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Natour-Grand Indonesia deal could cause state losses: BPK
Potential losses: The homepage of Grand Indonesia's official site features sunset at the renowned Hotel Indonesia traffic circle, with Hotel Indonesia Kempinski in the background
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span class="inline inline-center">Potential losses: The homepage of Grand Indonesia's official site features sunset at the renowned Hotel Indonesia traffic circle, with Hotel Indonesia Kempinski in the background. The Supreme Audit Agency (BPK) has alleged a business deal between Grand Indonesia and state-owned hotel operator Hotel Indonesia Natour could lead to state losses of Rp 1.3 trillion. (courtesy of grand-indonesia.com)
The
Supreme Audit Agency (BPK) has warned the government over Rp 1.3
trillion (US$96.25 million) in potential state losses relating to a
cooperation between state-owned hotel operator PT Hotel Indonesia Natour
(Hotel Natour) and shopping mall operator PT Grand Indonesia.
The
partnership was initiated between Hotel Natour and PT Cipta Karya Bumi
Indah (Cipta Karya) to develop fallow land near Hotel Indonesia through a
build, operate and transfer (BOT) agreement, in which Cipta Karya acts
as the BOT rights recipient from Hotel Natour.
However, the
agreement was violated and may lead to state losses as a result of
contract period revision, low compensation rate against income
percentage and the use of right to build (HGB) certificate as a debt
collateral, the BPK said in an audit report.
In the original
agreement, Hotel Natour gave Cipta Karya the right to develop Hotel
Natour's land for 30 years (2004-2033) in exchange for Rp 355 billion in
compensation, equating to 25 percent of its taxable value of property
(NJOP).
But in the contract revision inked in 2010, the rights
extended to 50 years with an additional compensation of only Rp 45
billion from a total of Rp 400 billion. 'It is not a proper amount of
compensation,' the BPK noted, as quoted by kompas.com on Monday in Jakarta.
Grand
Indonesia, as stated in the BPK's report, became the new contract
holder in the revised agreement and registered the HGB certificate as
collateral to obtain bank loans, in contravention of the prior
agreement, which contained a clause prohibiting a transfer of contract
and the use of the HGB certificate as collateral.
"The use of
option rights to extend the BOT contract between Hotel Natour and Grand
Indonesia infringes the rule, without adequate planning basis and may
lead to the opportunity loss of winning greater compensation of Rp 1.3
trillion, as a minimum," BPK stated in the resume of the audit.
The
State-Owned Enterprises Ministry's deputy for energy, logistics, zones
and tourism, Edwin Hidayat Abdullah, admitted that there were problems
in Hotel Indonesia Natour's business agreement involving Cipta Karya and
Grand Indonesia.
"However, we're still assessing [the problem]
from several documents available. We've just received the audit report
from BPK," he said.
The management of Grand Indonesia'which
operates GI shopping mall and Hotel Indonesia Kempinski at the capital's
famous Hotel Indonesia traffic circle'could not be reached for
confirmation.
Meanwhile, Hotel Natour president director Iswandy refused to comment. (ags)(+)
