Angkasa Pura Aviasi (APA), the joint venture company of GMR Airports Ltd (Subsidiary of GMR Infrastructure Ltd) and Indonesia’s state-owned airport operator Angkasa Pura II (AP2), has assumed the operational charge of the Kualanamu International Airport in Medan, Indonesia (Medan Airport)..

 The joint venture formally took over the operations of Medan airport in the presence of Budi Karya Sumadi, Minister of Transportation (MOT), Erick Thohir – Minister of State-Owned Enterprises (MSOE), Edy Rachmayadi, Governor of North Sumatra, and Muhammad Awaluddin, President Director, Angkasa Pura 2, according to a release issued by GMR here on Friday. 

``We reiterate our commitment to transforming Medan Airport into the Western International hub of Indonesia and contributing to the overall infrastructure development of the country,’‘  Srinivas Bommidala, Chairman - Energy & International Airports, GMR Group said. 

The development of Medan Airport under the joint venture would lead to growth in tourism and business activities between India and Indonesia. This also reinforces GMR Group’s credentials as one of the largest airport developer and operator globally, he added. 

With this, the GMR Group has expanded its international footprint. It is the only Indian airport operator with a significant presence in South-East Asia and Europe. 

Operation of Medan Airport

GMR is operating the Mactan Cebu International Airport (MCIA) in the Philippines and recently finished the construction of Clark Airport, Philippines. Medan airport would be the second operating asset in the company’s portfolio in South-East Asia. The Group is also coming up with a Greenfield airport at Crete in Greece (Europe).

GMR Airports had bid for the development and operation of Medan Airport. The international selection process was conducted by PT Angkasa Pura II to select a strategic partner for Medan Airport. APII is a state-owned enterprise handling 20 airports in Indonesia.

In November 2021, GMR Airports Ltd was announced as the winning bidder. The Shareholders’ Agreement (SHA) and Share Subscription Agreement (SSA) with Angkasa Pura II was signed in December 2021. GMR had entered into a 49:51 partnership with APII.

Medan is the fourth largest urban area in the country and is the capital of North Sumatra province. ``The joint venture company will transform Kualanamu International Airport into the Western International hub of Indonesia. The project scope includes the operation, development, and expansion of the airport over a period of 25 years,’‘ the release said. 

Kualanamu International Airport was built in 2013 to replace the city centre Polonia Airport and has been operating since then. The airport handled more than 10 million passengers in 2018, with international connectivity to Singapore, Malaysia, Thailand and the Middle East, in addition to robust domestic connectivity to capital city Jakarta, Batam and regional urban centers across the country.