Indonesia’s AP II to Build Soekarno-Hatta Airport 2 with Costs US$7B

President Joko Widodo During His Visit to Kertajati Airport - Photo by President Office

JAKARTA (TheInsiderStories) PT Angkasa Pura (AP) II, a state-owned airport operator, planned to build  Soekarno Hata International Airport 2 in the existing airport, said Transportation Minister Budi Karya Sumadi on Saturday (11/08). The airport project is estimating need costs over than Rp100 trillion (US$6.99 billion).

He said, the airport will be built above the sea and would be integrated with public transportation such as airport train and light rail transit. AP II’s chief executive Muhammad Awaluddin aded, now the project in the feasibility study stage and the construction would start in 2020.

He said, 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 9 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. “(There is) very fast growth in passengers. That is why we continue to build new airports, new terminals,” he said.

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.

Previously, AirAsia Indonesia‘s President Director Dendy Kurniawan the main challenge is the airport as there is a limited slot to fly in the popular airports, especially during busy hours. Another problem is a restriction for the foreign airlines to enter non-international airports.

Beside Soekarno Hatta airport, government planned to offer 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 ten airports offered with the cooperation between government and business entity or public private partnership. Sumadi stated, 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.

Sumadi has stated, 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.

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 Statistic 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.

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.

US$1: Rp14,300