Indonesia eyeing airport PPPs

The government of Indonesia is planning to develop 10 airports under a PPP model.


Included within the plans is the development of the Bandar Lampung Radin Inten II, Bengkulu Fatmawati Soekarno, Jayapura Sentani, Komodo and Matahora airports, which could be tendered to the private sector next year.


In addition, tenders for the development of the Palangkaraya, Palu Mutiara, Tanjung Pandan Buluh Tumbang, Tarakan Juwata and Ternate Babullah airports are also in the pipeline.


"We want the private sector, including foreign investors, to participate in the development of these 10 airports because we want to further improve their level of services in anticipation of increased future demand," said Deputy Minister of Transportation Bambang Susantono.


"We admit that if we only rely on state funds to develop these airports, we are not going to catch up with demand, as the budget is rigid, limiting us when we want to increase capacity and services."