State-owned hotels offered to private investors

JAKARTA (JP): State-owned PT Hotel Indonesia International Corporation and Natour will invite private enterprises to cooperate to refurbish six of its old hotels.

Company president Indra Setiawan said here yesterday that Hotel Indonesia International Corporation and Natour (HIIN) had prepared two cooperation packages.

The first package covers Hotel Indonesia and Hotel Wisata in Jakarta and the second package comprises Natour Bali in Denpasar; Natour Dibya Puri in Semarang, Central Java; Natour Muara in Padang, West Sumatra; and Dharma Deli in Medan, North Sumatra.

"Bidders for the refurbishment projects may choose either a joint operation scheme or build, operate and own scheme. Interested parties may propose one hotel or more," Indra said.

Preparations for privatizing the six hotels started two years ago as HIIN, which was established four years ago, needs to restructure its finance.

Indra said state-owned, foreign, private corporations and cooperatives were encouraged to take part in the tender.

"But we are looking for partners with high ability in technology, planning, licensing, developing, financing, operating and managing as well as maintenance and marketing," Indra said.

He said Hotel Indonesia's site and the vacant lot near Hotel Wisata International in Jakarta was ample space for hotel expansion.

HIIN was created in 1993 as a holding company for PT Hotel Indonesia International and PT Natour soon after their merger. Hotel Indonesia, established 1962, runs seven hotels with 2,329 rooms. Natour, established 1953, manages 10 hotels with 1,065 rooms.

Indra said Hotel Indonesia International lost Rp 27 billion in 1995.

Some of the loss was caused by refurbishing Hotel Bali Beach which was gutted by fire several years ago, he said.

"We succeeded in reducing the losses to Rp 6 billion last year, and Natour made a Rp 900 million profit in 1996, up significantly from Rp 93 million in 1995."

He refused to disclose the cost of the tendered projects. But analysts estimate the projects will cost up to US$500 million.

"We expect to announce the winners next year," Indra said.

He said his company would also refurbish the Ambarrukmo Hotel in Yogyakarta. "But we will use a special scheme currently under discussion."

Ambarrukmo Hotel stands on land owned by Sri Sultan Hamengkubuwono X, the sultan of Yogyakarta. (icn)