The course of Hang Nadim International Airport in the economic development of Batam – Inforial

Inforial (The Jakarta Post)

Jakarta ●
Fri, June 24, 2022



From its humble beginnings as a small airport to support the operations of state oil and gas holding company Pertamina to its current incarnation as Hang Nadim International Airport, the aviation hub in the district from Nongsa to Batam in the Riau Islands has played an increasing role. in the growth of the economies of the island and the archipelago province.

The 1,760-hectare airport was named Hang Nadim after the Malaysian hero who defended the Indonesian people during the Portuguese colonial era.

When it was built in 1973, Hang Nadim Airport had a runway of about 700 meters. Today, it has a runway that stretches 4,025 meters, the longest in Indonesia and the third longest in Southeast Asia.

After several years as a Class II airport, Hang Nadim’s status was upgraded to a domestic airport in 1985 and then an international airport in 1990, serving international routes from Indonesia to Malaysia and Singapore.

Batam is one of the country’s main ports of entry and ranks third in foreign arrivals only after Jakarta and Bali, with Hang Nadim International Airport designed to handle a maximum of 5 million visitors each year.

The airport recorded 3.03 million visitor arrivals in 2016, followed by 2.8 million visitors in 2017, 2.7 million in 2018 and 2.1 million in 2019. The COVID-19 pandemic has significantly reduced the number of arrivals, with only 1.1 million visitors in 2020 and 708,000 in 2021.

On the other hand, the airport has witnessed an upward trend in cargo loading and unloading to 3.7 million kilograms and 2.5 million kg respectively in 2020. The following year, the airport recorded 4 million kg of cargo loading and 3 million kg of cargo unloading.

Also in 2021, the Batam Indonesia Free Zone Authority (BP Batam), which manages Hang Nadim International Airport, signed a public-private partnership (KPBU) with a consortium led by public airport operator Angkasa Pura I (AP I), the Incheon International Airport Corporation (IIAC) of South Korea and the public construction company PT Wijaya Karya (WIKA).

The partnership program, which has an investment value of IDR 6.9 trillion, will be implemented within 25 years and covers the renovation, management and maintenance of the existing passenger terminal and the development , management and maintenance of a new passenger terminal (Terminal 2). The agreement also includes the development, management and maintenance of other ground and airside infrastructure, as well as the management of the airport’s new cargo terminal.

The development of Terminal 2 is expected to double the annual passenger capacity of Hang Nadim International Airport to 10 million people. It will also increase with its air cargo capacity to 1.5 times pre-pandemic figures in 2019, or around 17.5 million kg for loading and unloading.

BP Batam Chairman Muhammad Rudi said the KPBU agreement indicates the joint commitment of the signatories to develop Hang Nadim Airport as a logistics and passenger hub to support infrastructure development and attract additional investment partners in the free trade area.

“We hope that this cooperation in the management of the airport will make a major contribution to the economic growth of Batam and the Riau Islands,” Rudi added.

The investment project would also benefit Batam in many ways, as it included a plan for 11 new international routes and a transfer of knowledge from the IIAC towards growing the local tourism industry, creating jobs and stimulation of the local economy.

Separately, Coordinating Minister for Economic Affairs, Airlangga Hartarto, who also chairs the Batam Free Zone and Free Port Concession Agency (BP KPBPB), said the partnership marked a new era in the accelerating the expansion of Hang Nadim Airport to support Batam’s future development.

Airlangga added that the airport also plays a vital role in supporting the development of the Batam-Bintan-Karimun (BBK) region and western parts of Indonesia, as well as connecting them to global markets such as China, Japan, South Korea and the United States.

“Batam’s increasingly open international passenger and cargo aviation network will accelerate the recovery and development of tourism in the BBK region as well as streamline cargo services, which in turn will increase the competitiveness of the country. industry and reduce logistics costs in Batam,” the minister said.

“Furthermore, it will also encourage the expansion of the consumer electronics supply chain, both in terms of raw materials and [local] production.”