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Mandiri Extends Rp 103.8 billion loan to Hotel Indonesia Natour

24 July 2012

Bank Mandiri has agreed to provide an investment loan facility of Rp 103.8 billion to PT Hotel Indonesia Natour (HIM) to finance the construction of the Hotel (new) Grand Inna Kuta in Bali.

The loan agreement was signed by Bank Mandiri Executive Vice President Didiek Hartantyo and HIN CEO Intansari Abdams Katoppo, witnessed by Bank Mandiri Director of Commercial and Business Banking, Sunarso, at Plaza Mandiri in Jakarta on Thursday (19/7).

The loan, which has a tenor of 8.5 years, will be used to finance 60% of the total cost of the new hotel, which is expected to involve an overall investment of Rp 173 billion.

Sunarso said that Bank Mandiri was committed to supporting the development of the tourist industry so as to improve its competitiveness vis-à-vis other popular tourist destinations in the region.

“We are very optimistic about the prospects for the Indonesian tourism industry, particularly in light of the increasing number of tourist destinations and the improvements that are currently taking place in tourism infrastructure, such as transportation and accommodation,” Sunarso said.

He said that besides collaboration between Bank Mandiri and HIN for the construction of the Grand Inna Kuta Bali Hotel, the two companies had also worked together on the development of the Hotel Grand Inna Muara Padang under an agreement signed in December 2011, as part of which Bank Mandiri had extended an investment loan of Rp 101 billion.

As of the end of June 2012, Bank Mandiri had provided financing worth Rp 57 trillion (unaudited) to the trade, restaurant and hotel sector, an increase of 45.9% from the same time last year, with Rp 2.2 trillion in loans being extended to the hotel industry alone, marking an increase of 19.2% from the end of June 2011.

HIN CEO Intan Abdams Katoppo said that the company’s financial collaboration with Bank Mandiri would help support the growth of HIN, which was planning to reopen two newly renovated hotels, namely, the four-star, resort-style Grand Inna Kuta (with 317 rooms), and the 4-star, 168-room Grand Inna Muara Padang, which boasts the most extensive convention and exhibition facilities in Padang. The June opening of the Padang hotel, which focuses on a unique blend of comfort and friendliness as its key selling point, represented a major boost for the tourist industry in West Sumatra.

Meanwhile, the Hotel Grand Inna Kuta, whose key attraction is its location on the edge of beautiful Kuta beach, is expected to prove a major draw for top-end domestic and overseas tourists alike. “Looking ahead, we will continue to grow our business by renovating 12 hotels owned by HIN in line with their respective market targets,” said Intan.

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