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Bali News

Bali's Airport to be Privatized

Special Team Lays the Groundwork for a Public Offering of Shares in Bali's Only International Airport.


Bali News:
Click Image to Enlarge

(6/30/2003)

Current plans are for the control of Bali's Ngurah Rai International Airport to be in the hands of a private sector company by the end of 2003.

A special team for the privatization of the airport established by the Minister for State-Owned Enterprises, Laksamana Sukardi, has announced that Bali's Ngurah Rai and Lombok's Selaparang will be offered in a single packet offering to interested and qualified investors.

The team is currently seeking a suitable financial advisor and underwriter to help them package the offer, expected to be in the form of a 20-30 year concession to operate the two airports before the facilities revert back to Central government control. At the same time the privatization team is undertaking steps to socialize the concept of airport privatization to the concerned regional government's and the public through a series of public hearings expected to get underway shortly.

Speaking on behalf of the privatization team, its Chairman I Hartoyo explained how his team is seeking a strategic alliance with a partner able to network internationally in promoting air traffic to Bali and Lombok while at the same time offering an opportunity for local government and local investors to take a share in the proposed private operation.

Bali's Ngurah Rai International Airport was first opened in 1931 and received its first international commercial flight in 1959.


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