Study on Makassar Airport Upgrade Project through the Indonesian

Transcription

Study on Economic Partnership Projects
in Developing Countries in FY2014
Study on Makassar Airport Upgrade Project through
the Indonesian Aviation Network Reconfiguration
Final Report
February 2015
Prepared for:
Ministry of Economy, Trade and Industry
Ernst & Young ShinNihon LLC
Japan External Trade Organization
Prepared by:
Mitsubishi Heavy Industries, Ltd.
Nippon Koei Co., Ltd.
Reproduction Prohibited
Study on Makassar Airport Upgrade Project
through the Indonesian Aviation Network Reconfiguration
Preface
Preface
This report summarizes the results of the " Study on Economic Partnership Projects in Developing Countries in
FY2014" entrusted as a business project in FY2014 to Mitsubishi Heavy Industries, Ltd. and Nippon Koei Co.,
Ltd. by the Ministry of Economy, Trade and Industry.
This study entitled "Study on Makassar Airport Upgrade Project through the Indonesian Aviation Network
Reconfiguration" proposes the introduction of the BB/RH Network (Broad-Band/Regional-Hub Network) as a
newly conceived aviation network to meet the specific needs related to the worsening of the air traffic and airport
congestion in the Indonesian metropolitan area due to the increase in air traffic demand accompanying the
economic growth of Indonesia. Furthermore, this study targets Soekarno-Hatta Airport and Makassar Airport,
which is the gateway to eastern Indonesia, and has been implemented to examine the feasibility of constructing
the BB/RH Network and accomplishing the 71.4 billion yen project to upgrade Makassar Airport as a
regional-hub airport through the renovation, increase, and construction of facilities, which include airside facilities,
utility facilities, passenger and cargo terminals, and a system for connecting the terminals.
It is our hope that this report aids in the achieving of the above mentioned project and becomes a reference to the
relevant parties in Japan.
February 2015
Nippon Koei Co., Ltd.
Map of the Project Site
Location Map of Makassar Airport (1)
Makassar
Location Map of Makassar Airport (2)
Makassar Airport
Source: Created by the study team Via Google Maps
List of Abbreviations
Abbreviations
Long Forms
APM
Automated People Mover
AMDAL
Analisa Mengenai Dampak Lingkungan
ANA
All Nippon Airways Co., Ltd.
ANDAL
Analisis Dampak Lingkugan Hidup
AP-I
PT. Angkasa Pura I
AP-II
PT. Angkasa Pura II
ASEAN
Association of South-East Asian Nations
ATM
Air Traffic Management
BOT
Build Operate Transfer
BAPPENAS
Badan Perencanaan Pembanguan Nasional
(National Development Planning Agency)
BB/RH
Broad-Band/Regional-Hub
BPS
Badan Pusat Statistik
CDM
Clean Development Mechanism
DGCA
Directorate General Civil Aviation(Indonesia)
EIA
Environmental Impact Assessment
EIRR
Economic Internal Rate of Return
FIRR
Financial Internal Rate of Return
F/S
Feasibility Study
GAAP
Generally Accepted Accounting Principles
GDP
Gross Domestic Product
HIV
Human Immunodeficiency Virus
IATA
International Air Transport Association
ICAO
International Civil Aviation Organization
IDR
Indonesia Rupiah
IMB
Izin Mendirikan Bangunan
IMF
International Monetary Fund
JBIC
Japan Bank for International Cooperation
JETRO
Japan External Trade Organization
JFK
John F. Kennedy
JICA
Japan International Cooperation Agency
JOIN
LCC
Japan Overseas Infrastructure Investment Corporation
for Transport & Urban Development
Low Cost Carriers
LTO
Landing/Take-off
MD
Merchandising
MOSE
MOT
Ministry of State-Owned Enterprises
(Indonesia)
Ministry of Transportation(Indonesia)
Master Plan for Establishing Metropolitan
MPA
Priority Area for Investment and Industry in
Jabodetabek Area
MP3EI
Master Plan for the Acceleration and Expansion of
Indonesia’s Ministry for Economic Development
NPV
Net Present Value
PPP
Public Private Partnership
RDTRK
Rencana Detail Tata Ruang Kota
RENSTRA
Rencana Strategis
RKL
Rencana Pengelolaan Lingkungan Hidup
RPJM
Rencana Pembangunan Jangka Menengah
RPL
Rencana Pemantauan Lingkungan Hidup
RTBL
Rencanan Tata. Bangunan dan Lingkungan
RTRK
Rencanan Teknik Ruang. Kawasan
SPC
Special Purpose company
SSC
Shared & Service Center
STP
Sewage Treatment Plant
ToR
Terms of Reference
USD
United States Dollar
VFR
Visual Flight Rules
VIP
Very Important Person
WECPNL
WHO
Weighted Equivalent Continuous Per Ceived Noise
Level
World Health Organization
Table of Contents
TABLE OF CONTENTS
Preface
Table of Contents
Executive Summary
(1) Background and Necessity of the Project
0-1
(2) Basic Policy regarding Project Content Determination
0-2
(3) Project Overview
0-4
(4) Planned Project Schedule
0-10
(5) Feasibility of Implementation
0-12
(6) The Technical Advantage of Japanese Companies
0-13
(7) Maps indicating the project implementation site
0-14
Chapter 1 Overview of the Host Country and Sector
(1) Economic and Financial Status of Host Country
1-1
