PHRI to help members solve debt problems

PHRI to help members solve debt problems

JAKARTA (JP): The Indonesian Hotel & Restaurant Association
(PHRI) said it would set up an independent consultancy team to
assist members in solving their debt problem.

PHRI secretary-general Rianto Nurhadi said the independent
team would involve all parties related to the tourist industry
and would work with PHRI's Jakarta Initiative for Tourism Sector
Debt Settlement Team.

"The consultancy team will help indebted companies objectively
assess their business prospects and find immediate solutions to
settle their debt so they can better negotiate with IBRA," he was
quoted by Antara as saying on Friday.

IBRA has taken over bad debts worth nearly Rp 200 trillion
from banks which have been closed down by the government or
received bailout funds from the government.

IBRA has warned the indebted companies, comprising 1,689
companies from almost every business sector in the country, to
come up with a concrete debt settlement program or face legal
action.

At least 50 companies on the list of debtor firms operate in
tourism-related industries.

He said property consultant Jones Lang Wotton would help the
consultancy team assess members' assets.

The possible involvement of Jones was confirmed by PT Procon
Consulindo/Jones Lang LaSalle Hotels executive Djodi Trisusanto.

Djodi told The Jakarta Post on Saturday his company and PHRI
had met and discussed Jones' possible involvement with the team.

"There has been no official agreement so far. We'll meet again
after the general election process has concluded to discuss the
matter," he said.

He said his company advised PHRI to involve entrepreneurs from
the tourist industry as well as the Ministry of Tourism, Arts and
Culture to find an immediate solution for indebted companies in
the industry.

"The involvement of the ministry and other related
institutions is very important, not only to find a solution for
debt problems but also to establish a better strategy to restore
the industry," Djodi said.

More attention should be given to the tourist sector due to
its capability to recover from the economic crisis relatively
quicker than other business sectors, he added.

Rianto said PHRI expected IBRA not to treat debtors from the
tourist industry the same way it treated companies from other
business sectors.

"Some tourism entrepreneurs are worried IBRA, with most of its
officials coming from a financial background, may impose a
similar approach to their companies as it uses for other
companies. Tourism-related businesses should receive different
treatment due to the particular characteristics of their
operations," he said.

Rianto said PHRI could not directly help indebted members
because some association officials' companies were included on
IBRA's list of debtor companies.

He said PHRI chairman Pontjo Sutowo's PT Indobuildco and vice
chairman Said Umar Husein's PT Permadani Khatulistiwa Nusantara,
which owns the Regent Jakarta hotel, were included on the list of
indebted companies, with debts amounting to Rp 835 billion and Rp
1.16 trillion, respectively.

He also said many of the member companies were hesitant to
discuss their debt problems with PHRI.

It is possible some of the companies might opt to sell their
assets to settle their debt problems, he said.

According to Djodi, indebted hotel and resort owners were
advised not to sell their properties to settle their debts unless
they had no other choice.

"If they have to sell their hotels, they should look for
investors which offer the best alternatives so they can still own
their assets," he said.

Most investors currently expect debtor companies to sell their
assets at bargain prices because they are not in a position to
bargain, he said. (cst)