TEMPO.CO, Jakarta - Singapore's Changi Airport International PTE LTD will officially operate the Komodo Airport in Labuan Bajo as of May 2020.

The group, together with its affiliated firms, are members of the PT Cinta Airport Flores (CAF) consortium that holds 20 percent of Komodo Airport’s investment development. The MoU was signed today, February 7, together with the Transportation Ministry and CAF.

Transportation Minister Budi Karya Sumadi assured that the partnership did not mean the government entirely sold Komodo Airport’s development to foreign investors.

“I must assure that the airport is not sold. This consortium obtained a concession permit that will last for 25 years,” said Budi Karya at the Transportation Ministry building today.

Apart from Changi, the CAD consortium members consist of PT Cardig Aero Services Tbk (CASS), which is a national firm in the field of air transportation that holds 80 percent share in this deal.

The Komodo Airport management is required to pay a concession up to Rp5 billion or 2.5 percent upfront from the total amount of investment. This payment will increase by 5 percent added to a 50 percent clawback.

CAF president-director Oloan Fajar said the Komodo Airport in Labuan Bajo will serve 4 million people annually and its cargo capacity will increase up to 3,500 tons annually by the year 2044.

FRANCISCA CHRISTY ROSANA