Government Plans to Demolish Sultan Hotel and Build New Landmark in Jakarta
The Indonesian government plans to demolish the Sultan Hotel in Jakarta’s upscale Senayan district and replace it with a new landmark development as part of a broader redevelopment of one of the capital’s most strategic areas, Investment Minister Rosan Roeslani said on Monday.
The announcement comes days after the state took control of the Sultan Hotel complex following a decades-long legal dispute with operator Indobuildco, which culminated in a court ruling in late 2025 ordering the property to be returned to the government.
In 2023, the government declined to renew Indobuildco’s land-use rights. The company, controlled by the family of businessman Pontjo Sutowo, challenged the decision but ultimately lost in court.
While declining to disclose specific design details, Rosan said the broader objective is to transform the area into a new center of economic activity.
“We will upgrade and improve everything to world-class standards so that it can become a new economic hub,” he said.
Following the government's takeover of the property, the site will be managed by sovereign wealth fund Danantara through a holding company overseeing state-owned hospitality businesses, he added.
Ricki Putra Harahap