"We well need both internal and external funds to finance the first phase of expansion."
Jakarta (ANTARA News) - State owned air port operator PT Angkasa Pura (AP) II is considering to launch initial public offering (IPO) to raise fund to finance the expansion of Terminal 3 of Jakarta`s Soekarno Hatta International airport.

Vice President of AP II Rinaldo J. Aziz said funds for the first phase of expansion of the terminal will be in internal cash or by raising bond fund or IPO fund.

The first phase of expansion will cost around Rp6.5 trillion and work to be completed in two or three years, Rinadlo said.

"We well need both internal and external funds to finance the first phase of expansion," he said here on Friday.

The fund of around Rp6.5 trillion will include for the expansion of the apron, he said, adding the terminal alone will need only Rp4.5 trillion.

If in three years , the project is not yet completed and additional cost would be needed, the company would either issue bond or launch IPO. he said.

"In two to three years we could manage the financing with internal cash, but if work will continue we could choose between issuing bond, share sales or bank loans," he said.

The management is still studying the options, he said, adding, if bank loan or bond fund is the option, the management hope to have ones with low interest.

"However, if we will carry out the expansion plan and at the same time we have to do other jobs, bond fund would be the most possible option," he said.

Earlier, Chief Economics Minister Hatta Rajasa said the airport has an annual capacity to handle 22 million passengers but capacity utilization already reached 51.5 million passengers.

After the completion of the expansion plan, Terminal 1 will have a capacity of 18 million, Terminal 2 around 19 million and Terminal 3 around 25 million and Terminal 4 to be built later to have a capacity of around 25 million or a total of 87 million passenger a year after the completion of the expansion plan.

Terminal 3 will be expanded from 333,000 sq. meters to 367,000 sq. meters .

The budget for the airport expansion until 2014 is set around Rp4.75 trillion . In 2012 alone the budget is Rp100 billion.

Meanwhile the capacity of its cargo terminal will be expanded from 504,000 tons in 2011 to 1.5 million tons in 2020.

Currently 47 percent of the cargo terminal space is for domestic cargoes with the rest for international cargoes

The budget for the expansion of the cargo terminal and apron is set at Rp3 trillion until 2014. This year, the spending budget is set at Rp150 billion

The runway of Terminal 3 will be developed to facilitate 623,420 landings and takeoffs from 316,830 landings and takes offs per year.
(Uu.AS/H-ASG/H-YH)

Editor: Priyambodo RH
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