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This is AP II's way of maintaining finances while developing important airport infrastructure in the midst of a pandemic

15 Dec 2021

AP II on time, paid off the Principal of Sustainable Bonds I Angkasa Pura II Phase I 2018 Series A of IDR 200 billion, and paid 2 bond coupons worth IDR 16.63 billion and IDR 22.45 billion

Jakarta - The COVID-19 pandemic presents the toughest challenge in history for the global aviation world, including in Indonesia.

Responding to this challenge, PT Angkasa Pura II (Persero) which manages 20 airports in Indonesia has implemented a Business Survival strategy by tightening cost leadership (measures the results obtained with the costs incurred) in each program, as well as cash flow management (regulation of cash outflows and flows). ) efficiently.

As an effort to improve cost leadership and cash flow management in the midst of the pandemic, AP II has implemented a supplier financing scheme to maintain infrastructure development and development which is considered important to support airport operations and national economic recovery.

PT Angkasa Pura II (Persero) Director of Finance and Risk Management Wiweko Probojakti said that AP II signed a supplier financing scheme together with PT Wijaya Karya (Persero) Tbk and Bank Mandiri to finance 4 jobs with a maximum value of IDR 400 billion.

The four works are the construction of a domestic hotel at Soekarno-Hatta Airport Terminal 3, continued construction services for accessibility works, widening and extending the Banyuwangi Airport runway, and the expansion of the Soekarno-Hatta Airport Terminal 3 building.

"Supplier Financing is one of the funding options with a simple process and competitive interest, because there are 3 parties' interests there, namely AP II as the employer, then WIKA as the contractor (supplier) and Bank Mandiri as the financial institution that carries out the financing so that this can be done. realizing cost leadership,” Wiweko Probojakti, who is usually called Dodit.

Dodit explained that through this supplier financing option, the bank will first pay the bill from the contractor. This scheme will make AP II more efficient in managing cash flow.

"This supplier financing option is also to ensure that infrastructure development at AP II airport can continue so that airport competitiveness can be maintained and support national economic recovery," explained Dodit.

Pay off bonds
Cost leadership and efficient cash flow management are supported by the application of the supplier financing concept, indirectly helping AP II to fulfill its obligations while maintaining the sustainability of airport infrastructure development.

On December 10, 2021, AP II has repaid the principal of the Angkasa Pura II Shelf-Registered Bonds I Phase I 2018 Series A of IDR 200 billion.

In addition, on the same date, AP II also paid coupons for the 12th Series A&B Shelf-Registered Bonds I Angkasa Pura II 2018 of IDR 16.63 billion.

Meanwhile, on December 29, 2021, AP II will pay interest on the 22nd Series B&C Shelf-Registered Bonds I Angkasa Pura II 2016 worth Rp22.45 billion.

The repayment of principal and coupon bonds carried out by AP II is in accordance with the maturity schedule.

Dodit said that this timely payment of obligations is a form of AP II's commitment to creditors and bondholders.

"The repayment of the bond principal and the payment of the bond coupon, in addition to our high commitment to creditors and bondholders, also shows that AP II's fundamentals are improving."

President Director of AP II Muhammad Awaluddin said the improvement in AP II's fundamentals was supported by the Business Survival strategy and airport operations that were able to adapt in the midst of a pandemic.

"AP II maintains the operations of the airports it manages through implementing resilient operations, adapting quickly (agility operations) that prioritize lean operations so that they can face the challenges of the COVID-19 pandemic well," explained Muhammad Awaluddin.

In line with this, Soekarno-Hatta Airport managed by AP II can continue to operate 24 hours a day even in the midst of a pandemic.

Air traffic at Soekarno-Hatta Airport, which is the largest and busiest airport in Indonesia, is also gradually recovering, with the recovery ratio reaching 70% in the fourth quarter of 2021.

"This means that the condition of flight traffic at Soekarno-Hatta Airport in Quarter IV/21 has reached 70% of the conditions before the pandemic, namely in 2019," said Muhammad Awaluddin.

Muhammad Awaluddin said that the recovery in flight traffic also contributed to the improvement of AP II's fundamentals.