In Journey to Operate as Second Biggest Hotel Chain in Indonesia via Danantara Program
Jakarta. State-owned sovereign fund Danantara has selected tourism investment arm of the government InJourney to integrate state hotels into a single management entity, which would make it the second-biggest hotel operator in the country and further expedite the restructuring process of state assets in the hotel industry. The integration process will be implemented through Conditional Sale and Purchase Agreements (CSPAs), signed on June 11 and June 26, and involves 45 hotels for the beginning. “We can now say with certainty that our program is another significant milestone towards better valuation of state-owned assets in the hospitality business in Indonesia,” commented Dony Oskaria, Chief Operating Officer at Danantara.“By having a portfolio of 120 hotels, InJourney will operate as the second biggest hotel operator in Indonesia,” stated Dony.He noted that further hotels under state ownership will be added to the portfolio at the start of next week as part of the government’s initiative to transform state-owned enterprises within the hospitality sector.
"This transformation will eventually produce an improved tourism portfolio that is more efficient and more competitive," he said. Maya Watono, the president director of InJourney, said that the consolidation will go beyond putting together hotel assets and is a strategy to establish a globally competitive hospitality company based on the strength of Indonesia’s tourism sector."Through InJourney Hospitality, we are aiming to create a more systematic hotel portfolio, highlight Indonesia's distinct heritage, and create sustainable value," Maya said.
She further pointed out that the consolidation is aimed at tackling existing problems that have affected the state-owned hotels for years now. "With the implementation of more integrated management, every asset will have the chance to fulfill its potential through the formation of synergy that will benefit the entire industry of hospitality," she explained.
The new portfolio will consist of hotels and hospitality firms presently under the management of The Manohara Hotel, Pullman Mandalika, IAS Group, and Hotel Indonesia Properti, together with hotels that are the property of state-owned companies in construction, transport, and steel. Among them are hotels previously owned by Adhi Karya, ASDP Indonesia Ferry, Garuda Indonesia, Hutama Karya, Krakatau Steel, Nindya Karya, PTPP, Waskita Karya, and Wijaya Karya. The consolidation of the program involves the transfer of hotel properties, corporate spin-offs, and acquiring hotel business units from the participating state-owned firms.It is part of the overall plan of Danantara to restructure state-owned enterprises, to utilize their assets effectively, and to improve their commercial efficiency.