(2) Overview of the Targeted Sector for this Project
1-2
(3) Region Conditions
1-3
Chapter 2 Study Methodology
(1) Study Contents
2-1
(2) Research Methodology and Structure
2-2
(3) Research schedule
2-4
Chapter 3 Justification, Objectives and Technical Feasibility of the Project
3-1
(2) Required Studies in the Content Determination of the Project
3-12
(3) Outline of Project Formulation
3-27
Chapter 4 Evaluation of Environmental and Social Impacts
(1) Present Environmental and Social Conditions
4-1
(2) Positive Environmental Impacts of the Projects
4-9
(3) Adverse Environmental and Social Impacts of the Projects
4-10
(4) Outlines of Relevant Environmental Laws, Rules, and Regulations in Indonesia
4-22
(5) Matters to be Completed by Related Authorities in Indonesia to Realize the Projects
4-25
i
Table of Contents
Chapter 5 Financial and Economic Feasibility
(1) Project Cost
5-1
(2) Results of the Preliminary Financial and Economic Analyses
5-3
Chapter 6 Planned Project Schedule
6-1
(2) Tasks related to the Planned Project Schedule
6-3
(3) Setting a Schedule related to Environmental Impact Issues
6-3
Chapter 7 Implementing Organization
(1) AP-I
7-1
Chapter 8 Technical Advantages of Japanese Companies
(1) Expected Roles of Participating Japanese Companies (financing, supply of machinery
and equipment, facility management, etc.)
8-1
(2) The Superiority of Japanese Companies when Implementing this Project
(from a Technical and Economic Viewpoint)
(3) Further Collaboration to apply Japanese Technologies
ii
8-3
8-9
Executive Summary
Executive Summary
1)
Background of the Project
The economic growth in Indonesia has created a growing problem of congestion at the Soekarno-Hatta
International Airport (hereafter referred to as Soekarno-Hatta Airport) due to an increase in air traffic demand.
The Indonesian government, as a method to alleviate air traffic and airport congestion in Jakarta, has planned
and promoted measures such as upgrading Soekarno-Hatta Airport and enhancing facilities at the Karawang
Airport, but these plans have not proceeded as planned due to land acquisition problems and other issues.
Currently, the Soekarno-Hatta Airport has been forced to operate at about three times its passenger terminal
capacity. These congestion problems related to the air routes and airports in the Jakarta metropolitan area are
not limited to the Jakarta metropolitan area only, but the growth in Indonesian air transport has, in turn,
created a situation for a potentially large bottleneck with regards to achieving sustained economic growth in
Indonesia.
This project proposes, as a method to alleviate air traffic and airport congestion in Jakarta, the transporting of
a large quantity of air passengers via a small number of airport slots by connecting large-sized jets (twin aisle
aircraft) to Soekarno-Hatta Airport and Sultan Hasanuddin International Airport (hereafter referred to as
Makassar Airport), which is the gateway airport for eastern Indonesia, while simultaneously positioning
Makassar Airport as a regional-hub airport so as to introduce a newly conceived aviation network
(Broad-Band/Regional-Hub Network; hereinafter referred to as the "BB/RH Network") that connects highly
convenient frequent operations for Makassar Airport and regional airports located in eastern Indonesia
through the use of small-sized jets (regional jets and turbo props). The introduction of this BB/RH Network is
expected to greatly reduce air traffic and airport congestion in Jakarta.
2)
Necessity of the Project
Indonesia has up until now been able to achieve a large growth in air traffic demand, but faces the problem of
not having sufficient aviation infrastructure to support this growth. Indonesia currently has no prospects for
creating a fundamental solution to the air traffic and airport congestion in Jakarta that have become a
bottleneck for air transportation growth throughout Indonesia, while the country also faces the problem of
excessive airport capacity at Makassar Airport. The BB/RH Network proposed by this project would help
alleviate congestion of air routes and airports in the Jakarta metropolitan area via aviation network
reconfiguration, which can be implemented without overly relying on the need to develop the airports in the
Jakarta metropolitan area. In addition, the project facilitates the upgrade of Makassar Airport by allowing it to
function as a regional-hub airport, which increases the connectivity of the Jakarta metropolitan area with
airports in eastern Indonesia and makes it possible to meet the future demand of increased air traffic demand
in Indonesia.
0-1
Executive Summary
(2) Basic Policy regarding Project Content Determination
1)
Basic Policy of the Research
This study investigates the construction of the newly conceived BB/RH Network as a method to alleviate
congestion at Soekarno-Hatta Airport, and based on these results, investigates the scalability of Makassar
