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NEWS Last modified on July 15, 2013

UK eyes wave of Indonesia airport projects

A new report for UK Trade & Investment (UKTI) highlights how foreign firms can participate in an expected flurry of Indonesian airport projects.

Research into Indonesia’s airport sector by PA Consulting has found that the Southeast Asian nation is poised to make massive investments across its airport infrastructure.

 

The UKTI market report focuses on 18 projects where commercial opportunities are apparent in areas ranging from runway construction to advice on setting up public-private partnerships.

Steven Barr, the report’s author, told Airport World that British companies should become active in the market “pronto” to take part in “a real pipeline of projects”.

“There is absolutely a need to increase airport capacity because that is already jampacked,” he told Airport World.

“The government is definitely committed to funding and has allocated in its current budget real money that will actually be spent if the airport projects move fast enough.”

Steady economic growth is spurring a rapid rise in Indonesia’s domestic and international air traffic, while the country’s gateways are ripe for overhaul.

At a presentation today to launch the report, Peter Budd of the UKTI Airports Sector Group described Indonesia’s airports as “a hugely exciting market”.

With a vast population of about 240 million spread across thousands of islands and three time zones, Indonesia's domestic connectivity relies heavily on aviation.

An Open Skies deal is spurring interest among regional airports in serving international routes.

Recent fleet investments by Indonesia’s carriers have also underscored the potential for expansion. In March 2013, Lion Air announced an order for 234 A320s.

Meanwhile, Garuda is set to join SkyTeam next March, opening up global opportunities.

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