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11 investors show interest in Batam's Hang Nadim Airport

News Desk

The Jakarta Post

Jakarta  /  Fri, July 21, 2017  /  05:05 pm
11 investors show interest in Batam's Hang Nadim Airport

Chinese tourists take a picture with traditional dancers welcoming their arrival at Hang Nadim International Airport in Batam, Riau Islands. (JP/Fadli)

Eleven local and foreign investors have shown their interest in taking part in the development and management of the biggest airport in Batam, Hang Nadim Airport. The project auction itself will be conducted by the end of 2017.

“Among the 11 investors are Incheon from South Korea, GMR Group from India, GVK Mumbai from India, Mitsui from Japan, Vinci from France, Angkasa Pura II from Indonesia, Regnum Resource from Singapore, Zürich Airport from Switzerland and Munich Airport from Germany. The other two are consortium companies from China and one is a local company group from Indonesia,” said the airport's acting director Dendi Gustinandar.

Most of the investors have been involve in the aviation industry although some, like Matsui and GVK, are mostly involve in manufacturing and communication sectors respectively.

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“These 11 investors have been briefed by Batam Industrial Development Authority [BP Batam] regarding Hang Nadim Airport's profitability and development. We’ve already prepared 1,762 hectares of land that can be developed by BP Batam,” Dendi added.

Currently, the only investor that has set foot in Batam is Garuda Maintenance Facility (GMF) that has agreed to use 23 hectares of land beside Lion Air’s 29 hectares.

“Hang Nadim is set to become an industrial area. GMF is currently preparing for a measuring team to come to Batam to do their work,” told Dendi.

Read also: Batam to open first modern museum in 2018

The number of passengers at Hang Nadim reached six millions per year, growing by 10 percent each year.

Tourism Minister Arief Yahya commented that about 75 percent of foreign tourists come to Indonesia by planes, so the availability of plane seats is key to reach the 2017 and 2019 targets.

“Currently there are only 19.5 million seats available from both national and international airlines; these seats are only enough to fulfill last year’s target of 12 million foreign tourists. Meanwhile for this year’s target of 15 million foreign tourists, we need an additional four million seats,” explained Arief.

As for the 2018 target of 18 million foreign tourists, an additional 3.5 million seats is needed to reach 7.5 million seats. As for the 2019 target of 20 million foreign tourists, an additional 3 million seats is needed to reach 10.5 million seats. (kes)

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