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Tuesday, September 4, 2012

Indonesian Govt: Completion of Kuala Namu Airport to Require Another Rp 5t

The Indonesian government said in Jakarta on Thursday that it will require an additional Rp 5 trillion ($524 million) to complete the construction of the Kuala Namu International Airport in North Sumatra.

Johannes Toruan Hasiholan, chairman of the regional development office of North Sumatra province, said on Thursday that the government will invite private investors to put money into the remaining development of the airport.

“The first phase development has been completed. The second phase will need an extra investment of Rp 5 trillion,” Hasiholan said.

Kuala Namu is expected to be operational in March 2013. The construction of the airport, which will be the nation’s second-largest airport after Soekarno-Hatta International Airport in Banten, began last year.

Indonesia has launched ambitious infrastructure development projects such as the construction or upgrading of seaports, airports and roads to help create jobs and reduce poverty.

Hasiholan said that when Kuala Namu is operational, it will be able to handle 8 million passengers per year. The handling capacity of Polonia International Airport, which Kuala Namu is intended to replace, is less than 1 million.

The overstretched Soekarno-Hatta handled 51.5 million passengers last year, making it the 12th busiest airport in the world in terms of passenger numbers, according to the Airports Council International.

President Susilo Bambang Yudhoyono officiated the groundbreaking of a major project to overhaul Soekarno-Hatta in early August, a move that is expected to increase the passenger handling capacity of the capital’s main airport from its current 22 million a year to 62 million by 2014.

The new-look airport, which the government is dubbing an “aerotropolis,” is expected to be a major driver of economic growth and investment in the country. As domestic and international air travel is increasing in line with the growth of Indonesia’s middle class, policy makers indicated that it was important that the nation had the infrastructure capacity to meet that demand.

The overhaul of Soekarno-Hatta is expected to cost Rp 12 trillion.

Kuala Namu Airport is located about 45 kilometers from North Sumatra’s provincial capital Medan. It will replace Polonia, which is poorly located in the center of Medan, limiting runway lengths and making takeoffs and landings difficult.

Kuala Namu Airport is operated by state airport operator Angkasa Pura II.

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