Airport to operate as a regional-hub airport. Based on the assumption of a future project, JICA overseas
investment and other financial means will be utilized with regards to Makassar Airport upgrade development,
and project formulation is an objective based on infrastructure development projects in anticipation of the use
of the superior technology and know-how of Japanese companies.
Makassar Airport, which is the subject of this study, commenced service of a new passenger terminal in 2008,
but due to strong demand, the terminal is already facing a situation in which it is exceeding its passenger
terminal capacity, and as a result, upgrade of Makassar Airport has become a pressing issue. PT. Angkasa Pura
I (hereafter referred to as AP-I), the company that operates Makassar Airport, is currently updating its master
plan that it drafted in 2009, and is planning an airport upgrade in consultation with outside consultants.
This study is being carried out independently of the master plan of AP-I with the intent of proposing to local
stakeholders an upgrade plan for Makassar Airport that incorporates the requirements of a regional-hub
airport needed in the realization of the BB/RH Network, and thereafter, an integration planning draft will be
created to propose the integration of the network with the master plan of AP-I.
2)
a)
Required Studies in the Content Determination of the Project
Demand Forecasting
Based on the results of consultation with local stakeholders and in consideration of factors that could
impact air traffic demand, an air traffic demand forecast for Makassar Airport has been established at
an air traffic demand forecast value of 21 million passengers a year (14.5 million domestic flight
passengers, 800 thousand international flight passengers, and 5.7 million transit passengers) for the
year 2024, which is the air traffic demand forecast value planned by the current master plan. This air
traffic demand forecast value has been used as the baseline of the airport upgrade project.
b)
Makassar Airport Capacity Study Accompanying the Introduction of the BB/RH Network
In this project, a short haul domestic flight service via twin aisle aircraft, which have a long history of
utilization in Japan, will be adopted as a model under the assumption of frequent operations via twin
aisle aircraft between Soekarno-Hatta Airport and Makassar Airport. The results of passenger route
choice analysis and the initial aviation network analysis indicate that many airline passengers traveling
between Soekarno-Hatta Airport and airports in eastern Indonesia will choose a transit flight by way
of Makassar Airport. In such a case, since it is expected that the transit passengers using Makassar
Airport will greatly increase, this project has considered it appropriate to make classification of two
functions: (i) a function related to the BB/RH Network (BB/RH Function) that connects
Soekarno-Hatta Airport with airports in eastern Indonesia by way of Makassar Airport and (ii) an
existing function that connects Makassar Airport with the other main airports (including international
air routes).
0-2
(i)
Executive Summary
BB/RH Function
This function seeks to maximize transit convenience for the transit passengers of Makassar Airport by
connecting Soekarno-Hatta Airport with airports in eastern Indonesia by way of Makassar Airport. The
results of the initial network analysis show that there will be a need in the year 2024 to process
approximately 11 million passengers a year via the BB/RH Function. In particular, in order to support
3-4 twin aisle aircraft per hour between Soekarno-Hatta Airport and Makassar Airport during peak hours,
it will be necessary to operate flights between Makassar Airport and the airports in eastern Indonesia
using small-sized jets at a rate of 15-20 flights per hour.
(ii)
Existing Function
This function mainly handles direct flight passengers between Makassar Airport and other main airports
(including international air routes). The results of the initial network analysis based on the assumption
of the operation of mostly single aisle aircraft, as has been the case until now, show that there will be a
need in the year 2024 to process approximately 10 million passengers a year via the Existing Function.
In order to reduce the investment costs, airport operations that maximize the utilization of existing
facilities are required.
c)
Regional Requirement Specifications Formulation
Based on the results of task extraction via field surveys at Makassar Airport, case studies at American
hub airports, and interviews with local stakeholders, formulation has been established as follows
below for the requirement specifications needed for the regional-hub airport proposed in this airport
upgrade plan.
i)
ii)
Passengers: Transit should be stress free.

