AIRPORT DEVELOPMENT IN INDONESIA. Directorate of Airport



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AIRPORT DEVELOPMENT Directorate of Airport IN INDONESIA Directorate General Of Civil Aviation Ministry of Transportation The Republic of Indonesia 28-30 May 2014

The Golden Moment Asia-Pacific will lead the world as the new epicentrum in aviation industry Since 2009, Asia-Pacific overtook North America to become the largest air travel market with 647 million passengers and is expected to grow more rapidly than that of the rest of the world, with an estimated average annual growth rate of 7% between 2009 and 2029 10 th BUSIEST AIRPORT IN THE WORLD 1

The Golden Moment Number of Aircrafts Aircraft Growth 2009-2013 2009 2010 2011 2012 2013 Total in operation Not in operation 1 Registered 1009 1122 1209 1324 1344 2 Operation under: CASR - 121 381 432 426 457 488 CASR - 135 192 225 253 268 283 1009 272 1122 283 1209 344 1324 1344 374 374 CASR - 91, - 137 77 73 57 81 72 CASR - 141 71 94 105 104 120 737 839 865 950 970 FASI 10 9 10 11 7 3 Total in operation 737 839 865 950 970 4 Not in operation 272 283 344 374 374 2011 230 a/c Lion Air has placed an order for 230 short haul of BOEING 737 900 ER planes, includes an option for another 150 aircraft, worth an estimated US $ 22,4 billion. The Prospect 2013 Lion Air has ordered 234 planes of A320 to AIRBUS in US $ 24 billion 234 a/c 2009 2010 2011 2012 2013 180 million 2021 Pax domestic By 2021, 180 million passengers are expected to fly domestically in Indonesia, triple the 2011 number (CAPA Center for Aviation). 2 2

Indonesia s Passenger Traffic Growth PASSENGER GROWTH Domestic 2007 Domestic 39162332 International 3188893 120000000 100000000 80000000 13.4% 2008 37405437 4102210 60000000 40000000 2009 2010 43808033 51775656 5004056 6614937 20000000 0 2011 60197306 8152133 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 71421464 78744301 90555946 104139338 119760239 8152133 10060492 11569566 11569566 15300751 16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0 International 19.3% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3 3

Air Transport Growth Aircraft Movement International Flight Avg.annual growth 19.12% Aircraft Movement Domestic Flight Avg.annual growth 16.01% Air Cargo International Flight Avg.annual growth 19.46% Air Cargo Domestic Flight Avg.annual growth 14.95% 4 Source : Directorate of Air Transport 4

Airports in Indonesia (Ref. Ministerial Decree PM No. 69 Year 2013) Public Airport = 299 airports (excl. relocation) - UPT DGCA : 273 airports - PT. AP I : 13 airports - PT. AP II : 13 airports Hierarchy : -Main Hub -Secondary Hub -Tertiary Hub -Spoke Ref. : Studi RINBU : 17 airports : 27 airports : 28 airports : 227 airports Scope of service area : - Sumatera & Java : 100 km (radius) - Kalimantan & Sulawesi : 60 km (radius) -NTB, NTT, Maluku & Papua : 30 km (radius) International Airport : -Main : 5 airports -International : 24 airports 5

10 TH BUSIEST AIRPORT IN INDONESIA Million Pax NO AIRPORT NAME CITY IATA ICAO 2011 2012 2013 1 Soekarno-Hatta Jakarta CGK WIIII 52.45 57.77 60.14 2 Juanda Surabaya SUB WARR 13.78 16.45 17.60 3 Ngurah Rai Denpasar DPS WADD 12.78 14.18 7.16 4 Sultan Hasanuddin Makasar UPG WAAA 7.46 8.32 9.49 5 Kualanamu Medan KNO WIMM 7.17 7.99 8.36 6 Sepinggan Balikpapan BPN WALL 5.68 6.62 7.10 7 Nang Hadim Batam BTH WIDD 3.39 3.76 4.20 8 Adi Sucipto Yogyakarta JOG WARJ 4.29 4.90 5.00 9 Syamsudin Noor Banjarmasin BDJ WAOO 3.10 3.30 3.70 10 Sultan Mahmud Badaruddin II Palembang PLM WIPP 2.62 2.90 3.17 PT. Angkasa Pura I PT. Angkasa Pura II 6

Airport Development Policy Main International Airports for MAFLPAS Airport in Disaster Area Airport in Remote Area Ministrial Decree PM No. 69/2013 National Airport System Airport in Tourist Destination Area Airport on Master Plan for Acceleration and expansion of Indonesia Economic Development Airport in Border Area Greater Jakarta Metropolitan Area 7

New Non-Commercial Airport Development Plan Miangas Muara Teweh Waisai Waghete Baru Tebelian Sumarorong Kamanap Tojo Una2 Sinak Baru Muara Bungo Morowali Buntu Kunik Kuffar-Seram Namniwel Segun Enggano Bone Pekon Serai Saumlaki Baru Bawean Moa Tual Baru Werur Operating in 2013 : 11 Airports Operating in 2014 : 7 Airports Operating in 2015 : 5 Airports Total Budget: ±USD 224 million 8

