CILEGON: PT Krakatau Industrial Estate Cilegon, the subsidiary of PT Krakatau Tbk, began the construction of five-storey hotel in industrial area of Cilegon with initial investment value reaching IDR60 billion.Managing Director of PT Krakatau Industrial Estate CIlegon, Iwandono said that the hotel turns out to be the development of Permata Krakatau hotel that currently consists of 92 units of cottages and rooms. Further, the new-constructed hotel shall be developed in two phases.In the first phase, the company shall build 77 units of room, equipped with some facilities including restaurant, meeting room, family karaoke and spa. Krakatau expects the hotel to operate by 2012 as the second phase construction then will be begin by 2013 with 142 additional rooms.The early investment value reached IDR60 billion. The source of fund is mainly derived from internal source and banking loan, particularly PT Bank BNI Tbk. We have also signed an agreement with the contractor, Krakatau Engineering as we will begin the initial construction by toda, he said during the press conference of Groundbreaking Permata Hotel yesterday.The hotel targets the businessmen, conducting business activities around Cilegon industrial area as their main customers as it is not limited only for Krakatau Steels employee.The company also sees a potential business opportunities following the establishment of joint venture between Krakatau Steel and Koreas steel producer, Pohan Iron and Steel Corporation (Posco) in the plan construction in Cilegon as it may trigger more Korean businessmen to Cilegon.Fully realizing this opportunity, the hotel management then plans to develop and add the rooms in the 6,500m2 five-storey hotel with the special view of driving ranger.He highly expects such hotel construction to make Cilegon more developed, thus, many investors will infuse their funds there as well as trigger more tourists.Moreover, his company claims that the hotel has given significant contribution to the local governments income through tax.Last year, it contributed IDR1.54 billion of tax as it has paid IDR1.981 billion as per November 2010.Permata Krakatau Hotel happens to be one of business unit of PT Krakatau Industrial Estate Cilegon (KIEC). It was established in 1972. In 1996, the hotel management was taken over by KIEC. It has 92 units of cottages and rooms, equipped by some facilities such as swimming pool, driving range, convention hall, coffee shop, etc. (t02/wiw)

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