JAKARTA (TheInsiderStories) – Airport operator, PT Angkasa Pura (AP) I has signed a memorandum of understanding (MoU) with PT Gudang Garam Tbk (IDX: GGRM) to operate Dhoho Kediri Airport in East Java, said the company on March 10. The airport is one of the National Strategic Projects and become an alternative gateway of Surabaya’ Juanda Airport.
In 2019, Juanda Airport served more than 16.6 million passengers with aircraft traffic reaching 129 thousand flight movements and cargo reaching 88.4 million kilograms. Both parties are committed to serving passenger traffic growth across East Java by making Dhoho Kediri part of a multi-airport system in the region.
“The development of Dhoho Kediri Airport is very potential because it can become an alternative flight after Juanda International Airport in East Java,” adds by CEO of AP1, Faik Fahmi.
Gudang Garam’ unit, PT Surya Dhoho Investama, will start to develop the airport starting next month, with a target to complete the first-phase construction by April 2022. According to the director, Istata Taswin Siddharta, the publicly listed tobacco producer will spend around Rp10 trillion (US$714.28 million) for the project.
Kediri Airport, which would be the first-ever in the country to be fully funded by the private sector, will be developed in three phases under a public-private partnership scheme with a concession period of 30 to 50 years. The airport is to be built 13 kilometers and once completed, the airport will cover almost 400 hectares with potentially accommodating 1.5 million passengers per year.
Gudang Garam is one of the leading companies within the cigarette industry in Indonesia that has been established since 1958 in the town of Kedir. Until now, the company has widely known both domestically and abroad as a producer of high quality kretek clove cigarettes.
The company products can be found in many varieties, ranging from corn husk-wrapped clove cigarettes, hand-rolled clove cigarettes, up to machine-rolled clove cigarettes.
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