About GMR Airports, Indian Company That Manages Kualanamu Airport

JAKARTA - An Indian company named GMR Airports was chosen as a strategic partner to manage Kualanamu International Airport, Deli Serdang, North Sumatra. Over the next 25 years, GMR Airports will also lease assets to PT Angkasa Pura II (Persero).

According to the VOI report in the article Angkasa Pura II, Denies Allegations of Selling Kualanamu Airport to an Indian-French Company: Its Assets Are 100% Owned to Us, PT Angkasa Pura II and GMR Airports Consortium formed a Joint Venture Company (JVCo).

PT Angkasa Pura Aviasi will manage and develop Kualanamu International Airport. AP II is the majority shareholder by controlling 51 percent of shares in PT Angkasa Pura Aviasi, while GMR Airports Consortium holds 49 percent of shares.

AP II also denied the issue that Kualanamu Airport was sold to India. Asset ownership is confirmed to be 100% owned by AP II. The value of the cooperation is around 6 billion US dollars, including investments from strategic partners of at least Rp. 15 trillion.

Launching Bisnis, AP II President Director Muhammad Awaluddin explained that there are criteria that must be met by strategic partners at Kualanamu Airport. The partner must have experience and a network of both airports and airlines.

The development at Kualanamu Airport is focused on strengthening international connectivity. The involvement of the private sector to realize 3E, namely Expansion the traffic, Expertise sharing and Equity partnership. GMR Airports were deemed to have met the qualifications and were selected through a tender which was called transparent and professional.

Meanwhile, according to the Director of Transformation and Strategic Portfolio of AP II, Armand Hermawan, this strategic partnership is an innovative business model that attracts investment from the private sector to contribute in developing infrastructure in Indonesia and providing services for the public interest.

In addition, Armand Hermawan also revealed that Kualanamu Airport will be used as an international flight hub, especially in the western region which will bring in many flights from abroad to within the country and vice versa.

Part of the shares of the GMR Airports Consortium is owned by Aéroports de Paris Group (ADP), a French company. GMR Airports is a network of airport operators with the highest total number of passengers in the world.

In 2020, the number of aircraft passenger movements at Kualanamu International Airport is around 3 million passengers per year. GMR Airports plans to develop Kualanamu Airport with a passenger target of up to 54 million people in the 25th year of the partnership. This amount is equivalent to the current Soekarno-Hatta Airport.

According to the GMR Group's official website, GMR founder GM Rao started his business with a small jute factory in 1978. Over time, GMR has grown and is currently a major player in the infrastructure sector, with world-class projects in India and abroad.

Headquartered in New Delhi, GMR develops projects in high growth areas such as airports, energy, transport and urban infrastructure. GMR Group claims that they are uniquely placed to build projects in sectors that are critical to the development process.

Using a government-private partnership model, GMR has managed to leverage its core strengths to implement some of India's iconic infrastructure projects. GMR entered the airport area in the early 2000s.

Currently GMR Airports operates and manages Delhi International Airport and Hyderabad International Airport. GMR is also developing airports at Mopa in North Goa and international airports in Bhogapuram, Vizianagaram, Andhra Pradesh.

GMR also signed a concession agreement with the Government of Karnataka, India, to operate and maintain civil aviation at Bidar Airport in North Karnataka. Outside India, the company was selected to develop, operate and manage Kastelli International Airport also known as Crete Airport in Heraklion, Greece. GMR partnered a joint venture with Terna SA, a Greek infrastructure company.

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