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State tourism firm Injourney Rp 4.6t in debt, seeks govt funds
InJourney's president director said that the WorldSBK event at the Mandalika circuit could not attract enough attendees or sponsors.
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Pata Yamaha Prometeon WorldSBK racer Toprak Razgatlioglu (right), closely shadowed by another Pata Yamaha Prometeon WorldSBK racer, Andrea Locatelli (second right), rounds a corner during Race 2 of the 2023 WorldSBK event at the Pertamina Mandalika International Street Circuit in Mandalika, Central Lombok, West Nusa Tenggara, on March 3. Aruba.it Racing-Ducati racer Alvaro Bautista won Race 2, while Razgatlioglu came in second. (Antara/M Agung Rajasa)
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tate-owned tourism holding company Injourney is contending with some Rp 4.6 trillion (US$308.8 million) of debt after developing several tourism destinations at the government’s behest.
The debt is held by an InJourney subsidiary called the Indonesia Tourism Development Corporation (ITDC), which manages state-run tourism properties, including circuits in Mandalika, West Nusa Tenggara, used in the 2022 MotoGP motorcycle racing event.
Around Rp 1.2 trillion of the debt is classified as short-term, and the remaining Rp 3.4 trillion is long-term.
"The short-term [debt comes from] the construction of the grandstand and VIP village, as well as working capital for organizing events. Honestly speaking, I cannot solve this short-term liability problem," InJourney president director Dony Oskaria told lawmakers during a House of Representatives meeting on Wednesday.
Dony said the company had found a mismatch between the loan and ITDC's repayment capabilities, which depended in large part on income from its properties in Nusa Dua, Bali.
The properties only generate about Rp 80 billion in earnings annually before interest, taxes, depreciation and amortization (EBITDA).
Meanwhile, the sporting events that have used the Mandalika circuit, such as WorldSBK and MotoGP, have not generated profits.
