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     Issue: May / June 2005

COUNTRY REPORT - INDONESIA

Return of investment

Jakarta is seeing bigger events and more business travellers as confidence in the country returns. MIMI HUDOYO finds out more.

The positive sentiments toward the new Indonesian government have gradually brought investment back to Jakarta and Indonesia in general.

Both local and overseas businesses and the government seem to be gaining momentum in influencing investment in various sectors.

Doing well are IT, infrastructure development, insurance, finance and telecommunications.

Pharmaceuticals, which has been experiencing steady growth in the country in the past few years, is still showing positive signs.

As a result, the country’s meetings, seminars and workshops are getting larger, and business travel figures are rising, according to hoteliers and meeting organisers.

Aston Hotel Jakarta director of sales, Ms Dwi Lis Anggraini, said: “Although we are still experiencing growth in oil and energy, financial and banking business, these are not the new clients for us.

“Since last year, we have seen a significant increase in business travellers from the fields of IT and telecommunications.”

While declining to mention company names for competitive reasons, Ms Anggraini said some 30 per cent of the property’s long- stay guests were executives in these two industries.

“Many of them stay about three months and when they return home, their replacements arrive,” she said.

While not all the companies are based in Asia, the business travellers are mostly from Singapore and Malaysia.

Ms Anggraini said: “I feel this is the trend today.

“There are more and more experts in the region so companies can save costs by sending their regional staff here rather than make someone travel longhaul from a head office far away.”

The 225-room Aston Hotel Jakarta, which is a hotel and serviced residence, enjoyed more than 90 per cent occupancy in the first quarter. Long-stay guests make up 78 per cent.

Pacto Convex president director, Ms Susilowani Daud, said: “The government and associations are organising more meetings, conferences, seminars and workshops and inviting international participants.”

Both the Infrastructure Summit last January and the Asia-Pacific Congress on Banking Technology, which took place in Jakarta in April, were large events that attracted much international attention.

The market is now hopeful the interest would translate into potential new investments.

“Playing host to these two events, which was attended by experts in banking technology and infrastructure, was an eye-opening experience for the Indonesian government.

“It made them realise the areas that needed development.

“The next step it needs to take is to make it as attractive as possible for these potential investors to put their money here,” Ms Daud said.

The recent tsunami in Aceh and the subsequent redevelopment in the area have indirectly brought business to Jakarta hotels.

Hotel Santika Jakarta director of sales and marketing, Ms Rosana Rotani Tamin, said: “It does not sound right to say we got business from what happened in Aceh – as if we are taking advantage of their suffering – but the fact is Jakarta is the gateway for workers and volunteers to reach the area.”

The hotel received many volunteer groups, even from Cuba, during the evacuation period, but Ms Tamin projected the redevelopment of Aceh would also bring in business travellers (such as experts, consultants and investors) to Jakarta.

Le Méridien Jakarta director of sales and marketing, Ms Nenden Rukasah, said: “I think we are not the only hotel in Jakarta that is getting business from the representatives of bodies under the United Nations, who are coming to Aceh and using Jakarta as their base.”

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