Jakarta. State-Owned Enterprises Minister Erick Thohir announced on Wednesday that the government has canceled plans to build a fourth terminal at Soekarno-Hatta International Airport as part of its cost-efficiency measures.

The proposed project, estimated to cost Rp 14 trillion ($861.8 million) from the state budget, has been deemed non-essential by the current administration.

“A new terminal isn’t an urgent need, so we aren’t pushing for a project that would cost us Rp 14 trillion,” Erick said during his visit to the country’s largest airport in Tangerang, Banten.

Instead of pursuing the new terminal, the government will allocate just Rp 1 trillion to renovate the existing terminals, Erick confirmed.

As part of the renovation plan, the government will establish a dedicated lounge for Umroh pilgrims at Terminal 2, providing a more comfortable experience for travelers embarking on religious journeys.

“With only Rp 1 trillion, we can improve all existing terminals, achieving significant cost efficiency,” Erick said. “We will continue to review and address inefficient projects at state-owned companies.”