Private companies apply to build airports, railways
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)