The development of Komodo International Airport will be handled by a consortium of Indonesian and Singaporean companies. (Image via Wikipedia)

Official! Singaporean Changi Airport to develop Komodo International Airport

A consortium of Indonesian – Singaporean companies is officially appointed to develop and manage Komodo International Airport in Labuan Bajo, East Nusa Tenggara. The consortium consists of PT Cardig Aero Service Tbk (CAS) as the parent consortium, and two major Singaporean airport companies: Changi Airports International Pte Ltd (CAI) and Changi Airports MENA Pte Ltd (CAM).

The cooperation was established by the signing of the memorandum of understanding on Friday.

Indonesia’s Minister of Transportation, Budi Karya Sumadi, said that despite being managed and developed by private enterprises, the airport is not for sale. Budi Karya explained that the consortium only develops and maintains Komodo International Airport under the concession agreement for 25 years.

The consortium then formed an Executing Entity named PT Cinta Airport Flores (CAF). In the event, CAS became the major shareholder with 80 percent shares. Meanwhile, the remaining 20 percent is shared with CAI and CAM. Next, CAF will start managing Komodo International Airport in May 2020

The cooperation is made under the government-to-business cooperation (KPBU) scheme. There are four main aspects of the cooperation:
1. The consortium shall build and fund the construction of land and air facilities (air facility includes the extending and asphalting of airport runway; land facilities include expansion of the domestic terminal, the international terminal, office, building, and other supporting facilities).
2. The concession period lasts 25 years.
3. The consortium shall be responsible for maintaining the infrastructure of Komodo International Airport.
4. When the concession period expires, the consortium is required to hand over the infrastructures and facilities of Komodo International Airport.

About 1.2 trillion will be rolled out to develop the airport for five years.

Budi Karya said that the scheme was deemed effective and money-saving. With the scheme, the Indonesian government may also develop other airports in Aceh, North Sumatera, and other regions.

Source: https://bit.ly/2SuiI3Y