PT Bandara Internasional Jawa Barat (BIJB), owner of under-construction Kertajati airport, and state-owned airport operator PT Angkasa Pura II (AP II) will sign an agreement on the operation of the airport in the West Java town of Majalengka on Dec. 27.

BIJB president director Virda Dimas Ekaputra said on Monday the agreement had to be made immediately as it related to the disbursement of a loan for finalizing the construction of the planned international airport.

“Out of Rp 906 billion [US$66.7 million] of the loan, Rp 650 billion has been disbursed. The remaining Rp 256 billion is expected to be disbursed in January,” said Virda, as quoted by Antara as saying, referring from the loan from a syndication of seven sharia banks.

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West Java Governor Ahmad Heryawan previously said that with the official agreement between the two companies, the loan was expected to be disbursed soon. “Without the agreement, the disbursement of the loan will be suspended. Once the agreement is made, the funds will be available,” said Ahmad.

Virda said that after the agreement, AP II and state-owned securities firm Danareksa would buy and absorb the treasury stock issued by BIJB and therefore, the shareholders of PT BIB would be the West Java administration, PT AP II, Danareksa and state-owned infrastructure company PT Jasa Sarana.

Kertajati airport is planned to begin operating in April 2018. (jlm/bbn)