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Jakarta Post

Govt rules in foreign investors for Komodo Airport operation

News Desk (The Jakarta Post)
Jakarta
Mon, October 31, 2016

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Govt rules in foreign investors for Komodo Airport operation Two compactor trucks work on the apron expansion at Komodo Airport in Labuan Bajo, East Nusa Tenggara on Aug. 2, 2013. (kompas.com/Kornelis Kewa Ama)

The government is considering inviting foreign investors to operate Komodo Airport, in Labuan Bajo, East Nusa Tenggara.

Transportation Minister Budi Karya Sumadi said the government was currently assessing whether state-owned airport operator Angkasa Pura I, or a foreign investor, would operate Komodo Airport.

"There are two options. Either Angkasa Pura I will operate the airport or a foreign investor. We will examine the profitability," he said as quoted by kompas.com during an inspection of Komodo Airport, Labuan Bajo, on Sunday.

Budi said the decision on who operated the airport would consider the number of passengers and the operational costs.

However, based on the negative investment list, a foreign investor would only be allowed to own 49 percent of the airport, while Angkasa Pura I would own 51 percent, he noted.

The Transportation Ministry, through its Airport Operator Unit, currently operates Komodo Airport, along with seven other Indonesian airports, which burdens the state budget. Therefore, the government is considering handing over airport operations to Angkasa Pura I and Angkasa Pura II.

The seven airports are Komodo Airport, Temindung Airport in Samarinda, Juwata Airport in Tarakan, Kalimarau Airport in Berau, Radin Inten Airport in Lampung, Sentani Airport in Jayapura, and Hang Nadim Airport in Batam. (ags)

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