Indonesian sovereign wealth fund Indonesia Investment Authority (INA) has signed two preliminary agreements with state-owned company PT Angkasa Pura II to develop the Soekarno-Hatta Airport, the country’s biggest international airport, and make it more competitive with regional and global peers.
One agreement is for a strategic partnership to manage and develop the airport, located in Jakarta, the national capital. The second agreement is a strategic partnership to manage and develop a cargo village at the airport and create the largest cargo terminal in Indonesia.
According to INA Chairman Ridha Wirakusumah, the pacts would allow INA to present the “best world-class management and practices”. He did not provide any financial details in the statement announcing the deals, and spokespersons for INA did not immediately respond to questions from Asia Asset Management.
“World-class management and best practices will be created for airport services and cargo management so as to support the creation and operation of world-class airports in Indonesia,” Ridha says in the October 11 statement.
Angkasa Pura II President Director Muhammad Awaluddin adds that the planned development will “quickly increase the competitiveness of Soekarno-Hatta Airport at regional and global levels”.
He says the cargo village will more than double the capacity of the cargo terminal at the airport from the current 700,000 tonnes a year to at least 1.5 million tonnes a year.
“The development will be carried out on an area of 90 hectares or three times compared to the existing cargo terminal. The existence of Cargo Village will make Soekarno-Hatta Airport an airport that has the largest cargo terminal in Indonesia,” he says.
INA was set up in February and seeded with US$5 billion from the government. Its first-quarter net income was 19.36 billion rupiah ($1.36 million) and the fund had 15 trillion rupiah of assets as of March 31.