Transportation Ministry transfers management of 3 airports to AP I and II: 30-year concession

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 alihkan pengelolaan 3 bandara ke AP I dan II: Konsesi 30 tahun

14 October 2019

Jakarta – The government is officially transferring the management of three airports to PT Angkasa Pura (AP) I and II. AP I is trusted to manage Sentani Airport in Jayapura and AP II is trusted to operate Fatmawati Soekarno Airport in Bengkulu as well as Hanandjoeddin Airport in Belitung.

Transportation Minister Budi Karya Sumadi explained that the operation transfer of the three airport was implemented through an asset utilisation cooperation scheme. Hence, AP I and AP II will operate and develop the airports. On the other hand, the government will receive a permanent contribution from the cooperation.

“The concession period is 30 years, and [the airports] are not being sold but under a cooperation. We hope that AP I and II can build and maintain [the airports] to be more professional, to improve logistics, tourism, and each region’s pride and joy,” the Transportation Minister said after the signing of the cooperation for the three airports in Jakarta on Sunday (13/10).

He added that, with this cooperation, the government could save on its budget to be used to build and develop other airports. The government do not have to provide a budget for the three airports as they are already managed by AP I and AP II.

“This is space in the state budget to be utilised. [The budget] that was used for those airports, can be used to build and main airports in outermost and remote [areas] which are still lacking,” Budi Karya explained.

Radin Inten II Airport

Last week, Radin Inten II International Airport in Lampung is also officially managed by PT AP II through State Asset Utilisation Cooperation on Airport Operating Units agreement signed by Air Transportation Directorate General and AP II. The transfer of management is meant to optimise the airport development. One of the optimisation strategies is extending the runway so that the airport can accommodate aircrafts such as the Airbus A330 next year.

“This utilisation cooperation is a large concept from the government to build all infrastructure in Indonesia together,” Transportation Minister Budi Karya Sumadi said in South Lampung on Saturday (12/10).

On the other hand, AP II President Director Muhammad Awaluddin said that he was thankful for the trust that was given by the government for AP II to manage Radin Inten II Airport. He is ready to manage the airport and develop flight connectivity in Lampung.

“Radin Inten II Airport will synergise with other airports under AP II management. Currently, there are 17 airports. We will surely develop the infrastructure at airports trusted to AP II through a state asset utilisation cooperation, such as Radin Inten II Airport and Tjilik Riwut [Airport] in Palangkaraya,” he stated.

Furthermore, Transportation Minister Budi said that the transfer of Radin Inten II Airport management to PT AP II was meant to further develop the airport.

“The transfer of management to AP II through a state asset utilisation cooperation is the government’s effort to increase the participation of private companies or SOEs [State-Owned Enterprises] in infrastructure development,” he explained.

He continued that the aviation sector’s growth potential in Lampung was quite large as the sector was significant for umrah flights and tourism. He said that the runway in Radin Inten II Airport would be developed so that it could serve flights of aircrafts with a wide body.

“In 2020, the runway [quality] will be improved to accommodate Airbus A330 [aircrafts],” he said.

He also asked for AP II to seek other opportunities in optimising Radin Inten II Airport. According to him, Radin Inten II Airport can be utilised for other activities, such as flights of private jets.

“AP II is expected to professionally manage [Radin Inten II Airport] and see potentials that can be developed. The government is improving airport accessibility by [constructing] railway transportation mode,” he said.

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