Angkasa Pura

Aviation Traffic Increases, Airports Get Busier, AP II Prospects Are Raised So Stable

- Pefindo affirms its idAA+ rating and revised the outlook for AP II's rating to stable from negative

- AP II projects that passenger movements will reach 57 million passengers in 2022 or an 83% increase

Jakarta - PT Angkasa Pura II is considered to have better prospects in line with the increase in flight traffic at the company's airports.

Over the next 1 year or so, to be precise for the period September 8, 2022 to September 1, 2023, PT Pemeringkat Efek Indonesia (Pefindo), which is a securities rating agency, affirmed the idAA+ rating for AP II and revised the outlook for the rating to stable from negative previously. Pefindo also affirmed its idAA+ rating for its Bonds I/2016 and Shelf-Registered Bonds I/2018.

In his statement, Pefindo explained that the upward revision of AP II's prospects was in line with the increase in flight traffic at airports managed by AP II.

"This change reflects a continuous improvement in the number of traffic in line with the relaxation of restrictions due to the Covid-19 pandemic, where APIA (AP II) recorded passenger traffic of 27.9 million in the first half of 2022 (1H2022) compared to 16.1 million in the first semester of 2022. first year 2021 (1H2021) or equal to 73% growth on an annual basis," Pefindo wrote in an official statement.

AP II President Director Muhammad Awaluddin welcomed the results of Pefindo's rating, which confirmed the idAA+ rating and increased prospects for stability.

“The revised outlook to stable is certainly good news for AP II. This cannot be separated from the success of AP II in realizing very strong airport operations in the midst of the pressure of the COVID-19 pandemic, and of course because of the handling of the pandemic which continues to improve."

"AP II is very grateful to have resources that are ready to respond to dynamic conditions in the midst of a pandemic, so that all AP II airports can make various operational adjustments to accommodate people's needs for flights and maintain air connectivity in the country," said Muhammad Awaluddin.

In the midst of the COVID-19 pandemic, all AP II airports, totaling 20 airports, continue to operate by implementing adjustments to operational patterns and operating hours. In fact, Soekarno-Hatta Airport in Tangerang, Banten, continues to operate 24 hours a day.

In line with the increase in flight traffic, Soekarno-Hatta Airport also made adjustments by re-opening Terminal 1A on April 1, 2022 to serve aircraft passengers, completing the operations of Terminal 2 and Terminal 3.

In addition, the Skytrain at Soekarno-Hatta Airport will be operated again in June 2022 as a mode of transportation to support inter-terminal mobility and airport train stations.

Looking at the latest developments related to flight traffic, AP II projects that in January - December 2022 the number of passenger movements can reach 57 million passengers or skyrocket up to 83% compared to the realization in January - December 2021 of around 31 million passengers.

"Flight traffic in 2022 is much better than March - December 2020 at the beginning of the pandemic and compared to January - December 2021. The improvement in flight traffic this year is because the pandemic situation is under control," said Muhammad Awaluddin.

Source of income
Pefindo also stated that the idAA+ rating with a stable outlook was also influenced by AP II's strong competitive position as the largest airport operator in the country and well-diversified revenue sources.

Muhammad Awaluddin said this well-diversified income was obtained by the company by implementing the Asset Recycling strategy in the midst of the pandemic, through three programs namely Asset Optimization, Asset Acceleration and Asset Utilization.

"Asset Optimization is to encourage existing assets that already generate income to have added value so that income increases, then Asset Acceleration to make assets under construction can generate income before construction is completed 100%, then Asset Utilization is to encourage idle assets to be developed to generate revenue. new," said Muhammad Awaluddin.

Organic asset utilization involves 5 subsidiaries, namely PT Angkasa Pura Solusi, PT Angkasa Kargo, PT Angkasa Propertindo, PT Angkasa Pura Aviasi and PT Gapura Angkasa, as well as other affiliated companies.