Construction of Kediri Airport Launched to Spur Economic growth in East Java

May 2020

The Indonesian government announced in mid April 2020 that the construction of Kediri Airport in Kediri regency, East Java, had begun. The project is expected to be completed in two years and the airport will be able to accommodate large international and domestic flights, handling a total of around 5 million passengers per year. The construction of this airport is part of the government’s list of National Strategic Projects (PSN) aimed at bridging the economic gap between some regions.

The project is at the center of East Java administration’s plans to build an integrated economic hub, called Selingkar Wilis, around Mount Wilis in the western part of the province. The construction will be privately funded by tobacco manufacturer, PT Gudang Garam, through its subsidiary Surya Dhoho Investama. The total cost, including the acquisition of about 400ha of land, is projected to reach IDR 10 trillion (USD 732.4 million).

The airport is expected to spur investments in the province and to generate income for local workers and companies. Once delivered it will also complement the overburdened Juanda International Airport in Surabaya, the capital of East Java.

(Sources: The Jakarta Globe; The Star)

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