Indonesian Political, Business & Finance News

Govt to transfer management of airports to regions

| Source: JP

Govt to transfer management of airports to regions

Tantri Yuliandini, The Jakarta Post, Jakarta

In the spirit of decentralization, the government will
transfer the management of airports currently not managed by
state-owned airport operators PT Angkasa Pura (AP) I and II to
regional administrations, a Ministry of Communications senior
official has said.

Director general of Air Transportation Soenaryo said on Monday
that a newly issued governmental decree on airport management
would be the basis for the transfer, and that it would be further
strengthened by the revision of the 1992 law on air
transportation.

"At present regional administrations are welcome to manage
airports in their area, but please note that this does not
include air traffic services," he told reporters on the sidelines
of a seminar on the proposed revision of the 1992 law on air
transportation.

Soenaryo said that air traffic services could not be handed
over to regional administrations as they involved an
international agreement with the International Civil Aviation
Organization (ICAO).

According to the proposed revision of the 1992 law, air
navigation services could be carried out by a state-owned company
especially established for that purpose, or a single air traffic
service provider.

Some 161 general airports would be offered to regional
administrations including the ones in Palu, Central Sulawesi;
Jambi; Tanjung Karang, Lampung; Bengkulu; Bangka; Palangkaraya,
Central Kalimantan and Kendari, Southeast Sulawesi.

Regional administrations could also stake a claim in airports
operated by the two state-owned airport operators, Soenaryo said,
but those airports were regulated by the law for state-owned
enterprises.

"They can stake a claim in airports operated by AP I and II,
but the government has a separate regulation for them under the
law for state-owned enterprises," he said.

Angkasa Pura I manages 12 airports in the central and eastern
regions of Indonesia, including Ngurah Rai international airport,
Bali; Juanda international airport, Surabaya, East Java;
Hasanuddin international airport, Makassar, South Sulawesi and
Selaparang international airport, Lombok, West Nusa Tenggara.

Angkasa Pura II manages 8 airports in Java, Sumatra, and
Kalimantan, including Soekarno-Hatta international airport,
Jakarta; Polonia international airport, Medan, North Sumatra;
Sultan Iskandar Muda, Banda Aceh, Aceh and Tabing international
airport, Padang, West Sumatra.

However, Soenaryo said that so far no regional administrations
had shown interest in managing their own airport.

"They know that it's difficult and doesn't bring in much
revenue," he said.

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