PT Angkasa Pura II (AP II) aimed to become global player by looking foreign company, the CEO as quoted by local media last week - Photo by PR Indonesia

JAKARTA (TheInsiderStories) – Indonesian airport operator, PT Angkasa Pura II (AP II) aimed to become global player by looking foreign company, the CEO as quoted by local media last week. Beside airport in the Southeast Asian region, the state-owned company also looking Mauritius, Madagascar, Zanzibar, Tanzania, dan Nigeria in Africa’ region.

The CEO, Muhammad Awaluddin, explained through “Go Global” flagship, the company wants to manage airports abroad, looking for strategic partnerships with world-class airport operators, and increasing employee competence to global standards.

“We are exploring markets in various countries such as Africa. We are also exploring opportunities to manage airports in the ASEAN region like Thailand,” he noted.

This year, AP II allocated capital expenditure Rp11 trillion (US$785.71 million). Awaluddin stated, the funding come from bond issuance, commercial loan, and internal cash.

The CEO revealed, the funding will be used for developing several airports, mostly for Soekarno – Hatta airport expansion. Its also be used to manage four airports, as the company was just taken over by the airports management from the Transportation Ministry.

Those four airports are Tjilik Riwut in Palangkaraya, Central Kalimantan, Fatmawati Soekarno airport in Bengkulu, Radin Inten airport in Lampung, and H.A.S Hanandjoeddin in Belitung, Bangka Belitung Islands.

AP II, planned to build  Soekarno – Hatta 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.

Awaluddin added, now the project in the feasibility study stage and the construction would start in 2020. The new airport would construct in 2,000 hectares or similar to the existing area in Tangerang province.

On June 21, President Joko Widodo has announced government to add a fourth terminal at Soekarno-Hatta Airport. He said, AP II will invite bids from the private sector for the development of the fourth terminal.

The head of states, explained the construction of terminal 4 is important as Soekarno – Hatta is the busiest airport in Indonesia. In addition, Indonesia also recorded air passenger growth of nine percent per year which should be anticipated with adequate airport facilities.

The passenger surge is expected to reach more than 100 million by 2025 from currently 63 million passengers. Currently, AP II is constructing the third terminal which is expected to be completed by 2019.

The addition of the third runway will increase flight activity from current 81 takeoffs and landing to 120 takeoffs and landing. This development will also significantly reduce passenger queue at Soekarno Hatta airport.

Beside Soekarno – Hatta airport, the government has offered ten airports to manage by AP I and AP II. The airports would be located in Lampung, Central Sulawesi, Southeast Sulawesi, East Nusa Tenggara, Central Kalimantan, Bangka Belitung and North Sumatra.In addition, the third runway will also increase the flight slot from abroad who want to go to Indonesia.

Many flights from the Middle East, Asia, and Europe seek entries to Soekarno Hatta airport but there is no capacity. 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.

Currently, AP II manages 19 airports in the country, including Soekarno-Hatta in Tangerang province. In 2020, the operator to manage 20 airports, with the addition of Soedirman Airport in Purbalingga, in East Java, which is currently under construction.

In 2018, Angkasa Pura II manages 16 airports with 113 million passengers per year.

US$1: Rp14,000

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