Angkasa Pura II cuts capex to Rp 1.4 trillion, 20 percent of initial plan
07 May, 2020
State-owned airport operator PT Angkasa Pura II, which manages most airports in the western part of Indonesia, has reduced its capital expenditure this season to Rp 1.4 trillion (US$92.8 million), which is significantly less than 20 percent of the at first earmarked Rp 7.8 trillion.
President director Muhammad Awaluddin said capex, which will be mostly financed with internal funds, would give attention to several airport development projects and airport facility and security system improvement.
“Several multilayer development projects are still ongoing this year, for example, the construction of the commercial area, offices and hotels that are integrated with the Soekarno-Hatta Airport building.
“The task on a design arrange for Soekarno-Hatta’s Terminal 4 will also be continued this year in fact it is set to be completed in 2021, with the groundbreaking [ceremony to be held] in January 2022,” said Awaluddin on a statement released on Tuesday.
The company’s director of engineering, Agus Wialdi, said Angkasa Pura II had made a substantial cut to its budget following a sharp drop in aircraft and passenger traffic at its airports as a result of pandemic, which has taken a toll on the operator’s revenue.
“Cutting costs is among our main measures to handle the impact of COVID-19. Operations at Angkasa Pura II’s airports have already been drastically reduced as we are adjusting to the passengers and aircraft traffic,” said Agus.
Cost-cutting measures include suspending the Soekarno-Hatta Skytrain service, cutting electricity use by 46 percent and slashing water use by 60 percent at Angkasa Pura II airports across Indonesia.
Agkasa Pura II manages 19 airports in western parts of Indonesia, including Kualanamu AIRPORT TERMINAL in Medan, Halim Perdanakusuma Airport in Jakarta, Depati Amir in Bangka Belitung Islands, Supadio in Pontianak, Radin Inten II AIRPORT TERMINAL in Bandar Lampung and Sultan Mahmud Badaruddin II in Palembang, amongst others.
Source: www.thejakartapost.com
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