JAKARTA (TheInsiderStories) - South Korea’ Incheon International Airport Corp., joined with state-run airport operator, PT Angkasa Pura 1 (AP1) and constructor, PT Wijaya Karya Tbk (IDX: WIKA) has emerged as the final bidder to develop and operate Hang Nadim International Airport. The projects in Batam Indonesia Free Zone Authority (BIFZA), Riau, is estimating need costs around US$531 million and carries for 25 years.
BIFZA is aiming to make the airport into an international logistics and tourism centre. The three parties will construct a second passenger terminal at airport by 2024 and modernize the current one. Earlier, global airport operators such as EGIS from France, Zurich Airport from Switzerland, and India’ GMR also participated in the bid.
“This an important milestone for the company and is the first time the company has won a competition among other key airport industry players, both national and global, to manage potential airports,” said Faik Fahmi, the CEO of AP1 in an official statement released end of last week.
He continued, with the new project, bringing the total airport managed the state-owned enterprises to 16 airports. He said, Hang Nadim is targeting to become a hub for a wider aviation destination and a logistics and cargo hub in western Indonesia.
The potential of airport to become a logistics and cargo hub is based on several competitive advantages, such as its location in a strategic free trade zone in the Southeast Asia region, adjacent to a cargo port and industrial area, and has the longest runway in Indonesia, 4.02 kilometers.
Last year, AP I has signed a memorandum of understanding with cigarette-maker, PT Gudang Garam Tbk (IDX: GGRM) to operate Dhoho Kediri Airport in East Java. The airport is one of the National Strategic Projects and become an alternative gateway of Surabaya’ Juanda Airport. 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,” said 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$694.44 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.
Recently, tourism and economic creative minister, Sandiaga Salahuddin Uno has announced, Batam Nongsa and Bintan Island will reopen in April and Bali is set to open to tourists between June and July, 2021. According to him, the preparations can begin for a “safe travel corridor” between Singapore, Batam, and Bintan.
The minister stated, both islands are “more prepared” as the COVID-19 cases in these areas are low and there are direct routes from Singapore to Bintan and Batam via the ferry terminals. Currently, explained Uno, around 1,500 tourism workers in Batam and more than 2,000 in Bintan have been vaccinated.
US$1: Rp14,400
Written by Staff Editor, Email: theinsiderstories@gmail.com
