Angkasa makes deal with Dutch firm to improve airports
Angkasa makes deal with Dutch firm to improve airports
JAKARTA (JP): The government has agreed to assign Amsterdam Airport Schiphol from the Netherlands to assist PT Angkasa Pura II in expanding commercial facilities at airports operated by the state firm.
An Angkasa Pura executive, Soebagyo, told The Jakarta Post yesterday that Schiphol has signed an agreement with his company to check the feasibility of the project.
Under the agreement, signed by Angkasa Pura's president Chusjairi and Schiphol's chairman H.N.J. Smits in the Netherlands last December, the Dutch firm will supply management support for the establishment of non-airport related commercial facilities. This includes duty-free shops at the Soekarno-Hatta airport in Jakarta and other airports managed by Angkasa Pura II, he said.
Angkasa Pura II manages nine airports, including Soekarno- Hatta and Halim Perdanakusuma in Jakarta, Tabing in Padang, West Sumatra, S.M. Badaruddin in Palembang, South Sumatra, Supadio in Pontianak, West Kalimantan, Polonia in Medan, North Sumatra, Simpang Tiga in Pekan Baru, Riau, Husein Sastranegara in Bandung, West Java and Blang Bintang in Banda Aceh, Aceh.
The agreement also covers the immediate improvement of existing commercial facilities, establishing newly expanded contracts and a business plan for the new activities.
Minister of Transportation Haryanto Dhanutirto recently said that supporting facilities at the Soekarno-Hatta airport have not been developed properly.
He said that the international airport is not adequate because it was designed as an arrival terminal but now serves as a transit terminal for foreign passengers.
According to Haryanto, the opportunity for commercial endeavors at Soekarno-Hatta is as bright as that at airports in Singapore and Hong Kong.
He also said that an investment of about Rp 10 billion (US$4.56 million) to Rp 15 billion will be needed to develop the facilities.
Joint venture
Soebagyo said that Schiphol and Angkasa Pura II will probably set up a joint operation or joint venture, depending on the result of the feasibility study.
"Schiphol is an old partner in the Indonesian aviation business," he said when asked why there had been no bidding.
He said that Schiphol, which will also develop a new airport in Medan, North Sumatra in cooperation with PT Citra Lamtorogung, was once named as the world's best airport management firm.
In a recent hearing with members of the House of Representatives, Angkasa Pura II executives said that profits are quite low because many air carriers have failed to pay airport service fees on time.
Non-aviation related businesses are expected to raise Angkasa Pura II's earnings as the company will benefit from aeronautics services including aircraft, aviobridge, flight and passenger services. Services including baggage, hangar and freight forwarding will also play a part.
The company's profit of Rp 29.49 billion during the first half of 1994 was small compared to its total assets of Rp 2.13 trillion. Angkasa Pura II, however, expects to double profits from Rp 31.7 billion in 1993 to Rp 70.46 billion in 1994. They want to increase this further to Rp 92.64 billion in 1995.(icn)