Prelude of the Airport Business

What is the new business opportunity in Indonesia?

Airport Business License (ABL) is the license which provided by the ministry of transportation for the commercial airports which owned a license by the ministry. The significance of this license is for the benefids of the airport while operationing the airport services. The license could be applicable those for:

• the greenfield airport (the starts up airport)
• the brownfield airport (the existing airport)

The AERO and Non-AERO income from the airport would be the revenue for Airport Business License owner

Considering The Legal Basis of The Establishment of ABL are:

• Law of The Republic of Indonesia No. 1/2009 about Civil Aviation
• Government Regulation No. 40/2012 about Airport Development and Living Environment Preservation
• Government Regulation No. 6/2006 about the State/Regional Goods Management
• President Regulation No.67/2005, No.13/2010, 56/2011 about Government and Provider Infrastructure Business Entities Cooperation
• The Ministry of Transportation Regulation No.83/2010 about The Guideline of Government Cooperation Implementation with Provider Transportation Infrastructure Business Entities

Who would take this Big Business Opportunity?

The Private Business Entities could do this big opportunity by doing a partnership with the government (public-private partnership) in developing the new paradigm on airport business in Indonesia.

When Does the Business Entities Should be Involve in this Big Business Opportunity?

NOW is the golden moment for every business entities which would like to be involve in commercial airport in Indonesia. Indonesia would be taking part of leading the world as the new epicentrum in airport industry.

The Urgency of Indonesia’s Airport Business License:

Why Does The Airport Business License has not been Operating yet?

Fundamentally, due the reason of the lack of understanding of each business entities about the urgency, high benefids, and utilities of Airport Business Licenses in operating the commercial airport services in Indonesia. Behold on that upon the big opportunity, there is no precluding moment to establish the Airport Business License

Where Does this Big Business Opportunity take places?

Considering the potential airports in Indonesia:

• Radin Inten II, Lampung
• Mutiara, Palu
• Haluleo, Kendari
• Fatmawati, Bengkulu
• Sentani, Jayapura
• Juwata, Tarakan
• Tjilik Riwut, Palangkaraya
• Komodo, Labuhan Bajo
• Hananjoedin, Tanjung Oandang
• Djalaludin, Gorontalo

How Does the Business Entities Starts this Big Business Opportunity?

The length of term of The Airport Business License valid during the operation of the airportand it would be evaluated every five years

The Operational of Commercial Airport implemented in two forms:

• The capital participation (state/regional) for the state-owned enterprise or regional-owned enterprise
• The concession and partnership in any other forms based on state/regional property with indonesia’s business entities à based on The Agreement of Operational Commercial Airport

The company should  fulfill the requirements, consist of:

• The deed of establishment (only for limited liability company and one of the core business of the company should be involve in airport services, the company could not be involve in airport schedule commerce and airport unschedule commerce)
• The Decree of The Ministry of Law and Human Rights for the establishment of the company
• The identities (passport, identity card, and limited stay permit)
• Taxpayer Registration Number
• Company Domicile Certificate, Certificate of Company Registration, Business License, The Resolution of Indonesia Investment Coordinating Board
• The Certificate for the winning selection company for the commercial airport (after all the Airport Business License requirements fulfilled),might be able go through in two phases:

1. Selection
2. Denotion: lobbying the governement institutions, generally for the airports which owned by the ministry of transportation

The company should be complete the steps of pre-viability assessments, consist of:

• The law assessment
• The technical assessment
• The economic and financial assessment
• The social and environment assessment
• The support and state insurance assessment
• The partnership of infrastructure provision assessment

All These Assessments only authorized by a lawyer

Project Finance for Consessions (only 2,5% from the income), generally devide in two types of financing:

• Build Operate Transfer: wherein a private entity receives a concession from the private or public sector to finance, design, construct, own, and operate a facility stated in the concession contract
• Build Operate Own: the private company gets the benefits of any residual value of the project.

• Company financial capability for development and sustainability airport operational
• The entire or partially capital owned by indonesian citizens (60% for Indonesia’s Citizens and 40% for foreign investment)
• Submit the certificate of paid-up capital ownership
• The paid-up capital requirement based on indonesia’s investment regulations:
• Authorized capital for Indonesian Business Entities: Rp25.000.000.000 as the minimum amount, along with Rp6.250.000.000 as the paid-up capital (only for the formality regulations)
• Authorized capital for foreign investment: Rp135.600.000.000.000 as the minimum amount, along with Rp3.390.000.000.000 as the paid-up capital (only for the formality regulations)

Submit the business plan, standard of operation, and retail personnel