Kulonprogo Airport to begin its construction in July 2018

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: Bandara Kulonprogo Mulai Dibagun Juli 2018

2 July 2018

Jakarta — Transportation Minister Budi Karya Sumadi predicts the construction of Kulonprogo Airport in Yogyakarta to begin in July or no later than August 2018 and to be completed in late 2019.

“So far the technical processes (preparation for Kulonprogo Airport construction) have been carried out well. [Now] we only need to do the finalization. The contractor has been appointed. I heard perhaps in July or August at the latest, it (the construction) will start,” explained Budi in Jakarta last weekend.

Budi went on to say that considering the construction of Kulonprogo Airport is only about to start, his agency thinks realistically and forecasts that the airport will only be completed in late 2019 or early 2020. Previously, Kulonprogo Airport was targeted to start operating in April 2019. “We believe we should not insist on [the construction completion in] 2019, but perhaps in late 2019 or 2020. We also need to be realistic about the prevailing condition,” added the Minister.

According to him, one of the challenges in realizing Kulonprogo Airport is the land procurement process. Moreover, regulators and operators also need to maturely prepare an access from and to the airport. The airport is planned to be equipped with a train that will connect to Yogyakarta City.

“Another challenge is the coordination, such as regarding a train. This airport will have a train that directly heads for Yogya City,” added the Minister.

Meanwhile, AP I President Director Faik Fahmi said he is confident that his company can finish the project on schedule. However, it needs to be supported by smooth locals’ relocation and construction process. “There’s no problem with the funding as well. We have prepared [the fund] from syndicated bank loan, bonds, and internal cash,” said Faik.

According to him, the long-anticipated airport aims to fulfil the needs of Yogyakarta citizens. The airport has a capacity to accommodate 14 million passengers per year with a 3,250 m-long runway. Kulonprogo Airport is expected to become an entrance gateway for foreign tourists.

“Hence, [the number of] foreign tourists will significantly increase. It will bring positive economic impacts for the citizens,” expressed Faik.

If there is still an objection from a handful of citizens regarding the airport construction, Faik will use a dialogical approach in accordance with the prevailing regulations.

“The point is this project will bring good to the citizens, so we will use a friendly approach as well. In terms of legal regulations, we follow them. In terms of communication, we have set up a help desk to provide solutions proactively. We keep making an approach both directly and indirectly,” stressed Faik.

 

Contact us

Julian  Smith

Julian Smith

Advisor, PwC Indonesia

Tel: +62 21 509 92901

Agung  Wiryawan

Agung Wiryawan

Partner, PwC Indonesia

Tel: +62 21 509 92901

David Ray

David Ray

Advisor, PwC Indonesia

Tel: +62 21 509 92901

Follow PwC Indonesia