APPLICATION OF AIRPORT CONCESSIONS TO THE STATUS OF AIRPORT BUSINESS ENTITIES OWNED BY STATE-OWNED ENTERPRISES

: Defining concessions will always be related to the concept of Public Private Partnership (PPP) and privatization of the public sector. Broadly speaking, PPP is a long-term engagement between the Government and/or public bodies and business entities, while privatization means the transfer of something under the control of the public sector to the private sector followed by commercialization. These things are in line with the concept of Concession, which is basically the transfer of management of a service/product which is basically the responsibility of the government to the private sector with a return from the government budget or revenue obtained directly from the end user (consumer) of the project and/or service. Based on Article 235 of Law Number 1 of 2009 concerning Aviation, airport services carried out by airport business entities are carried out based on concessions and / or other forms in accordance with the provisions of laws and regulations provided by the Minister and stated in the agreement. Currently in Indonesia one of the largest airport management business entities in Indonesia is PT Angkasa Pura I which was previously entirely owned by the Ministry of State-Owned Enterprises of the Republic of Indonesia, but is now controlled by PT Aviasi Pariwisata Indonesia (Persero) which is a State-Owned Enterprise. This creates a complexity in connection with the imposition of concessions, considering that based on its capital structure, PT Angkasa Pura I contains separated state wealth. These complexities include the imposition of concession fees and the delivery of assets, both obtained through State Capital Participation and sourced from own investments at the end of the concession period


INTRODUCTION
The airport management industry in Indonesia is a very limited and exclusive mechanism (Leung, 2016).According to Hodge and Greave, PPP is a long-term engagement between government and business entities (Hodge & Greve, 2007).
PPP involves financing, managing, and/or developing public projects and/or services (which should be the responsibility of the government) by business entities with financial returns derived from government budgets or revenues derived directly from end users (consumers) of such projects and/or services (Caves, 2004).In

Types, properties and approaches
This

Sources and materials
This doctrinal research uses primary legal material as the main legal material in the completion of this research.Primary legal material whose contents have binding legal force to the community is the legal basis for the authors of this study whose laws, government regulations, ministerial regulations, and agreements.In addition, the author also uses material in the form of academic manuscripts.

