Monday, 19 December 2011

LOW FINANCES ENABLE FOREIGN CAPITAL TO INVEST IN AIRPORT SECTOR

            Development of airport infrastructure in Indonesia has been implemented quite significantly, but now the problem is in finances. Therefore, it enables foreign investment to co-support airport development. Recently, PT Angkasa Pura I and II are accelerating development of airports under their management, and the number of airport services users has exceeded its capacity. Lack of capacity is still a problem in international airports that should immediately be tackled. Very rapid growth in number of passengers and increase of number of fleets operated by air transport companies ib not balanced with increase of airport capacity.

            If this is not responded, it will be difficult for airport management to anticipate number of passengers which increases every year. For some main airports, there should be a development of new airport with larger capacity as it impossible to develop the existing airport due to land availability. Now, there are 14 airport projects worth Rp 32 trillions which will be constructed or developed in supporting Masterplan for Acceleration and Expansion of Indonesia’s Economic Development (MP3EI).

            Airport which should urgently be developed is Soekarno-Hatta airport whose passenger number has reached 44.3 millions. It means that the number has reached two times of its capacity at 22 million passengers. This does not close the possibility for partnership with foreign investors, whether in airport development, management, or infrastructure. Concerning Soekarno-Hatta airport, there are already three foreign companies, i.e. two Indian investors and one South Korean investor, namely GMR Airport, GVK Group, and Incheon International Airport, who are interested to invest their capital on the development of Soekarno-Hatta airport even though there is no agreement yet from PT Angkasa Pura II, said Tri S. Soenoko, President Director of PT Angkasa Pura II.

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