BKPM Collaborates with Angkasa Pura to Offer 7 Airport Development Projects

Indonesia Investment Coordinating Board (BKPM) in collaboration with PT. Angkasa Pura II (Persero) conducted Market Sounding of Angkasa Pura II projects to prepare for reopening of the economy to new normal conditions. The event was held online on June 30, 2020. The Market Sounding was the initial stage in preparing 7 (seven) infrastructure projects offered by Angkasa Pura II. This event aims to get public input as well as to find strategic partners in developing the offered infrastructure project business.

Acting Deputy Chairman for Investment Planning Nurul Ichwan appreciates Angkasa Pura II for their enthusiasm in disseminating investment opportunities at the current COVID-19 pandemic. BKPM fully supports infrastructure development implemented by Angkasa Pura II. As the owner and manager of the airports in Indonesia, Angkasa Pura II not only has the vision to be a facility that serves flights, but also wants to make the airports in Indonesia a future airport with a convenient and integrated infrastructure with the surrounding area.

“We support this activity because infrastructure development and economic progress have close links. This has been proven when the government focuses on infrastructure development in Eastern Indonesia. In the end, economic activities, especially increased investment in Eastern Indonesia, are getting better. So whatever we do, infrastructure must be present before other businesses are present, “Nurul said.

On this occasion, Angkasa Pura II outlines 7 (seven) infrastructure projects offered, namely:

1. 4-Star Hotel at Soekarno Hatta Airport International Terminal; hotel management cooperation for up to 20 years.

2. Aeroland City Development Project at Tangerang; land development cooperation for Business Park, Service Apartment, residential, school, and warehousing.

3. Retail Area Management for AP II Airports; cooperation in managing retail area at 17 Airport AP II.

4. Concession Agreement for Advertising Management for AP II Airports; advertising management cooperation in 17 AP II airports, including Soekarno Hatta Airport.

5. Sky City at Soekarno Hatta Airport; development cooperation with the concept of TOD (Transit Oriented Development), Convention Center, and Service Apartment.

6. Airport City at Kualanamu International Airport; cooperation in the construction of local housing and commercial buildings (theme parks, logistic parks, and factory outlets) on a 200-hectare land.

7. Airport City at Supadio International Airport; cooperation in the construction of leisure malls. Condotels, sports club, and entertainment in one region.

“We expect from the 7 (seven) 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.

Commercial Director of Angkasa Pura II Ghamal Peris Aulia said that they manage 19 airports throughout Indonesia. The provision of 7 (seven) infrastructure projects is aimed at improving the quality of service to airport service users and creating 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.

“PT. Angkasa Pura II (Persero) as the largest airport manager in Indonesia. Which also one of the busiest airports in Asia and the world, that 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. As an illustration, the potential of Soekarno Hatta International Airport as a Primary International Hub and Regional Hub 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 business development potential in the increasingly dynamic airport industry, one of the business acceleration efforts to be done is to conduct partnership programs with credible investors in their field, for 7 (seven) projects with a total value of IDR 16 trillion or more than USD 1 billion. The cooperation is carried out on a long-term basis, up to 25 years, to provide a promising return on investment for investors even during the COVID-19 pandemic.

Market Sounding was virtually attended by more than 250 participants from Indonesia and abroad, from private companies and SOEs in construction, developers, airport managers, retailers, advertising, logistic, aviation, area managers, financial institutions, consultants, and business association.