Commercialisation of IKN airport requires a lengthy process

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 - Komersialisasi bandara IKN butuh proses Panjang

15 November 2024

By Ichsan Amin

Jakarta, ID – Although Nusantara International Airport in Nusantara Capital City (IKN), East Kalimantan, has officially received the airport code WALK, the procedure to establish it as a commercial airport remains lengthy.

The government, through the Air Transportation Directorate General, has received the airport code for Nusantara International Airport from the International Civil Aviation Organization (ICAO).

ICAO has assigned the code WALK to Nusantara International Airport. However, the government has not yet decided when the airport will begin commercial operations.

Transportation Deputy Minister Suntara mentioned that the regulator has not yet determined the capacity for commercial flights at Nusantara International Airport. "We are still monitoring the development," he stated in Jakarta on Thursday (14/11/2024).

However, Deputy Minister Suntara indicated that he does not rule out the possibility of the IKN airport serving domestic, international, logistics, and cargo flights.

"We will monitor the development. There are multiple stages, as this applies to every airport. Domestic flights are possible initially, which can then expand into international flights. The progression can move from passenger to cargo flights. It is situational," he stated.

Previously, the Transportation Ministry had planned to operate Nusantara International Airport in IKN as a commercial airport and an international hub for Kalimantan and its surrounding areas.

The international hub status is expected to enable Nusantara International Airport in IKN to integrate with other cities in Kalimantan, such as Balikpapan and Samarinda. Establishing Nusantara International Airport as an international hub is anticipated to attract international airlines to fly to the capital city and its surrounding areas.

On a separate occasion, PT Angkasa Pura Indonesia (InJourney Airports) President Director Faik Fahmi stated that the company is ready to operate Nusantara International Airport. According to him, as a state-owned enterprise (SOE) responsible for operating airports in Indonesia, Angkasa Pura Indonesia is continuously committed to ensuring that every airport in the country meets high-quality and global standards.

"Regardless of the circumstances, we are prepared to operate the IKN airport. Having managed 37 airports, we will be more solid and coordinated in our operations," Faik Fahmi said recently.

Faik added that, besides focusing on internal improvements through consolidations, InJourney Airports is also prepared to compete as a world-class airport operator.

The IKN airport has a terminal area of 7,350 square metres within an airport area of 347 hectares (ha), constructed with a budget of Rp4 trillion. The terminal design concept will incorporate local elements that highlight Kalimantan's culture and will be eco-friendly. With a runway measuring 3,000 metres in length and 45 metres in width, the IKN airport can accommodate wide-body aircraft such as the Boeing 777-300ER and the Airbus A380.

VIP airport

Meanwhile, aviation observer Gatot Rahardjo suggested that Nusantara International Airport should function as a VIP airport for the time being. He mentioned that this is necessary because the construction of IKN is not yet fully completed and will still require another three to four years.

According to Gatot, if Nusantara International Airport were to change its status to a commercial airport for passengers, it might negatively impact other airports in the surrounding areas.

"The IKN airport is better suited as a VIP airport. IKN has also not been completed," he told Investor Daily. When IKN is finished, Gatot continued, the operation of Nusantara International Airport must be comprehensive and integrated with existing airports, such as the ones in Balikpapan and Samarinda.

Gatot added that if Nusantara International Airport were to operate commercially, it might negatively affect the airports in Balikpapan and Samarinda due to their close proximity to Nusantara International Airport.

"Therefore, there must be integrated clusters if Nusantara Airport operates commercially for passengers. Integrated means that the road or toll road access network should allow for quick travel times," Gatot stated.

Currently, Nusantara International Airport has received an airport code from ICAO. To obtain a commercial airport code, certification from the International Air Transport Association (IATA) is required. This organisation represents global airlines.

Attracting investors

Acting Regent Muhammad Zainal Arifin stated that Nusantara International Airport would attract investors to invest in North Penajam Paser, East Kalimantan.

"Nusantara International Airport will attract investors to develop businesses in the trade and services sector, such as malls, hotels, and transportation," Zainal Arifin said, as cited by Antara.

Nusantara International Airport was built on 621 hectares of land in Pantai Lango Sub-district and Gersik Sub-district in North Penajam Paser Regency.

To welcome the investments, the North Penajam Paser Regency Government has prepared a draft regional head regulation on the detailed spatial planning of the planning area.

The draft regional head regulation covers Planning Area 3 (Penajam-Petung Sub-districts Corridor of Serambi Nusantara) and Planning Area 4 (Maridan, Riko, Sepan, and Sotek Sub-districts Corridor of Serambi Nusantara).

He explained that the Maridan, Riko, Sepan, and Sotek Sub-districts are being prepared as satellite cities for Nusantara, as they are located close to the new capital city and Nusantara International Airport.

He continued that the preparation of the draft regional head regulation takes into account areas of trade governance, services, nautical tourism, and urban development, ensuring a sense of security from natural disasters.

The North Penajam Paser Regency Government also ensures that the draft regional head regulation is prepared in alignment with the construction plan of Nusantara, the new capital city of Indonesia.

The adjustment of the draft regional head regulation to the construction plan of Nusantara is being carried out by the North Penajam Paser Regency Government in coordination with the IKN Authority (OIKN).

Further coordination has also been undertaken with relevant ministries to ensure that the draft regional regulation prepared by the North Penajam Paser Regency Government does not overlap with the construction plan of the new capital city of Indonesia.

 

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