March 3, 2011
Indonesian airport operator Angkasa Pura plans to build new airport in Yogyakarta with India's GVK Power & Infrastructure worth IDR5 trillion rupiah (USD$567.4 million), an Angkasa Pura's executive said.
The project is a part of a preliminary agreement signed by both parties in January this year to invest between USD$3 billion - $5 billion over the next four years to build international airports in Bali and Java.
"We're going to set up a joint-venture for the purpose next year," said Tommy Suetomo, Angkasa Pura's chief executive.
Inadequate infrastructure in Southeast Asia's largest economy is seen as both a hurdle to growth and a cash-making opportunity, with the government looking for the private sector to fund two-thirds of its needs.
Indonesia is India's third-largest trading partner in South East Asia and bilateral trade was USD$10 billion in 2008, according to the Ministry of External Affairs.