T

he Batam Industrial Development Authority (BP Batam) plans to expand and improve infrastructure at Hang Nadim International Airport in Batam, Riau Islands, under a massive project with a US$448 million price tag, which for the first time will open airport management to foreign participants.

The upgrade will include the improvement of the old terminal to increase its capacity to 8 million passengers from the current 5 million passengers and the development of a new terminal that is expected to accommodate 10 million passengers. The project will reportedly start in 2019.

“The objective [of the upgrade] is to reaffirm Hang Nadim’s purpose as a hub airport,” the airport’s operational general manager, Suwarso, told The Jakarta Post on Tuesday.

The central government will fund the project while the management of the airport will be offered to both domestic and foreign private companies, he said.

The government, through the Transportation Ministry, has eased foreign investment requirements for the aviation sector. Foreign firms can now have a 67 percent share in managing airports.

Japanese company Mitsui that manages Haneda Airport has expressed interest in joining the bidding to manage Hang Nadim, Suwarso said. Other companies that have also expressed interest include South Korean Incheon, which has already met with Hang Nadim airport management three times.

Meanwhile, state-run airport operator PT Angkasa Pura has also filed a proposal to join the bidding, he added.

BP Batam will conduct a “beauty contest” to choose partners that it believes will bring mutually beneficial cooperation.

Suwarso also said that for foreign operators like Mitsui and Incheon, Hang Nadim had a strategic position and could be developed more maximally. He said they could invite related parties such as flight companies from their respective countries to open flight routes to the airport.

“Hang Nadim’s proximity to KLIA [Kuala Lumpur International Airport, Malaysia] and Changi [Singapore] is a competitive advantage,” he said.

At present, only 45 percent of the airport’s 1,760-hectares plot of land has been developed. The rest is expected to be developed by the airport operator company chosen to manage Hang Nadim.

Currently, Hang Nadim airport has the longest runaway in Asia, which spans 4,025 meters, and is capable of accommodating 120 takeoffs and landings every day.

Moreover, BP Batam spokesman Purnomo Andiantono also said the company planned to build a cargo terminal to accommodate the increasing amount of goods being delivered through the airport.

“We will also complete the airport with modern supporting facilities,” he said as reported by antaranews.com.