In a statement, Indonesia’s transportation minister stated, in 2020, Jakarta will offer more airport management projects to foreign investors.
On Thursday, for the first time, Indonesia entered into a 25 years agreement with PT Cardig Aero Services and Singapore’s Changi Airports International Pte Ltd for developing and operatoring its Komodo airport, located in the town of Labuan Bajo.
This is the first time that a consortium involving a foreign company was given operatorship of an airport in Indonesia, said the country’s Finance Minister Sri Mulyani Indrawati.
The consortium will invest $86 million (1.2 trillion rupiah) over the next five years to expand the airport, and include an expansion of the runway to accommodate the takeoff and landing of bigger planes to destinations such as India, Japan and China. Once implemented, it will boost its capacity by more than six times to around 4 million passengers, said Indonesia’s Transportation Minister Budi Karya Sumadi at a news conference.
“This is a start for us to offer other (airports),” said Sumadi. “I’m asking for your support so we can reduce our dependence on the budget and continue to build infrastructure across the country”.
He went on to add, “We will also put on offer a railway project in South Sumatra, which has already received interest from South Korean companies,” said Sumadi.
Indonesian President Joko Widodo, has pledged to continue investing heavily in developing the infrastructure in his second five-year term in office.
His cabinet has estimated a total of $430 billion infrastructure investment will be spent between 2019-2024.