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Kualanamu Airport Prepared to Become an Engine of North Sumatra's Economic Growth

14 Sep 2021

AP II and BKPM held a market sounding introducing hotel projects, convention halls, theme parks, hospitals, factory outlets, e-commerce warehouses, and others

Jakarta - PT Angkasa Pura II (Persero) developed Kualanamu Airport (Deli Serdang) to become one of the engines of economic growth in North Sumatra.

These various developments involve domestic or foreign investors.

“Kualanamu Airport is one of the infrastructures to support Sumatra, especially North Sumatra, as a mainstay destination for industry, business and tourism. Kualanamu Airport is also in a strategic position to become an international transit airport. This airport will be the engine of economic growth in North Sumatra," said Muhammad Awaluddin, President Director of AP II.

A number of developments will be carried out in the Kualanamu Airport area which has a total area of ​​1,365 hectares.

In optimizing the assets of Kualanamu Airport, AP II applies the Asset Recycling Initiative policy.

"Through the Asset Recycling Initiative, AP II's assets will be managed by subsidiaries by implementing a business-to-business pattern such as leases, concessions, and revenue sharing. Thus, the subsidiary's contribution does not only come from dividends but also direct income contributions to the parent," explained Muhammad Awaluddin.

In line with this, AP II's assets at Kualanamu Airport will be managed by the company's subsidiary, PT Angkasa Pura Aviasi (APA).

On September 16, 2021, AP II together with PT Angkasa Pura Aviasi (APA) and the Investment Coordinating Board (BKPM) held a market sounding interest to introduce 3 development projects for the Kualanamu Airport area to potential investors. The three development projects are:

1. Airport City
Airport City will be built on an area of ​​135 hectares consisting of a hotel, convention hall, golf course & driving range, theme park, retail and hospital.
The existence of this Airport City is projected to accommodate the needs of three main locations, namely Medan, Belawan (logistics center), and Tanjung Morawa (industrial zone).

2. Commercial area
The planned development of a commercial area (integrated commercial area) introduced in market sounding will stand on a 20 hectare land, which will be used for factory outlets to meet the needs of tourists and also the needs of Medan as the largest economic center in Sumatra.

3. E-commerce specialized warehousing
The e-commerce center warehouse area will be built on an area of ​​2 hectares. The existence of this special warehousing will accommodate the needs as the e-commerce market in Indonesia expands.

Director of PT Angkasa Pura Aviasi Haris said that the market sounding will be attended by potential investors and consultants in the country and from abroad.

“Market sounding is the initial stage to introduce a development project and to officially obtain a letter of intent (LoI) from potential investors. Then, the next stage is the bidding process, determining the winner, and signing the contract,” explained Haris.

Haris revealed that the location of Kualanamu Airport, which is quite close to Medan, only about 39 km, is an attraction for potential investors to develop an economic center in the airport area.

"Access to Kualanamu Airport is currently also supported by various alternatives, ranging from the Medan-Kualanamu-Tebing Tinggi toll road to access by Railink airport train with travel time from the airport to Medan city center only about 30 minutes," said Haris.

Kualanamu Airport currently has a passenger terminal capacity of 9 million people per year, and has a 4-star status from Skytrax which means this airport is able to provide good quality in terms of service. The highest rating from Skytrax itself is 5 Stars.

Kualanamu Airport Strategic Partnership
Meanwhile, PT Angkasa Pura Aviasi is currently also in the stage of looking for strategic partners to become partners in managing and developing Kualanamu Airport. The strategic partner will later become a maximum shareholder of 49% in PT Angkasa Pura Aviasi, while the 51% share will be controlled by AP II.

"On the one hand, a strategic partner selection is being carried out to become a shareholder in PT Angkasa Pura Aviasi, and on the other hand PT Angkasa Pura Aviasi is also looking for investors for the Kualanamu Airport area development project," Haris explained.

This development model at Kualanamu Airport will be profitable and accelerate the increase in airport capacity by involving the private sector, in order to realize 3E, namely Expansion The Traffic, Expertise Sharing and Equity Partnership.

Kualanamu Airport is projected to be able to serve 44 million aircraft passenger movements per year and facilitate cargo transportation of up to 292,000 tons per year.