Indonesian airport operator Angkasa Pura II (AP II) is searching for a strategic partner to jointly develop some of the airports it manages.
Medan’s Kuala Namu International airport is one such airport, and discussions with potential candidates are ongoing.
“We are pursuing the development of airports with a strategic partner, so that we can share the capital expenditure and allow their development plans to continue [as planned],” says AP II’s president director Muhammad Awaluddin.
He adds: “Through project financing with the strategic partner, Angkasa Pura II and the partner can share the risk and burden, with an aim of maintaining the competitiveness of the national transportation sector”.
Besides the search for a strategic partner for its airports, AP II is also aiming to grow its business inorganically, by acquiring new airports and moving into adjacent business. No other details were shared.
This year, the state-owned airport operator will sharply reduce its planned capital expenditure from Rp7.8 trillion ($522 million) to Rp1.4 trillion, citing a change in strategy caused by the Covid-19 pandemic.
With the reduction in capital expenditure, AP II will fund this year’s spending through internal cash.
Muhammad Awaluddin states this year’s expenditure will be allocated to multi-year airport expansion projects. This includes developing a commercial area for Jakarta Soekarno-Hatta International airport, as well as design planning works for the airport’s Terminal 4 project.
The T4 design planning work is targeted for completion in 2021, and groundbreaking will take place in January 2022.