INA-AP II signs cooperation agreement for Soekarno-Hatta Airport development
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 - INA-AP II Teken Kerja Sama Pengembangan Bandara Soekarno-Hatta
12 October 2021
By: Indah Handayani and Thresa Sandra Desfika
Jakarta – Indonesia Investment Authority (INA) and PT Angkasa Pura/AP II (Persero) have signed two preliminary agreements to establish a strategic partnership to manage and develop Soekarno-Hatta Airport and Soekarno-Hatta Airport Cargo Village. This is in line with Soekarno-Hatta Airport’s role as an important infrastructure that strengthens economic growth as well as improves Indonesia’s competitiveness. Hence, the airport’s development and management standards must be continuously accelerated.
INA Board of Directors Chairperson, Ridha Wirakusumah, is optimistic about the cooperation. Through strategic partnership with Angkasa Pura II, he said that INA would provide the best management and practice in the world for airport services and cargo management, which would support the global airport’s management and operation as Indonesia’s main gate.
“Soekarno-Hatta Airport can provide the best service that is in line with the global best practice, realise all of its potentials, and become the key that drives the air logistics sector in Indonesia,” RIdha revealed in his official statement in Jakarta on Monday (11/10).
A strategic partnership with AP II is in line with INA’s focus to invest in several main sectors, such as airports, ports, toll roads, industrial estates, digital infrastructure, health services, and renewable energy. Adequate airport and cargo management can improve Indonesia’s competitiveness in the air logistics sector. Moreover, this strategic partnership ensures that all existing assets and assets that will be built in Soekarno-Hatta Airport will be fully owned by AP II.
AP II President Director, Muhammad Awaluddin, added that the strategic partnership with INA would immediately improve the competitiveness of Soekarno-Hatta Airport in the regional and the global level. Through the partnership with INA, several developments are being carried out to provide the best service for users and to transform cargo services in Soekarno-Hatta Airport. The cargo village in Soekarno-Hatta Airport that is fitted with state-of-the-art technologies will mark the start of a new and modern era for air cargo services in Indonesia, which will be immediately implemented.
Moreover, he continued that this strategic partnership would provide 3E benefits for AP II and Soekarno-Hatta Airport, namely expansion the traffic, expertise sharing, and equity partnership. “The positive impact for Soekarno-Hatta Airport as the largest and the busiest airport in Indonesia is that it will be able to maintain and increase the contribution of the air transportation sector to the national economic growth,” Muhammad Awaluddin explained.
Cargo market growth
Furthermore, Muhammad Awaluddin explained the Soekarno-Hatta Airport Cargo Village construction would accommodate and anticipate air cargo transportation market growth in Indonesia that was affected by the rapid e-commerce growth. The development will be carried out on a 90-hectare land, which is three times larger compared to the existing cargo terminal. The cargo village’s capacity will be able to accommodate around 1.5 million to 2.2 million tonnes of cargo per year, while the existing cargo terminal capacity is only 700,000 tonnes per year. Every business lines of the cargo village will also be digitalised to facilitate and accelerate various processes.
The cargo village will make Soekarno-Hatta the airport that has the largest cargo terminal in Indonesia. Soekarno-Hatta Airport currently has the largest passenger terminal in Indonesia as Terminal 3 can accommodate 25 million passengers per year. Soekarno-Hatta Airport is currently ranked 34th in the World’s Top 100 Airport 2021 list released by Skytrax. Besides that, Soekarno-Hatta Airport is also ranked 10th as The World’s Best Airport Staff - Best Staff Airport in Asia and has received the predicate The 2021 Covid-19 Airport Excellence Awards, in line with the tight health protocol implementation during the pandemic.
On the other hand, the cargo business line growth has been taken advantage of by Garuda Indonesia to expand their cargo shipment network to Europe and the Americas by establishing a partnership for air transhipment cargo with partner airlines and cargo agents. Moreover, through the cargo shipment network expansion, Garuda Indonesia currently serves 16 flight destinations in Europe and the Americas, such as Los Angeles, New York, Dallas, Atlanta, London, Brussels, Frankfurt, and other cities through partnerships with 10 partner airlines.
Garuda Indonesia Services and Commerce Director, Ade R. Susardi, revealed that cooperation optimalisation in air transhipment cargo was part of Garuda’s commitment to maximise Garuda Indonesia’s cargo business growth. This is also a representation of Garuda’s continuous support as the national airline to provide air cargo service accessibility to support the national export commodity market share expansion.