Minimization of walking distances

Minimization of level changes

Appropriate arrangement of inspection areas for transfer screening

Securing a sufficient number of transfer desks

Less "narrow paths" throughout transfer route

Easy-way-finding by instructions
Facilities: Realization should be made of simple airport facilities / efficient aircraft operation.

Reducing initial investment through use of the simplest airport facilities / reducing operating
costs

Passenger terminal in consideration of large aircraft / small aircraft that can reduce transit
times

Reduction of transfer time of checked-in baggage from large aircraft to small aircraft

Reduction of taxiing distances

Arrangement of apron and taxiways that do not cause congestion
iii) Scalability: Guarantee should be made of flexible airport upgrade in the future.
0-3

Executive Summary
Phased-approach that can respond to variations in the number of passengers and changes in
the market environment

Extensibility (including the Aero City concept) that can respond to increased air traffic
demand in the future
iv) Other considerations (including the unique characteristics of Makassar Airport)

Development of commercial facilities for expansion of non-aero revenue

Consideration of not only passengers in transit, but also passenger flow for departing and
arriving flights at Makassar Airport

Responding to cargo increases due to the operation of twin aisle aircraft

Securing conformity with existing land acquisition plans

Development of local airports in eastern Indonesia that connect to Makassar Airport via the
BB/RH Network (night time departure and arrival support operation capability)

Consideration of military aircraft operation restrictions for Makassar Airport
(3) Project Overview
1)
Overview of the Project
The business scope assumed by this project includes the upgrade of Makassar Airport based on the results of
the air traffic demand forecast, as well as the new construction/upgrade of passenger terminal facilities
incorporating the requirement specifications needed of a regional-hub airport, apron upgrade, baggage
handling system construction, and roads and parking lots around the terminal building. Based on the results
of various studies and consultation with local stakeholders, the conceptual design of Makassar Airport will be
carried out in accordance with the following basic policy.

This project incorporates the regional-hub airport requirement specifications of Makassar Airport and
investigates the airport upgrade project estimating 21 million passengers per year for the year 2024
based on the air traffic demand forecast value.

We have ensured future gross potential by taking into consideration the possibility of an increase in
future air traffic demand in Indonesia in excess of the current estimation.

This projects adopts a phased-approach in which study is made starting with the year 2024 (Phase 1)
and ending with the grand design of the year 2044 (Phase 2). In moving toward the operation start in
the year 2024, consideration has been made of the implementation potential of the introduction phase
(Phase 0) to confirm beforehand the feasibility of the BB/RH Network.

Since two different roles will be required of Makassar Airport as it transitions into being a regional
hub, the study is classified into the BB/RH Function and Existing Function which have greatly
improved transit convenience as an airport function.

