The Soekarno-Hatta International Airport will undergo a US$1.37 billion refurbishment, Indonesia’s transport ministry has announced.
Construction will take place in two phases and is scheduled to begin in 2012 and then in 2014. The project will complete development of the third terminal by 2013, renovate Terminals 1 and 2 as well as build a transportation system to link the three terminals.
According to Herry Bhakti Gumay, director general of aviation transportation at the ministry, state-owned airport operator Angkasa Pura II would finance the project. However, there are revelations that the airport operator is scrambling for funds, raising doubts as to whether the work would be finished according to schedule.
Hari Cahyono, Angkasa Pura II’s corporate secretary was quoted in the local media as stating that the operator is currently “finding a strategic partner and bank loans.”
“An IPO and bonds are other options that we are looking at, but they are less feasible,” he added.
The proposed project is due to a surge in passenger traffic, which exceeds the airport’s capacity. According to Gumay, the airport was built to accommodate 22 million passengers per year, yet currently Soekarno-Hatta International Airport handles 44 million passengers per year. Angkasa Pura II predicts this figure will rise to 54 million passengers by 2015 and 66 million by 2020, making the expansion essential to Jakarta’s economic growth.