digilib@itb.ac.id +62 812 2508 8800

Managing an airport through privatization is a strategy used to involve private sector in transportation infrastructure. The government, as the owner and operator of airport, is having difficulty to manage and operate the airport. The problem arises when the passenger increased and the infrastructure cannot handle it anymore. Involving private sector through privatization seen as a solution to the problem. Privatization believed can bring in funding and efficiency. This study investigates the framework of privatization which able to be implemented in Indonesia. The result should assist the government to ensure what kind of type of privatization suitable with Indonesian’s condition. A literature review conducted to study the implementation of airport privatization in United Kingdom. Based on the UK’s experience, a lesson obtained and combined with constraints to find appropriate way to involve private sector. The findings further indicate that Government Owned, Government Owned Company, Public Private Partnership, BOT and Management Contract are the appropriate model which can be chosen. With these strategies, the government still maintain the ownership and act in commercial way. However, it will need regulation and supporting institutions in order to apply the privatization ameliorate.