Saudi Prince Alwaleed may invest in Indonesia's hotel industry

Wahyudi Soeriaatmadja, The Jakarta Post - 2007-04-02 14:40

Jakarta, April 2, 2007 (Bloomberg) - Saudi Prince Alwaleed bin Talal, the world's 13th-richest man, said he may invest in hotels in Indonesia, a day after the government passed laws making it easier for overseas companies to build properties.

"We are looking at certain opportunities in the hotel industry that will hopefully materialize in the coming months," Alwaleed told reporters in Jakarta after meeting Indonesian President Susilo Bambang Yudhoyono Friday.

Value of the possible investment "will depend on the location, size of the projects, and discussions we have with the owners." Alwaleed has a 55 percent stake in Kingdom Hotel Investments, which has interests in 33 hotels and resorts, including the Four Seasons George V in Paris.

Kingdom Hotel, which earlier this month teamed up with Ayala Land Inc., the Philippines' biggest developer, wants to expand in Asia to offset the impact of conflict in the Middle East, which has deterred visitors to Lebanon and Egypt.

The Middle East accounts for about half of its assets, with Egypt and Lebanon representing 18 percent each, according to the company's Web site.

President Yudhoyono wants to give equal treatment to overseas and domestic investors in a bid to attract US$22 billion of investment annually and help boost economic growth to an average 6.6 percent a year.

On March 29, Indonesia's Parliament passed a government proposed law to give tax breaks to investors and ease bureaucratic hurdles.

The new law seeks to ease government rules and slash the number of days required to obtain land-use rights in Southeast Asia's biggest economy.

The law also pledges tax incentives including on income tax and an exemption from tariffs on imported machinery.

"The investment law that was passed by Parliament here will encourage people, investors to come to Indonesia," Alwaleed said in a press briefing.

Prince Alwaleed is the world's 13th-richest man with $20.3 billion, according to Forbes magazine. He raised $398 million in an initial public offering of Kingdom Hotel in February 2006, selling shares at $9.25.

Kingdom Hotel teamed up with Ayala Land to build a $153 million hotel and residence complex in Makati, Manila.