President Joko Widodo During His Visit to Kertajati Airport - Photo by President Office

JAKARTA (TheInsiderStories)Kertajati Airport in Majalengka, West Java is planned to be tested next May 24, said President Joko Widodo during his visit to the airport site on Tuesday (17/04).

The airport under PT Bandara Internasional Jawa Barat (BIJB) will become the second largest airport in Indonesia after Soekarno-Hatta in Tangerang Province.

President told press on the sidelines of his visit to West Java, in the first phase Kertajati service is expected to accommodate approximately 5.6 million passengers. The airport was later expected to accommodate 20 million passengers.

He added that the Local Government West Java has prepared 1,800 hectares of land to fund Kertajati. The the airport has begun construction since January 2016 service is planned to be connected to the toll road and train connecting to the city around Bandung and Majalengka city.

M. Awaluddin, Managing Director of PT Angkasa Pura II (AP II) added, the operation of Kertajati service will be conducted in three stages. First, the soft launch on May 24.

Secondly, it will conduct flight operations for Ied-Ftr transport with the assumption of approximately 250 extra flight with several domestic airlines to Surabaya, Bali, Makassar, Banjarmasin or Balikpapan and Kuala Namu.

“The third later Hajj flight operation would be embarkation for two districts in West Java, Majalengka and Sumedang. Approximately 2,000 passenger or passengers Haji departing from Kertajati service,” said Awaluddin.

In the same occasion, Director of BIJB Virda Dimas explained, Kertajati service require 4.6 trillion (US$335.77 million), of which the land side worth Rp 2.6 trillion, including the construction of the main terminal and its supporters and Rp 2.2 trillion for working capital and complete facilities.

The company has earned setorn capital of West Java Government, PT Angkasa Pura II, restricted income funds and a loan from a syndicate of Islamic banking.

Coordinating Minister of Maritime Affairs Luhut Pandjaitan told reporters on Monday (03/04) some projects that will offer blended financing scheme to lure investors in 10 major infrastructure projects in the country during the Spring Meetings of the Boards of Governors of the International Monetary Fund (IMF) and the World Bank Group in Washington DC on April 16-22.

The projects include development of waste management facilities, geothermal plant, Kertajati Airport and all construction of Light Rail Transit (LRT) in the country. State infrastructure financing company PT Sarana Multi Infrastructure will be involved in development of these projects.

Blended Financing refers to a scheme of financing that would mix the source of funds between the government and commercial financial institutions. The government has made an estimate that such scheme could lure up to $500 billion worth of investment in the next five years and help close infrastructure financing gap.

The blended financing scheme was initially proposed by the World Bank. During his visit to Indonesia last year, its President Jim Yong Kim promoted such scheme, which had been implemented in several other countries, but it was totally new in Indonesia.

With the “blended financing” and the “first loss guarantee,” scheme, financiers will combine funds from donor countries such as the Nordic countries to the bank’s resources to cut down the interest rate on the loan and reduce the risk premium.

This scheme apparently had been successful in attracting fund managers with long-term investment views, including insurance companies to invest in some infrastructure projects

Email: linda.silaen@theinsiderstories.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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