JAKARTA Nov 13 Indonesia's state-owned PT
Angkasa Pura I plans to partner with India's GVK Power &
Infrastructure next year on a project to build a
second airport in the central Java city of Yogyakarta worth up
to $700 million, said the head of the Southeast Asian firm.
GVK is expected to be the first foreign firm allowed to own
a major stake in an Indonesian airport, as the government looks
overseas for help in funding much needed infrastructure.
Indonesian airports are barely coping with a surge in
passenger traffic, trying to catch up with airlines, like Garuda
Indonesia and privately held Lion Air, that have
placed unprecedented plane orders.
"Our cooperation with GVK from India on the Yogyakarta
airport will be the first foreign joint venture," Angkasa Pura's
President-Director Tommy Soetomo told Reuters. "We are still
preparing the master plan."
The deal has yet to be finalised and must be approved by
Angkasa Pura's shareholders, he said. GVK's share in the joint
venture will not be more than 49 percent.
Work on the new airport is expected to start in 2015, with
operations starting as early as 2017. Angkasa Pura will fund the
project through loans or equity, Soetomo said.
It was not immediately clear if the new airport would
complement or replace the existing airport.
The Indonesian company, which manages 13 airports, also
plans to increase capacity at two other domestic airports next
year for around $300 million each.
Indonesia announced plans earlier on Wednesday for $35
billion in new infrastructure projects from next year in a bid
to tackle one of the biggest deterrents to investment in
Southeast Asia's largest economy.
Indonesia's government is expected to announce by the end of
this year new regulations that will open up foreign investment
to the country's airports and ports.
(Editing by Jeremy Laurence)