Indonesia’s main airport, SoekarnoHatta, is operating beyond capacity (60% above) while passengers increase each year. A lack of major development over the past 20 years has resulted in airports being 20% overutilised. We discuss the government’s role in resolving this issue by building and expanding airports.
Running out of capacity
• Over the past 20-30 years, there have been only a few new airports or expansions. Not until recently has the government made more effort in this sector (ie, Kertajati and Yogyakarta).
• Total passenger volume for 34 airports (operated by Angkasa Pura I&II) reached 207m in 2018; with total capacity of 169m, these are 23% overutilised.
• The largest (and main) airport, Soekarno-Hatta, is operating beyond capacity, with passenger volume at 60% above capacity: 69.3m versus 43m.
• The good ‘role model’ is Changi Airport in Singapore, which always seems to be a few steps ahead with its expansion for Terminals 2, 3 and 4 since 1989.
A big mission
• To solve the capacity issue, the government has been trying to build new airports or expand existing terminals. The first airport that needs to be monitored is Soekarno-Hatta.
• Angkasa Pura II has already started to revitalize the existing Terminals 1 and 2 (18m additional capacity) and will soon start construction of the new Terminal 4 (35m).
• Aside from Soekarno-Hatta, other developments include Juanda airport in Surabaya, Makassar, Yogyakarta, and some others.
A well-run company
• Angkasa Pura is the No.1 airport operator with low competition. Revenue growth is in the high-teens (both combined: 17% in 2018).
• The airports have also enjoyed high margin (ie, Ngurah Rai in Bali 76% Ebit margin).