Japan interested in airport development and operation in Indonesia

  • 22 Jan 2024

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily -  Jepang minati pengembangan dan pengelolaan Bandara Indonesia

22 January 2024

By Ichsan Amin

Jakarta, ID – The Japanese government through the Ministry of Land, Infrastructure, Transportation, and Tourism stated that they were interested in the construction and operation of airports in Indonesia.

Airport Director of the Air Transportation Directorate General of the Transportation Ministry Lukman F. Laisa disclosed that Japanese investors have expressed interest in Sultan Aji Muhammad Sepinggan Airport in Balikpapan, East Kalimantan. This revelation took place at Air Transportation Working Group (ATWG) held 18-20 January in Bandung, West Java.

“There are four companies that have stated their interest and intention to develop and operate airports in Indonesia, with a specific focus on Balikpapan. Their goal is to enhance the functions of Sultan Aji Muhammad Sepinggan Airport in Balikpapan that acts as the entrance gate to Nusantara Capital City,” Lukman explained in Jakarta on Sunday (21/1/2024).

The four companies are Japan Airport Terminal, JALUX, Taisei, and SECOM. They bring a wealth of experience in constructing and operating airports. Notably, they have successfully managed airports in Japan, including Haneda Airport and Narita Airport. Additionally, their expertise extends to international ventures, having contributed to airports such as Beijing International Airport in China and New Ulaanbaatar Airport in Mongolia.

Lukman emphasized that Japan's extensive experience, technology, and expertise in developing and operating airports, both domestic and international, position them as valuable contributors to the growth of the aviation industry in Indonesia.

Besides Japan’s interest in the development and operation of airports in Indonesia, the Transportation Ministry also discussed the proposal to add more flight routes to Japan. “On the other hand, we have also affirmed our commitment to use an alternative fuel called Sustainable Aviation Fuel (BioAvtur) in Indonesia,” he added.

ATWG is a vice-ministerial level meeting between Indonesia and Japan in the transportation sector. Notably, this meeting has convened for the 11th iteration.

Airport Director Lukman F. Laisa and Air Transportation Director Putu Eka Cahyadhi represented the Air Transportation Director General at the event. Nukushina Seiji, the Director of the International Airport Office at the Civil Aviation Bureau, represented Japan’s Ministry of Land, Infrastructure, Transportation, and Tourism. Meanwhile, Yamakhosi Toshihiro, Assistant Vice-Minister for International Aviation and Minister’s Secretariat/Japan Civil Aviation Bureau, delivered closing remarks online.

The Transportation Ministry highlighted that the number of aircraft passengers could reach 115 million passengers this year, growing 21% from 95 million passengers last year. This optimistic outlook is backed by various factors, including enhanced capacity on established flight routes, effective codeshare management on both international and domestic routes, the addition of new air transportation businesses, and ongoing improvements to airport infrastructure.

In the middle of 2024, domestic flights are set to offer a capacity of 105.9 million seats, while international flights will provide 49.8 million seats. This results in a combined total capacity of 155.7 million seats for accommodating aircraft passengers.

Cooperation of developed countries required

Meanwhile, aviation observer Gatot Aribowo said that the number of passengers expected by the Air Transportation Directorate General of the Transportation Ministry could be realised through enhanced airline and airport management. According to him, focusing on airline management entails the necessity to increase both the capacity and number of aircrafts.

“Meanwhile, in terms of airport management, besides a more efficient airport management, management cooperation with other countries also need to be established,” he revealed to Investor Daily.

Airport management cooperation with other countries has advanced, particularly in the realm of the airport management system. The cooperation is also expected to open new routes to these countries.

“I think that Japan’s interest is a positive signal. Moreover, if we reflect on the management of Kualanamu Airport operated by PT Angkasa Pura II (AP II) with India. With Japan, their more advanced airport management system will improve the quality of our airports,” he added.

AP II is currently managing 20 airports, namely Soekarno-Hatta Airport (Jakarta), Halim Perdanakusuma Airport (Jakarta), Kualanamu Airport (Medan), Supadio Airport (Pontianak), Minangkabau Airport (Padang), Sultan Mahmud Badaruddin II (Palembang), Sultan Syarif Kasim II Airport (Pekanbaru), Husein Sastra Negara Airport (Bandung), Sultan Iskandar Muda Airport (Banda Aceh), Raja Haji Fisabilillah Airport (Tanjungpinang), Sultan Thaha Airport (Jambi), Depati Amir Airport (Pangkalpinang), Silangit Airport (North Tapanuli), Kertajati Airport (Majalengka), Banyuwangi Airport (Banyuwangi), Tjilik Riwut Airport (Palangka Raya), Radin Inten II Airport (Lampung), H.A.S Hanandjoedin Airport (Tanjung Pandan), Fatmawati Soekarno Airport (Bengkulu), and Jenderal Besar Soedirman Airport (Purbalingga).

Meanwhile, PT Angkasa Pura I currently manages 16 airports in Indonesia, namely I Gusti Ngurah Rai Airport in Bali, Juanda Airport in Surabaya, Sultan Hasanuddin Airport in Makassar, Sultan Aji Muhammad Sulaiman Sepinggan Airport in Balikpapa, Frans Kaisiepo Airport in Biak, Sam Ratulangi Airport in Manado, Syamsudin Noor Airport in Banjarbaru, Ahmad Yani Airport in Semarang, Adisutjipto Airport in Yogyakarta, Yogyakarta International Airport in Kulon Progo, Adi Soemarmo Airport in Surakarta, Lombok International Airport in Praya, Pattimura Airport in Ambon, El Tari Airport in Kupang, Sentani Airport in Jayapura, and Hang Nadim Airport in Batam.

The combined passenger traffic at airports managed by AP I and AP II has reached 149.9 million. Specifically, AP I's managed airports recorded 69.8 million passenger movements and AP II's managed airports saw 80.1 million passengers.

 

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