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Govt offers Rp 4.3 trillion Singkawang airport project to private investment
The airport is scheduled for completion in 2023, with plans to serve both domestic and international routes.
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Representatives of Singkawang, West Kalimantan, wear traditional dress during the National Association of Municipal Administrations (APEKSI) 12th Cultural Parade on July 19, 2017 in Malang, East Java. (JP/Aman Rochman)
T
he government offered a new airport project under a public-private partnership (PPP) scheme in Singkawang, West Kalimantan, at a market sounding event on Monday in Jakarta.
The Singkawang airport development project requires investment of Rp 4.3 trillion, which covers Rp 1.7 trillion for capital expenditure and Rp 2.6 trillion for operational costs.
The airport development is projected for completion in 2023, an official has said.
"Some of the flight routes that will depart from Singkawang include [flights to] Surabaya, Semarang, Jakarta and Medan, as well as potential international routes to Singapore, Kuala Lumpur, Taiwan, Hong Kong, and maybe other routes in the future," Singkawang airport project director Pramito Hadi said at the market sounding event.
Pramito added that the new airport could raise Rp 15.9 trillion (US$1.12 billion) in aeronautical revenue and Rp 2.1 trillion in non-aeronautical revenue over 32 years.
Transportation Minister Budi Karya Sumadi lauded the effort to involve private investors in the infrastructure development project.
"[The President] has reminded us to offer opportunities to private investors, including foreign [investors], to enter the transportation sector. Because we believe that the government needs the private sector's competence and capital to realize many infrastructure [projects]," Budi said at the event.
Singkawang airport is one of 12 airport development projects in the 2020-2024 National Medium-Term Development Plan (RPJMN), which includes airport projects in Mandailing Natal regency, North Sumatra, Bolaang Mongondow regency in North Sulawesi and Pahuwato regency in Gorontalo.
If private investment is secured for the Singkawang airport project, it would be the second to be developed under the PPP scheme after the Labuan Bajo airport project in East Nusa Tenggara.
