Thu, 24 Oct 1996

German firm eyes new Lombok airport

JAKARTA (JP): A German consortium wants to get involved in developing a new airport in Lombok, West Nusa Tenggara, which was previously eyed by a Singapore-based consortium.

Informed sources said yesterday that the consortium, Gagi, would sign a preliminary accord with PT Angkasa Pura I, a state- owned airport management company, next month during an official visit here by German Chancellor Helmut Kohl from Oct. 26 to Oct. 29.

Minister of Transportation Haryanto Dhanutirto refused to comment on the accord.

"I won't give any information on any deal which is still under discussion, or I will be blamed for cheating," he told reporters after inaugurating Angkasa Pura I's new headquarters in Kemayoran, Central Jakarta.

The government announced early last year that a number of airports would be expanded with help from foreign companies.

The multi-million dollar projects include enlarging the Juanda airport in Surabaya, East Java, the Hasanuddin airport in Ujungpandang, South Sulawesi, and the Ngurah Rai airport in Denpasar, Bali.

They also include the construction of a new airport in Central Lombok, estimated to cost $150 million.

Under a two-year-old tourism and aviation agreement between Singapore and Indonesia, Singapore had said it was interested in helping develop the new airport to replace the Selaparang airport in Lombok.

Sources said the deal with Singapore had not got off the ground.

Minister Haryanto said yesterday that Angkasa Pura I was expected to sign accords before the year's end with Brecknell of Canada and the British Airport Authority, which intend to participate in the Juanda airport project and the Ngurah Rai airport project, respectively.

Fachri Zainuddin, president of PT Angkasa Pura I, said yesterday the two airport projects would involve new terminal buildings, car parks and shopping centers. No new runways or hangers would be built.

"Under the planned 30-year joint operation agreements, the foreign partners are required to provide for profit increases of at least 5 percent a year from related businesses."

He said that Angkasa Pura I, which manages 13 airports, made a Rp 73.5 billion ($31.35 million) profit in 1995 and expected to make Rp 80 billion this year. (icn)