State-owned airport operator PT Angkasa Pura II, which manages most airports in the western part of Indonesia, has reduced its capital expenditure this year to Rp 1.4 trillion (US$92.8 million), which is less than 20 percent of the initially earmarked Rp 7.8 trillion.
President director Muhammad Awaluddin said capex, which would be mostly financed with internal funds, would focus on several airport development projects and airport facility and security system improvement.
“Several multilayer development projects are still ongoing this year, for example, the construction of the commercial area, offices and hotels that are integrated with the Soekarno-Hatta Airport building.
“The work on a design plan for Soekarno-Hatta’s Terminal 4 will also be continued this year and it is set to be completed in 2021, with the groundbreaking [ceremony to be held] in January 2022,” said Awaluddin on a statement released on Tuesday.
The company’s director of engineering, Agus Wialdi, said Angkasa Pura II had made a significant cut to its budget following the sharp drop in aircraft and passenger traffic at its airports due to the pandemic, which has taken a toll on the operator’s revenue.
“Cutting costs is one of our main measures to cope with the impact of COVID-19. Operations at Angkasa Pura II’s airports have been significantly reduced as we are adjusting to the passengers and aircraft traffic,” said Agus.
Cost-cutting measures include suspending the Soekarno-Hatta Skytrain service, cutting electricity use by 46 percent and slashing water use by 60 percent at Angkasa Pura II airports across Indonesia.
Agkasa Pura II manages 19 airports in western parts of Indonesia, including Kualanamu International Airport in Medan, Halim Perdanakusuma Airport in Jakarta, Depati Amir in Bangka Belitung Islands, Supadio in Pontianak, Radin Inten II International Airport in Bandar Lampung and Sultan Mahmud Badaruddin II in Palembang, among others.