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    West Java Provincial Government Can Own 51% Share of BIJB Kertajati

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    JAKARTA-West Java Provincial Government will be able to control majority or 51% shares of West Java International Airport (BIJB) Kertajati in Majalengka Regency. Vice Governor of West Java Deddy Mizwar (Demiz) hopes West Java provincial government can control 51% and Angakasa Pura (AP) II 49%.

     
    Met after a meeting with the Coordinating Minister for the Ministry of Agriculture, Luhut Pandjaitan, and Minister of Transportation of the Republic of Indonesia, Budi Karya, at the Coordinating Ministry of Maritime Affairs Office, Jl. MH Thamrin Jakarta, Tuesday afternoon (1/8/17), Vice Governor of West Java, Demiz said, the distribution of shares depends on equity provided by AP II. Because in addition to West Java Provincial Government funds and AP II, other parties such as Sharia bank syndication also Limited Investment Fund (RDPT) can provide funds to BIJB.
     
    "It will depend on AP II. Expected 51 + 49. Not to mention there will be a RDPT that can enter into mutual funds, yesterday also from sharia banks," said Demiz.
     
    In order to reach 51%, West Java Provincial Government will also list the land that has been purchased for BIJB as equity participation. In that way, West Java Provincial Government will still control majority share but with joint management pattern of AP II or some other party.
     
    Angkasa Pura II can be a partner of BIJB Kertajati management if the incoming funds become equity participation. That way the funds coming from RDPT or other parties will not be too big.
     
    "If this (AP II) talk is not a partner but a kind of operational cooperation only. If now suppose there is a decision of equity participation of AP II yes means to be a partner," said Demiz.
     
    Meanwhile, Coordinating Minister for the Environment, Luhut Pandjaitan, optimistic West Java Provincial Government and AP II can control majority shares in BIJB. He said the technical team will work quickly to determine the exact funding structure.
     
    "Let it (BIJB) finish first quarter next year, 2018 it has to be an operation. Because with joint venture together (West Java Provincial Government and AP II) then Kertajati Airport will be able to liaison," said Luhut.
     
    On the same occasion, Minister of Transportation Budi Karya said BIJB could become a pilot of airport project cooperation between the Government and the Central Government. With this model, Budi hopes that other local governments can be more proactive in sharing equity and activities.
     
    "Because Kertajati is an example model where between the center and the region work together to build airports in the region, the local government is proactive in terms of funding and expediting projects. Many other airports, especially the big airport and the budget itself," said Budi.
     
    "With such a private sector can also initiate, so the state budget can also be used for smaller airports," he concluded.

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