PHRI Boss Comments on Prabowo's Plan to Sell SOE Hotels; 'We Are Interested in Buying'

November 20, 2024 | 06:40 pm

TEMPO.CO, Jakarta - Haryadi Sukamdani, chairman of the Indonesian Hotel and Restaurant Association (PHRI), said they are waiting for the implementation of the plan to sell state-owned hotels. He said a number of the association's members were interested in buying the state-owned hotels.

"We are just waiting to see if [this plan] will be implemented. If it is, some of us are certainly interested in buying. Because it would be an acquisition since the hotels have been built," he said at a press conference in Central Jakarta on Tuesday, November 19.

When he was serving as defense minister and running for the presidency, Prabowo Subianto had said that Indonesia did not need to have state-run or state-owned hotels. He made the statement at the Mandiri Investment Forum 2024 at the Fairmont Hotel on March 5.

Commenting on this, Hariyadi noted that the focus of President Prabowo's government is indeed on core businesses owned by the state. Therefore, the decision to divest assets no longer relevant is natural in the business world. "I think it's a common thing. It's called asset recycling, where assets considered irrelevant to the core are sold," he said.

He added that if the plan to sell SOE-run hotels goes through, some PHRI members have already expressed interest in acquiring them. They will buy them as long as the move is supported by the banks. "The banks should be more supportive considering that these are assets that are already completed or already in operation. So maybe the bank will still want to finance the acquisition," he said.

Some time ago, Hariyadi explained that the plan to sell state-owned hotels would not result in significant losses for investors. This is because hotels are a long-term business with high margins and low returns. "So I think if they want to sell them, it's a good idea," he told Tempo on October 24.

Furthermore, Hariyadi said that investment and hotel construction will continue in 2025. However, the number of constructions will be relatively smaller because most of them will be financed with their own capital and without using debt.

So far, according to PHRI data, new hotel construction in 2025 will still be concentrated in the Jakarta area and its surroundings, such as the BSD area. The hotels built are also mostly three and four-star hotels.

Editor's Choice: Hotel Occupancy Rate Projected to Drop 10%, PHRI: Partly due to Online Gambling

Click here to get the latest news updates from Tempo on Google News

Prabowo Arrives in the UK to Meet King Charles III and PM Keir Starmer

5 menit lalu

Prabowo's Duplicity over Human Rights

1 jam lalu

Hotel Occupancy Rate Projected to Drop 10%, PHRI: Partly due to Online Gambling

4 jam lalu

Prabowo Meets France's Macron in Brazil

5 jam lalu

Prabowo Expresses Gratitude for Indonesian National Team's Victory Against Saudi Arabia

6 jam lalu

Prabowo Watches Indonesia vs Saudi Arabia Match on Cell Phone During State Visit

19 jam lalu

Today's Top 3 News: Apple to Build Rp158 Billion Factory to Sell iPhone 16

21 jam lalu

Erick Thohir Talks of Potential Indonesian Hajj Village in Mecca

1 hari lalu

Deputy Home Affairs Minister Says Prabowo Wants Election System Revised

1 hari lalu

Prabowo Asserts Commitment to Tackle Hunger, Poverty at G20 Summit

1 hari lalu