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JAKARTA (TheInsiderStories) – Indonesia’s state-owned operator PT Angkasa Pura II (AP II) allocated Rp11 trillion (US$758.62 million) for next year’s capital expenditure (capex), said the senior official on Tuesday (12/11). The funding come from bond issuance, commercial loan, and internal cash.

M. Awaluddin, the CEO explained, the funding will be used for developing several airports, mostly for Soekarno-Hatta airport expansion in Tangerang, Banten Province. Its also be used to manage four airports, as Angkasa Pura II 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 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.

Awaluddin stated, 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.

Widodo 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.

Soekarno-Hatta Airport Expansion Plan – Photo: Angkasa Pura II

In addition, the third runway will also increase the flight slot from abroad who want to go to Indonesia. Currently, many flights from the Middle East, Asia, and Europe seek entries to Soekarno Hatta airport but there is no capacity.

Beside Soekarno Hatta airport, government has offered ten airports to manage 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.

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