Private companies apply to build airports, railways
JAKARTA (JP): Minister of Transportation Haryanto Dhanutirto said yesterday that his ministry has received applications from private sector companies to construct airports and operate railway services.
He said in a hearing with Commission V of the House of Representatives that the projects include expanding the airports in Padang of West Sumatra, Biak of Irian Jaya, Pontianak of West Kalimantan, Samarinda of East Kalimantan and Surabaya of East Java.
A team of officials from the offices of the Coordinating Minister for Economy and Finance and the Coordinating Minister for Trade and Industry, the Investment Coordinating Board, the Ministry of Finance and the National Land Agency will study the proposals.
"The team is expected to finish its study by the end of November and we will likely announce the results in December," he said.
Meanwhile, Director General of Land Transportation said during a break in the hearing that four private companies have already submitted proposals to operate rail joint services with the state-owned railway company Perumka.
The four are PT Lorinta, the Bakrie Group, PT Narisa Jaya and an affiliate of the Arion Group, he said.
Support
The commission, which is in charge on transportation, public works, tourism and telecommunications, yesterday gave the minister its full support to invite private firms to bid on the country's transportation projects.
The government is inviting private sectors to get involved in land, sea and air transportation projects aimed at improving public services.
Private companies, both domestic and foreign, can build and expand ports and airports in the country under build, operate and transfer (BOT) contracts.
The government is also inviting private firms to get involved in railway and city bus operations as well as establish joint ventures with state-owned companies to develop freight terminals at several ports.
Haryanto also said that in the first semester of this year, 14 of the 17 state-owned transportation companies reaped total profits of Rp 311.38 billion (US142.96 million), or a 4.36 percent increase over the government's target.
He said that the other three suffered deficits in the first semester.
He explained that Perumka ran a deficit of Rp 6.63 billion in the January-June period, Jakarta's public bus operator PPD Rp 8.47 billion and dredging firm PT Pengerukan Indonesia Rp 676 million.
The five most profitable companies in the first semester were national flag carrier Garuda Indonesia (with a profit of Rp 115.1 billion), port management firm Pelabuhan Indonesia II (Rp 58.16 billion), airport management company PT Angkasa Pura II (Rp 47.15 billion), airport management company PT Angkasa Pura I (Rp 31.43 billion) and port management firm PT Pelabuhan Indonesia III (Rp 21.33 billion). (icn)