Located in Majalengka, West Java, the new airport, worth Rp 10 trillion (US$750.36 million), may need 1,800 hectares for its multi-phase development.

BIJB president director Virda Dimas Ekaputra said that despite the fact that overall progress had only reached 30.1 percent for the “land” side, or non-airstrip part of the airport, the firm was optimistic it could finish the construction of the airport in November and start operations in March next year.

“For the first part of the project [infrastructure support], we have already progressed 60 percent, so I am not worried about finishing it on time,” he said on Monday.

Virda added that the terminal development itself was inching near a 20 percent completion level and would, therefore, be on track for completion by November.

Kertajati Airport, listed as one of the country’s national strategic projects by the current administration, is set to serve as an alternative to the heavily-congested Husein Sastranegara Airport in Bandung, West Java’s capital, as well as Soekarno-Hatta International Airport in Jakarta.

In the first phase, the runway will span 2,500 meters with a 60-meter width to allow the entry of wide-body aircraft.

After the conclusion of the initial phase of its development, the new airport is expected to handle at least 5 million passengers.

Upon completion of the final phase, Kertajati Airport will be bigger than Soekarno-Hatta International Airport and could welcome between 50 million and 60 million passengers annually.

BIJB finance director Muhammad Singgih said 70 percent of the funding would be derived from its internal cash reserves and regional government capital injections, while the rest would be obtained from loans.

The company has secured Rp 537.5 billion in cash from a capital injection fom West Java government, or nearly a quarter of the figure it aims to garner for the initial phase.

“The regional government may also give us land and another Rp 256 billion this year,” Muhammad said.

To strengthen its internal cash, BIJB plans to issue in April a Reksa Dana with limited offer (RDPT) through which investors could take up some portions of the firm’s stake, he added.

BIJB aims to get Rp 1.5 trillion from the offer, but the figure could change according to the latest valuation of the airport project.

Virda said state-owned lender Bank Mandiri had shown interest in covering up to Rp 700 billion for the project.

Previously, the project was marred by uncertainty as President Joko “Jokowi” Widodo instructed the Transportation Ministry to take over the construction of the airport. However, the ministry did not make any progress and then finally confirmed last November that BIJB would still be in charge on its development.

The Transportation Ministry was involved in building the “airstrip” side of the airport, namely the runway and the apron, and has disbursed Rp 750 billion so far for the project.

In addition to the slow progress in securing funding for the project, BIJB is also struggling to complete land acquisition.

Up to now, it has only secured 1,000 hectares, which is only sufficient for the first phase of development.

Local media outlets have reported that citizens living nearby the site of the project have refused to give up their land for the procurement of the remaining 800 hectares.

However, Virda said the land procurement process would continue despite the resistance.

“By 2018 the whole 1,800 hectares needed will be completely procured,” he said, adding that halting the process would hamper the next development phase as land prices could rise significantly.

On Monday, the company held a meeting with local residents living close to the airport. At the meeting, a religious leader told them to “cooperate with the development project for the greater good.” The leader said the airport could one day cater to flights to Mecca for haj.

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