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tate-owned airport operator PT Angkasa Pura I and the Yogyakarta administration will build a new airport in Temon in Kulonprogo regency, a Transportation Ministry official says.

“Based on our feasibility study, Kulonprogo is the most suitable location for the new airport. The provincial government is currently waiting for a permit from the Transportation Ministry to start the master plan,” spokesman Merpin Butarbutar said in Jakarta on Monday.

The company had previously considered building the province’s second airport in Sanden in Bantul regency.

Merpin said that PT Angkasa Pura I was working with India’s GVK Power and Infrastructure to complete the airport feasibility study and master plan.

“We are going to build the new airport on a 700-hectare plot that will be able to accommodate 6 million passengers,” he said.

PT Angkasa Pura I would need at least Rp 1.2 trillion (US$127.2 million) investment to build the new airport, which would start some time next year, he added.

Yogyakarta has long needed an additional airport as Adisutjipto International Airport can no longer accommodate its passenger traffic.

According to the Transportation Ministry, the airport served more than 3.7 million passengers in 2011, more than 300 percent of its maximum rated design capacity of 0.9 million.

The new airport will be built with two 5,400 meter runaways capable of handling large aircraft, such as the Boeing B747.

In a separate interview, the ministry’s air transportation director general Herry Bhakti Gumay, confirmed that the new airport will be built in Kulonprogo.

However, Herry said that he was waiting for a proposal from the local government asking for a permit to start the development of the master plan.

Herry said that he welcomed the construction of the second airport due to an increasing number airline passengers and airline expansion.

“We will see at least a 15 percent increase in airline passengers this year because the industry is booming.”

Indonesia saw a 16.78 percent increase in the number of airline passengers in 2011, which were 68.19 million, up from 58.39 million in 2010, he said.

Other than the second airport, Angkasa Pura I has expansion plans for five airports this year and has set aside Rp 6 trillion in capital expenditures.

The airports slated for renovation are Ahmad Yani in Semarang, Central Java; Sepinggan in Balikpapan, East kalimantan; Syamsudin Noor in Banjarmasin, South Kalimantan; Juanda International Airport in Surabaya, East Java and Ngurah Rai International Airport in Bali. Sepinggan will require the largest expenditure at Rp 1.2 trillion.

The company booked Rp 655 billion in net profits in 2011, up 17.06 percent from Rp 559 billion in 2010.