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Tuesday, November 1, 2016 - 15:00
Govt Allows Private Firms to Operate 3 Major Airports
TEMPO.CO, Jakarta - Transport Ministry will allow private companies to operate three major airports in a bid to tighten spending and allocate more funds to priority projects, i.e. transportation infrastructure in eastern Indonesia.
Speaking in the ministry’s coordinated meeting on Wednesday, October 26, Transport Minister Budi Karya Sumadi said the three airports are Kualanamu Airport in Medan, Sepinggan Airport in Balikpapan and Sultan Hasanuddin Airport in Makassar.
“We wish to see private sector build on Indonesia; we have alot of tasks already,” he said.
Budi expects to get Rp1-3 trillion from private firms to improve the airports.
He also leaves the door open for foreign investment, such as those of Germany or France
“London’s Heathrow, for example, is not funded by the government, but by a third party, such as Spain,” he said.
He added that it would take eight to twelve months to complete the assignment.
Budi went on to say that the government is exploring possibilities of establishing joint ventures to manage airports which are currently operated under either of state-owned airport operators PT Angkasa Pura I and PT Angkasa Pura II or technical operation units (UPT), such as those of in Batam, Lampung, Belitung, Banjarmasin, Tarakan, Sorong, Berau and Sentani.