The Incheon International Airport Corp. (IIAC), a state-run entity from South Korea, is ramping up efforts to bolster Hang Nadim International Airport in Batam, Indonesia, which stands as the country’s third most popular tourist destination. IIAC’s joint venture, PT Bandara International Batam (BIB), is responsible for the development and management of the Indonesian airport.
Under a 25-year plan spanning from 2022 to 2047, BIB is undertaking significant expansions, renovations, and operational enhancements. IIAC holds a 30% share in this joint venture, with Indonesia’s Angakasa Pura I (API) and PT Wijaya Karya Tbk (WIKA) holding 51% and 19% respectively.
Established in December 2021, this joint venture marks the first instance of a South Korean airport operator engaging in overseas airport development and management. The project operates under a public-private partnership (PPP) model, combining governmental and private sector resources for financing, construction, and operation.
IIAC envisions Batam as a premier golf tourism destination in Southeast Asia, projecting increased tourist footfall, especially from budget travelers in the region. Leveraging its robust regional network, IIAC intends to position the Batam airport as a key gateway linking Northeast Asia and Indonesia.
Forecasts predict a 15% year-on-year increase in passenger traffic to 4 million in 2025. IIAC aims to elevate passenger numbers to 25 million by 2047.
(Source: KED Global)