In consideration of the land acquisition difficulties, it is assumed that upgrade will utilize the existing
premises up to the year 2024. Furthermore, since measures can be made to cope with the existing
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Executive Summary
capacity of two runways, and since AP-I is planning to increase facilities for a third runway starting in
the year 2024, this study does not assume runway facilities will be increased.
In consideration of the evaluation results of the passenger terminal concept, the current airport operations at
Makassar Airport, and land acquisition issues, study was made of an airport conceptual design that satisfies
the requirements of a regional-hub airport. The south side satellite concept was selected for this project based
on consultation with local stakeholders, fulfillment of the requirement specifications for the BB/RH Network,
and options that provide the most value to Makassar Airport and the airline passengers of Indonesia. This
project will proceed based on this selected concept. The development facilities overview and airport plan
drawing assumed for the year 2024 (Phase 1) based on the south side satellite concept are as follows.
0-5
Executive Summary
Table 0-1 Outline of Facilities for the Year 2024 (Phase 1)
Item
Satellite
terminal
(New
construction)
Main terminal
(Expansion)
Terminal
appurtenances
(New
construction)
Airside
infrastructure
(Expansion)
Target of
Development
Satellite
terminal
Main terminal
Connecting
system between
terminals
Utility facilities
Apron
Details of Development
Remarks
Satellite terminal and appurtenances
Departure/arrival gate lounges,
Concession area,
Transfer security check area,
Transfer baggage check area,
Check-in baggage sorting area,
Boarding bridge, etc.
Total floor
area:
88,000 m2
Main terminal and appurtenances
Chick-in area,
Concession area,
Airport security area,
Baggage claim area,
Total floor
area:
60,000 m2
Expansion of
existing passenger
terminal
Connection underpass, APM,
Baggage handling system for transfer
Connection
distance
1 km
Study of alternative
connecting methods
other than APM
Utility building,
Power receiving-transformer/
air conditioning/ water supply/
water treatment equipment
Apron upgrade
Development of cargo terminal and
aircraft maintenance area
-
Area:
596,200 m2
Area:
115,000 m2
Total floor
area:
10,000 m2
Taxiway
Air Cargo
terminal
Other
Size of
Facilities
Excluding hydrant
(included in AP-I
plan)
Transfer after new
facilities
Aircraft
maintenance
area
-
New facilities
(development to be
done by airlines)
Parking area
and roads
Area:
114,000 m2
Increased facilities
Source: Created by the study team
0-6
Executive Summary
Figure 0-1 General Plan of Airport (Year 2024: Phase 1)
Main terminal upgrade
New satellite terminal
facilities
0-7
2)
Executive Summary
Project total cost
Based on the plan of the previous items, the results of calculating the costs of this project amount to a total
cost of 73,020.5 billion IDR (71.4 billion Japanese yen) as shown in Table 0-2.
Table 0-2 Calculation of Project Costs
Unit: millions
Item
Package
Quantity
Unit
Yen conversion
IDR conversion
USD conversion
P ortion of local currency Portion of foreign currency
Construction Construction of the passenger terminal building
costs
Construction of the passenger terminal satellite
Total
2
11,000
107
860,113
267,165
1,127,278
1
60,000
m
2
88,000
m
2
15,000
146
1,172,881
364,316
1,537,197
430,415
1, 2
1
LS
4,200
41
328,407
102,008
Construction of utility facilities
1
1
LS
2,000
20
156,384
48,575
204,960
Construction of underpass (tunnel only)
3
1
LS
10,000
98
781,921
242,877
1,024,798
APM /underground transportation
2
10,000
98
781,921
242,877
1,024,798
Construction of new apron facilities
3
596,200
m2
8,945
87
699,428
217,254
916,682
Construction of new taxiway facilities
3
115,000
m2
1,725
17
134,881
41,896
176,778
Road construction
3
60,000
m
2
300
3
23,458
7,286
30,744
Parking lot construction
3
54,000
m2
270
3
21,112
6,558
27,670
Construction of cargo terminal
1
10,000
m2
1,500
15
117,288
36,432
153,720
Terminal building equipment and materials costs
64,940
634
5,077,794
1,577,244
6,655,038
M oney in reserve
Construction costs subtotal
3,247
32
253,890
78,862
332,752
Design costs
3,247
32
253,890
78,862
332,752
71,434
697
5,585,574
1,734,968
7,320,542
Project costs total
3)
Outline of results of the preliminary financial and economic analysis
The development project for the upgrade of Makassar Airport, evaluated based on the preliminary financial
analysis, covers the entire airport project for the year 2024 for introducing the BB/RH Network.
In the case of an evaluation period of 29 years from 2016 to 2044 by combining the construction period of the
new facilities and equipment (2016-2023) and the subsequent 20 years of operation, the FIRR of the project
is 14.8%. Although, cash flow will deteriorate during the construction of the airport upgrade, it is expected
that the period ending balance will turn profitable during the implementation period of the project. Non-aero
