PT Cardig Aero Services Tbk (IDX: CASS), Singapore Changi Airports International Pte. Ltd., and affiliated companies, prepared funds Rp1.2 trillion (US$85.71 million) to develop Komodo Airport in Labuan Bajo, East Nusa Tenggara - Photo by the Company

JAKARTA (TheInsiderStories) -Publicly listed, PT Cardig Aero Services Tbk (IDX: CASS), Singapore Changi Airports International Pte. Ltd., and affiliated companies set up the joint venture company (JVC), PT Cinta Airport Flores (CAP) to develop Komodo Airport in Labuan Bajo, East Nusa Tenggara. Cardig will hold 80 percent shares at the unit.

Radianto Kusumo, vice president director of the company, in an official statement released on Monday (01/10), the new unit will carry out landing services, placement and storage of aircraft, air storage, flight services, also other usage services. The operator has plans to build an extension of the airport’ runway, widening the apron, adding two new terminals, pavement runway and taxiway, and to meet other supporting facilities with the fresh funds.

As reported, Indonesia government targeting Komodo become an international airport and its expecting to rise the number of passengers from 720,000 to 4 million peoples a year. Beside, cargo business could reach 3,500 tons per annum starting 2044.

on Dec. 26, Indonesian government has picked the consortium of CASS), International Pte Ltd (CAI) and Changi Airports Mena Pte Ltd as the winner of Komodo Airport project. The consortium prepared funds Rp1.2 trillion (US$85.71 million) to develop the airport.

According to minister of transportation, Budi Karya Sumadi, the consortium won the auction after competing with two other consortium which submitted the proposal to the ministry. They were chosen because having international competency.

The selected consortium will do the cooperation scheme between government and business with concession period of 25 years. It hope, the team will apply their experience in developing Changi Airports in Singapore to Komodo Airports.

“Indonesia is lack of international connection since the Asia hub is in the Singapore. Therefore, we cooperate with Singapore to attract the visitors continue their trips to Labuan Bajo,” he said.

Sumadi stated, beside invest Rp1.2 trillion, the aviation companies will provide working capital Rp5.7 trillion in the next 25 years. After the concession period over, the airport will be return to the government.

Earlier, as many as 70 investors were interested in developing of Komodo Airport. The development airport required a total investment of Rp3 trillion, consisted of Rp1.17 trillion for capital expenditure and Rp1.83 trillion for operational expenditure.

The project will get a government guarantee through PT Penjaminan Infrastruktur Indonesia. Investment returns of this project will be obtained through tariffs for airport facility service users during the concession period 25 year.

Labuan Bajo is one of four super priority tourism destinations appointed by the government along with Lake Toba in North Sumatra, Borobudur Temple in Central Java and Lombok – Mandalika area in West Nusa Tenggara. The government plans to keep accelerating the development of four priority tourist destinations to attract the foreign tourist.

It is said the tourism sector is one of the main foreign exchange-earners. In 2018, Indonesia’s foreign exchange income from the tourism sector reached US$17 billion, rose $2 billion from $15 billion a year earlier. And in 2019, the government sets the target of the tourism sector to contribute $20 billion in foreign exchange.

US$1: Rp14,000

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