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Turbulent Airport

Struggle Continues Over Local Share in Bali Airport's Profits.


Bali News:
Click Image to Enlarge

(6/17/2002)

The recent decision by P T Angkasa Pura I, the operators of Bali's Ngurah Rai International Airport, to dramatically increase both the domestic and international service charges levied on departing passengers has reinvigorated demands by local legislators for a bigger local share in the profits generated by the island's only airport.

Claiming that a law approved in 2001 allows for the establishment of joint management of airports with the local government, local legislators have been increasingly vocal in demanding that a portion of the substantial profits generated by the airport be retained in Bali.

In partial response to this call, the Bali Airport Authority donated Rp. 10 billion to the local government in 2001, an amount equal to 3-5% of the total annual profits of the airport.

Still, local lawmakers are unhappy citing that there is no guarantee the contribution will be an annual source of revenue for Bali and believe the island is entitled to an even larger share of the profit pie.


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