PD Wisata Niaga will sell assets to pay debt
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)