Senayan to renegotiate deal with Mulia Hotel

JAKARTA (JP): The Senayan sports complex management will first target Hotel Mulia Senayan as it seeks better deals with 10 enterprises occupying its prime real estate in Central Jakarta, its vice chairman Agung Laksono said Wednesday.

He said there was no formal agreement with the hotel management about royalties and other compensation linked to the permit granted to the Southeast Asian Games underwriting consortium to build the five-star hotel in 1996.

"The old deal on royalties still in effect gives us Rp 90 million per year. That's too small for a five-star hotel," said Agung, who holds the vice chairmanship post courtesy of his position as state minister of youth affairs and sports.

He was unable to give an appropriate amount for the royalty, saying it would be studied by the management's business consultant, the finance management institute at the University of Indonesia, and its legal consultant Nono Makarim Association.

The 40-story hotel, built on a plot previously leased by the Jakarta Country Club (JCC), was first used to accommodate athletes participating in the SEA Games last year.

The hotel's construction sparked controversy before and after its completion. It violated height restrictions in the area, lacks required green areas, obstructed public thoroughfares and caused traffic congestion along nearby roads.

It most recently drew complaints from the Badminton Association of Indonesia for lacking a commitment to help sports development when it offered regular room rates for participants in the just concluded Indonesia Open.

The hotel management responded by saying it had no formal obligation to provide special consideration to the sports community.

Agung said the next targets would be the Jakarta Hilton International Hotel and the Senayan driving range owners. Both plan to extend their contracts.

The remaining seven companies with their premises on Senayan land are PT Kajima Overseas Asia, PT Manggala Pratama, PT Sinar Kemala Intermetro Golf, PT Adil Andaru, PT Lingga Hamparan Krida, PT Wantas Perkasa Waya and PT Waskita Mustika Indah.

The sports complex management board controls 279 hectares in Senayan.

Agung said the consultants were expected to finish their task by the end of this month and report to the Senayan management board early next month. (yan)