FORMATION OF STATE OWNED TOURISM HOLDING & NEW STRATEGIES TO INCREASE THE NUMBER OF RETAILERS TOURISM UPDATE , February 15th , 2021

Presented by : Iswandi Said (President Director of PT Hotel Indonesia Natour) (Persero) Situation Outlook New Normal is the time for tourism industry to turn on “the survival mode”

COVID-19 HAS AFFECTED EVERY SECTOR ACROSS THE GLOBE, AND S A L E S E L A S THE HOTEL INDUSTRY IS OLD NEW NEXT AMONG THE HARDEST HIT HIT COVID-19 CASE FOUND COVID-19 APPROVE & TIME Mass PRODUCED

Source : Invent.ure AKHLAK – Amanah, Kompeten, Harmonis, Loyal, Adaptif, Kolaboratif HIN Hotels in Indonesia

Overview NORTH SUMATERA

HIN Founded on August 5, 1962, PT Hotel Indonesia Natour (Persero) / HIN is a State-Owned Enterprise (BUMN) engaged in hospitality services and now has the business / commercial name of Inna Hotels & Resorts.

HIN has 14 units of hotels and resorts with 2.375 rooms in Bali, and , namely Inaya WEST SUMATERA Putri Bali , Grand Inna , Grand Inna Padang, Grand Inna Bali Beach, Grand Inna Malioboro, Grand Inna Tunjungan, Grand Inna Samudra WEST JAVA Beach, Grand Inna Medan , Inna Bali Beach Garden, Inna Bali Beach Resort, Inna Hotel & Resort, Inna Parapat Hotel & Facility Resort, Inna Sindhu Beach Hotel Room : 2.349 & Resort, and Inna Bali Heritage Function Room : 93 Hotel Restaurant : 36 Employee : 1.910

AKHLAK – Amanah, Kompeten, Harmonis, Loyal, Adaptif, Kolaboratif HIN Challenges in the New Normal

Three big challenges for HIN during the pandemic

1 2 3

Occupancy Productivity Existence

• Hotel occupancy drops to • Productivity decreases • HIN remains open and in single digits. due to limited resources. operation amid a wave of hotel closures. • No new consumer growth • Hotel units renovation due to uncertainty and plans are postponed. • HIN continue to expand restrictions, and new and innovate business government policies and despite limited regulations. communication channels.

AKHLAK – Amanah, Kompeten, Harmonis, Loyal, Adaptif, Kolaboratif Intermittent distancing may THINK be required into 2022 unless NEW critical care capacity is increased substantially or a NORMAL treatment or vaccine becomes available.

Harvard Study (Science, 2020)

AKHLAK – Amanah, Kompeten, Harmonis, Loyal, Adaptif, Kolaboratif To face the challenges, HIN sets 5 priority strategies

D Provide a sense of safety, security and Introduce business model A comfort to guests by carrying out innovation, communication Creativity Safety strict health protocols and continuing strategies, promotions and to improve services by prioritizing on publications, and maximizing digital Cleanliness, Health, Safety and communication to add new markets Environmental Sustainability. from millennials and Gen Z

E Be a part of the State Owned Enterprise Tourism Holding (Holding Synergy Pariwisata BUMN) and Hotel Holding (Holding Hotel BUMN) Program to C B strengthen competitiveness, to reach Keep All Hotels Open and plan world class level tourism destinations, survival and recovery strategies and most importantly, to accelerate that will enable HIN to get back post covid-19 recovery. quickly in the game after Covid 19 in the ”post pandemic revival of Offer flexible rates and flexible terms tourism” Sustainability & condition to increase occupancy Hospitality & and productivity. Flexibility Taking service to the next level while adhering to health protocols

AKHLAK – Amanah, Kompeten, Harmonis, Loyal, Adaptif, Kolaboratif HIN in State Owned Holdings

TOURISM HOLDING HOTEL HOLDING & Co.

11 Hotels : - 3 HOTEL : 1. INAYA PUTRI BALI *5 GRAND INNA BALI BEACH 2. GRAND INNA KUTA BALI *4 3. GRAND INNA MALIOBORO *4 - IDLE ASSETS 4. GRAND INNA TUNJUNGAN *4 - NEW BUSINESS - HIN will join in two state owned enterprise Holdings 5. GRAND INNA SAMUDRA BEACH *4 (Tourism Holding & Hotel Holding & CO.) 6. GRAND INNA PADANG *4 7. GRAND INNA MEDAN *4 *SPV : Special Purpose Vehicle 8. INNA PARAPAT *3 - 11 Hotels will be part of Wika Realty by Special Purpose 9. INNA TERETES *3 10. INNA SINDHU BALI *3 Vehicle (SPV) and HIN will be shareholdes in Wika Realty 11. INNA BALI HERITAGE *3 - HIN & Wika Realty collaborate through a subsidiary in hotel operator business-> Hotel Indonesia Group + - Hotel Indonesia Group is official Hotel Operator for Hotel Indonesia BUMN Hotels which will operate 105 BUMN Hotels in Chain (HIC) Hotel Indonesia Chain (until 2025)

AKHLAK – Amanah, Kompeten, Harmonis, Loyal, Adaptif, Kolaboratif Formation of State Owned Tourism Holding

Structure & members

Destination Airport Airport Airline Heritage Hotel & Travel Retail Development Management Management Provides full Management Management Management Tourism Airport Airport service carrier Heritage based Hotel assets Marketing & destination Roles of management for management for and low cost asset development and develop local development (ex : Holding Central & East Area Central & West carrier (citilink) development, ex : bundling all core product, and duty , Member (ex : Bali, Area (ex : Jakarta, candi , business from free management Labuan Bajo, etc) Jogja,Manado, etc) Medan, etc) local handicraft, Tourism holding in airport & and content culture members in a travel tourism creator for attractions, etc technology destination Indonesia tourism platform to optimize the ecosystem

AKHLAK – Amanah, Kompeten, Harmonis, Loyal, Adaptif, Kolaboratif Holding Strategic Objectives

AKHLAK – Amanah, Kompeten, Harmonis, Loyal, Adaptif, Kolaboratif New Strategies to increase the number of national and international Retailers

1 2 3 4 Alignment Core Values and connect Go beyond transactional & beyond Be thorough & Selective Long Term Shared Purpose our partners to our vision collaborative set same vision with retailers to improve the Prioritizing collaboration and expanding Choose a specific and selective Set long-term economies of both parties networks both across regions and across tourism packages partnership countries

5 6 7 Proactive, Intentional Complementary Strengh Strategic Planning Communication

Improve services and facilities by aligning Develop an interactive communication and Optimize digital system and Do promotions by procedures to recent condition transparent system involving Key Opinion leader and public figure

AKHLAK – Amanah, Kompeten, Harmonis, Loyal, Adaptif, Kolaboratif Thank You, Let’s Discuss.