Aviation development: 3 countries compete over Kertajati Airport
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.
Bisnis Indonesia - Pengembangan penerbangan: 3 negara berebut Bandara Kertajati
19 October 2023
By: Lorenzo A. Mahardhika
Majalengka - Several investors from Singapore, India, and Saudi Arabia are competing to invest in the development of Kertajati Airport in Majalengka in West Java following the plan to fully operate jet aircrafts on 29 October 2023.
Transportation Minister Budi Karya Sumadi said that the interest of investors from the three countries was currently in the bidding phase.
Later, the investor who wins the bid will own some of the shares and be involved in the management of Kertajati Airport through PT Bandarudara Internasional Jawa Barat (BIJB).
Currently, BIJB is an airport company with shares owned PT Angkasa Pura II (Persero) and West Java Provincial Government.
“Later, they will also operate and participate. The Acting West Java Governor must be willing to give away some [of the shares of BIJB],” he said at Kertajati Airport in Majalengka on Wednesday (18/10).
He continued that foreign investors could increase foreign tourist visits to West Java. For example, Budi Karya mentioned that tourists from the Middle East, India, Japan, and other countries were interested in visiting Indonesia.
It is also in line with the Transportation Ministry’s goal to increase passenger traffic and West Java’s economy.
“The investor will be experienced in marketing, operating, and [making the airport more] efficient, so the airport will be large, efficient, attractive, and rapidly improving,” he said.
Budi Karya continued that West Java has three national strategic projects (PSNs), namely Kertajati Airport, Patimban Port, and Jakarta-Bandung High-speed Railway.
He hopes that the three PSNs can improve regional economy.
Meanwhile, PT Angkasa Pura II (Persero) President Director Muhammad Awaluddin is targeting the foreign investor who enter Kertajati Airport to be a strategic partner in December 2023.
According to him, the potential investor will be determined with a tender through BIJB as the operator of Kertajati Airport. “The target is to close the transaction in December. So, at the start of the year, there will be another owner, which is the winner of the tender process,” Awaluddin said at Kertajati Airport.
New funding source
He said that the investor would be a new funding source besides AP II and West Java Provincial Government. He hopes that fresh funds can improve the connectivity and the flight network from and to Kertajati Airport.
Besides that, AP II and West Java Provincial Government can divide the risks and the benefits of managing Kertajati Airport optimally.
“The new partner is expected to be below airport operator. It will have a network, capabilities, financial sources, and others,” Awaluddin said.
The investor is planned to acquire some ownership of West Java Provincial Government as the majority shareholder of PT BIJB.
He stated that the Transportation Ministry as the regulator would also provide incentives to the investor.
In the early stage, the investor will probably be a minority shareholder. In its development, the ownership of the foreign investor in PT BIJB can increase up to 49%.
However, Awaluddin cannot mention when the shareholding of the foreign strategic partner will reach 49%. The effort to increase shareholding will rely on corporate dynamics and existing markets.
“The important thing is that they [the investor] have entered with an entry point that takes some of the portion of BIJB,” Awaluddin said.
Regarding the readiness to transfer jet aircraft flights from Husein Sastranegara Airport in Bandung to Kertajati Airport on 29 October, Awaludin has prepared special incentives. He promises to provide incentives to airlines that will operate at Kertajati Airport soon.
Several incentives that have been discussed internally are the parking fee and the landing fee waivers.
“We have prepared both incentives, the details will be explained soon,” Awaluddin said.
He continued that AP II and shareholders were encouraging three aspects at Kertajati Airport. First, seamlessness that realises connectivity from and to Kertajati Airport. Then, affordability. Next, ease of travel.
To realise the seamlessness aspect, AP II has prepared various public modes of transportation from and to Kertajati Airport, such as bus operators, shuttle buses, and taxis.
Meanwhile, regarding affordability, the people in West Java can access the airport affordably.
Ease of travel realises convenience in line with the operation of Cisumdawu toll road. Awaluddin said that Kertajati Airport was increasingly closer to Bandung thanks to Cisumdawu toll road.
“Now, traveling from Bandung to Kertajati through Cisumawu toll road only takes around 1 hour and 15 minutes to 1 hour and a half,” Awaluddin explained.
He also said that operating and service infrastructure and facilities at Kertajati Airport were ready to accommodate jet aircraft flights.
“The facilities, infrastructure, and human resources at Kertajati Airport are ready to accommodate scheduled jet aircraft flights and serve passengers,” he said.
Meanwhile, West Java Indonesian Hotels and Restaurants Association (PHRI) Chairperson Herman Muchtar said that the policy to transfer flight operation to Kertajati Airport was great. Moreover, Husein Sastranegara Airport will not be immediately shut down, it will serve propeller aircraft flights.
“It is normal everywhere for an airport to be located at least 1 hour away from the middle of the city. We are encouraging all parties to collaborate to advance Kertajati Airport,” Herman said.
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