Angkasa Pura

AP II Announces Kualanamu International Airport Strategic Partnership Tender Winners

Jakarta - PT Angkasa Pura II (Persero) as a member of InJourney Holding focuses on increasing the optimization of all assets, one of which is Kualanamu International Airport in Deli Serdang, North Sumatra, through strategic partnerships.

In line with that, the management and development of Kualanamu International Airport is carried out under a strategic partnership scheme for a period of 25 years with a cooperation value of around US$6 billion including investments from strategic partners of at least Rp15 trillion.

This strategic partnership scheme will combine the resources of AP II and strategic partners, so as to accelerate the development of Kualanamu International Airport to become the main international hub and gateway as well as a business district in western Indonesia.

Meanwhile, in seeking this strategic partner, AP II held a professional and transparent tender which was participated by various global companies. After going through a series of tender processes, the GMR Airports Consortium was determined as the winner of the tender.

The determination of the winner of this tender is also through an evaluation process by a jury consisting of aviation industry experts, practitioners, academics, and AP II, accompanied by a notary and the Financial and Development Supervisory Agency (BPKP).

GMR Airports Consortium is a Strategic Investor owned by GMR Group from India and Aéroports de Paris Group (ADP) from France, which are airport operator networks that serve the most passengers in the world. Currently, GMR Airport manages New Delhi's Indira Gandhi International Airport (Best Airport in India and Central Asia by Skytrax 2019-2021), Hyderabad International Airport in India, Bidar Airport in India, Mactan Cebu International Airport in the Philippines, and is currently developing Goa International. Airport in India, Visakhapatnam International Airport in India, and Crete International Airport in Greece.

AP II and GMR Airports Consortium will become shareholders in the joint venture company (JVCo), namely PT Angkasa Pura Aviasi, which manages Kualanamu International Airport. AP II controls a 51% majority stake in PT Angkasa Pura Aviasi, while GMR Airports Consortium has 49%.

Today, Tuesday 23 November 2021, at the Ministry of BUMN, an Awarding Ceremony was held for the winner of the Kualanamu International Airport Strategic Partnership auction, which was attended by Deputy Minister of BUMN II Kartika Wirjoatmodjo, Deputy President Director of InJourney Holding Edwin Hidayat, President Director of AP II Muhammad Awaluddin, AP II Board of Commissioners, and GMR Airports Consortium.

Deputy Minister of SOEs II Kartika Wirjoatmodjo said that the strategic partnership between AP II and global partners would accelerate the development and increase the competitiveness of Kualanamu International Airport in ASEAN, in line with the goal of Kualanamu International Airport to become an international hub.

“The strategic partnership between AP II and global partners can strengthen the capital structure and strengthen the application of global best practices in the management and development of Kualanamu International Airport. As for the existing assets, as well as the results of future asset development from this collaboration, AP II will fully own 100% of it.”

"The success of this collaboration is a positive signal for Indonesia's investment climate, especially in the air transportation sector. In addition, it is hoped that with the implementation of this collaboration, it can pave the way for other Foreign Direct Investment (FDI) to enter Indonesia," said Deputy Minister of SOE II.

Deputy President Director of Holding InJourney Edwin Hidayat said this strategic partnership model is one of the right strategies to encourage services in the field of air transportation which will also have an impact on tourism competitiveness.

"In the future we will also encourage other members of Holding InJourney to also optimize assets through strategic partnerships so that business development can be carried out together with investors, and can also penetrate into other countries as global partners of business actors in the country," said Edwin Hidayat.

AP II President Director Muhammad Awaluddin said the company set a number of criteria that must be met by strategic partners at Kualanamu International Airport.

"Development at Kualanamu International Airport is focused on strengthening international connectivity and involving the private sector to realize 3E, namely Expansion the traffic, Expertise sharing and Equity partnership. Aviation traffic will increase, then there will be a transfer of technology and expertise, as well as a share of capital at Kualanamu International Airport.”

"We have criteria that must be met by strategic partners, including having experience and a network of both airports and airlines so that Kualanamu International Airport will later become part of the network and synergize in developing routes and services for airlines, passengers and cargo," explained Muhammad Awaluddin.

Muhammad Awaludin added that GMR had also conveyed its plan to develop Kualanamu International Airport, by targeting up to 54 million passengers in the 25th year of the partnership, or equivalent to the current Soekarno Hatta Airport.

Chairman of GMR Group's energy and international airport vertical Srinivas Bommidala said, "GMR Airports Limited is proud to be announced as the winner of the tender for the development and operation of Kualanamu International Airport in Medan, Indonesia. GMR also appreciates the process carried out in a professional, transparent manner as well as negotiations based on mutual benefits for AP II and investors."

“This project marks the entry of GMR Airports in the fast-growing Indonesian aviation market - the largest in ASEAN and has high potential. (committed) to transform the airport into an international hub in the western region of Indonesia. The victory from this offer also strengthens GMR Group's as one of the largest airport developers and managers in the world," said Srinivas Bommidala.