It has seemed a bit strange that where Thailand, Malaysia and Vietnam each have a major organization to manage their airports, Indonesia has two. There may be old reasons for this, but they are increasingly anachronistic.
API manages 15 airports in Indonesia and APII manages 20. Both are wholly state-owned enterprises of the Indonesian Ministry of Transport.
API is guilty of the operation and progression of purposeful airports in central and eastern Indonesia, while APII focuses on airports in the west of the country.
Now there is communication to merge them, necessarily for operational efficiency. In the past, the government has thought about an initial public offering in each of them, as well as a variety of public-private agreements and foreign investment as the airline industry as a whole. Recover
But while the government is mulling over this, perhaps it’s time to seriously schedule a set of auction tranches to attract distributors.
Summary
Indonesia’s Deputy Minister of State-Owned Enterprises Kartika Wirjoatmodjo said the government envisages features to integrate the purposes of Angkasa Pura I (API) and Angkasa Pura II (APII). Angkasa Pura means “City of Heaven” in Sanskrit.
Wirjoatmodjo said: “We see API and APII from east to west so far. “
He added, “If we take a look at the concept of all hubs and radii, we need to achieve integration, not necessarily fusion, so that arrangements for airborne hubs and radios work optimally. “He also said: “With an upcoming integration, in the form of a corporate holding company or merger, later this hub and radio integration will be effective so that we can then collaborate between incoming or foreign traffic and domestic traffic. “
This would possibly recommend channelling foreign traffic, at least through a small number of major hub airports, e. g. Jakarta, Bali and Surabaya, supported through a second, wider diversity of smaller hubs, but this is a vague observation open to other interpretations.
API manages 15 airports in Indonesia and APII manages 20. Both are wholly state-owned enterprises of the Indonesian Ministry of Transport.
Established in 1964, API is guilty of the operation and progression of purposeful airports in central and eastern Indonesia.
API is for some of Indonesia’s busiest airports, adding Bali Denpasar (Ngurah Rai) (2), Surabaya (3) and Yogyakarta (6).
Ngurah Rai Airport is the main gateway to Bali’s tourist destination. The airport is located thirteen kilometers south of Denpasar, the main city on the island of Bali.
Bali’s economy is based almost entirely on tourism, with a wide diversity of airlines operating to Denpasar, basically from Southeast Asia and Australasia, as well as limited routes to Europe and the Middle East.
Several Indonesian airlines will offer domestic flights to and from Denpasar.
Bali is also basically connected with a series of locations in Southeast Asia and Australasia that make up its largest tourist attraction, as well as with the Middle East (Doha and Dubai airports) and Istanbul, which allows connections from all over Europe.
Passenger traffic grew healthily in the year between 2010 and 2019, before the start of the COVID-19 pandemic.
Surabaya Airport is different in nature, serving what is primarily a publicity and the largest metropolitan domain of the moment in the country after Jakarta, and even the Islamic Financial Center of Indonesia.
Juanda International Airport is the third largest in the country, Jakarta Soekarno-Hatta International Airport and Bali International Airport.
Juanda Airport is served by all major Indonesian airlines, as well as major East Asian airlines, serving destinations in Indonesia and Asia. The airport’s connection with Jakarta is one of the busiest routes in Asia.
Surabaya Airport has grown considerably and starts at the same time as Bali Airport, with expansion levels reaching 20% in 2012, but with surprising relief of the same order in 2019.
PT Angkasa Pura II is the operator, among others, of the main Jakarta Soekarno-Hatta International Airport (JSHIA), as well as Halim Perdanakusuma Airport in the same city.
APII concentrates on airports in the west of the country.
Jakarta’s main airport (JSHIA) is by far the busiest in APII’s portfolio: the main gateway to the capital and the country as a whole and, indeed, the twenty-seventh busiest in the world in 2019.
Passenger expansion is slowly slowing, being twice negative (in 2014 and 2015), and even 16% less in 2019.
Currently, the most sensitive airlines in terms of capacity at SHIA are Lion Air and Batik Air (22% and 18% respectively), followed by national carrier Garuda.
JSHIA has only about 55% of its capacity in cheap carriers, which is a higher figure for the region (compared to Singapore Changi 34. 4%, Bangkok Suvarnabhumi 60. 9% and Kuala Lumpur 52. 65%).
JSHIA is more consistently a non-aligned airport, with over 72% in this category.
In April 2023, API obtained approval from the Indonesian Ministry of State-Owned Enterprises and Aviasi Wisata Indonesia (state-owned corporation for aviation and tourism-related enterprises) to operate Kediri Airport, which is expected to serve the local domain and potentially as a preferred gateway to East Java, in addition to Surabaya Juanda Airport. The airport is being developed under a memorandum with Gudang Garam with a budget of IDR nine billion ($575. 2 million).
Prior to that, in March 2021, South Korea’s Incheon International Airport Corporation (IIAC) announced a consortium with API and Wijaya Karya (construction company) and won a tender to expand and operate Batam Hang Nadim Airport for 25 years. It would adopt renovation paintings in Terminal 1 and the progression of Terminal 2 and allocation would require an estimated investment of KRW six hundred billion ($530. 3 million).
