Kediri Airport, First Private Airport Built in Indonesia

TheIndonesia.id - Transportation Minister Budi Karya Sumadi confirmed that the agreement for Government Cooperation with Business Entities (KPBU) in Kediri, East Java, was officially signed in Jakarta. According to the agreement, Kediri Airport is the first airport in Indonesia to be built with 100-percent private financing and not utilizing the state budget.

"This is extraordinary, as the private sector can build an airport without burdening the state budget," Sumadi noted during the signing of the agreement on Wednesday, September 7, 2022.

The minister reported that construction of the airport under the unsolicited public-private partnership (PPP) model could be emulated by other private companies. This was also the strategic plan of the Ministry of Transportation to continue to encourage creative financing for various transportation infrastructure projects in Indonesia.

The minister further noted that the new Kediri airport can be used for commercial flights, Umrah, and Hajj.

"There are a lot of people in Kediri and its surroundings that want to go for Umrah. In future, they do not have to go to Jakarta or Surabaya anymore," Sumadi stated.

He also called on PT Suryo Dhoho Investama, which is a subsidiary of Gudang Garam, and state-owned airport operator Angkasa Pura I in the joint operation (KSO) of the Kediri new airport construction project, to always be heedful of the aspects of aviation safety and security.

On the same occasion, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan stated that unsolicited PPP was a project initiated and proposed for construction by business entities and not the government.

Pandjaitan lauded PT Surya Dhoho Investama for taking the initiative to build a new airport in Kediri.

Ministries and agencies, local governments, and related agencies were commended for having supported the smooth process of land acquisition, licensing, and other processes related to the acceleration of airport development.

"Praise be to God, the land acquisition has been completed, and currently, the construction is going well," he added.

Meanwhile, President Director of PT Suryo Dhoho Investama, concurrently the Director of Gudang Garam Tbk., Istata Taswin Siddharta, expressed gratitude to the government, which has given confidence to his side, as the initiator of the unsolicited PPP project at Kediri Airport.

"We also thank the governor of East Java and the Kediri regional head, who have assisted in the construction of this airport. Hopefully, the presence of this airport would have a positive impact on the economic progress of the community, especially in the southern region of Java," Siddharta stated.

Based on the results of the procurement that was conducted, the KSO between PT Suryo Dhoho Investama and PT Angkasa Pura I (Persero) had been declared the winner, with a duration of cooperation of 50 years since the airport began operating.

The total investment value reached Rp10.8 trillion, comprising Rp6.6 trillion in phase I; Rp1.2 trillion in phase II; and Rp3 trillion in phase III.

With this development, the airport's passenger capacity for Phase I is 1.5 million per year; Phase II, 4.5 million passengers per year; and Phase III, 10 million passengers per year.

The airport is targeted to become operational by the end of 2023 and is projected to be able to serve wide-bodied aircraft, such as the Boeing 777-300ER.