Indonesia to phase out COEs monopoly on managing ports, airports, railways

Jakarta (ANTARA News) - Coordinating Minister for the Economy Budiono said the government plans to phase out state-owned companies' monopolies in managing ports, airports and railways, in a bid to bring in investors and improve efficiency in these sectors.

He said the phase-out plan is contained in new draft laws on ports, airports and railway. The government submitted the drafts to the lower house of Parliament recently and is hoping to have them passed into law in early 2007."

One important theme in these laws is the phasing out of the monopoly power of the state-owned companies (SOEs) in infrastructure services which we think has so far hindered efficiency and stifled investment in these sectors, " Budiono was quoted by XFN-Asia as telling a major international infrastructure conference here."If the laws are passed, opportunities will open up for private investments in ports, airports and railways," he added.

Currently, state-owned port company PT Pelindo monopolises ports management, withe railways controlled by PT Kereta Api Indonesia and airports by PT Angkasa Pura.