Angkasa Pura I leads the consortium for the management of Hang Nadim Airport in Batam and will develop Batam Airport with the concept of Logistics Aerocity.
Batam, December 21, 2021 - Batam Indonesia Free Zone Authority (BP Batam) signed a management cooperation agreement (design, development, financing, transfer, operation, and maintenance) of Hang Nadim Airport in Batam with PT Bandara Internasional Batam as Implementing Business Entity (BUP) formed by PT Angkasa Pura I - Incheon International Airport Corporation (IIAC) - PT Wijaya Karya Tbk. (Persero) [WIKA] Consortium as the tender winner for the procurement of the Implementing Business Entity on the project of Government Cooperation with Business Entities (KPBU) for Hang Nadim International Airport in Batam with a management period of 25 years.
The MoU was signed by the Chairman of BP Batam Muhammad Rudi and the BUP President Director of PT Bandara Internasional Batam Pikri Ilham on Tuesday, December 21, 2021. The MoU signing was witnessed by the Coordinating Minister for Economic Affairs of the Republic of Indonesia Airlangga Hartarto, Deputy Head of BP Batam and all BP Batam Deputies, President Director of PT Angkasa Pura I Faik Fahmi, IIAC President and CEO Kyung-Wook Kim, and President Director of PT Wijaya Karya (Persero) Tbk. [WIKA] Agung Budi Waskito.
The signing of the MoU was carried out as a follow-up to the announcement of the tender winner for the Procurement of Implementing Business Entity on the project of Government Cooperation with Business Entities (PPP) for Hang Nadim International Airport, Batam in March 2021, where the AP I - IIAC - WIKA Consortium became the tender winner and the selection process has been carried out openly in accordance with applicable regulations and has implemented the principles of good corporate governance. Heads of Agreement for the management of Hang Nadim Airport in Batam between BP Batam and the AP I - IIAC - WIKA Consortium was carried out in July 2021.
In the collaboration, BP Batam will provide the entire area and/or operational area of Hang Nadim Airport in Batam as a working area to be managed and developed by the consortium. Meanwhile, the Angkasa Pura I - IIAC - WIKA Consortium, through the BUP of PT Bandara Internasional Batam, is responsible for the design, development, financing, transfer, operation, and maintenance of Hang Nadim Airport in Batam.
“It is hoped that the signing of the cooperation agreement is a joint commitment to develop Hang Nadim Airport as a logistics and passenger hub so that it can support infrastructure development and can attract other investment partners to contribute to economic growth in Batam and Riau Islands Province,” Chairman of BP Batam, Muhammad Rudi said.
"With the signing of the cooperation agreement for the management and development of Hang Nadim Airport in Batam, Batam Airport is officially under the management of Angkasa Pura I through PT Bandara Internasional Batam as a management business entity under the Angkasa Pura I - IIAC - WIKA consortium. The victory of the Angkasa Pura I Consortium in being selected as the manager of Hang Nadim Airport in Batam is an important milestone for the company – this is the first time the company has won a competition among other key airport industrial players, both nationally and globally, to manage potential airports. This is also an acknowledgment of the capability and quality of Angkasa Pura I as a trusted airport management company,” President Director of PT Angkasa Pura I, Faik Fahmi said.
With the winning of Hang Nadim Airport management tender, continued Faik Fahmi, in the future Angkasa Pura I has a greater opportunity to obtain cooperation contracts to manage other potential airports, both domestically and abroad. The winning of the Hang Nadim Airport management tender also adds to the company’s portfolio and network of airport management, bringing the total airports managed by Angkasa Pura I to 16 airports. In addition, continued Faik Fahmi, strategic cooperation through the formation of the consortium is a form of business transformation carried out by Angkasa Pura I to increase the company’s revenue potential.
Meanwhile, President and CEO of Incheon International Airport Corporation (IIAC) Kyung-Wook Kim said, “Today’s signing of the cooperation agreement is Korea’s first long-term Public-Private cooperation project overseas. Therefore, this marks an important milestone in future cooperation between Korea and Indonesia in the aviation sector. To date, Incheon Airport has solidified its position as a major hub airport connecting the two largest aviation markets in the world, Asia and North America. Our participation in this project will support the development of both airports in the future, creating synergies in various fields of airport construction and operation. The synergy can be achieved by leveraging the strong flight network of Incheon Airport in Northeast Asia and the USA and connecting the network with Batam domestic airport routes to expand connectivity.”
“The management and development of Hang Nadim Airport mark a new milestone, the inclusion of WIKA in the airport investment project. This step is in line with the Company’s transformation to become a leader in sustainable investment and EPC. As an SOE with a long track record and good reputation in the airport construction sector, WIKA is ready to cooperate with Angkasa Pura I and IIAC, including in terms of presenting quality, modern Hang Nadim Airport infrastructure as well as being the pride of the people of Batam,” President Director of WIKA, Agung Budi Waskito said.
“As the implementing business entity representing the Angkasa Pura I consortium, we are committed to carrying out the management and development strategy of Hang Nadim Airport in Batam according to the consortium leader, Angkasa Pura I supported by consortium members, Incheon International Airport Corporation and Wijaya Karya. With the expertise of each member of the consortium, we believe that the management of Batam Airport can provide added value and contribute more to the economic development of the Batam region and its surroundings,” President Director of PT Batam International Airport, Pikri Ilham K said.
In the management of Batam’s Hang Nadim Airport, members of the Angkasa Pura I Consortium have their respective roles. As the consortium leader, Angkasa Pura I will be responsible for general operational and commercial management. Meanwhile, IIAC has obligations and responsibilities in terms of marketing and airport development strategies in general. Meanwhile, WIKA as a state-owned enterprise in the construction sector that is integrated with its supporting industries has responsibility in terms of airport infrastructure management.
The scope of the management cooperation is the construction, expansion, management, and maintenance of the existing passenger terminal (T1), new passenger terminal (T2), and their infrastructure; management of new cargo terminals; and the concept of developing a master plan for Batam’s Hang Nadim Airport with the concept of logistics aerocity. In the future, Hang Nadim Airport will be developed to become a wider aviation destination hub and a logistics and cargo hub in western Indonesia. Batam’s Hang Nadim Airport has the potential to become a logistics center due to its strategic location in the Southeast Asian region, adjacent to the cargo port and industrial area.
