Indicative investment value of Rp7 trillion: Tens of global airport business players show interest in Kualanamu
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: Nilai Investasi Indikatif Rp7 Triliun: Belasan Pelaku Bisnis Bandara Global Minati Kualanamu
12 October 2018
Nusa Dua — Tens of global airport business players are showing interest in managing and making joint investment in Kualanamu International Airport in Deli Serdang, North Sumatra.
It is in line with PT Angkasa Pura (AP) II move to offer opportunity to a strategic partner for collaboration with an indicative investment value of US$500 million or equivalent to Rp7 trillion.
“Kualanamu International Airport is the fourth largest commercial airport in Indonesia. Backed by promising economic potential and strategic geographical position, Kualanamu Airport has potential to become the second international and domestic hub in Indonesia,” said AP II President Director Muhammad Awaluddin in Nusa Dua, Bali, Thursday (11/10).
Pertaining to the competence of prospective partner who will manage Kualanamu International Airport, Awaluddin has three requirements that a strategic partner has to fulfil in order to be chosen. The requirements are the ability and experience in airport operations and air traffic expansion (expansion), and knowledge in airport operation, management, and business (expertise).
“The next one is equity, that is to say strategic partner has to have access and ability to provide funding for long-term development,” he elaborated.
Meanwhile, Danareksa Sekuritas has been trusted as an implementing partner for the strategic partnership bidding process. Danareksa Sekuritas President Director Jenpino Ngabdi pointed out that this positive first step will be a stimulus for prospective Kualanamu International Airport investors.
A capacity of up to 9 million passengers per year, he continued, exhibits its own appeal for Kualanamu. Besides government support in developing infrastructure, economic potential in North Sumatra also becomes a supporting factor in attracting investors.
“We’re optimistic that the funding and development of Kualanamu International Airport will bring positive impact on all parties in Kualanamu,” added Jenpino.
At the moment, Angkasa Pura II has established a subsidiary called Angkasa Pura Aviasi to run strategic partnership with the new business partner to carry out business cooperation in managing Kualanamu International Airport. “Share portion is in accordance with Negative Investment List provisions. We at least own 51% and foreign partner can hold a maximum of 49%,” he explained.
Partnership with LEN
Furthermore, airport service is also a significant concern for Angkasa Pura II. Both air and land services have always seen a major issue in maintaining customer satisfaction. With the signing of the MoU between APII and PT LEN Industri (Persero), the two parties will focus in particular on the operation and maintenance of the Automated People Mover System (APMS) or better known as the Skytrain.
In the future, the mode of transportation that connects the terminals at Soekarno-Hatta International Airport will be managed by subsidiaries from both parties through joint operations (KSO) between PT Angkasa Pura Propertindo (APP) and PT Len Railway Systems (LRS).
In speaking about the synergy of Angkasa Pura II and LEN, Awaluddin said that the synergy aims to maintain the effectiveness and optimization of Skytrain services and maximize the operation and maintenance of transportation modes in the Soekarno-Hatta International Airport ecosystem. Awaluddin said, the purpose of this synergy is to maintain the effectiveness and timeliness in providing services to airport service users.
"Therefore, operations and maintenance need to be carried out by parties with sharper experience and comprehension. For that reason, we will synergize with LEN, "he said.
In line with Awaluddin, President Director of PT LEN Industri (Persero) Zakky Gamal Yasin, enthusiastically welcomed the partnership that will be carried out.
The most sophisticated train-based modes of transportation in Indonesia is the Soekarno-Hatta International Airport Skytrain. After building this facility, the most important is the maintenance process.
"So this synergy has been agreed to be carried out by our subsidiary. The hope is that this company can become a pioneer in the development and maintenance of more advanced modes of transportation, "Zakky said.
Skytrain is the most sophisticated train-based mode of transportation which is operated automatically. Overall, it is operated through digital data and supervised through an operation control center that will be operated without a driver (driverless).
