State-owned hotels ready for privatization
State-owned hotels ready for privatization
JAKARTA (JP): Seven hotels owned and managed by the state-
owned hotel operator PT Hotel Indonesia International Corporation
and Natour are ready to be refurbished and extended with the help
of private investors.
Company president Indra Setiawan said yesterday that about 20
firms were interested in bidding for the refurbishment projects:
under joint operation; build, transfer and operate; or build,
operate and own schemes.
They were also invited to establish joint venture firms with
Hotel Indonesia, he said.
Hotel Indonesia International Corporation and Natour was
created in 1993 as the holding company for PT Hotel Indonesia
International and PT Natour which merged to become more
efficient.
Hotel Indonesia, established 1962, runs seven hotels with
2,329 rooms. Natour, established 1953, manages 10 hotels with
1,065 rooms.
Indra said that Hotel Indonesia International suffered a Rp
27.5 billion loss in 1995.
"The loss is estimated to decrease to Rp 6 billion this year
but it may double to Rp 12 billion next year if Hotel Indonesia
and Hotel Wisata International in Jakarta are renovated," he
said.
Natour made a Rp 93 million profit in 1995 after suffering a
Rp 2.2 billion loss the previous year.
Indra said that private firms had been invited to set up joint
venture companies with Hotel Indonesia to refurbish Ambarrukmo
Hotel in Yogyakarta, to expand Hotel Wisata and Hotel Indonesia
in Jakarta under build, transfer and operate schemes and to
expand Dibya Puri Hotel in Semarang, Central Java, Muara Hotel in
Padang, West Sumatra, Natour Hotel in Denpasar, Bali, and Darma
Deli Hotel in Medan, North Sumatra, under joint operation
schemes.
Sources said the projects would cost US$500 million.
Minister of Tourism, Post and Telecommunications Joop Ave has
reiterated that the schemes are the best way for Hotel Indonesia
International Corporation to undertake the projects.
He said the government would no longer give additional equity
capital to Hotel Indonesia International Corporation.
Indra said his company had selected three companies as
financial, legal and design advisors to support the refurbishment
projects. (icn)