JAKARTA – The Indonesian government through the Ministry of Transportation is offering the Singkawang Airport development project in West Kalimantan in a public-private-partnership (PPP) scheme with and investment value of Rp. 4.3 trillion.
According to the ministry’s data, the investment value consists of Rp. 1.7 trillion in capital expenditure and Rp. 2.7 trillion in operational expenditure. The concession offered in the project has a term of 32 years.
“Indonesia has almost 1,000 airports, and just imagine we (the Ministry of Transportation) having to take care of all of them. We want competition and investment [through PPP],” said Transportation Minister Budi Karya Sumadi as quoted by Bisnis.com, Monday (7/10).
The role of investors in the Singkawang airport PPP scheme includes the development of airside and landslide areas, supporting facilites, and infrastructure and asset maintenance. The PPP model in the project covers design, development, financing, operation, maintenance, and transfer.
The Singkawang airport is predicted to generate Rp. 18 trilion in revenue, consisting of aeronautical revenue amounting to Rp. 15.9 trillion and non-aeronautical revenue amounting of Rp. 2.1 trillion. The government targets the airport to commence operations by 2023.
Source: IDN Financials | 7 October 2019