Image Credit : Bali Provincial Government

JAKARTA (TheInsiderStories) – Government of Indonesia offered ten airports to manage by two state-owned airport operator PT Angkasa Pura I (AP I) and PT Angkasa Pura II (AP II), said one senior official on Thursday (12/07).

The airports would be located in Lampung, Central Sulawesi, Southeast Sulawesi, East Nusa Tenggara, Central Kalimantan, Bangka Belitung and North Sumatra. The ten airports offered with the cooperation between government and business entity or public private partnership.

The minister Budi Karya Sumadi explained, the 10 airports namely Tjilik Riwut Airport in South Kalimantan, Radin Inten II Airport in Lampung, Hand Hanandjoeddin Airport in Bangka Belitung, Tobing F.L Airport in North Sumatera, and Maimun Saleh Airport in Aceh.

Others, Fatmawati Airport in Bengkulu, Sentani Airport in Papua, Airports in Central Sulawesi, Southeast Sulawesi, and Nias. He said, the airport closest to transfer is Tjilik Riwut airport while other airports are still hindered by valuations.

Earlier, President Director of AP II, M. Awalludin said his company  is planning to operate the airport in Palangkaraya in this year. Currently, AP II is still awaiting approval of the Cooperation of Utilization from transportation ministry.

Sumadi has stated, the Indonesian government plans to build 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 (US$19.23 billion) revenue by 2020–looks impractical.

Still, Indonesia is included in the top 20 fastest-growing travel destinations in the world, welcoming 14.03 million visits in 2017, or an increase of 21.88 percent over the previous year 11.51 million visits, based on Stastitic Indonesia report.

However, the number is only able to reach 93.53 percent of the total target of foreign tourists visiting 2017 as much as 15 million visits. Since last year, Tourism ministry has launched hundreds of Tour Festival created new tourist destinations to attract tourists come to the country.

Increasing numbers of foreign visitor arrivals, combined with 5 percent GDP, has led to a growing demand for hotels, condominium hotels (which combine features of apartments and hotels), as well as conference and exhibition venues. Bali and Jakarta have already seen a large influx of investment in recent years, leading to excessive supply.

‘We already set 10 priority national tourism destinations and provided basic infrastructure, including roads, sea-ports, etc. We also support other aspects, helping destinations and committed local governors promote by themselves, by creating more events so they can expose themselves more fully,’ Esthy Reko Astuti, Deputy of National Tourism  Development at Ministry of Tourism, told TheInsiderStories recently.

According to her, the Ministry of Finance has already allocated a Rp620 billion promotional budget for next year, including money for a market analysis, strategic planning as well as media advertising (mostly in pre-events) for 10 priority national tourism destinations and 10 branding national tourism destinations.

Beside 10 airports, transportation ministry continues build new airport across the archipelago such as Banyuwangi Airport as the result of cooperation with the Regional Government. Government also build airports in Semarang, Purbalingga and Blora regencies in Central Java.

The constructing an airport in Purbalingga—as an extension of the General Sudirman Air Force Airport in Semarang. Recently government also operates Silangit, Batam, and Kertajati airport to support the connectivity with other cities.

Email: linda.silaen@theinsiderstories.com

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The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.

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