Wednesday, 9 May 2012


               The emergence of new generations of the new-rich in Indonesia had increased people’s mobility and on the other hand bringing advancement to transportation mode hence making the position of airports now more important; moreover with the emergence of new regions (provinces, regencies, cities) as result of re-mapping, increasing need for inter insular or inter provincial transportation.

                The Ministry of Transportation testified the above statement by signaling that they planned to build two new airports in West Java. This was evident in the fact that a feasibility study for building an airport in Karawang and Majalengka as substitute or relocation of the Hussein Sastranegara airport Bandung had been accomplished.

            The Ministry of Transportation had accomplished feasibility study for a new airport in Karawang – Jabodetabek (Greater Jakarta) already had the Soekarno-Hatta airport, but that airport only had two runways. To consider the increasing number of passengers, it was about time that air transportation system in Jakarta was multi-airport. Finally karawang was chosen as site for the second airport.

                Measures as such had been done had been done by big cities of the world who already had more than one airport. The objective was to solve problems of traffic jam. An example was Tokyo who had two airports not far from each other, i.e. Haneda and Osaka airports.

              Beside supporting Soekarno Hatta airport, the new airport in Karawang which was on the eastern side of Jakarta was expected lessen traffic flow to and from Soekarno Hatta Airport on the Western side of Jakarta. Most likely the development of this project would soon involve the private sector within the Public Private Partnership (PPP) scheme.

              The Government planned to work on the air side while the private sector would take care of the ground (the land side). As planned, this project would be offered by tender in 2013 so by 2015 groundbreaking would be started.

             Meanwhile the planned Majalengka Airport as substitute to the Hussein Sastranegara Airport in Bandung would soon be named kertajati International Airport (BIK). According to feasibility study carried out by the West Java Provincial Government, to build such an airport the space needed was 1,800 hectares of land with estimated budget of Rp 5.8 trillion.

            For further development the space needed was 5,000 ha with estimated budget of Rp 8.29 trillion and was expected to be completed in five years and start to operate in 2017. This new airport would naturally activate economic heartbeat around the location, hence the nation’s Grosss Regional Product (PDRB) would be jacked up as economic trade volume rose.

           To speed up building of this new airport, the Government, though of the Regulation of the Ministry of Transportation no. 34 2005 on stipulation of site for the location of the airport at the District of Kertajati, Regency of Majalengka in relation to financing of the project. With revision of the regulation of the Ministry of Transportation, development in Kertajati would be within the responsibility of the Central Government.

           The Indonesia Air Carriers Association (INACA) as body to accommodate national air transport companies supported the Government’s plan to build this new airport whereby to anticipate growing number of passengers in the future. According to INCA, it was about time to have airport in Jabodetabek.

            Driven by population growth of 15% on the average per year, and Indonesia’s economy which grew 6% or more on the average, very soon the Soekarno Hatta airport would not be able to hold passengers explosion in spite of airport expansion.

            So building of this new airport was most appropriate to meet the need for air infra structure. Jakarta as one of the busiest citie in the world should have more than one airport. With passengers growth rate as it was now, it was predicted that by 2010 the Soetta airport would be unable to cope with passengers growth.

            It was noteworthy that not only the Ministry of Transportation had the idea to build an airport, but also the Government of the Special Province of Yogyakarta (DOY) who planned to build an airport in the regency of Kulonprogo; they believed that the proposed airport at Kulonprogo would create a positive impact in the industrial sector, housing, and tourism. A new airport would even sustain local economic growth.

            Apparently building of a new airport was more than just a discourse. This new airport was planned to be built at Kulonprogo. The estimated fund for building this new airport was around Rp 1.2 trillion; the space needed for building this airport was 50 hectares of land. This did not mean that the Adisutjipto Airport would be closed, but it would be re-functioned into a VIP airport, the airport for very important persons and special occasions.

            The building of a new airport would generate a multiplier effect for the local communities, i.e. change of lifestyle due to increased income of the people as probably many people changed their profession or benefit from the new environment as a place to make a living.

            A situation as such would be beneficial to the banking sector as many people needed fund to open new business, or expand their business or deposit their money. Banks should be eagle eyed to detect business opportunities. Building of airport at Kulonprogo was expected to contribute positively to the changing behavior of people in this region.

            As with matters related to building permit, it should not be difficult at all. Permit for building airport had its legal ground, i.e. Law no. 1 year 2009 on Aviation; Government’s Regulation no. 3, year 2001 on Safety and Security of Flights; Government Regulation no. 70 year 2001 on Airport Building; Decree of the Ministry of Transportation no KM 11 year 2010 on National Airport system; decree of The Ministry of Transportation no. 48 year 2002 on airport management and Government’s Regulation no. 6 year 2009 on types and Tariff of non-tax revenues applicable at the Ministry of Transportation.

          There were also preconditions for building new airport. Firstly, building of spreading-center airport and non spreading center airport the surrounding space of which was controlled and could only be done after stipulation of building execution by the Ministry was issued.

            Secondly, building on non spreading center airport where the space around was not controlled, could only be done only after stipulation for execution of development was made by the Regent or Mayor.

            Thirdly, the airport management executed development of airport building one year at the latest since stipulation for airport building was made.

            As with the process of permit application, the procedure was as follows Step One: to obtain execution permit of airport building, builder must for ward application to the Ministry through the Director General by enclosing copy of stipulation of location permit, masterplan of airport, proof of land possession, document of technical plan of airport including initial plan and pecifiec technical plan according to the applicable standard; and analysis study of environmental impact legalized by the authority.

           Step Two to obtain stipulation of building execution, the builder must forward application to the local Regent by enclosing copy of stipulation to the local permit, masterplan of airport building, proof of land possession, technical consideration by the Government as deconcentration duty, document of airport technical plan in accordance with the applicable standard, and analysis study of environmental impact approved by the authorized official.

            Step Three the Director General submitted evaluation outcome to the Minister at the latest 30 working days after document was completely accepted. Step Four The Minister Stipulated execution of development by observing evaluation outcome of the Director General at the latest 14 days after documents were completely received. Step Five the regent/mayor stipulated execution of development at the latest 30 working days after documents were completely received.

            What was being awaited for now was completion of building masterplan for the new airport in Jakarta, West Java and Yogyakarta in the coming years building of new airport would spread out wider even beyond Java, not just to carry passengers but also goods. All in all, the economic machine would be smooth and efficient, which had the positive impact of increased GDP and regional GDP and people’s welfare.    

BUSINESS NEWS - April 25, 2012

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