Over the years, API has also sought public-private partnerships (PPPs) for airports in Bali, Yogyakarta, Surabaya, Makassar, Balikpapan and Banjarmasin, with foreign investors entitled to a 49% stake in PPP contracts, as well as being known through the government as having the for an initial public offering!
APII has also felt comfortable in terms of cooperation with external entities.
In November 2021, for example, India’s GMR Airports Limited won a tender to expand and operate Medan Kualanamu International Airport, running with APII in a 49:51 partnership to turn the airport into a Western foreign hub for Indonesia.
The scope of the assignment includes the operation, progression and operation of the airport over a period of 25 years. The assignment marked GMR Airports’ access to a “fast-growing Indonesian aviation sector, the largest in ASEAN and a high-potential market. “
Prior to that, in November 2019, APII signed an agreement with the Ministry of Transport to take over control of 3 airports: Tanjung Pandan Hanandjoeddin Airport, Bengkulu Fatmawati Soekarno Airport and Bandar Lampung Radin Inten II Airport, and adopt progression and infrastructure projects. at airports
APII, like API, has acquired airports, entered into agreements with external third parties for airport expansion, considered as an initial public offering and, in its own case, has also discussed external investments in airports in other countries.
What’s missing is coherence of strategic thinking, although, to be fair, both organizations are in a delicate position: an external investment noted by the government to ensure the modernization of many Indonesian airports, adding JSHIA, where $1. 8 billion is being invested in projects that come with a new Terminal Four and Cargo Village.
But at the same time, many of those external financing providers are reluctant to do business in some Southeast Asian countries (Indonesia and Vietnam are on this list) for various reasons.
It’s easy to see how API and APII integration would help traffic flows in and to/from Indonesia. In fact, there doesn’t seem to be a rational explanation for why they function independently of each other to begin with.
But the time has come to completely discontinue the total operation, with a general but staged privatization of the entire airport system, starting with the maximum airports probably to attract investors and cause a trickle-down effect later on.
The experience in Brazil, where Infraero acted as a kind of combined API/APII, showed that this can only be done, and the lessons learned from the fault would be invaluable.
It seemed a bit odd that while Thailand, Malaysia and Vietnam had one major organization to manage their airports, Indonesia had two. There may be old reasons for this, but they are increasingly anachronistic.
API manages 15 airports in Indonesia and APII manages 20. Both are wholly state-owned enterprises of the Indonesian Ministry of Transport.
API is guilty of the operation and progression of purposeful airports in central and eastern Indonesia, while APII focuses on airports in the west of the country.
Now there is communication to merge them, necessarily for operational efficiency. In the past, the government has thought about an initial public offering in each of them, as well as a variety of public-private agreements and foreign investment as the airline industry as a whole. Recover
But while the government is mulling over this, perhaps it’s time to seriously schedule a set of auction tranches to attract distributors.
Summary
Indonesia’s Deputy Minister of State-Owned Enterprises Kartika Wirjoatmodjo said the government envisages features to integrate the purposes of Angkasa Pura I (API) and Angkasa Pura II (APII). Angkasa Pura means “City of Heaven” in Sanskrit.
Wirjoatmodjo said: “We see API and APII from east to west so far. “
He added, “If we take a look at the concept of all hubs and radii, we need to achieve integration, not necessarily fusion, so that arrangements for airborne hubs and radios work optimally. “He also said: “With an upcoming integration, in the form of a corporate holding company or merger, later this hub and radio integration will be effective so that we can then collaborate between incoming or foreign traffic and domestic traffic. “
This would possibly recommend channelling foreign traffic, at least through a small number of major hub airports, e. g. Jakarta, Bali and Surabaya, supported through a second, wider diversity of smaller hubs, but this is a vague observation open to other interpretations.
API manages 15 airports in Indonesia and APII manages 20. Both are wholly state-owned enterprises of the Indonesian Ministry of Transport.
Established in 1964, API is guilty of the operation and progression of purposeful airports in central and eastern Indonesia.
Active airports for PT Angkasa Pura I
Source: CAPA – Aviation Center
API is for some of Indonesia’s busiest airports, adding Bali Denpasar (Ngurah Rai) (2), Surabaya (3) and Yogyakarta (6).
Ngurah Rai Airport is the main gateway to Bali’s tourist destination. The airport is located thirteen kilometers south of Denpasar, the main city on the island of Bali.
Bali’s economy is based almost entirely on tourism, with a wide diversity of airlines operating to Denpasar, basically from Southeast Asia and Australasia, as well as limited routes to Europe and the Middle East.
Several Indonesian airlines will offer domestic flights to and from Denpasar.
Bali is also basically connected with a series of locations in Southeast Asia and Australasia that make up its largest tourist attraction, as well as with the Middle East (Doha and Dubai airports) and Istanbul, which allows connections from all over Europe.
Passenger traffic grew healthily in the year between 2010 and 2019, before the start of the COVID-19 pandemic.
