Angkasa Pura Logistics Improves Connectivity And Distribution Of Indonesian Goods

Illustration. (Photo: Unsplash)

JAKARTA - PT Angkasa Pura Logistik, a subsidiary of PT Angkasa Pura I (Persero), signed an aircraft rental agreement with PT Pelita Air Service. This is to support increased connectivity and distribution of goods to various regions in Indonesia, as well as the air cargo or air freight business of Angkasa Pura Logistik.

The signing was carried out by the Managing Director of PT Angkasa Pura Logistik Danny P. Thaharsyah with PLT President Director of PT Pelita Air Service Muhammad Priadi, witnessed by the Managing Director of Angkasa Pura I Faik Fahmi at the Angkasa Pura I Headquarters in Kemayoran on Tuesday 21 January.

President Director of PT Angkasa Pura I (Persero) Faik Fahmi said that the development of the air cargo business is one of Angkasa Pura I's strategic programs in 2020.

"This is shown, among others, through the cooperation between Angkasa Pura Logistik, as a subsidiary, and Pelita Air Service in order to develop Angkasa Pura Logistik's air freight business," said Faik in a statement received, Tuesday, January 21.

Furthermore, the Managing Director of PT Angkasa Pura Logistik Danny P. Thaharsyah said, to strengthen connectivity, encourage economic growth in eastern Indonesia, and increase the synergy of air logistics industry players, Angkasa Pura Logistik is working with Pelita Air by leasing its aircraft.

"As an airline company that has been operating since the 1970s and has experience as an air operator certificate holder for Boeing and ATR, we believe Pelita Air Service can provide air transportation services by plane to transport Angkasa Pura Logistik cargo," said Danny.

In 2020, the development of the adjacent business by the subsidiary is one of Angkasa Pura I's business strategies to increase revenue growth, especially non-aeronautical revenue, including the air cargo business through Angkasa Pura Logistik.

In the 2019 Mordor Intelligence Report, the projected increase in the air freight business in Indonesia is 110 percent in 2018-2024 with an estimated CAGR (2019-2024) growth of 13.12 percent, where the volume of the air freight market in 2018 is US $ 9.2 billion. and it is predicted that the market valuation will increase to reach 19.3 billion US dollars in 2024.

The Indonesian Logistics and Forwarders Association (ALFI) also pointed out the growth trend in the logistics sector, where according to this agency the growth of the logistics sector in 2020 will be in the range of 9 percent to 10.4 percent.

Based on this growth potential, continued Danny P. Thaharsyah, Angkasa Pura Logistik began to develop the air freight business. The aircraft chartered by Angkasa Pura Logistik, namely 2 ATR 72-500F aircraft, will be used to transport cargo on the Jakarta-Balikpapan (PP) and Jakarta-Makassar (PP) routes this year. In the future, additional routes will be developed in line with the growth of the air freight business.