revenue at the early start of the project will be 36% of total revenue, but the enhancement of commercial
facilities via the upgrade of Makassar Airport and the introduction of business know-how to the improved
airport is expected to raise this percentage to about 53%. The NPV during the evaluation period will be
2,030,005 million IDR.
Furthermore, in consideration of the results of the preliminary economic analysis, indirect effects
accompanying commercial revenue inside the terminal and related to the facility construction, as well as the
regional economic effects to the eastern regions of Indonesia, EIRR will result in a large economic effect of
28.0%.
4)
a)
Study on Environmental and Social Aspects
Applicable Scope and Background
A study on environmental and social aspects was implemented with regards to the period after the
upgrade of Makassar Airport. This study covered the facilities and equipment and materials for the
development required of a regional-hub airport in eastern Indonesia, which included the new
passenger terminal facilities, apron upgrade, construction of roads and parking lots around the
terminal building, as well as the BB/RH Network. Other facilities including the proposed third runway
0-8
Executive Summary
have not been incorporated into this study. Only the preliminary study results are shown as tasks for
the future. In addition, environmental monitoring based on the formulated ANDAL in 1995 has been
implemented for Makassar Airport, and twice a year a report is submitted to the Directorate General of
Civil Aviation (hereafter referred to as DGCA) by the airport's operator AP-I.
b)
Current State of the Analysis
Makassar Airport is an international airport located in a suburb 17 km from the city of Makassar,
which is the provincial capital of South Sulawesi Province. It is a major airport for eastern Indonesia
with 9.65 million airline passengers using it per year as of 2013. The area surrounding the airport is
subject to little undulation, and nearby nature reserves and mangroves for the coastal habitat are all
located about 10 km from the airport.
In addition, according to the results of the current environmental monitoring (June 2014), the area
generally meets the environmental standards with respect to noise and air and water quality.
On the other hand, it is expected that the population of Indonesia will increase nationwide including in
the city of Makassar. Therefore, the issue of alleviating congestion, not only with respect to
Soekarno-Hatta Airport, but also for Makassar Airport, for which there is a high possibility that it will
exceed its airport capacity in the future, has become a growing problem, and if the project is not
undertaken, it is expected that this growth in congestion will adversely affect the social and economic
conditions of the surrounding regions.
c)
Environmental and Social Impact and Measures Required for the Future
An environmental checklist has been created based on the JICA checklist "Guideline for
Environmental and Social Considerations" and in consideration of the JBIC checklist "JBIC Guideline
for Confirming Environmental and Social Considerations" and the characteristics of the upgrade
project of the airport (excavation of a tunnel underneath the terminal, etc.). Based on this
environmental checklist, the results of the study on the environmental and social impact due to the
upgrade project of the airport show that the overall impact is expected to be limited, although some
items of the project cannot be predicted at the current time.
However, monitoring and evaluation is needed for items whose impact cannot be specified at the
current time. These items especially include the impact of noise created by aircraft on the surrounding
residents, impact of the tunnel excavation on the water conditions surrounding the airport with regards
to groundwater, impact of construction waste related to the terminal facilities, and other waste such as
surplus soil created by the tunnel excavation. Depending on the results of the monitoring and
evaluation, appropriate conservation measures should be sought as required.
In addition, since the upgrade plan for the airport corresponds to the airport sector size requirements of
Indonesia's environmental impact evaluation (AMDAL), implementation procedures are needed. After
approval is obtained of the master plan, which includes the upgrade plan of the airport, an
environmental impact statement will be created and approval will be sought from the central
0-9
Executive Summary
government based on the implementation of AMDAL prior to the start of construction. Furthermore, it
is expected that some residents will need to be relocated with regards to the proposed third runway
and other facilities that could possibly be constructed following the upgrade plan of the airport. In
such a case, separate formulation is required with respect to the plan to relocate residents.
