Gov’t Picks Changi Consortium to Develop Komodo Airport

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 27 Desember 2019
Category: News
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The Government seeks to increase the number of passengers at Komodo Airport, Labuan Bajo, East Nusa Tenggara (NTT) up to 4,000,000 passengers per year and cargo by 3,500 tons in 2044 in a bid to strengthen national and international connectivity.

Ministry of Transportation has officially appointed Cardig Aero Service (CAS) Consortium, whose members include Changi Airports International Pte Ltd. (CAI) and Changi Airports MENA Pte Ltd, as the winner of auction for the Komodo Airport Development Project through Public-Private Partnership scheme.

“Based on the auction, we have picked the CAS Consortium as the winner for the Komodo Airport – Labuan Bajo Airport Development project. The CAS Consortium consists of PT. Cardig Aero Service (CAS), Changi Airports International Pte Ltd. (CAI) and Changi Airports MENA Pte Ltd,” Minister of Transportation Budi Karya Sumadi said during a joint press conference with Minister of Finance Sri Mulyani Indrawati in Jakarta, Thursday (26/12).

Budi also said that the appointment of CAS Consortium was based on a rigorous process involving a team of experts, including Professor Wihana, Ellen Tangkudung from Indonesian Transportation Society (MTI), Chairman of the Indonesian Consumer Foundation (YLKI) Tulus Abadi, Aviation Observer Gerry Soejatman, Tommy Soetomo, Secretary of Directorate General for Air Transportation Nur Isnis, and others.

“The auction winner has good competence and experience in building and managing airports. It is expected that the performance and service at Labuan Bajo Airport will increase,” the Minister said.

Budi further explained that the Airport development project with the PPP scheme was carried out in order to encourage the participation of business entities to participate in building and providing transportation infrastructure services in Indonesia that could provide social and economic benefits for the community, especially in Labuan Bajo which is being prepared by the Government to become a world-class tourist destination.

The PPP scheme is an alternative financing method that can reduce dependence on the State Budget as well as to improve infrastructure development to connect all islands in Indonesia and improve the Nation’s economy and competitiveness.

Budi went on to say that the signing of the PPP agreement will be held in early January next year, after the end of the objection period and after the consortium register through the OSS system to become an Indonesian Legal Entity. President Joko Widodo is expected to attend the signing of the guarantee agreement between the auction winner and the Indonesian Infrastructure Guarantee Fund (PII).

The scope of the cooperation includes:

  1. Designing, building, and financing the construction of land, air, and supporting facilities;
  2. Operating the Komodo Airport – Labuan Bajo during the cooperation period for 25 (twenty five) years; and
  3. Maintaining the entire infrastructure and facilities of the Komodo Airport – Labuan Bajo during the period of cooperation.

When the cooperation period ends, the Minister added, the Business Entity is obliged to hand over all infrastructure and facilities of the Komodo Airport – Labuan Bajo to Director General of Civil Aviation.

Budi further said that the investment for the management of Komodo Airport – Labuan Bajo is Rp1,203,314,000,000 (One Trillion Two Hundred Three Billion Three Hundred Fourteen Million Rupiah) and an estimated total operational cost for 25 years is Rp5,733,817,000,000 (Five Trillion Seven Hundred Thirty Three Billion Eight Hundred Seventeen Million Rupiah).

Furthermore, the Operator of Komodo Airport has the obligation to pay concessions fee up to Rp5,000,000,000 (Five Billion Rupiah) and annual concession fee from Revenue of Komodo Airport – Labuan Bajo by 2.5% with a gradual payment 2 (two) times every year which will then increase annually with an increase of 5% and clawback by 50%.

The PPP process started with the first Market Sounding which is attended by 100 Business Entities and the second Market Sounding which is attended by 70 Business Entities. Business entities that attended Market Sounding activities consist of local and international business entities. During the selection process, the Procurement Committee was accompanied by a Transaction Assistance Consultant from PT Surveyor Indonesia. (PR of Ministry of Transportation/ES)

Translated by: Ridwan Ibadurrohman
Reviewed by: Yuyu Mulyani

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