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PT Angkasa Pura II's Business Will Grow Positive in 2019, Preparing to Implement Advance Technology Innovation Next Year

22 Dec 2019

Jakarta - In the midst of severe challenges in the national aviation market, PT Angkasa Pura II (Persero) can still close this year by maintaining a positive trend of business growth and airport operations.

Regarding business aspects, during January - December 2019, PT Angkasa Pura II is estimated to reap revenues reaching Rp9.53 trillion, up 1% compared to January - December 2018 of Rp9.48 trillion.

The increase in revenue was achieved by the company amid the decline in the number of airplane passengers in the national market because the price of airplane tickets in 2019 was considered more expensive compared to 2018. Total in the national market, the decline in passenger numbers this year is predicted to reach 18-20% compared to last year.

PT Angkasa Pura II President Director Muhammad Awaluddin said the company managed to keep revenue growing through a number of strategies including expanding business portfolios, making efficiencies, and increasing traffic on international routes.

"Through this strategy, PT Angkasa Pura II is now slowly no longer dependent on passenger service charge [PSC] revenues, so that the company's revenue can continue to grow even though the number of airplane passengers is down," said Muhammad Awaluddin.

The PSC itself is the aeronautical business of PT Angkasa Pura II, which comes from the contribution of aircraft passengers to services and facilities at the airport.

"If we do not expand our business portfolio, it is possible that revenues will decline along with the decline in the number of airplane passengers in the domestic market. However, we managed to maintain revenue growth, "said Muhammad Awaluddin.

The strategy to expand the business portfolio carried out in 2019 includes increasing share ownership in PT Gapura Angkasa to 46.62% so that PT Angkasa Pura II is now a controlling shareholder.

Muhammad Awaluddin said PT Gapura Angkasa had very bright business prospects with operational networks in more than 50 airports in Indonesia. The main business of PT Gapura Angkasa itself is ground handling services in addition to also having a cargo business and aircraft passenger assistance at the airport.

In addition, the Digital Business run by PT Angkasa Pura II since 2018 has grown significantly this year. The company's Digital Business is divided into three parts namely Airport E-Commerce, Airport E-Payment, and Airport E-Advertising.

PT Angkasa Pura II also boosted the performance of its subsidiaries namely PT Angkasa Pura Propertindo (APP), PT Angkasa Pura Solusi (APS) and PT Angkasa Pura Kargo (APK).

"In order to increase the company's revenue, we also strive to increase revenues from commercial businesses at each airport. Like for example the commercial area at the aircraft passenger terminal. "

"In general, we are trying to increase the revenue of the nonaeronautika business this year and indeed it is successful. In 2019 it is estimated that revenue from the nonaeronautical business of PT Angkasa Pura II will increase by 10% compared to 2018 or from Rp3.47 trillion to Rp3.86 trillion, "said Muhammad Awaluddin.

Along with a positive trend that can be maintained, next year PT Angkasa Pura II targets operating revenues to reach Rp 12.7 trillion. This condition is optimistically achieved by inorganic business development.


Airport Development and Operations
Throughout 2019 PT Angkasa Pura II succeeded in achieving a number of targets set by the government in terms of airport infrastructure development.

The new infrastructure that has been operated this year and has a wide impact on the national airport sector is East Connection Taxiway (ECT) and Runway 3 at Soekarno-Hatta International Airport.

"Soekarno-Hatta is the largest and busiest airport in Indonesia, and the various developments there will help encourage the growth of the national airport sector. In addition, Soekarno-Hatta will also be increasingly optimal in supporting economic growth and tourism in Indonesia, "said Muhammad Awaluddin.

Through ECT and Runway 3, Soekarno-Hatta will gradually be able to serve 114 flights per hour.

This year, PT Angkasa Pura II also increased the effectiveness and efficiency of airport operations through digital implementation. Moreover, all PT Angkasa Pura II airports are now also equipped with digital service facilities for aircraft passengers.

PT Angkasa Pura II has also updated the Indonesia Airports application to further improve user experience for the better and easier.


Roadmap 2020 - 2024
Starting next year, PT Angkasa Pura II will carry out Corporate Strategic Transformation 4.0 in 2020 - 2024. The focus, Angkasa Pura II is to develop airports and improve services through technology innovation such as artificial intelligence, internet of things, big data analytics, roboting, automation, virtual reality to augmented reality.

"Angkasa Pura II wants to make the airport a center of economic activity that is able to accommodate the needs and demands of customers and the wider community," explained Muhammad Awaluddin.

The Corporate Strategic Transformation 4.0 program at the same time ordained Angkasa Pura II as a pioneer in digitizing services and operations at the airport in order to achieve the vision of the Best Smart Connected Airport Operators in the Region.