This upgrade plan for the airport includes the development of multiple passenger terminals and annexed
facilities, as well as an apron and taxiway. In addition, the construction of these new facilities must proceed in
parallel with the operation of existing passenger terminals. In consideration of these issues, the currently
expected implementation schedule is as follows in Table 0-3.
It should be noted that the implementation schedule is subject to change with regards to any of the facilities
based on the intentions of local stakeholders such as AP-I and DGCA, as well as due to variations in the air
traffic demand forecast.
0-10
Executive Summary
Table 0-3 Planned Project Schedule
Year
2015
Quarter
2016
2017
2018
2019
2020
2021
2022
2023
2024
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
BB/RH Network plan
Airline network verification
Study of regulations
Makassar Airport upgrade plan
Overall plan
F/S
Selection of consultant
Basic plan
Bidding for concession
Apron /
Taxiway
Detailed design
Bidding for construction
Civil engineering work
Business operation
Terminal connecting Detailed design
underpass /
APM
Construction work /
System installation / T est run
Business operation
Cargo terminal /
Utility facilities
Detailed design
Construction work / Equipment installation /
T ransfer / T raining
Business operation
Main terminal
(Expansion)
Detailed design
Business operation
Satellite terminal
(New construction)
Detailed design
Business operation
Legend
: BB/RH Network plan
: Makassar Airport overall upgrade plan
Adjustment period within development in terms of hardware such as
construction work, equipment installation, etc.
Development in terms of hardware such as construction work and equipment
:
installation
:
: Implementation in terms of software such as test run, transfer, training, etc.
: Business operation
： Workflow
0-11
Executive Summary
(5) Feasibility of Implementation
1)
Implementing Organization
The implementor of this project for the entire upgrade plan for Makassar Airport is AP-I, the operator of the
airport and implementing agency in Indonesia. AP-I is a state-owned enterprise established in 1964 with
100% of its funding provided by the Indonesian government. It currently oversees the operations of 13
airports in eastern Indonesia including Makassar Airport, which is the subject of this project.
AP-I performs its airport operation duties with financial independence and issues financial accounting
guidelines in accordance with the standard financial accounting methods (GAAP) of Indonesia with respect to
its financial situation. In recent years, profitability has been maintained for Makassar Airport, which has a
large number of passengers.
In addition, AP-I is proceeding with the development of terminal facilities at the airports it manages and has
opened Terminal 2 of Surabaya Airport in February 2014 and the new passenger terminal of Balikpapan
Airport in March 2014. AP-I is considered to have sufficient capability as an implementing agency for this
project in light of its financial situation, organizational structure, financial base, and project track record.
2)
Roles Assumed for Participating Japanese Companies
Figure 0-2 shows the business scheme for setting standards for the entire upgrade project of the airport.
Figure 0-2 Basic Business Scheme for the Project
<Japan>
<Indonesia>
PPP Study Team
Financing
Investment
Mitsubishi Heavy Industries, Ltd.,
T rading companies, etc.
Commercial banks
Technical assistance
for operation
and maintenance
Airport management company,
Airport design consultants
Special Purpose Company (SPC)
(Increase of facilities, ownership,
operation, and maintenance management
of terminals)
Investment
Angkasa Pura 1
Investment
Investment
Investment companies, Investors
(Government infrastructure fund)
Overseas
investment
Service provision
JICA
AP-I
(Makassar Airport operating company)
Usage payments
Airport-related facilities,
Equipment manufacturers
Export
AP-I currently operates Makassar Airport with financial independence and has been creating its own master
plan, but due to the special nature of this project with respect to the use of large-scale civil engineering
resources and the introduction of the BB/RH Network, study has been made to package the assets of this
project as shown in Table 0-4 in order to promote the project in a smooth manner. Among the implementation
0-12
Executive Summary
of these packages, it is expected that SPC, with the participation of Japanese companies, will proactively carry
out Package (2).
Table 0-4 Business Package List
Classification
Package (1) (Upper objects 1)
Package (3) (Lower objects)
Passenger terminal main building and annex
facilities
Cargo terminal
Utility facilities
Passenger terminal satellite and annex facilities
Connecting system between terminals
(Underground connection APM / Bus,
Underground baggage handling system, etc.)
Utility facilities
Expand apron
Expand taxiway
and annex equipments (guiding lights, etc.)
Fuel hydrant facilities
