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Five Indonesian State Firms Ink Deal on Business Consolidation in Hotel Industry

September 15, 2020, 08.08 PM

JAKARTA, – Five state firms with parent companies or subsidiaries that are players in the hotel industry have committed to consolidating their businesses after signing a memorandum of understanding on Monday, September 14.

The signatories were represented by all president directors of national flag carrier PT Garuda Indonesia (Persero), state-owned hotel operator PT Hotel Indonesia Natour (Persero), state oil and gas company PT Pertamina (Persero), state contractor PT Wijaya Karya (Persero), and state pawnshop PT Pegadaian (Persero).

Also read: Hotel, Restaurant Industry in Indonesia Loses $4.8b Due to Covid-19 Pandemic

These entities are committed to consolidating the hotel business which currently includes 22 hotel units and two hotel operator management following the initiative by State-Owned Enterprises Minister Erick Thohir.

State-Owned Enterprises Deputy Minister Kartika Wirjoatmodjo. KOMPAS.COM/MUTIA FAUZIA State-Owned Enterprises Deputy Minister Kartika Wirjoatmodjo.

“State firms need to return to their respective core businesses. In the hotel industry, for example, there is a need to rearrange the subsidiary of state firm hotels. So that the relevant parent company will only run its core business,” said State-Owned Enterprises Deputy Minister Kartika Wirjoatmodjo in a statement.

The signing was the first step to promote government programs in the tourism sector as well as to increase competitiveness and value-added from the business consolidation of the state firm hotels.

“State-owned hotels are located in very strategic locations. If we can focus on providing good services, the state-owned hotels may be the pride of Indonesia,” said Kartika.

(Writer: Akhdi Martin Pratama | Editor: Bambang P. Jatmiko)


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