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.

“At this stage, I cannot provide detailed information, but the plan is to develop an entirely new district. Eventually, yes, [the Sultan Hotel] will be demolished,” Rosan told reporters at the State Palace in Jakarta.

According to Rosan, once the asset transfer process is fully completed by the State Secretariat Ministry, the former hotel site will become part of a larger redevelopment project intended to create a new national landmark.

The plan extends well beyond the hotel itself. Rosan said the government intends to redesign approximately 200 hectares of surrounding land, including the adjacent golf course and areas within the Gelora Bung Karno sports complex, using a modern, integrated, and internationally competitive master plan.

“The goal is to create a new icon for Indonesia,” he said. “The entire area, including the golf course and the Gelora Bung Karno complex, covering roughly 200 hectares, will be comprehensively redesigned.”

The redevelopment is expected to include new hospitality facilities, with Rosan indicating that multiple hotels could be built as part of the project.

He said President Prabowo Subianto has instructed the government to ensure the development delivers tangible economic benefits while creating a destination that reflects world-class standards.

“The president wants this to become a new icon for Indonesia. The planning must be comprehensive and generate real economic benefits, especially for the Indonesian people,” Rosan said.

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.