The Incheon International Airport Corp. (IIAC) announced that it has signed a US$503 million deal to develop and operate an airport in Indonesia. Under the terms of the deal, IIAC will renovate the existing passenger terminal and build a second terminal at Hang Nadim International Airport on Batam Island and run the airport for 25 years until 2047. It is Korea’s first overseas airport development and operation, IIAC said. Construction is scheduled to begin in June 2022.
Earlier this year, the IIAC, which formed a consortium with Indonesia’s state-run airport operator PT Angkasa Pura 1 (AP1) and local construction firm PT Wijaya Karya Tbk (WIKA), was picked as the final bidder for the project after defeating Zurich Airport of Switzerland, EGIS of France and GMR of India, according to media reports in South Korea.
Batam is the third-most-visited tourist destination in the Southeast Asian country after Bali and Jakarta. In 2019, some 2 million tourists, including 80,000 Koreans, travelled there. Batam’s airport, which has the longest runway in Indonesia, handled 4.54 million passengers and 44,000 tonnes of cargo in 2019. The IIAC plans to expand the airport to accommodate 25 million passengers by 2040.
The IIAC plans to equip the Indonesian airport with its airport common user system (AirCUS), an essential airport operating system used for airline check-in and boarding procedures. In 2011, the IIAC and a Korean small firm jointly developed the system that has since been used at Incheon International Airport.
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