Janeman Latul

Indonesia's Eastern Airports Plan at Risk Without Kalla in the Cockpit

With former Vice President Jusuf Kalla closing the door in his office for the last time this month, serious doubt has been cast on the government’s commitment to continue developing airport facilities in eastern Indonesia — a program that was dear to Kalla, who himself hails from the east of the archipelago.

Herry Bhakti Singayuda, the Transportation Ministry’s director general of civil aviation, said in Jakarta on Thursday that the government was in the process of conducting a review of the air transportation needs in eastern Indonesia, which could lead to a decision to abandon the development of new airports.

The future of the program was also called into question this week when Sahala Lumban Gaol, the deputy for strategic sectors at the State Enterprises Ministry, said there was little interest among investors in transportation projects in eastern Indonesia as the rate of return was generally too low.

“Therefore, we are promoting a scheme that will benefit the central government, local authorities and local businesses by providing greater access, while at the same time not burdening the national budget by building airports that will produce few benefits,” Sahala said.

He was referring to a plan for ailing state carrier PT Merpati Nusantara to establish routes linking isolated areas using amphibious aircraft. The company had been instructed to acquire 50 such aircraft, with subsidies being provided by local governments to make the services economically viable. Initial routes are scheduled to open in 2012, and be expanded gradually thereafter.

Maluku, East Nusa Tenggara and Papua, the country’s easternmost regions, rely heavily on air transportation due to their isolation, mountainous topography and poor roads.

Sukandi, Merpati’s corporate secretary, said that carrier had set up a special committee to assess the plan and see which kind of aircraft would be most suitable for the new routes.

However, the plan is worrying local governments eager to see more airports built. Barnabas Suebu, Papua’s governor, insisted last week that airports were essential for economic development in remote areas.

Like other transportation sectors, such as roads and rail, the air transportation sector has long suffered from a lack of investment. Even in the more central and western parts of the country, there is a pressing need to expand and upgrade aging airports, and to build new facilities to accommodate the anticipated growth in passenger traffic.

However, once again, funding has been the problem. Among the proposed projects that have failed to attract investors, are a proposed new international airport in Majalengka, West Java, at a cost of Rp 8.7 trillion ($905 million), as well as in Bojonegara Banten, costing Rp 7 trillion.

Dudi Sudibyo, a Jakarta-based aviation expert, said that despite current budgetary constraints, airport infrastructure needed to be prioritized given that many existing facilities were crumbling, overcrowded or failed to meet aviation safety standards.

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