Komodo Airport in Labuan Bajo, East Nusa Tenggara - Photo by PT Angkasa Pura I

JAKARTA (TheInsiderStories) – Indonesian government is offering a Komodo Airport development project in Labuan Bajo, East Nusa Tenggara to the private sector through the public private partnerships (PPP) scheme, said one government official on Tuesday (25/09). This project is planned to enter the auction stage in October.

The development of Komodo Airport requires a total investment of Rp3 trillion (US$206.90 million), consisting of Rp1.17 trillion for capital expenditure and Rp1.83 trillion for operational expenditure.

Airport Director of the Ministry of Transportation Polana Pramesti told the investors at the Investment Coordinating Board office, the auction results were decided in November, the signing of the PPP contract in December, and has been carried out by the winner in January 2019.

“In the first half of 2019 is the schedule for financial close and transactions. While in the second half of 2019 is already in the construction and operational stages,” she added.

There are various forms of return on investment in PPP schemes. Among other things, user charge, availability payment and other forms such as bundled with commercial activities. For the development of Komodo Airport, the return on investment is derived from the airport service user service tariff during a 25-year concession period or until 2044.

Pramesti explained, the Komodo Airport development work project included an extension of the runway from 2,250 meters to 2,450 meters by 45 meters. “So it will be able to serve Boeing 737 series 800 aircraft or the like,” adds by him.

The development project also includes taxiway hardening so that it can serve heavier loads. On the land side, many facilities must be equipped such as apron expansion, addition of domestic passenger terminal and cargo terminal to the expansion of the vehicle parking area.

The guarantor of this project is state firm PT Indonesia Infrastructure Guarantee (IIG). According to the PII’s President Director Armand Hermawan, the guarantees are given during the pre-construction period until post construction. The Komodo Airport development project is the first guarantee in the air transportation sector.

The government develop Komodo Airport to facilitate access to domestic and foreign tourists. Labuan Bajo is known to be one of 10 government priority destinations or is targeted as 10 New Bali.

Currently, Komodo Airport has a passenger capacity of up to a million per year. “With 10 percent growth every year, the passenger capacity could reach four million peoples by 2044,” said Prasmeti.

Looking ahead, she added, the airport can serve international routes, including Singapore, Kuala Lumpur, Darwin and Perth.

US$1: Rp14,500

Written by Staff Editor, Email: theinsiderstories@gmail.com

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The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.

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