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BKPM Partners with AP II to Offer 7 Airport Development Projects

01 Jul 2020

REPUBLIKA.CO.ID, JAKARTA - The Investment Coordinating Board (BKPM) in collaboration with PT Angkasa Pura II conducted market sounding activities for various projects in PT Angkasa Pura II. This activity is in preparation for the reopening of the economy to new normal conditions.

Market sounding was held online on Tuesday (6/30) yesterday. Market sounding is the initial stage in preparing 7 infrastructure projects offered by PT Angkasa Pura II.

Then, the activity aims to get public input. At the same time looking for strategic partners in developing the offered infrastructure project business.

Acting Deputy for Investment Planning at BKPM Nurul Ichwan appreciated PT Angkasa Pura II for its enthusiasm in disseminating its investment opportunities in the current condition of the Covid-19 pandemic. BKPM fully supports infrastructure development carried out by the company.

As the owner and manager of airports in Indonesia, PT Angkasa Pura II not only has a vision to be a facility that serves flights. But also want to make airports in Indonesia as a future airport with a convenient infrastructure and integrated with the surrounding area.

"We support this activity because infrastructure development and economic progress are closely linked. This has been proven when the government focuses on infrastructure development in Eastern Indonesia, "Nurul explained.

In the end, he continued, economic activities, especially increasing investment in Eastern Indonesia, are getting better. "So whatever we do, infrastructure must be present before other businesses are present," he said.

On this occasion, PT Angkasa Pura II explained 7 infrastructure projects offered, namely first, the 4 Stars Hotel at Soekarno Hatta Airport International Terminal, hotel management cooperation for 20 years. Second, the Aeroland City Development Project at Tangerang, collaborating on land development for Business Park, Service Apartment, residential, school, and warehousing.

Third, Retail Area Management for AP II Airports, cooperation in managing retail area at 17 Airport AP II. Fourth, Concession Agreement for Advertising Management for AP II Airports, cooperation in managing advertising at 17 AP II Airports, including Soekarno Hatta Airport. Fifth, Sky City at Soekarno Hatta Airport, development cooperation with the concept of TOD (Transit Oriented Development), Convention Center, and Service Apartment.

Sixth, Airport City at Kualanamu International Airport, cooperation in the construction of local housing and commercial buildings (theme parks, logistics parks, and factory outlets) on 200 hectares of land. Seventh, Airport City at Supadio International Airport, cooperation in the construction of leisure malls, condotels, sport clubs, and entertainment in one region.

"We hope that from the 7 projects offered, when there are investors, we will see the multiplier effects created. So that it can make a good contribution to Indonesia's economic growth, "added Nurul.

PT Angkasa Pura II's Commercial Director Ghamal Peris Aulia said, PT Angkasa Pura II manages 19 airports throughout Indonesia. The provision of these 7 infrastructure projects aims to improve the quality of service to airport service users and create a good customer experience, effectiveness and efficiency of the operating system, as well as a competitive business model.

In line with projections that Indonesia's economic growth will improve, the aviation industry and aerospace are believed to be revived. This is also supported by government regulations for the aviation industry.

"The company as the largest airport manager in Indonesia, which is also one of the busiest airports in Asia and the world, is Soekarno Hatta International Airport, which serves 54.2 million passengers in 2019 and 94 million corporations. "Of course, faced with the challenge of how to make acceleration in business dynamics," explained Ghamal.

As an illustration, the potential of Soekarno Hatta International Airport as the Primary International Hub and Regional Hub is a projection of the growth of air transport movements for Soekarno Hatta International Airport which is always increasing from year to year.

"Hopefully this good opportunity facilitated by BKPM can be utilized optimally by market sounding participants and can provide added value in future cooperation," said Ghamal.

Referring to the business development potential in the increasingly dynamic airport industry, one of the business acceleration efforts that will be carried out is by conducting a partnership program with credible investors in their fields. Please note, these 7 projects have a total value of Rp 16 trillion or more than 1 billion US dollars.

Meanwhile, cooperation is carried out in the long term, up to 25 years. The aim is to provide a promising return on investment for investors, even during the Covid-19 pandemic.

For information, Market Sounding activities were attended by more than 250 participants from Indonesia and abroad. They come from private companies and SOEs in the field of construction, developers / developers, airport managers, retailers, advertising, logistics, aviation, area managers, financial institutions, consultants, and business associations.