10 POTENTIAL AIRPORTs for PPP Juwata Tarakan Sultan Babullah Ternate Mutiara Palu Sentani Jayapura Fatmawati - Bengkulu Hanandjoeddin Tj. Pandan Radin Inten II - Lampung Brownfield Airport Selection Criteria Total of Passenger > 500.000 per year Passenger Growth > 5% per year Other Potential : Tourism Land owned by DGCA Tjilik Riwut Palangkaraya Komodo Labuan Bajo Matahora Wakatobi 10 DGCA Aiports 2 Tourism (*) Public Airport = 299 airports (excl. relocation) - UPT DGCA : 273 airports - PT. AP I : 13 airports - PT. AP II : 13 airports Hierarchy : - Main Hub : 17 airports - Secondary Hub : 27 airports - Tertiary Hub : 28 airports - Spoke : 227 airports Ref. : Studi RINBU Airports in Indonesia Scope of service area : - Sumatera & Java : 100 km (radius) - Kalimantan & Sulawesi : 60 km (radius) - NTB, NTT, Maluku & Papua : 30 km (radius) International Airport : - Main : 5 airports - International : 24 airports 10 Potential Aiports for PPP No Brownfield 1 Fatmawati - Bengkulu 2 Radin Inten II - Lampung 3 Hananjoeddin - Tj. Pandan 4 Tjilik Riwut - Palangkaraya 5 Juwata - Tarakan 6 Mutiara - Palu 7 Sultan Babullah - Ternate 8 Sentani - Jayapura 9 Komodo - Labuhan Bajo * 10 Matahora - Wakatobi * 9

Tourism DGCA Airports 3 Selected Airports No Airport MoT Prelim. Score Initiative Study By Private Revenue 2012 (IDR mn) Aircraft Mov mts 2011 Aspek Potensi Demand & Komersial Passenger 2011 ( 000 pax) Cargo Traffic 2011 ( 000 kg) Runway Critical Aircraft Land Aspect Selected 1 Sentani, Jayapura 7.39 18,542 47,494 1,124 63,329 2,500m x 45m B737-900ER 2 3 Juwata, Tarakan Fatmawati Soekarno, Bengkulu 6.71 18,200 13,668 770 8,453 6.22 6,313 5,545 577 2,246 2,250m x 45m 2,250m x 45m B737-400 B737-900ER 4 S. Babullah, Ternate 6.00 6,627 8,562 477 40 2,125m x 30m B737-400 5 Radin Inten II, Lampung 5.92 7,968 15,464 1,034 2,469 2,500m x 45m B737-900ER 6 Tjilik Riwut, Palangka Raya 5.79 7,300 6,320 606 3,643 2,500m x 45m B737-900ER 7 Mutiara, Palu 5.24 (potensi hub) 7,960 7,234 783 8,413 2,250m x 45m B737-900ER 8 H.AS. Hananjoeddin, Tanjung Pandan 4.86 3,218 17,509 512 1,578 2,000m x 45m B737-300 9 Matahora, Wakatobi n.a. n.a. 112 3.2 n.a. 2,000m x 30m ATR72 10 Labuan Bajo, Komodo n.a. 1,132 3,144 131 161 2,500 x 30m ATR72/F50/M A60 10

3 Selected Airports as Project Model 1 Radin Inten II Airport, Bandar Lampung 2 Mutiara Airport, Palu 3 Labuan Bajo Airport, Komodo Mutiara Palu Radin Inten II - Lampung Komodo Labuan Bajo 11

Radin Inten II Airport Bandar Lampung Can be developed into an International Airport Potential as a tourist destination airport and integrated industrial park 12

Mutiara Palu Strategic Location (potential as a hub for the east side of Indonesia) New Terminal Runway Extension Overrun Extension 13

Komodo Labuan Bajo Tourist Destination New Terminal Runway Extension in Progress Apron Extension Car Park Extension 14

PPP Process We are here Initial market sounding Project Planning / Prioritization Project Due Diligence If project is viable, and bankable structure can be obtained project may continue to transaction phase Project Planning and Due-Diligence (3-6 months) Request for Expression of Interest (EOI) Structuring VGF Application (if applicable) Guarantee Application (if applicable) Request for Prequalification (RFQ) RFP Issuance Transaction Implementation (9-12 months) Phase 1: Project structuring and tender preparation Final RFP Strategic decision on concession/commercial structure; Award Bid & Signing Submission & Evaluation Project road-show and request for expression of interest (EOI); Application of government guarantee and VGF (if applicable); Financial Close Project due diligence: Legal due-diligence and compliance review; Market/demand/traffic analysis; Technical due-diligence; Financial and economic due-diligence; Review options for bankable concession structure (e.g. requirement for guarantee and/or VGF) Preparation of tender documents (RFQ and RFP), and project concession agreements. Phase 2: Tender implementation and project award Issuance of RFP, bid negotiation, and finalization of RFP; Evaluation of bid and recommendation for project award; Execution of project agreements and achievement of financial close. 15

Airports in GJMA (Greater Jakarta Metropolitan Area) 16

The Traffic Growth of the Greater Jakarta Metropolitan Area (GJMA) Source: Airports Council International, 2012 Sources: JICA study 2011. 17

Runway Capacity Source : JICA 18

Alternative Location of the New Airport of GJMA 19

Thank You MINISTRY OF TRANSPORTATION DIRECTORATE GENERAL OF CIVIL AVIATION