Airport Concessions in Indonesia
Discourse on concessions cannot be separated from the topic of privatization and corporatization.According to In addition, it is also stipulated that the amount of concession fees to be paid industry.Based on data from the Directorate General of Civil Aviation website of the Ministry of Transportation accessed.Monday (6/2/2023), there are 340 airports throughout Indonesia.Among all these airports, there is the Ministry of Transportation of the Republic of Indonesia through UPBU / UPT (Airport Operator Unit / Technical Implementation Unit) which manages airports in addition to business entities PT Angkasa Pura I, PT Angkasa Pura II, PT Batam International Airport, and PT Angkasa Pura Aviasi, where the two entities mentioned later are by State-Owned Enterprises affiliates of PT Angkasa Pura I and PT angkasa Pura II.PT Angkasa Pura I and Angkasa Pura II themselves are incorporated in the holding enterprise of PT Aviasi Pariwisata Nusantara (Persero) based on Government Regulation Number 104 of 2021 concerning the Increase of State Capital Participation of the Republic of Indonesia into the Share Capital of the Company (Persero) PT Aviasi Pariwisata Indonesia whose entire shares are owned by the Ministry of State-Owned Enterprises of the Republic of Indonesia.The monopolistic market is inseparable from the regulations in Law number 1 of 2009 concerning Aviation, which in Article 233 provides restrictions on parties who can carry out airport management, namely BUBU (Airport Business Entity) and UPBU.At least until 2021 there are only 2 business entities in Indonesia that have obtained designation as BUBU, namely PT Angkasa Pura I and PT Angkasa Pura II, each based on the Decree of the Minister of Transportation Number 197 of 2021 concerning PT Angkasa Pura I (Persero) as an Airport Business Entity and the Decree of the Minister of Transportation Number 107 of 2021 concerning PT Angkasa Pura II (Persero) as an Airport Business Entity.Until 2021, before the acquisition of PT Angkasa Pura I (Persero) and PT Angkasa Pura II (Persero) into PT Aviasi Pariwisata Indonesia (Persero), all BUBU operating in Indonesia were State-Owned Enterprises (SOEs).Airport management in Indonesia, as well as the management of public services/facilities that are not carried out by the government, is carried out through a PPP (Public Private Partnership) Indonesia, especially in the airport management industry, the return received by BUBU is the tariff paid by airport end users (e.g.airlines, passengers, tenants) is called the Concession (Tangri & Mwenda, 2019).Based on Article 1 point 10 of the Regulation of the Minister of Transportation of the Republic of Indonesia Number 81 of 2021 concerning Business Activities at Airports, a Concession is a decision of an authorized government official as a form of approval of the agreement of the Agency and/or Government Official with other than the Agency and/or Government Official in the management of public facilities and/or natural resources and other management in accordance with the provisions of laws and regulations.More specifically related to airport concessions, concessions are the granting of rights by the Government to Arie concession shall be set forth in the form of a Concession Agreement between the grantor and the recipient of the Concession.where the concession holder is required to deposit a certain amount to the Government as PNBP (Non-Tax State Revenue) in return for business rights, and the concession granted must be stated in the form of an agreement (Article 6 paragraph (3) of the Regulation of the Minister of Transportation of the Republic of Indonesia Number 193 of 2015 concerning Concessions and Other Forms of Cooperation between the Government research is a doctrinal research, where this research the author refers to the legal norms and principles contained in laws and agreements or even decisions related to the application of airport service concessions as stipulated in the Aviation Law, including Government Regulation Number 32 of 2021 concerning the Implementation of the Aviation Field and Minister of Transportation Regulation Number 81 of 2021 concerning Business Activities Airport.Ronald Dworkin called the research method a research that analyzes both law as it written in the book, and law as law as it is decided by judge through judicial process.The nature of this research will describe descriptively analytically because the formulation of the problem prepared also begins with the question of what and how to test the substance of applicable laws and regulations by relating legal doctrines and practices of positive law implementation related to the problem.Descriptive because in this study it is expected to obtain a comprehensive and systematic view as well as analytical.Furthermore, the author will examine legal facts, legal construction, implementation of laws and regulations related to airport concessions and regarding the Concession Agreement between the Directorate General of Civil Aviation and PT Angkasa Pura I. furthermore, to provide a complete picture of the application of concessions by the State, the author will also make a comparison (comparative approach) the application of concessions on ports and toll roads in Indonesia and the application of airport concessions in several countries.
schemes, and the amount of investment (Article 27 paragraphs (1) and (2) of the Minister of Transportation Regulation Number 193 of 2015 concerning Concessions and Other Forms of Cooperation between the Government and Airport Business Entities for Airport Services).The termination of a concession agreement is if: the concessionee does not carry out its obligations as stipulated in the concession agreement based on the results of the Airport Operator's evaluation; the concessionee does not meet the performance standards specified in the concession agreement (Article 31 of the Minister of Transportation Regulation Number 193 of 2015 concerning Concessions and Other Forms of approval from the GMS/Minister and by taking into account the interests of the company (Article 13 of the Regulation of the Minister of State-Owned Enterprises Number PER-02/MBU/2010 of 2010 concerning Procedures for Bookkeeping and Transfer of Fixed Assets of State-Owned Enterprises).In fact, the recipient of the airport concession in the transfer / transfer of assets after the end of terms of comparison of concession applications with other public service sectors (e.g.port and toll road concessions).The imposition of airport concessions on Airport Business Entities whose entire or part of the capital comes from separated State assets is contrary to the purpose of the State Capital Participation itself when privatization is carried out.In addition, port and toll road concessions consider the source of investment in the assets of the concession object in arranging the transfer/transfer of concession object assets after the end of the concession period, where the transfer/transfer is only carried out if the concessionee does not invest in the asset.In addition, harmonization of concession arrangements in all sectors of public services is needed.Different applications from one sector to another cause inconsistencies in the same issue for different industries.