JAKARTA.  PT Rajawali Nusantara Indonesia (RNI) is to build a budget hotel on Jl. MT Haryono, Cawang, East Jakarta, with an investment of Rp 400 billion (US$32.7 million).

RNI president director Ismed Hasan Putro said the hotel would be built on 6,739 square meters of land, and would have 11 floors with 150 rooms. The hotel’s construction is expected to be completed in 2016.

“We have seen that the middle class continues to grow, so we have chosen to build a budget hotel because demand kept on rising but the supply wasn’t there,” Ismed said Sunday, as quoted by kontan.co.id, adding that the hotel aimed to make the company’s land more productive.

RNI aims to source income from other sectors besides the sugar industry, which contributes 60 percent to its overall revenue. “We have made a breakthrough by converting empty land into a building with added value,” Ismed said.

Editor: Barratut Taqiyyah Rafie