Land acquisition delays expansion

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State-owned airport operator Angkasa Pura I (AP I) says it has delayed expansion of Achmad Yani Airport in Semarang, Central Java, and Syamsuddin Noor Airport in Banjanmarsin, South Kalimantan, due to land acquisition problems.

AP I spokesperson Miduk Situmorang said that the problems would delay the completion of the film’s planned expansion of the company’s major airports by 2013.

“We are still trying to find the best solutions by engaging in discussions with relevant parties, including local residents and governments,” he told The Jakarta Post on Friday.

Miduk said that the company planned to acquire a plot in Semarang for a new terminal from the Army. Meanwhile, a plot in Banjarmasin belongs to the municipal government and local residents.

“We are still negotiating for the land with the local government and the people. We do not know when we will reach an agreement, but we are optimistic that we can expand the airport because this is part of our effort to help boost the regional economy,” he added.

He said that the company committed Rp 1.1 trillion (US$ 117.7 million) to expand the airports.

The development of Achmad Yani Airport requires Rp 600 billion to construct a new terminal and supporting facilities.

In addition, the company will spend Rp 500 billion to develop the existing terminal of Syamsuddin Noor Airport. Based on the company’s recent data, both airports have been operating over capacity.

With a capacity to accommodate 600,000 passengers, the Semarang airport has been handling more than 2 million passengers a year.

The same has occurred in Banjarmasin, where the airport handles 3 million passengers a year, well over its rated capacity of 1 million.

The firm’s major airport expansions that will be finished on time are Ngurah Rai International Airport in Denpasar, Bali; Sepinggan Airport in Balikpapan, East Kalimantan; and Juanda International Airport in Surabaya, East Java.

Renovations on the three airports are expected to be finished by next year at a cost of Rp 6.4 trillion ($684.8 million).

Each of the airports has been operating at over 100 percent capacity, according to the Transportation Ministry.

Sepinggan Airport, for instance, accommodated 5.1 million passengers in 2011, three times its current maximum capacity of 1.7 million.

Among the three, the expansion of Ngurah Rai Airport was a priority, as Bali would host the Asia Pacific Economic Cooperation (APEC) summit in the end of 2013, the firm said. AP I plans to finish expansion of Ngurah Rai’s international terminal in May 2013 before the APEC summit.

The firm has spent Rp 2.7 trillion to increase the capacity of Ngurah Rai airport from 9 million to 25 million passengers a year and also built a new apron that can accommodate up to 20 wide-bodied aircraft such as Boeing B747s and Airbus A380s.