Private Sector Officially Managing Komodo Airport In The Next 25 Years

Komodo airport. (Photo: Ministry of Tourism)

JAKARTA - The Ministry of Transportation officially handed over the operation of Komodo Labuan Bajo Airport to a consortium of winning bidders, namely PT Cinta Airport Flores (CAF) through the signing of a Public Private Partnership (PPP) at the Ministry of Transportation, Jakarta, February 7.

"This is an extraordinary activity, so we can do the signing. The Minister of Tourism and I are delighted to be able to turn Komodo Airport into an airport managed by the private sector, especially with the cooperation with Changi, ”said the Minister of Transportation Budi Karya Sumadi at the signing of the cooperation.

However, the Minister of Transportation emphasized that the airport was not sold, but cooperated and obtained a consortium and concession permit for 25 years.

"The private sector has extraordinary money, more than Rp1 trillion, to be precise Rp1.2 trillion, why do we do this so that the budget that should be used to develop Labuan Bajo can build ports or airports in Papua, North Sulawesi, Aceh and so on," he said .

In addition, the Minister of Transportation said that this cooperation was a follow-up to President Joko Widodo's direction to develop five super priority destinations, including Labuan Bajo.

"I hope investors take Komodo Airport seriously and I ask for the support of the Minister of Tourism to make a certain effort, be it promotion or decoration of the authentic colors of Labuan Bajo," he said.

On the same occasion, Minister of Tourism Wishnutama Kusubandio welcomed the PPP, especially to increase the number of foreign tourists.

"This is an important moment in particular, for Labuan Bajo, because Labuan Bajo is one of the super priority destinations that we build and we hope that with the Komodo Airport, which will be renovated, it will be repaired, so this will indeed bring in more tourists from abroad. "It is very important for the progress of Labuan Bajo's destinations in the future," he said.

In developing Labuan Bajo tourism facilities, Wishnutama said, his party would also cooperate with the Ministry of Public Works and Public Housing (PUPR).

"At the same time, the Ministry of PUPR and the Ministry of Transportation are also building various kinds of infrastructure to support the success later, at this time this airport can receive a lot of tourists. This is a very close collaboration, especially the Ministry of Transportation and PUPR in various fields in Labuan Bajo and also later discussing development promotion, there is a lot to be done, "he said.

CAF President Director Iman Oloan Sjafar said he would place Komodo Airport as a gateway for Flores, especially in realizing the government's mission to improve national and international connectivity. Then also to increase the number of passengers from the current 720,000 passengers to four million passengers per year and cargo by 3,500 tons per year in 2044.

"We support the government's program, vision and mission which targets that the number of passengers at Komodo Airport in the future can reach four passengers per year. So, we will carry out the things that have been mutually agreed upon and written in the PPP agreement. One of them is such as expansion. terminal to meet the growing demand for traffic, "said Iman.

The CAF has prepared funds for capital expenditure (capital expenditure) of IDR 1.203 trillion to finance the construction and development of Komodo Airport.

The funds will be used to build an extension of the runway, widening the apron, adding two new terminals, hardening the runway and taxiway and will be used for other supporting facilities.

Meanwhile, the government is committed to providing support in the form of land acquisition which will begin this year.

In fact, to ensure the realization of this project, the government also provides support in the form of providing guarantees against possible risks through the Indonesian Infrastructure Guarantee (Pll).

CAF is an Implementing Business Entity (BUP) formed by a consortium led by PT Cardig Aero Services Tbk (CASS). CASS is a national company engaged in air transportation support services for the past 36 years, food solution services, and other leading services in Indonesia.

Together with CASS, Changi Airports International PTE LTD (CAI) and its affiliated companies are also part of the consortium.

In the shareholder structure of CAF, CASS is listed as the majority shareholder by owning 80 percent of the total shares of CAF. Meanwhile, CAI and its affiliates are recorded as owning 20 percent of the total shares of CAF.

The form of this PPP scheme includes design-build-financing-use-maintenance-transfer (Design Build Finance Operate Maintain Transfer or DBFOMT) with a concession period of 25 years.