Tourism board denies report on financial problems

JAKARTA (JP): The Tourism Promotion Board (BPPI), a private agency promoting the country's tourist industry, has denied it has financial problems.

Tanri Abeng, the board's chairman, said Monday the board's finances were not too bad because its assets were worth more than its liabilities.

"The board is not bankrupt because the money that BPPI has is more than its debts," he told reporters without elaborating.

The board told House Commission V late last year that it was about US$15 million in debt.

According to a presidential decree issued in 1993, some development taxes collected from hotels and restaurants by provincial administrations should go to the Ministry of Tourism, Post and Telecommunications to be transferred to the board.

But provincial administrations seem to have failed to collect development taxes and this may bankrupt the board.

Besides funds from provincial administrations, the board raises money through cooperation with private companies.

Wuryastuti Sunaryo, the board's managing director, said the board had collected Rp 2.45 billion in cash from private parties in the 1996/1997 fiscal year.

She said Rp 1 billion (US$423 million) came from PT Dewata Agung Wibawa, a subsidiary of Mayapadha group which runs a duty- free shop in Bali, Rp 1 billion was from PT Inti Dufree Promosindo, another subsidiary of Mayapadha group, Rp 350 million was from PT Multi Bintang Indonesia and Rp 100 million was from PT Indo Multi Media.

The documents for the handover of this money were signed Monday before Minister of Tourism, Post and Telecommunications Joop Ave, Director General for Tourism Andi Mappi Sammeng and the ministry's secretary-general, Jonathan Parapak.

She said that in the 1995/1996 fiscal year the board received Rp 300 million from private parties and in 1994/1995 it received at least Rp 2.7 billion.

She said private parties would contribute about Rp 7.03 billion worth of goods and services to the board in 1996/1997.

In 1995/1996 the body received about Rp 4.9 billion worth of free goods and services and about Rp 7.01 billion in 1994/1995.

She said the board needed at least $25 million for promotions in the 1996/1997 fiscal year, up from $20 million in 1995/1996. (09)