BIJB is Ready to Follow the Shareholders' Instructions regarding Kertajati which the West Java Provincial Government Wants to Release

JAKARTA - PT BIJB President Director, Ronald H Sinaga, emphasized that management is professionally ready to follow the direction of the steering wheel decided by shareholders regarding the West Java International Airport (BIJB) Kertajati whose majority shares are indicated to be released by the West Java Provincial Government.

The direction that the management will follow is also, including if the central government decides to take full ownership for national scale efficiency.

"If we are ready, if the center wants to manage, take over the mango, please, it's good. For us, it doesn't matter who the shareholders are because we are the management that manages the airport," said Ronald in Bandung, quoted by Antara, Thursday, January 15.

Ronald underlined that if Kertajati wants to retain the status of Regional Owned Business (BUMD), the West Java Provincial Government must maintain a minimum 51 percent stake.

However, if the conversion option is managed by the central government through State-Owned Enterprises (BUMN) that will be taken, then the central government has the discretion to acquire all shares with the consequence of taking over all of its financial liabilities.

"If it becomes a state-owned enterprise, please take it all, but the consequence is that the debt of around Rp. 2 trillion must be paid or borne by the center," said Ronald.

Even though the ownership structure is on the verge of major changes, Ronald guarantees that operational stability in the field will not be disturbed, because the technical management of the airport in Majalengka is currently under the control of PT Angkasa Pura Indonesia through the Operation Cooperation (KSO) scheme for 17 years, which has been running for eight years.

"If you want to take the center, the ownership of the shares will be taken. If, for example, the airport is managed by the center, it is now managed by Angkasa Pura Indonesia, the airport is managed by Angkasa Pura operator," he said.

As a bargaining chip, BIJB currently stands on land assets of 1,400 hectares with strong certificate legality in the name of the West Java Provincial Government.

"The land belongs to the provincial government, the certificate is clear 1,400 hectares," said Ronald.

It is reported that currently the West Java Provincial Government has begun to give strong signals to release its majority shareholding status at the West Java International Airport (BIJB) Kertajati.

The desire to remove the majority mandate at the second largest airport in Indonesia is said to be aimed at accelerating the development of an area that is considered to have not reached its maximum performance since it was inaugurated in 2018.

Currently, the West Java Provincial Government still holds 78.52 percent of BIJB's shares, while the rest is controlled by PT Angkasa Pura, PT Jasa Sarana, and a number of other shareholders.

This dominance of shares forces the regional treasury to bear sole responsibility for financing investments to the mountain of debt obligations. Where currently the West Java APBD is burdened with operating costs of Rp. 100 billion per year, and the development debt reaches Rp. 2 trillion.