Tourism board denies report on financial problems
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.
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