Lion Air needs Rp 10 trillion for the Batam Aero Technic project

Selasa, 02 Juli 2019 / 07:31 WIB

Lion Air needs Rp 10 trillion for the Batam Aero Technic project

KONTAN.CO.ID - JAKARTA. Lion Air Group needs a budget of Rp10 trillion for the development of a subsidiary, Batam Aero Technic, in Batam. The area of ​​development of this project is 30 hectares (ha). Lion Air has received a land lease contract for 50 years.

In addition to funding the construction of the project, the budget is also for equipment expenditure. "We will seek funding from internal cash and banks, as long as it is feasible and possible," Lion Air Group Director Edward Sirait said on Batam last week.

The construction of the Batam Aero Technic project will take place in five stages. Now Lion Air Group is in the third stage of development.

So far Batam Aero Technic operates four hangars that can accommodate 15 narrow body aircraft. Batam Managing Director Aero Technic I Nyoman Rai Pering hopes that by 2029 the capacity will increase to 42 aircraft.

In addition to developing Batam Aero Technic, it is possible that Lion Air Group will send one of its subsidiaries to become a public company. March 2019, word spread about the company belonging to the Indonesian Ambassador to Malaysia Rusdi Kirana was preparing a plan for an initial public offering (IPO).

The management of Lion Air Group considers that the IPO can have a positive impact on the company. "In addition to transparency, this can be a source of funds and foster self-confidence for managers," Edward said, without mentioning the realization target.

Sumber : Harian KONTAN
Editor: Hasbi Maulana
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