Wijaya Karya executes Rp2tn Hang Nadim Airport development project
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 - Wijaya Karya eksekusi proyek engembangan Bandara Hang Nadim Rp2 T
4 November 2022
PT Wijaya Karya (Pesero) Tbk (WIKA) will start the development project of Batam’s international airport worth Rp2.18 trillion after PT Bandara Internasional Batam (BIB) has officially issued the commencement of work (COW) that appoints the company as the implementing contractor. Besides a contractor, WIKA is also BIB’s shareholder with 19% ownership.
WIKA President Director Agung Budi Waskito said that the involvement of the company as an investor as well as the implementing contractor in the development of Batam’s international airport was a step forward to strengthen the company’s business in the airport construction sector. Hence, Agung appreciates the trust that has been put in the company to be the implementing contractor for the development project of Hang Nadim Airport.
“With an extensive experience and portfolio in the domestic and international airport construction sector, we are ready to answer the trust by completing the development project of Batam’s international airport in accordance with the set quality and time that have been agreed upon,” Agung revealed in his official statement on Thursday (3/11/2022).
Agung said that the plan to develop the international airport includes Terminal I restoration, Terminal II construction, apron expansion, and development of several airside and landside facilities. The development of the airport is set to take 36 months or three years.
Meanwhile, BIB President Director Pikri Ilham Kurniansyah wants the result of the construction from the design to be in line with the COW to realise the hopes of stakeholders for a design that represents Batam characteristics. “Hang Nadim International Airport is prepared to serve flights to Asia and other regions in Indonesia that are not necessarily connected to Batam,” Pikri added.
PT BIB is a consortium established by three companies, namely PT Angkasa Pura I (Persero), Incheon International Airport Corporation (IIAC), and PT Wijaya Karya (Persero) Tbk. Regarding the share ownership, BIB owns 19%, IIAC 30%, and AP I 51%.
Wijaya Karya Corporate Secretary Mahendra Vijaya explained that WIKA’s investment in Hang Nadim Airport in Batam has a concession period of 25 years that will produce an internal rate of return (IRR) of 11.52%. Based on the financial forecast for the next 25 years, the net present value (NPV) from the cash flow and the discount rate of 11.18% shows a positive NPV that reaches Rp681 billion.
