Home News Indonesia Offers US$305M Airport Project in Singkawang

Indonesia Offers US$305M Airport Project in Singkawang

Indonesian government is offering the airport project in Singkawang, West Kalimantan worth Rp4.3 trillion (US$304.96 million) to investors - Photo: Transportation Ministry

JAKARTA (TheInsiderStories) – Indonesian government is offering the airport project in Singkawang, West Kalimantan worth Rp4.3 trillion (US$304.96 million) to investors, officials said today (10/07). The figure is divided into the operational expenditure of Rp2.6 trillion and capital expenditure of Rp1.7 trillion.

“The Singkawang Airport is new, from zero we are cooperating with the government and business entities. Not only at the airport but in the future also at the port. There are many opportunities so that funds from abroad can enter Indonesia,” said transportation minister Budi Karya Sumadi when opening the sound investment project market in Jakarta.

Later, investors can win concessions for 32 years from the operational period. It is estimated, the airport can operate in 2023. As for the phase of this project, from June to September 2020 the pre-qualification stage for business entity registration is in place.

Furthermore, from October 2020 to March 2021 is a schedule for business entities to provide proposals. The auction process will take place on April 2021. On May 2021 will enter the contract signing stage, and six months after investment. Then, the business entity will continue the two phases of construction starting in 2021-2023.

After operating, the business entity is also asked to develop the airside, the runway of Singkawang Airport and its facilities. Including in terms of airport maintenance. It is predicted that airport receipts in terms of air will be Rp15.9 trillion, and in terms of non-air, it will be Rp2.1 trillion. It said the project has an income ratio of 12 percent and a return ratio of 15 percent.

“We invite national and foreign private cooperation to help finance but also provide new professionalism so as to get good competition,” Sumadi said, adding that there were already more than 10 consortiums interested in glancing at this project includes France, Canada, Korea, Japan, and China.

In the same place, Head of the Investment Coordinating Board Thomas Lembong said the presence of the Singkawang Airport project was to reduce Indonesia’s infrastructure deficit, as well as catch up with its neighbors. Collaboration with the private sector is important to sustain global competitiveness faced with limited financing of the State Budget.

Infrastructure projects are certainly still the focus of President Joko Widodo’s administration in the coming period. Lembong said that all the collaborative projects will be carried out in detail starting from the funding contract to the distribution of benefits and profits.

“Mr. President (Joko Widodo) left a message to give foreign investors the opportunity to (manage) the transportation infrastructure,” Lembong said.

He adds that the capital and competence of foreign investors were needed by the government in managing a number of infrastructure projects. However, it is also possible that foreign investors will cooperate with domestic investors to form a consortium.

US$1=Rp14,100

Written by Lexy Nantu, Email: lexy@theinsiderstories.com