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)