Transportation Ministry allocates Rp1.22tn to build 7 new airports

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily - Kemenhub alokasikan Rp1,22 T untuk bangun 7 bandara baru

1 February 2023

By: Amrozi Amenan


Jakarta - This year, the Transportation Ministry through the Air Transportation Directorate General is preparing a budget of Rp1.22 trillion to build seven new airports to improve interregional connectivity.

“The new airports are constructed to support connectivity to recover the national economy in a national program,” Air Transportation Director General of the Transportation Ministry Maria Kristi Endah Murni said at the hearing with House of Representatives (DPR) Commission V on Tuesday (31/1/2023).

Kristi said that the budget for the construction of the seven new airports reached Rp1.22 trillion. The seven airports are Banggai Laut Airport, Pahuwato Airport, Bolaang Mongondow Airport, Sobaham Airport, Singkawang Airport, Mandailing Natal Airport, and Siboru Fakfak Airport.

“The budget ceiling of the Air Transportation Directorate General in 2023 is Rp6.99 trillion. This amount is lower than the total budget in 2022 that reached Rp7.51 trillion,” he said.

With the budget ceiling, the Air Transportation Directorate General’s focus and goals this year include completing multiyear contracts and existing constructions as well as serving the public with the air bridge (pioneering) program. They also include the flight safety and security program as well as the labour-intensive program.

Furthermore, Kristi explained that her agency was preparing Rp500.15 billion for the connectivity and air bridge program. This program includes 220 pioneer passenger air transportation routes, 4 air bridge routes, 1 subsidised cargo air transportation route, 7,183 drum pax, and 1,323 cargo drums.

Next, a budget of Rp730.19 billion is prepared to develop 18 airports in border, isolated, and disaster-prone areas. Several airports that will be developed are Long Bawan Airport, Tebelian Airport, Depati Paribo Airport, Nunukan Airport, Letung Airport, and New Mentawai Airport. Then, Rp850.91 billion is allocated for the flight safety program that covers calibration aircraft procurement, surveillance equipment procurement, and contingency plan preparation in the flight navigation and other sectors.

“We will also improve supporting facilities, such as airports in four national tourism strategic areas (KSPNs),” Kristi said.

She mentioned that those tourism destinations would be supported by the optimisation of Komodo Airport in Labuan Bajo, Matahora Airport (Wakatobi), Sibisa Airport (Lake Toba), and Pitu Airport (Morotai). For the support program, the Air Transportation Directorate General will allocate Rp25.09 billion.

Then, the budget for supporting airports in several priority special economic zones (SEZs) will also be increased. The airports include Domine Eduard Osok Airport for Sorong SEZ, Malikussaleh Airport for Arun Lhokseumawe SEZ, as well as Mutiara Palu Airport for Palu SEZ. This program will cost Rp154.1 billion.

Besides that, the Air Transportation Directorate General is also allocating Rp65.26 billion to support airports in industrial estates, namely Morowali Airport in Morowali Industrial Estate and Babo Airport in Teluk Bintuni Industrial Estate.

“We are also allocating a budget of Rp27.7 billion for the labour-intensive program. This is part of the national economic recovery,” Kristi explained.

Meanwhile, to support the construction of New Capital City (IKN) Nusantara, the Transportation Ministry will optimise APT Pranoto Airport. This program is forecasted to cost Rp124.35 billion.

Overall, Kristi said that, throughout 2023, 19 priority projects were planned to be inaugurated by President Joko Widodo that include the construction of new airports and existing airports that target terminal completion. The 19 airports consist of 10 new airports and 9 existing airports with new terminals. That data is based on the strategic plan and the national medium-term development plan (RPJMN) until 2024.

The 19 airports are Siau Airport, Tambelan Airport, New Nabire Airport, New Siboru Airport, New Mentawai Airport, New Mandailing Natal Airport, New Pohuwato Airport, New Bolaang Mongondow Airport, New Banggai Laut Airport, New Singkawang Airport, Ende Airport (NTT), Waingapu Airport (NTT) Terminal, Timika Airport Terminal (Papua), Karimunjawa Airport (Central Java) Terminal, Tampa Padang Airport (West Sulawesi) Terminal, Malinau Airport Terminal, Tolitoli Airport Terminal, Mulia Airport (Papua) Terminal, Ewer Airport (Papua) Terminal.

“There are 19 airports that are prioritised to be inaugurated by the President before 2024,” Kristi revealed.

Pioneer air transportation

Kristi explained that, in 2023, the implementation of pioneer air transportation was served by 21 territory coordinators that were set to serve 220 passenger routes and 41 cargo routes. Moreover, the implementation of pioneer air transportation is one of the government’s steps to improve connectivity and resolve logistical issues in remote, underdeveloped, outermost, and border (3TP) areas.

“So, with the program, people are expected to feel the state’s presence in fulfilling basic needs and sustainable logistics,” Kristi said.

Besides that, the implementation of pioneer air transportation is expected to reduce the price disparity of basic needs in 3TP areas so that the price difference will not be too wide in order to benefit the people, especially ones with limited access.

The 21 territory coordinators that implement pioneer air transportation are Sinabang Territory Coordinator, Gunung Sitoli Territory Coordinator, Singkep Territory Coordinator, Kuala Pembuang Territory Coordinator, Tarakan Territory Coordinator, Samarinda Territory Coordinator, Sumenep Territory Coordinator, Masamba Territory Coordinator, Waingapu Territory Coordinator, Ternate Territory Coordinator, Langgur Territory Coordinator, Sorong Territory Coordinator, Manokwari Territory Coordinator, Nabire Territory Coordinator, Elelim Territory Coordinator, Wamena Territory Coordinator, Timika Territory Coordinator, Marauke Territory Coordinator, Tanah Merah Territory Coordinator, Dekai Territory Coordinator, and Oksibil Territory Coordinator. 

Kristi explained that the 2023 pioneer passenger and cargo air transportation program had been carried out by the 21 territory coordinators in January 2023.


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