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)