Indonesian Ministry May Fund New Bandung Airport

16 March, 2012 | Source: Jakata globe

The Transportation Ministry is proposing to set aside funds for a West Java airport in a bid to raise the profile of the Rp 8.2 trillion ($902 million) public-private partnership project and attract potential investors.


The Kertajati International Airport (BIK) project has been delayed for several years as investors perceived a lack of central government involvement, particularly in supporting infrastructure around the airport.

The airport, located 60 kilometers northeast of Bandung, will have three runways with terminal capacities of up to 20 million people and is expected to be operational in 2020.

“The West Java provincial government has asked the central government to be involved in this project, so we will work on that,” Herry Bakti Singayuda Gumay, the director general of air transport at the Transportation Ministry, said over the weekend.

There is currently a ministerial decree excluding the Kertajati airport from state funding, as set in 2005 upon request from the West Java provincial government.

Herry said the Transportation Ministry would revise the decree, but the amount it was allocated in the state budget would depend on National Development and Planning Agency (Bappenas) approval and the funds available.

Herry said the central government needed to be involved in the project if it was to attract enough investors.

“The fact that the provincial government is actively involved in the land acquisitions process is not enough to boost the project feasibility,” he said.

West Java Deputy Governor Dede Yusuf said it was the central government’s responsibility to fund the airport.

“BIK should be a focus of the [central] government because it was listed in the RPJMN [National Medium-Term Development Plan] and MP3EI [Master Plan for Economic Development Acceleration and Expansion of Indonesia],” Dede said.

The West Java government has spent more than Rp 200 billion acquiring 630 hectares of the 5,000 hectares of land needed for the project, Dede said. It plans to acquire 200 more hectares this year.

 

 

 

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