"Indonesian regions able to build own airports"

Wednesday, January 19, 2005

INDONESIAN REGIONS ABLE TO BUILD OWN AIRPORTS
Asia Pulse


JAKARTA, Asia Pulse - Minister of Transportation Hatta Rajasa said the
government has given an opportunity to the regions to build their own
airport provided the cost is drawn from sources other than the State Budget.

"We will also allow them (regional administrations) to invite local or
foreign investors to build their airports," he said here on Tuesday.

He added that money from the State Budget will only be used to build pioneer
airports.

However, he added, it would not be easy to draw money from the State Budget
for building an airport as they must have to have clear and specified
targets of developing economic potentials in their own regions.

"As the aim of the building of an airport in a certain region is to smoothen
the region's economic development, and such scheme must therefore be clearly
specified," he added.

He said the number of air passengers in the country has been increasing by
an average of 16 pct per annum.

In the meantime, the regions which are ready for investment in building an
airport may establish cooperation and coordination with the state airport
management company PT Angkasa Pura.

The government will also set up an independent regulatory body that will set
different tariffs, including airport fees.


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