PD Wisata Niaga will sell assets to pay debt

JAKARTA (JP): City-owned trading and tourism company PD Wisata Niaga Jaya is to sell some of its assets to help pay debts of Rp 65 billion (US$7.2 million) it owes Bank DKI, it was announced yesterday.

Tebyan A'maari, the company's president, said the assets to be sold were three plots of land estimated to be worth Rp 25 billion.

The first step would be to pay outstanding interest on the loan, which is about Rp 12 billion, Tebyan said. He added that the company would ask Bank DKI to reschedule the payment of the principal loan.

"The plan to sell the assets has already been approved by Governor Sutiyoso, who suggested that if the land plots were idle it would be better to sell them," he said.

The company, which has assets worth Rp 88.5 billion, operates three non-star-rated hotels in Central and East Jakarta, five cinemas in Cempaka Putih, Central Jakarta and Plumpang, North Jakarta, a country club in Rawasari, Central Jakarta, a three- star hotel in Bali, Hotel Cempaka in Cempaka Putih, Central Jakarta, and a travel bureau and an apartment block in Sunter, North Jakarta.

The firm's assets to be sold are a 9,000-square-meter plot in Rawa Kerbau, Central Jakarta; a 3,000-square-meter plot in Lebak Bulus, South Jakarta and an 11,000-square-meter plot in Plumpang, East Jakarta.

However, Tebyan acknowledged that ownership of the Plumpang plot was being disputed by local people who are occupying the land.

He explained that the company could not give a very large contribution to the municipality because the firm was burdened with major problems related to the land dispute in Plumpang and the fact that it did not have ownership certificates for 40 percent of its land.

The company's other assets which are in dispute with local people include a 7,000-square-meter plot on Jl. Ahmad Yani, East Jakarta and a 3,000-square-meter plot in Cempaka Putih, Central Jakarta.

Tebyan said the economic crisis was also affecting the company's financial performance as its hotels' occupancy rates had dropped to about 20 percent amid rising operation costs.

Commenting on a suggestion to merge the company with those operating similar core businesses, Tebyan said that that would be up to the administration.

The deputy chairman of the city's regional economic bureau, Bambang Wijono, said yesterday that a merger plan would require a thorough study.

"The administration has not made any decision yet. We will hold a meeting to discuss the performance of all city-owned companies next month," he said. (ind)