State-owned airport operator PTAngkasa Pura II has allocated Rp 2 trillion(more than $200 million) for thedevelopment of four of its airports aswell as taking over two other airportsfrom local governments.

The airports included in the budget,are Kuala Namu in Medan, SultanSyarif Kasim II in Pekanbaru, SultanIskandar Muda in Aceh, and terminalIII of Soekarno Hatta InternationalAirport.

It is not clear, however, if the amountwill cover the planned Air Cargo TranshipmentVillage (ACTV) project atSHIA. The cargo village planned tobecome operational in 2009 is meantto increase the airport’s cargo capacityfrom the current 400,000 tonnes to600,000 tonnes annually.

Up till now, three domestic cargocompanies have expressed interest inpartnering with AP II, on the basis ofa built-operate-transfer (BOT) scheme.Haryoto said the village will be one ofAsia’s major hubs.

Bank Mandiri, one of Indonesia’slargest banks, is reportedly providing Rp 1.6 trillion for the developmentof Kuala Namu airport in North Sumateraprovince and Terminal III atSHIA.

– Siktus Harson.