Senayan to renegotiate deal with Mulia Hotel

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)