Danantara, the state investment agency of Indonesia, is unifying state-owned enterprise (SOE) hotel assets under the national tourism holding company, InJourney, reported Antara.

In the first stage, 45 state-owned hotels signed conditional sale and purchase agreements (CSPAs).

The government expects the total number of state-owned hotels moved into InJourney’s portfolio to reach 120, which would make the holding company the country’s second-largest hotel operator.

In a statement, SOEs Regulatory Agency head and Danantara COO Dony Oskaria said: "The unification of all SOE hotels under the InJourney umbrella is a major leap in restructuring and strengthening the value of our hospitality assets to make them globally competitive.”

Oskaria said the first CSPA signings form part of a broader structural change in the hospitality sector.

Oskaria added: "We will maintain this positive momentum, and we project additional signings from several other hotels early next week.

"This is a concrete step toward optimising asset value and creating a more robust management structure."

Under the plan, all consolidated hotel assets will later be managed by PT Hotel Indonesia Natour, which rebranded as InJourney Hospitality, as per the report.

Oskaria said merging the separate assets would create a "solid foundation for value creation", with the aim of building a more efficient, competitive and integrated tourism portfolio.

After the portfolio reaches at least 100 properties, Danantara intends to offer it to outside investors.

The agency would seek partners from both domestic and international investors through joint venture and cooperation structures, Oskaria noted.