Why Streamlining SOE Hotels Must Be About Value Creation, Not Just Consolidation

Authors : Adam Faiana Amru, LM FEB UI,

Topic : State-Owned Enterprises (SOE), Hotel & Hospitality Industry, Corporate Consolidation, Value Creation, InJourney

The consolidation of 45 state-owned hotels from nine different State-Owned Enterprises (SOEs) under InJourney Hospitality marks a significant milestone in national asset management. Executed through a series of Conditional Sale and Purchase Agreements (CSPA) on June 11 and 26, 2026, this move aligns with Presidential Instruction (Inpres) No. 7 of 2026 regarding the acceleration of SOE restructuring. However, legal consolidation is only the first step; true success lies in the new value created afterward.

Authored by Adam F. Amru and Muhammad Safiq from the BUMN Research Group at Lembaga Management FEB UI, this document highlights the strategic imperatives for this massive integration.

Key Insights from the Policy Brief:

• Streamlining is not merely about cost-cutting, but rather strategic value reallocation.
• The core operational principle must be "uniform in the back, unique in the front" to maintain local character and heritage while standardizing back-office systems like finance and procurement.
• High tourist demand does not automatically guarantee high room occupancy, as national star-rated hotel occupancy fell to 49.98% in June 2025 despite millions of tourist visits.
• A "Single Source of Truth" for data—integrating PMS, CRM, and ERP systems—is crucial to avoid fragmentation and severe cybersecurity risks.
• Every hotel must pass an "existential mandate fit" test against the SOE objectives outlined in Article 2, paragraph (1) of Law No. 16 of 2025.

Strategic Framework & Roadmap: The brief proposes the SOE Hotel Streamlining Value Creation Framework, consisting of seven pillars designed to transform fragmented assets into a unified national hospitality operating platform. It also outlines a four-phase roadmap, enforcing a strict "stop-loss" rule in months 12 to 24 for properties that fail to turn around, opening options for partnerships, leasing, repurposing, or divestment.

To explore the complete analysis, strategic recommendations, and value creation dashboards, you can download the document below.