AP II Implements Two Strategies To Suppress Financial Contractions During The COVID-19 Pandemic

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JAKARTA - PT Angkasa Pura II (Persero) is ready to carry out two strategies to stay afloat during the COVID-19 pandemic. This strategy is designed to suppress the company's financial contraction.

Director of Finance and Risk Management AP II, Wiweko Probojakti explained that in managing 20 airports in Indonesia, his party carried out a business survival strategy by tightening cost leadership (measuring results obtained with costs incurred) in each program.

"And efficient cash flow management," he said in a written statement, Thursday, December 16.

As an effort to improve cost leadership and cash flow management in the midst of the pandemic, said Wiweko, AP II has implemented a supplier financing scheme to maintain infrastructure development and development which is considered important to support airport operations and national economic recovery.

Wiweko said AP II had also signed a supplier financing scheme together with PT Wijaya Karya (Persero) Tbk and PT Bank Mandiri Tbk, to finance four jobs with a maximum value of Rp400 billion.

The four works are the construction of a domestic hotel at Terminal 3 of Soekarno-Hatta Airport, continued construction services for accessibility works, widening and extension of the Banyuwangi Airport runway, and the expansion of the Terminal 3 building of Soekarno-Hatta Airport.

"Supplier Financing is one of the funding options with a simple process and competitive interest, because there are three parties' interests there, namely AP II as the employer, then WIKA as the contractor (supplier) and Bank Mandiri as the financial institution that carries out the financing so that this can be done. realizing cost leadership," he explained.

According to Wiweko, through the supplier financing option, the bank will first pay the bill from the contractor. According to him, this scheme will make AP II more efficient in managing cash flow.

"This supplier financing option is also to ensure that infrastructure development at AP II airport can continue so that airport competitiveness can be maintained and support national economic recovery," he said.