Indonesia sets aside big money for airport development

INDONESIA’S Ministry of Transportation has budgeted Rp71 trillion (US$5.4 billion) to develop airports around Indonesia over the next five years.

Targeting to open an annual average of 15 new airports, these airports will be located in natural disaster hazard areas, remote destinations, and bordering cities and towns.

There are also plans to upgrade existing airports and extend runways.

Speaking at the opening of Garuda Indonesia Travel Fair in Jakarta last Friday, director general of air transportation, Suprasetyo, said: “The number of Indonesian air passenger traffic between 2010 and 2014 totalled 335 million with an average annual growth of 15 per cent.”

“This is considered moderate compared to the potential size of the market. The lack of infrastructure has been identified as the hampering factor.”

This year alone, the government is allotting Rp11 trillion for airport development in hazard areas such as Sabang and Nias.

Suprasetyo added that the government is working on more G2G agreements to improve accessibility with regional and international destinations, and would open 217 pioneering routes in 28 provinces this year.

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