Turkish TAV Eyes to Invest on Jakarta and Bali Airport Development

Bali, Indonesia | June 22, 2008 by D-8 Secretariat

Turkish investor, Tepe Akfen Ventures (TAV) Holding, had announced its interest to help improving the service of Ngurah Rai Airport of Bali, and Soekarno-Hatta, Jakarta, Indonesia, to bring these two airports into a state-of-art international airports.

D-8 Secretary General, Dipo Alam, said that TAV Holding plans to develop these two airports through the BOT (Build, Operate, Transfer) cooperation scheme within 30 years. “These two airports hold a serious interest from TAV since they meet the requirement of having total passangers of more than seven millions per year,” he said during the 3rd Working Group on Civil Aviation, in Bali Island, Indonesia, yesterday.

According to Alam, TAV interested to follow up the oppportunity of investment and civil aviation cooperation between the D-8 memberstates. “We have encouraged TAV to take up this opportunity, since there has not yet any private companies invested in Indonesian airports,” he added.

TAV has been renown within the D-8 countries as an active company that supports construction of airports. Last year, Egypt inked the agreement to construct and expand Alexandria Borg Al-Arab Airport, and Cairo International Airport by cooperating with the Turkish TAV. Cairo International Airport is now carrying out its biggest-ever expansion project, constructing a new terminal which will take the airport’s capacity from nine million passengers per annum to 20 million passengers. The $280 million project is financed by the World Bank and construction is being carried out by Turkish TAV Construction.

The airport infrastructure in Bali and Jakarta need to be more developed to support the national tourism industry. “We need not only the promotion, but also the high-class airports infrastructure, to brings up our tourism sector to the higher level,” Alam said.

He said Malaysia and Singapore, with their high-class airports, are good examples since they give a classy service to more than 30 millions passanger each year. “We need to remake and redesign our Ngurah Rai, and Soekarno-Hatta airports to catch up with all these targets,” he said.

TAV’s interest on airports investment in Indonesia are going to be followed up more in the related authorities in Indonesia, especially concerning the technical master plan of both airports.

Director General of Civil Aviation of the Republic of Indonesia, Dr. Budhi M. Suyitno, said that TAV might be given the opportunity to help improve the airport infrastructure in Indonesia. “They can cooperate with PT Angkasa Pura I and PT Angkasa Pura II for this project,” he said. This year the Indonesian law on aviation as a revision for the past law (UU) No. 15/1992 will be ratified, and this will give chances for private companies to enter this industry.

General Director of PT Angkasa Pura II, Edie Haryoto, said that his side is ready to cooperate with private investors, including TAV. “We are basically ready, and welcomes the cooperation. But we would like to review our partner’s capacity and credibility first,” he said.

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