Macau-Based Sanum Eyes Tourism Trade In Indonesia

Officials at Sanum Investment, a Macau-based company, are considering about investing in Indonesia’s hotel and tourism industry to capitalize on the accelerating economic growth in the country.

The company might also invest in other countries in Southeast Asia as its recent investment in Laos turned sour, said Jody Jordahl, president of Sanum Investment, on Tuesday.

The company might also enter “the financing industry or property-development business” in Indonesia, he said without providing specifics. He said his firm could start tapping into Indonesia within six months, in a best-case scenario.

Jordahl said that Sanum’s investments in Laos had grown tremendously in the past five years. The firm invested $85 million in various business ventures, and watched it balloon into $500 million. But without warning, the company found itself in trouble.

The company, Jordahl said, “was facing serious threats by the local government” with what it described as “a baseless accusation.”

Jordahl said that the most disturbing development was the threat to imprison Sanum’s executives based on a $23 million tax claim, even though the company fulfilled all of its tax obligations.

“This issue will give a negative impact to the region as a whole toward foreign investment,” he said. “Of course, we can’t lump everything together. We have investments in Cambodia and Thailand and we have never had any issues.”

Laos accounts for about 30 percent of Sanum’s portfolio and revenue. The company primarily invests in tourist-related businesses like hotels, spas and gaming firms. It also has a financing business and property development firms in Cambodia and Thailand. The firm’s president did not specify the total value of Sanum’s portfolio.

The government and Sanum’s minority partner in Laos have taken over Sanum’s slot-machine business. That was making $3 million per month when Sanum stepped in, compared to about $100,000 per month before it intervened.

The company has brought the case, against the government of Laos, to the international arbitrary court.

Sourced: thejakartaglobe