PHRI: Hotel Business Executives are Hesitant to Invest in New Capital
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Editor
15 August 2024 17:30 WIB
TEMPO.CO, Jakarta - The Indonesian Hotel and Restaurant Association (PHRI) Chair Hariyadi Sukamdani, revealed that domestic hotel magnates still have no intention of investing in the Nusantara Capital City or IKN.
Hariyadi said business executives are yet to be able to project the number of visits to IKN and no banks are currently willing to finance their investment.
"As long as there’s no proper demands, it’s not feasible. Who would be the guests?,” he told Tempo on Wednesday, August 14, 2024.
“The banks are also unwilling to ‘support’ the investment thus far, they don’t want to finance a project with unclear sales,” he added, stressing that without demand, investment is impossible.
Hariyadi added that market demand for hotels in IKN will be clear in three years at the earliest after government employees or ASN have moved to the new capital. With the transfer, there will come a demand for hotel meeting rooms, he said. However, that would not be sufficient to make hotel magnates flock to IKN.
Business executives, Hariyadi went on, are also awaiting the new government’s decision on IKN construction despite President-elect Prabowo Subianto's repeated declaration of commitment to develop the new capital city. "We don’t know where his priorities lie,” he said.
Previously, President Joko Widodo or Jokowi ensured that IKN’s infrastructure development would be accelerated to encourage investment in the project. "It is impossible for investors to build their infrastructure. The government will construct the roads, electricity, water, and everything else,” said Jokowi in his speech at the BCA office groundbreaking quoted from the Presidential Secretariat page, Thursday, August 15, 2024.
The former Mayor of Solo added that the government will focus on the core government area construction until the end of the year. Infrastructure development for investment outside of the core area will commence in January next year.
ILONA ESTHERINA
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