After 49 Percent Of Its Shares Are Owned By An Indian-French Company, The Quality Of Kualanamu Airport Is Expected To Compete With Singapore's Changi Airport

Kualanamu Airport. (Photo: Wikimedia Commons)

JAKARTA - Deputy Minister of State-Owned Enterprises (BUMN) II Kartika Wirjoatmodjo said that Kualanamu International Airport, North Sumatra, has the opportunity to compete with Changi Airport in Singapore. This opportunity was achieved because of the collaboration between PT Angkasa Pura II (Persero) and the GMR Airports Consortium.

Tiko as he is familiarly called, said that the GMR Airports Consortium is an investor-owned by GMR Group from India and Aerosports de Paris Group (ADP) from France, which are the world's leading airport operator networks.

GMR, said Tiko, wants to make Kualanamu a flight hub from South Asia to North or East Asia and Australia. As well as reducing the dominance of Changi Airport, Singapore and Kuala Lumpur Airport, Malaysia.

"They use Kualanamu as a base to reduce Changi Airport and KLA Sepang," he said in a meeting with Commission VI, at the House of Representatives (DPR) Building, Parliament Complex, Thursday, December 2.

Furthermore, Tiko said GMR had invested Rp 56 trillion to improve the quality and capacity of Kualanamu airport, North Sumatra. With the existing capital, Kualanamu is projected to accommodate 54 million passengers.

"It is hoped that the number of passengers will increase to 54 million passengers. Currently, it is in the range of 10 million passengers. I think this is a very good deal and we will oversee the process," he said.

To ensure that this collaborative project goes on the right track, the Ministry of SOEs also involves the Development and Finance Supervisory Agency (BPKP). In fact, in the BPKP process, they participated in a series of tender processes until the GMR Airports Consortium was selected as a strategic partner.

"And we also ask Financial and Development Supervisory Agency (BPKP) to oversee this, God willing, this will become a strategic partnership," he said.

As is known, the previous management of Kualanamu Airport by GMR caused a commotion. This is because GMR's cooperation with PT Angkasa Pura II (Persero) is said to have made the airport fall into the hands of foreign parties.

Tiko also ensured that the assets of Kualanamu Airport will still be owned by Angkasa Pura II even though its management is in collaboration with foreign companies.

"After 25 years, after the airport is good and the quality has improved, it will again belong to AP II," he explained.

Previously, Director of Transformation and Strategic Portfolio of AP II Armand Hermawan said this strategic partnership was not a share sale transaction or asset sale at Kualanamu International Airport. However, together they manage and develop Kualanamu International Airport in Deli Serdang, North Sumatra.

"There is no sale of assets or sale of shares in Kualanamu International Airport. The ownership of Kualanamu International Airport and its assets remains 100 percent owned by AP II," he said in a written statement received by VOI, Friday, November 26.

Furthermore, Armand said PT Angkasa Pura II (Persero) with the GMR Airports Consortium formed a Joint Venture Company (JVCo), namely PT Angkasa Pura Aviasi to manage and develop Kualanamu International Airport. AP II as the majority shareholder by controlling 51 percent of shares in PT Angkasa Pura Aviasi, while GMR Airports Consortium holds 49 percent of shares

Furthermore, Ahmad said the jointly managed joint venture would only lease assets to AP II to be managed for 25 years. After the cooperation period ends, JVCo is no longer entitled to manage Kualanamu International Airport and all assets resulting from the development will be returned to AP II.

Partnerships can be thought of as lease agreements with tenants at airport terminals. The GMR Airports Consortium itself was chosen as a strategic partner after going through a series of professional and transparent tender processes.

"Currently, the management of Kualanamu International Airport is carried out by AP II. In line with the presence of strategic partners, the management for 25 years will be carried out by AP II and GMR through JVCO which 51 percent of its shares are owned by AP II. Later the management of Kualanamu International Airport will return entirely to AP II after the cooperation period ends," he said.

Armand said this strategic partnership is an innovative business model that attracts investment from the private sector to be able to contribute to developing infrastructure in Indonesia and providing services for the public interest.

"The purpose of this strategic partnership is to accelerate 3E, namely Expansion the traffic (expand flights), Equity partnership (increase capital), and Expertise sharing (share technology and expertise), so that the competitiveness of Kualanamu International Airport can be improved more quickly," he explained.