Unproductive Asset in Bali to be Used for Hotel


Deputy Governor of Bali, Ketut Sudikerta said various unproductive assets owned by provincial government will be used for the construction of hotel after regional owned enterprises (BUMD) is formed.

“If any hotels can indeed be built on our asset, such as those along the beach so that every year it will add revenue (PAD) of Bali,” he said after attending a plenary meeting of DPRD Bali, in Denpasar, on Tuesday.

According to him, the plan to empower the unproductive assets is in line with the plan to form BUMD named PT Bali Mandara Holding Company. Later it will be the ‘parent’ of other small companies owned by the province with a variety of business fields.

“The development of the plan to form Bali Mandara Holding Company is now in the process of inventory of all assets, which can be empowered,” he said.

Second Assistant of Provincial Government of Bali along with the team, he added, has done meetings related to the establishment of the agency and the regulation is still in the devising process.

Associated with the location of assets in which hotel could be built, it cannot be too rushed and depend on decision of DPRD-Bali. “We can’t determine immediately and we not dare to say that it will be in South Bali, North Bali and so on,” said Sudikerta.

He said that recently PAD Bali lies on motor vehicle tax and in the future will not be maximum if it isn’t balanced by an increase in infrastructure.

“In Bali, it’s very hard to increase revenue but able to get the balance funds from the central government with the principles of justice,” said the former Vice Regent of Badung.

Previously Governor of Bali, Made Mangku Pastika, argued with the formation of Bali Mandara Holding Company could trigger entrepreneurship spirit among the bureaucracy.

“Entrepreneurship should not only possess the private sector, but also a must-have among governments and academicians because it is supposed that the available resources should not be wasted,” he said.

The idea to establish BUMD, said Pastika, does not mean that it also will compete with existing businesses and should not be interpreted that the governor will build a hotel. Perhaps the bankrupt hotel has been purchased by government of Bali Province.

“In Bali actually there are a lot of opportunities, so the more advanced our economy, all would rush to invest, want to open business, earn money and so on. It means that a lot of opportunities, but we had been unable to grasp the opportunity,” said Pastika.

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