Faster process for privatization of Soekarno-Hatta airport demanded<\/p>\n
JAKARTA (JP): Indonesia's major airport operator is hoping the
\ngovernment will soon recommence the tender process for the
\nprivatization of Soekarno-Hatta International Airport in Jakarta
\nafter being delayed for over a year.<\/p>\n
President of Indonesia's major airport operator PT Angkasa
\nPura II, Miskul Firdaus, said on Thursday that he had sent a
\nletter to the Minister of Finance informing him of the previous
\noptions available to the airport.<\/p>\n
He said that last year, the government had come to two
\noptions, to re-tender the contract or to renegotiate with the two
\nbidders remaining from the 1999 tender.<\/p>\n
The government had in fact set a deadline for the
\nprivatization process to be finalized by November this year, but
\nthere were no definite plans to recommence the process, Miskul
\nsaid.<\/p>\n
The two foreign bidders are the French airport authority
\nAeroport de Paris in conjunction with GTM, a subsidiary of
\nanother French firm, Suez Lyonnaise des Eaux SA; and a consortium
\nof Airport Schiphol in Holland and the British Airport Authority,
\nhe said.<\/p>\n
Re-tendering the contract would take a long time to finalize,
\nMiskul said, adding that the government would need to relaunch
\nthe tendering process from preliminary bids to due diligence
\nprocess.<\/p>\n
However, if the government decided to pick up negotiations
\nwith the two investors, it may trigger criticism from other
\ninterested investors, he added.<\/p>\n
The now defunct State Ministry for the Empowerment of State
\nEnterprises had selected the Soekarno-Hatta airport to be
\nprivatized by the end of March 1999, it has since been postponed
\ndue to a disagreement on the value of the contract and the
\nreshuffling of the Cabinet which has taken place several times
\nsince early 1999 when the privatization plan was made.<\/p>\n
The preferred privatization method for the company was through
\na 30-year concession, including management inputs by a strategic
\npartner to help solve the various problems of the airport
\nmanagement company which included lack of customer-oriented
\nservices, overdue receivables, red-tape and weak organizational
\nstructure.<\/p>\n
Miskul said that outside of the air traffic control division,
\nthe company would sell 49 percent of its shares to a strategic
\ninvestor.<\/p>\n
According to the government privatization blueprint, a
\nconcessionaire typically pays an annual fee (netted against any
\nexplicit subsidies paid by the government).<\/p>\n
The concessionaire is usually responsible not only for
\nmaintaining and replacing existing assets, but also for making
\nnew investments as required by the business and the license.<\/p>\n
At the end of the concession, the assets will be returned to
\nthe government, possibly with compensation for the acquisition of
\nnew and unexpired assets. (tnt)<\/p>",
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