PANORAMA Leisure Group (PLG) will pump 63 per cent of net proceeds from its upcoming bond issuance to finance the expansion of its travel agency arm, Panorama Tours Indonesia.
PLG is due to issue Rp500 billion (US$50.5 million) worth in bonds in two phases, with the first comprising Rp350 billion with a five-year maturity. Details of the second phase, worth Rp150 billion, will be announced soon.
Funds injected into Panorama Tours Indonesia will be utilised as working capital for operational and marketing expansion, as well as to refinance bank loans. The remaining 28 per cent of proceeds will go to Panorama Property to fund hotel expansion and the rest to Panorama Multimedia.
Speaking to the media yesterday, PLG president director, Budi Tirtawisata, said: “Looking at market conditions and the world’s confidence in Indonesian tourism, we are gaining the momentum to expand our businesses further.”
Quoting data from the Indonesia Board of Statistics, Budi said Indonesia booked year-on-year economic growth of six per cent in Q1 despite the global crisis. Tourism was the fifth highest revenue generating industry in 2012, and is expected to grow this year in tandem with the country’s projections for arrivals for 2013.
Indonesia’s Ministry of Tourism and Creative Economy has set targets of nine million international arrivals and 250 million domestic arrivals for this year.
Budi added: “By 2025, the government is optimistic that domestic travel will reach 400 million movements and international arrivals, 20 million.
“The key to achieving these big numbers is the availability of infrastructure, accessibility and facilities. Increasing demand requires additional supplies and distribution channels. We see opportunities for Panorama to participate here.”
According to him, Panorama would penetrate new markets and improve its services, develop e-commerce further and open hotels in primary and secondary destinations.
“MICE has become a basic business need. Therefore, we are planning to expand our MICE business pillar here,” he said.
