IKN Nusantara: Calculating impact of airport status change

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.

Bisnis Indonesia - IKN Nusantara: Kalkulasi impak perubahan status bandara

22 October 2024

By M. Mutawallie Syarawie

Jakarta, ID - The government has been urged to assess the impact of the proposed change in the Nusantara Capital City (IKN) airport’s status from VIP to commercial. Airports near the new capital, Sepinggan and APT Pranoto, are also expected to enhance their services and facilities to support IKN Nusantara in the future.

Recently, the change in Nusantara Airport's status in IKN Nusantara from VIP to commercial has garnered significant attention from various parties, primarily because there are already two nearby airports in East Kalimantan. Previously, it was claimed that this status change would not disrupt the operation of Balikpapan and Samarinda airports in serving commercial flights, despite their proximity—approximately 24 kilometres—from IKN Nusantara.

Purwadi, an economist from Mulawarman University, revealed that changing the airport status from VIP to commercial might indirectly affect Balikpapan or Samarinda airports. "If the new IKN airport becomes commercial, people will choose between the new airport, Balikpapan, or Samarinda. The population of East Kalimantan is limited, and the influx decreases except during holidays like Eid," he explained on Monday (21/10).

From an economic perspective, he believes the status change could lead to unhealthy competition, potentially causing one airport to become underutilised or shut down. "We still remember the debates [during the initial construction] between Samarinda and Balikpapan, and Tenggarong even planned to build an airport. Fortunately, the airport plan in Tenggarong did not materialise," he said.

Purwadi also raised concerns about handing over the management of the IKN Airport to foreign parties under the public-private partnership (PPP) scheme. "Airports are a vital transportation mode. If managed by foreign parties, there is a risk of our personal data and security being exposed, especially considering its location near the national capital," he said.

Therefore, he emphasised the importance of comprehensive and meticulous planning related to transportation infrastructure development. "Planning must be comprehensive, including funding sources for the maintenance. So far, planning is often partial, where we build first and think about maintenance later, eventually burdening consumers with high prices and raised taxes," he said. Moreover, he added that airlines are currently considering the high operational costs in East Kalimantan, including fuel and aircraft maintenance costs.

Amidst these issues, Sultan Aji Muhammad Sulaiman (SAMS) Airport Sepinggan Balikpapan is striving to reinforce its position as the main hub for IKN Nusantara. Iwan Novi

Hantoro, General Manager of SAMS Airport Sepinggan, revealed several strategies have been implemented and will be carried out to achieve this goal.

"We are committed to continuously improving and upgrading facilities and services at SAMS Airport Sepinggan. Additionally, we actively communicate and collaborate with airlines to develop new routes to and from Balikpapan," he said.

He mentioned that they also conduct promotions and marketing in collaboration with the city government and business players to boost tourism, emphasising the strategic position of the airport as the gateway to IKN Nusantara.

To optimise passenger services in the second half of 2024, Iwan explained that SAMS Airport Sepinggan has prepared several concrete steps. "We provide hospitality training to all frontline staff, improve airport facilities, and have recently completed the terminal beautification," he explained.

However, the potential impact of IKN Nusantara airport's status as a commercial airport remains a significant question. Iwan acknowledged that there has been no further information regarding this matter.

"If the IKN [airport] becomes a commercial airport, flight routes may be divided," he said. Similarly, Head of Class I APT Pranoto Samarinda Airport Unit (UPBU) Maeka Rindra

Hariyanto is also committed to continuously improving and enhancing services for airport users. According to him, these efforts aim to provide the best services and increase potential routes to and from Samarinda. "We will continue to improve and enhance services for airport users, providing the best service and striving to increase potential routes to and from Samarinda," he said.

He stated that their main strategy is improving human resources (HR) quality, especially in public services. "Our strategy is to improve HR quality, especially in public services, through hospitality training and providing flight-related information," he said. He added that APT Pranoto Samarinda Airport Unit will continue to innovate and adapt to the users' needs.

Safety aspects

Previously, it was noted that the government should ensure the safety and security of IKN Nusantara Airport and refrain from rushing the decision on its operational schedule.

Transportation observer Bambang Haryo Soekartono revealed that the presence of dust particles on the runway area and the notion of a Forest Airport remain a concern. According to him, these factors require various improvements to ensure flight safety. "It is better if the airport is perfected in terms of safety and security, as it is intended not only for the general public but also for the President, ministers, and guests of the state," he explained last weekend.

He appreciated the Transportation Ministry's efforts to improve facilities to meet international flight safety, security, and comfort standards. One such effort includes expanding the runway to 45 metres and extending it to 2,500 metres.

However, he noted that there are still issues to be addressed, such as the sides of the runway still consisting of clay, sand, and rocks, which pose a risk of being drawn into aircraft engines and damaging the turbine blades.