Foreign Investors to Compete for Hang Nadim Airport Renovation Project
Jakarta. At least 11 separate companies have expressed interest in funding the renovation of Hang Nadim International Airport in Batam, Riau Islands, after observing increased tourism to the area in recent years, the Ministry of Tourism wrote in a statement on Friday (21/07).
The companies will bid for rights to develop the project, which is expected to begin at the end of 2017.
"These investors, among others, include South Korea's Incheon Airport; India's GMR Group and GVK Mumbai; Mitsui from Japan; Vinci from France; our own Angkasa Pura II; Regnum Resource in Singapore; Zurich Airport in Switzerland; and Munich Airport in Germany," said Dendi Gustinandar, the operational director at Hang Nadim Airport.
"Two other potential investors include a consortium from China and a local group from Indonesia," he added.
Dendi explained that the majority of investors work in the airline industry, though Matsui and GVK deal in communications.
"They have received direct explanations from BP Batam on the profits gained if they develop Hang Nadim Airport. The land status, of 1,762 hectares, is clear. We have prepared it to be developed according to BP Batam," he said.
Garuda Maintenance Facility (GMF), the repair wing of flag carrier Garuda Indonesia, has purchased 23 hectares of land at the Batam airport, which will be situated next to Lion Air's 29 hectares.
"Hang Nadim Airport will become an industrial cluster. GMF is already preparing for a team to visit Batam to measure the land," Dendi said.
The operations director also said the number of passengers that transit through Hang Nadim Airport each year has reached over six million.
"That number has grown 10 percent annually. Based on the data, the capacity of the airport needs to be increased to host the rising number of tourists visiting Batam."
Tourism Minister Arief Yahya welcomed the future development and expansion of Hang Nadim International Airport in Batam.
"Currently, flights operating in and out of the airport only have a capacity to seat 19.5 million passengers [per year]. To reach our target of attracting 15 million foreign tourists in 2017, we need at least four million additional seats on flights in and out of the coutry," the minister added.
To meet the government's target of attracting up to 20 million foreign tourists to the archipelago by 2019, airlines will have to add a total of 10.5 million seats.
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