Soekarno Hatta Airport in Tangerang Banten - Photo: Privacy

JAKARTA (TheInsiderStories) PT Angkasa Pura II, or AP II, eyes global airport as part of the company’ business expansion in 2019, said the chief executive yesterday (01/02). The state-owned operator also looking the potential airport to acquire across the nation.

For the planned, said the CEO Muhammad Awaluddin, AP II prepared capital expenditure Rp11 trillion (US$758.62 million). To fulfill the funds, AP II planned to release bond, commercial loan, internal cash, and looking for partners. Recently, the operator just issued domestic bonds with an emission value of Rp750 billion.

Part of funds, he continued, allocated for the development of several airports in the country. Recently, AP II has get a mandated from Transportation ministry to develop Tjilik Riwut Palangkaraya in Central Kalimantan, Fatmawati Soekarno in Bengkulu, Radin Inten Lampung, and H.S. Hanandjoeddin in Belitung.

The funding also will be used for developing Soekarno-Hatta airport expansion in Tangerang, Banten Province.  AP II, planned to build  Soekarno Hata International Airport 2 in the existing airport with total costs over than Rp100 trillion.

The airport will be built above the sea and would be integrated with public transportation such as airport train and light rail transit. The construction would start in 2020 in 2,000 hectares or similar to the existing airport.

During 2018, AP II has managed several new airports such as Kertajati International Airport in West Java and Banyuwangi Airport in East Java, which contributed the total 16 airports under AP II. AP II also served up 115 million passengers, jumping 9.5 percent over the same period last year which reached 105 million passengers.

While, PT Angkasa Pura I (AP I) is going to manage Buleleng Airport in Northern Bali, said Minister of Transportation Budi Karya Sumadi after a limited meeting at his office yesterday. According to AP I’ CEO Faik Fahmi, the news airport will smoothen connection with Ngurah Rai Airport, other airport in Bali.

Last December, Angkasa Pura I has obtained loans from local lender, PT Bank Tabungan Negara Tbk (IDX: BBTN), PT Sarana Multi Infrastruktur (SMI) and PT BRI Syariah Tbk (IDX: BRIS) with an overall value of Rp 5 trillion for this year’ business expansion program.

The company will be looking for external funding sources of around Rp13 trillion to finance capital expenditure of Rp17.53 trillion in 2019. In the long term (2019-2023), he said, AP I budgeted Rp76 trillion for capital expenditure.

The operator will fund that capital through loans from financial institutions, bond issuance, asset securitization and also through partnerships with strategic partners.

So far, the government has offered ten airports to manage by AP I and AP II located in Lampung, Central Sulawesi, Southeast Sulawesi, East Nusa Tenggara, Central Kalimantan, Bangka Belitung and North Sumatra.

The 10 new airports to support the 10 priority tourism destinations set up by Tourism ministry. As the home of more than 17,000 islands, Indonesia faces a lack of adequate infrastructure to facilitate access to tourism destinations.

The lack of inter and intra island connectivity means that a number of targets set by government–including 20 million foreign visitors and Rp275 trillion revenue by 2020–looks impractical.

US$1: Rp14,500

Written by Staff Editor, Email: theinsiderstories@gmail.com

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