Ngurah Rai Airport in Bali: annual passenger traffic/growth, 2010-2023
Source: CAPA – Aviation Centre and Ministry of Transport of the Republic of Indonesia
Surabaya Airport is different in nature, serving what is primarily a publicity and the largest metropolitan domain of the moment in the country after Jakarta, and even the Islamic Financial Center of Indonesia.
Juanda International Airport is the third largest in the country, Jakarta Soekarno-Hatta International Airport and Bali International Airport.
Juanda Airport is served by all major Indonesian airlines, as well as major East Asian airlines, serving destinations in Indonesia and Asia. The airport’s connection with Jakarta is one of the busiest routes in Asia.
Surabaya Airport has grown considerably and starts at the same time as Bali Airport, with expansion levels reaching 20% in 2012, but with surprising relief of the same order in 2019.
Surabaya Juanda Airport: annual traffic, passenger/growth, 2012-2023
Source: CAPA – Aviation Centre and Ministry of Transport of the Republic of Indonesia
PT Angkasa Pura II is the operator, among others, of the main Jakarta Soekarno-Hatta International Airport (JSHIA), as well as Halim Perdanakusuma Airport in the same city.
APII concentrates on airports in the west of the country.
Active airports for PT Angkasa Pura II
Source: CAPA – Aviation Center
Jakarta’s main airport (JSHIA) is by far the busiest in APII’s portfolio: the main gateway to the capital and the country as a whole and, indeed, the twenty-seventh busiest in the world in 2019.
Passenger expansion is slowly slowing, being twice negative (in 2014 and 2015), and even 16% less in 2019.
Jakarta Soekarno-Hatta International Airport (JSHIA): annual traffic, passenger/growth, 2012-2021
Source: CAPA – Aviation Centre and Ministry of Transport of the Republic of Indonesia
Currently, the most sensitive airlines in terms of capacity at SHIA are Lion Air and Batik Air (22% and 18% respectively), followed by national carrier Garuda.
JSHIA has only about 55% of its capacity in cheap carriers, which is a higher figure for the region (compared to Singapore Changi 34. 4%, Bangkok Suvarnabhumi 60. 9% and Kuala Lumpur 52. 65%).
JSHIA is more consistently a non-aligned airport, with over 72% in this category.
In April 2023, API obtained approval from the Indonesian Ministry of State-Owned Enterprises and Aviasi Wisata Indonesia (state-owned corporation for aviation and tourism-related enterprises) to operate Kediri Airport, which is expected to serve the local domain and potentially as a preferred gateway to East Java, in addition to Surabaya Juanda Airport. The airport is being developed under a memorandum with Gudang Garam with a budget of IDR nine billion ($575. 2 million).
Prior to that, in March 2021, South Korea’s Incheon International Airport Corporation (IIAC) announced a consortium with API and Wijaya Karya (construction company) and won a tender to expand and operate Batam Hang Nadim Airport for 25 years. It would adopt renovation paintings in Terminal 1 and the progression of Terminal 2 and allocation would require an estimated investment of KRW six hundred billion ($530. 3 million).
Over the years, API has also sought public-private partnerships (PPPs) for airports in Bali, Yogyakarta, Surabaya, Makassar, Balikpapan and Banjarmasin, with foreign investors entitled to a 49% stake in PPP contracts, as well as being known through the government as having the for an initial public offering!
APII has also felt comfortable in terms of cooperation with external entities.
In November 2021, for example, India’s GMR Airports Limited won a tender to expand and operate Medan Kualanamu International Airport, running with APII in a 49:51 partnership to turn the airport into a Western foreign hub for Indonesia.
The scope of the assignment includes the operation, progression and operation of the airport over a period of 25 years. The assignment marked GMR Airports’ access to a “fast-growing Indonesian aviation sector, the largest in ASEAN and a high-potential market. “
Prior to that, in November 2019, APII signed an agreement with the Ministry of Transport to take over 3 airports: Tanjung Pandan Hanandjoeddin Airport, Bengkulu Fatmawati Soekarno Airport and Bandar Lampung Radin Inten II Airport, and to adopt progression and infrastructure projects. at airports
APII, like API, has acquired airports, entered into agreements with external third parties for airport expansion, considered as an initial public offering and, in its own case, has also discussed external investments in airports in other countries.
What’s missing is coherence of strategic thinking, although, to be fair, both organizations are in a delicate position: an external investment noted by the government to ensure the modernization of many Indonesian airports, adding JSHIA, where $1. 8 billion is being invested in projects that come with a new Terminal Four and Cargo Village.
But at the same time, many of those external financing providers are reluctant to do business in some Southeast Asian countries (Indonesia and Vietnam are on this list) for various reasons.
It’s easy to see how API and APII integration would help traffic flows in and to/from Indonesia. In fact, there doesn’t seem to be a rational explanation for why they function independently of each other to begin with.
But the time has come to completely discontinue the total operation, with a general but staged privatization of the entire airport system, starting with the maximum airports probably to attract investors and cause a trickle-down effect later on.
The experience in Brazil, where Infraero acted as a kind of combined API/APII, showed that this can only be done, and the lessons learned from the fault would be invaluable.