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BKPM Partners with PT Angkasa Pura II to Offer 7 Airport Development Projects

01 Jul 2020

Jakarta, July 1, 2020 - The Investment Coordinating Board (BKPM) in collaboration with PT Angkasa Pura II (Persero) held a Market Sounding project for PT Angkasa Pura II (Persero) projects in order to prepare for the reopening of the economy to new normal conditions.

The activity will be held online (online) on Tuesday, June 30, 2020.

Market Sounding is the initial stage in preparing 7 (seven) infrastructure projects offered by PT Angkasa Pura II (Persero).

This activity aims to get public input and find strategic partners in developing the offered infrastructure project business.

Plt. Deputy for Investment Planning Nurul Ichwan appreciates PT Angkasa Pura II (Persero) for his enthusiasm in disseminating investment opportunities at the current COVID-19 pandemic. BKPM fully supports infrastructure development carried out by PT Angkasa Pura II (Persero).

As the owner and manager of airports in Indonesia, PT Angkasa Pura II (Persero) not only has a vision to become a facility that serves flights, but also wants to make 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 explained.

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

1. 4 Stars 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; management cooperation
advertising at 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; local housing development cooperation and
commercial building (theme park, logistic park, and factory outlet) on a 200 Ha land.

7. Airport City at Supadio International Airport; cooperation in the construction of leisure mall, condotel,
sports clubs, 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 PT Angkasa Pura II (Persero) Ghamal Peris Aulia said that PT Angkasa Pura II (Persero) manages 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 is also one of the busiest airports in Asia and the world, namely 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 the Primary International Hub and Regional Hub is the projected 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 partnership programs with credible investors in their fields, for the 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, in order to provide a promising return on investment for investors even during the COVID-19 pandemic.

Market Sounding was attended by more than 250 participants from Indonesia and abroad, who came 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 association.