Signing of Hang Nadim Airport Cooperation Agreement

By Justin Hasanuddin (22/12/2021)

The Batam Indonesia Free Zone Authority (BIFZA/BP Batam) just signed a Cooperation Agreement to manage Hang Nadim Airport with PT Batam International Airport (PT BIB). Thereby, Hang Nadiem Airport is officially under the management of AP I with PT BIB.

PT BIB is an Implementing Business Entity (IBE) formed under the consortium of PT Angkasa Pura (Persero) (AP1), Incheon International Airport Corporation (IIAC), and PT Wijaya Karya (Persero) Tbk., (WIKA). The aforementioned consortium is the winner of the tender for the procurement of the Public Private Partnership (PPP) project IBE of Hand Nadiem International Airport. The signing was carried out by the Head of BP Batam Muhammad Rudi with the President Director of BUP PT Batam International Airport Pikri Ilham on Tuesday (21/12/2021).

The scope of the Hang Nadim International Airport PPP Agreement is the management, maintenance, and operation of existing airport facilities, upgrading and expanding existing passenger terminals (Terminal 1), construction of new passenger terminals and other supporting facilities (Terminal 2), as well as managing and expanding cargo terminals to meet the increasing demand for passenger and cargo traffic. Under the terms of the PPP Agreement, the cooperation will be carried out for a period of 25 years, during which PT BIB will have exclusive rights over 354 hectares of land within Hang Nadim International Airport as the object of cooperation, all with a value of around Rp. 6.9T ($485M)

The signing itself was witnessed by the Coordinating Minister for Economic Affairs Airlangga Hartanto, deputy chairman of BP Batam and all BP Batam deputies, Director of Human Resources and Digital of PT Aviasi Wisata Indonesia Herdi Rosadi Harman, President Director of AP I Faik Fahmi, President and CEO of IIAC Kyung-Wook Kim, and President Director Agung Budi Waskito.

Faik Fahmi said, the victory of the consortium led by Angkasa Pura I in the selection of the manager of Batam’s Hang Nadim Airport is an important milestone for the company, where this is the first time the company has won the competition among other key players in the airport industry, both nationally and globally, to manage potential airports.

While IIAC President and CEO Kyung-Wook Kim said the signing of this cooperation agreement was Korea’s first long-term PPP project abroad. Therefore, this marks an important milestone in the future cooperation between Korea and Indonesia in the aviation sector.

Agung Budi Waskito also said, WIKA is ready to cooperate with Angkasa Pura I and IIAC, including in terms of presenting quality, modern Hang Nadiem Airport infrastructure, as well as becoming the pride of the people of Batam.

In this definite project, lawyers from DKMS Lawyers led by Mr. Donke as the Managing Partner of the firm advised BP Batam for completing the cooperation agreement teaming up with PT Surveyor Indonesia.

It is hoped that the signing of this cooperation agreement will be a joint commitment to develop Hang Nadim Airport as a logistics and passenger hub which can support infrastructure development and might attract other investment partners who will contribute to economic growth in Batam and Riau Islands Province.

SOURCE          :           DKMS (dkmslawyers.com)

LINK TO VIDEO:          https://youtu.be/Pq9WkcADf7E