Angkasa Pura II to raises $150m from bonds issuance

State-owned airport operator Angkasa Pura (AP) II plans to raise Rp 2 trillion ($150 million) from a bonds issuance in June in order to help finance a runway expansion at Soekarno-Hatta International Airport. The president director Budi Karya Sumadi said, land acquisition for the third runway and its construction would cost Rp 4 trillion. AP II hopes that the third runway will be operational by the end of 2017, in a move to increase the capacity of the country’s main gateway. It is expected that more than 100 airplanes will land at Soekarno-Hatta airport every hour by 2018. This is in stark comparison with its current capacity of 72 airplanes per hour across two runways, Budi said. The airport operator set aside Rp 12 trillion in capital expenditure this year to expand 13 airports in Indonesia, including the Soekarno-Hatta airport, compared with last year’s Rp 5 trillion. When its completing the expansion of Soekarno-Hatta airport’s third terminal-which is expected to be operational in this year-the new terminal will increase the airport’s total annual passenger handling capacity to 70 million, from its current 55 million.