Japanese Investors Express Interest in Partnership to Operate 3 Indonesian Airports

The Ministry of Transportation said in a statement on Thursday (19/10) that it will expand the runway of Marinda Airport in Raja Ampat, West Papua, to accommodate more travelers. (Photo courtesy of Angkasa Pura I)

By : Thresa Sandra Desfika | on 11:10 PM November 09, 2017
Category : Business

Jakarta. Japanese investors have expressed interest in operating three of Indonesia's airports, during the eighth Vice-Ministerial Meeting on the Transport Sector between Indonesia and Japan in Tokyo last week.

"Japan is interested in creating a partnership to operate three of our airports. They asked about the regulations and whether they need to set up a joint venture, or whether they can directly approach [Indonesia's state-owned airports operator] Angkasa Pura," Transportation Ministry secretary general Sugihardjo said in Jakarta on Wednesday (08/11).

The three targeted facilities are Kualanamu International Airport in North Sumatra, Lombok International Airport in West Nusa Tenggara and Sepinggan International Airport in East Kalimantan, all currently operated by Angkasa Pura.

Sugihardjo said in order to obtain a license to operate these airports, the Japanese investors will have to establish a partnership with Angkasa Pura. He further explained that a joint-venture scheme can only be useful in the case of newly built airports.

"The partnership would be private-to-private model and they must approach Angkasa Pura I as the current operator of Lombok and Sepinggan, and Angkasa Pura II as the operator of Kualanamu," he said.

"The Transportation Ministry is ready to help if needed and we consider socioeconomic factors, not just financial matters for this opportunity," he added.

A limited concession scheme is the most likely form of partnership involving a state-owned company, Sugihardjo said.

"If the deal goes through, it would be good news for the state-owned company as fresh funds would come from new investors. But the consequence is only that they will share the operation of the airports," he said.

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