumatra, Pekanbaru in Riau, Manado in North Sulawesi, Lombok in West Nusa Tenggara and Surakarta in Central Java, chairman of SilkAir Chew Choon Seng said.

Singapore's ambassador and Mrs. Edward Lee took part in the maiden flight to the province.

SilkAir's expansion to the Indonesian destinations is a follow-up of an air agreement between Singapore and Indonesia.

President Soeharto and Singapore Prime Minister Goh Chok Tong witnessed the signing of the agreement last November by ministers of transportation Haryanto Dhanutirto of Indonesia and Mah Bow Tan of Singapore.

Under the agreement, five Indonesian airlines -- Garuda, Merpati, Sempati, Bouraq and Mandala -- are allowed to fly to Singapore from any place in Indonesia and to continue to any other destination in the world.

However, Bouraq cooperates with SilkAir only in marketing the airline's flights.

"We sell tickets for routes served by SilkAir," Bouraq's vice president for commercial affairs, Kelly Humardani, told The Jakarta Post here.

He said that Bouraq will operate its aircraft to serve the route only when necessary.

Established in 1975 under the name Tradewinds, SilkAir currently serves 20 destinations in eight countries with five Boeing 737-300s and two Fokker-70 aircraft.

Governor of South Sulawesi Z.B. Palaguna said at the inaugural flight party that the province is expected to become the gateway of eastern Indonesia.

Palaguna said Malaysian Airlines has a direct flight from his province to Kuala Lumpur on Tuesdays and Fridays with Boeing 737- 500s.

Hasanuddin airport has become a departure point for haj pilgrims from eastern Indonesia heading to Jeddah, Saudi Arabia. (kod)

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