Govt told to reconsider plan to privatize Jakarta airport
Sari P. Setiogi, The Jakarta Post, Jakarta
The House of Representatives Commission IV asked the government on Monday to reconsider its plan to privatize the Soekarno-Hatta International Airport in Jakarta.
"Because PT Angkasa Pura II, the company that manages it, has the ability to improve its management and operations by itself," Commission IV vice chairman Amri Husni Siregar said at the conclusion of its hearing with PT Angkasa Pura I and PT Angkasa Pura II.
Angkasa Pura I operates 13 airports in the eastern part of the country, while Angkasa Pura II manages 10 airports in the west.
"The main problem of the airport lies at its management level, so selling it to strategic partners will not be the best solution," commission member Mangara M. Siahaan said.
The privatization plan first came to the surface in 1998 but was postponed by the financial crisis. The plan was revived last April. The government has been facing strong opposition against its crucial privatization program.
Meanwhile, Angkasa Pura II president director Edie Haryoto told reporters the company did not want the privatization to proceed.
"It was all decided by the government and we will just carry out the decision," he said.
Edie said many foreign investors had expressed an interest in purchasing shares in the country's largest airport. They included the operators of airports in Amsterdam (Schiphol International), Frankfurt (Frankfurt Airport), London (British Airport Authority), Hong Kong (Hong Kong Airport) and Copenhagen (Copenhagen Airport).
The planned privatization will be done in two stages. In the first stage, about 5 percent to 10 percent of the shares will be sold to a strategic partner. In the second stage, in the next three years, another 5 percent to 10 percent will be sold on the stock market and another 39 percent will be offered again to the strategic partner.
Edie also explained that privatization would not affect Angkasa Pura II's plans for the development of the airport, including the reopening of terminal A in April, the expansion of terminal I and airport lounges, a link between terminals I and II, and the establishment of airline offices.
He said that in 2002, the airport made a profit of Rp 603.3 billion. This year, the profit was expected to increase to Rp 656.3 billion.
Because seven of the 10 airports run by Angkasa Pura II suffered losses, the company's total before-tax profit was only Rp 517.46 billion, down by 20 percent from Rp 646.85 billion in 2001. As a result, the company's after-tax profit decreased from Rp 481.74 million to Rp 385.41 million.