PT Pusat Rekreasi dan Promosi Pembangunan (PRPP) Jawa Tengah is facing serious financial challenges, with accumulated losses reaching IDR 21 billion. Despite discussion about closure by Central Java Governor Ahmad Luthfi, the state-owned enterprise is being retained as it is considered to have strategic development potential.
Director of PRPP Jateng, Heri Kristanto, explained that the staggering loss figure is an accumulation of burdens that occurred long before he took office in October 2024. He emphasized that this condition is inherited, and current management is focusing on corporate restructuring efforts.
Furthermore, Heri clarified that the loss was not caused by operational expenses, but rather the impact of substantial asset depreciation. With a land area of 40 hectares containing numerous buildings, the annual recorded asset depreciation burden exceeds IDR 1 billion.
"Our current revenue is actually still sufficient to cover routine operations, but it cannot yet cover the asset depreciation burden, which is why the company has not been able to pay out dividends," Heri revealed when confirmed about the company's financial condition.
Currently, PT PRPP manages seven business units, including the flagship tourist destination Grand Maerakaca, MICE services, and the Jateng Tourism Training Center (JTTC). Although operational revenue is claimed to be stable, management is not yet willing to disclose detailed annual revenue figures, citing the need for further review of the company's books.
