Constructing Kediri Airport, Gudang Garam adds funds by Rp2 trillion
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 - Bangun Bandara Kediri, Gudang Garam tambah dana Rp2 Triliun
2 November 2022
By: Ely Rahmawati
PT Gudang Garam Tbk (GGRM) is disbursing Rp2 trillion to its subsidiary, PT Surya Dhoho Investama (SDHI), to support the construction of Kediri Airport in East Java. The additional capital will be disbursed gradually until March 2023.
Based on the information disclosed on the website of Indonesia Stock Exchange (IDX) on Tuesday (1/11/2022), Gudang Garam decided to buy 2 million shares for Rp1 million per share issued by its subsidiary, PT Surya Dhoho Investama (SDHI). The Rp2 trillion affiliated transaction made the total capital placed in SDHI to reach Rp10 trillion.
Hence, the number of SDHI shares owned by GGRM reaches 9,999,999 shares (99.99%), while one share is owned by PT Surya Duta Investama. The change in the amount of SDHI’s capital was stated in a decision at SDHI’s general meeting of shareholders on 31 October 2022, and it will be stated in SDHI’s deed of amendment to the articles of association.
GGRM’s management stated that the disbursement of the additional capital to SDHI would be carried out gradually starting from the initial deposit worth Rp200 billion on 10 November 2022. Meanwhile, the rest will be paid gradually until the end of March 2023 at the latest.
“The purpose of this affiliated transaction is to increase the capital of SDHI to support the continuity of the construction process of Kediri Airport in East Java that is currently being constructed by the company through SDHI,” GGRM’s management wrote.
Kediri Airport is one of the airport projects that is constructed using the public-private partnership (PPP) scheme. Regarding this matter, the construction is carried out by PT Gudang Garam through its subsidiary PT Surya Dhoho Investama.
This airport will have a runway spanning 3,300 x 60 metres, a commercial apron of 548 x 141 metres, a VIP apron of 221 x 97 metres, 4 taxiways, and a parking lot of 37,108 square metres. On the land side, this airport will have a passenger terminal of 18,000 square metres with a capacity of 1.5 million passengers per year.
“The construction project of Dhoho Airport in Kediri can be an example for other private companies. Let us build together the connectivity on land, sea, air, and railways. We are welcoming the role of private companies to participate, and we will provide the best regulations,” Transportation Minister Budi Karya said when he visited the construction of Kediri Airport recently.
Furthermore, the Transportation Minister expressed his appreciation for the regional, provincial, as well as regency governments and PT Gudang Garam that have supported the construction of the airport. “The progress is excellent, and Inshallah (God willing) it can be used in October 2023,” he said.
This airport is expected to smooth out connectivity among regions, especially southern East Java, and boost the growth of new economic, tourism, and trade centres. Besides that, the airport is also expected to serve hajj and umrah flights. “We expect the airport to give prosperity and welfare to citizens around Kediri,” the Transportation Minister said.
