Gov’t Announces Komodo Labuan Bajo Airport Management Cooperation

Minister of Transportation and Minister of Tourism and Creative Economy witness the agreement signing of Komodo Labuan Bajo Airport cooperation in Jakarta, Friday (7/2). (Photo by: Ministry of Transportation)

Ministry of Transportation and CAS Consortium or PT. Cinta Airport Flores (CAF) have signed a Cooperation Agreement on the  Komodo Airport in Labuan Bajo using Government and Business Entities Cooperation (KPBU) scheme.

“This cooperation is one of the government’s visions to bring the country in the entire territory of the Unitary State of the Republic of Indonesia and acts as the government’s commitment to connectivity in order to encourage the country’s economic growth in tourism sector as well as to provide services to the community,” Minister of Transportation Budi Karya Sumadi stated in Jakarta, Friday (7/2).

On the occasion, Budi said that this cooperation is a collaborative effort to manage the airport with a concession permit of 25 years. It means that the state has control over the airport.

“Me and Pak Wishnutama (Minister of Tourism and Creative Economy) are very happy with this collaboration. But I emphasize two things, first, this airport is not for sale. This is only a consortium that has been granted a 25-year concession license. Second,  investors or those who manage it invest an extraordinary amount of money which is more than one trillion rupiah” Budi explained.

Furthermore, the Minister went on to say that the airport will get an International status in July 2020 which is faster than the initial plan of 2021.

Meanwhile, Wishnutama stated that this cooperation will bring in more foreign tourists and be able to support Labuan Bajo as one of the five super-priority tourism destinations. In the future, he said, Ministry of Tourism, Ministry of Transportation, and Ministry of Public Works and Public Housing will build various infrastructures to develop creative economic potential in Labuan Bajo.

The signing of the agreements includes KPBU agreement between Ministry of Transportation and Development Business Entity (BUP), the Regress Agreement between Ministry of Transportation and PT. Indonesia Infrastructure Guarantee Fund (PT. PII) and the agreement between PT PII and BUP. (BKIP Kemenhub/EN)

Translated by: Fairuzzamani Inayatillah
Reviewed by: Mia M. Bonaedy