Underpass connecting terminals
Roads and parking lots
Project type
AP-I project
PPP-BOT
AP-I project or public undertaking
Ownership
AP-I
SPC
AP-I
Implementing entity
AP-I
SPC
AP-I
1,660 billion IDR (16.6 billion yen)
Applicable assets
Project costs *
(excluding reserve fund and design costs)
Remarks
Common remarks
- Underground baggage handling system
- Includes utility facilities (energy center)
included in Package (2)
- Does not include aircraft maintenance hanger - Connecting transportation method (including
- Fuel hydrant facilities are to be managed by a
to be developed by the airlines
alternatives) to be decided in the plan of SPC
local fueling company
- GSE / ramp bus to be considered separately
- Does not include reserve fund or design costs
*As of January 5, 2015, 1 JPY = 100 IDR
(6) The Technical Advantage of Japanese Companies
The following items are mentioned with regards to the technical advantage of Japanese companies.
With respect to the special nature of this project, integration technology should be noted for its ability to
implement the plan to achieve the BB/RH Network through integrating the know-how related to airport
facilities and operation with the future needs of the project.
a)
BB/RH Network configuration technology and management
b)
Airport related special facilities
c)
APM
d)
Environmental technology
e)
Construction management
f)
Airport operations
0-13
(7)
Executive Summary
Maps indicating the project implementation site
Figure 0-3 Location Map of Makassar Airport (1)
Makassar Airport
Figure 0-4 Location Map of Makassar Airport (2)
Makassar Airport
Source: Created by the study team via Google Maps
0-14
Chapter 1
Overview of the Host Country and Sector
Chapter 1 Overview of the Host Country and Sector
(1) Economic and Financial Status of Host Country
The Indonesian economy has made a smooth recovery following the Lehman shock. Its GDP rose 5.8%
year-on-year from 2012 to 2013. The following are considered to be the reasons for the robust economic
growth.
•
Support via strong private consumption
•
Stability of exchange rate
•
Low and stable inflation and interest rates
In order to maintain and expand economic growth into the future, there needs to be training and support
available for the labor intensive manufacturing industry. Also, as one example, it is very important that there
be sufficient infrastructure such as roads, seaports, and airports to support the receiving of materials and
shipping of goods that underpin the manufacturing activities of factories and the construction of industrial
parks.
Furthermore, it is important to cultivate the tourism industry through use of Indonesia's rich nature, while
also striving to attract foreign companies and increase the prosperity of the middle class through the
development of the country. There needs to be an increase in the transportation methods to safely,
conveniently, and comfortably transport people to tourist attractions.
In order to achieve these tasks, it is vital to have infrastructure for air transportation.
1)
Social-Economic Conditions
Foreign companies, including those of Japan, are choosing Indonesia for their business activity destinations
because of the attractiveness of its cheap labor force and consumer market, which is supported by its large
population, being the fourth largest in the world. In the future, one large task will be the development of
social infrastructure, which includes but is not limited to the air transportation sector, in order to promote and
sustain foreign investment.
a)
Population
Indonesia has the world's fourth largest population following China, India, and the United States. As
of 2013, Indonesia had a population of 248.82 million people. Indonesia's population density is as
follows: 58% are concentrated on Java Island, 21% on Sumatra Island, 7% on Sulawesi Island, 7% on
Kalimantan Island, 6% on Bali Island and Nusa Tenggara Island, and 3% on Papua. Over the past 10
years, the population of Indonesia has grown by 1.49% per year.
b)
Gross Domestic Product (GDP)
Indonesia's real GDP is shown in Table 1-1 below. Real GDP in 2013 was 2,770 trillion IDR, which is
a growth of 5.8% year-on-year. Since 2004, real GDP growth has been sustained between 5.0-6.5%
over the past 10 years, so it has become clear that Indonesia has been sustaining large economic
growth.
1-1
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Chapter 1
Table 1-1 Real GDP in Indonesia
Real GDP
Annual Growth Rate
(trillion IDR)
(%)
1,390
1,440
3.6
1,505
4.5
1,577
4.8
1,657
5.0
1,751
5.7
1,847
5.5
1,964
6.3
2,082
6.0
2,179
4.6
2,314
6.2
2,465
6.5
2,619
6.3
2,770
5.8
Source: IMF, World Economic Outlook 2014
(2) Overview of the Targeted Sector for this Project
Indonesia spans a wide distance of 5,110 km from east to west and 1,800 km from north to south. It is an
island nation, composed of about 17,000 islands. It is also one of the world leading aviation powers. As a
result, air travel is a very important means of travel in Indonesia. It was announced by the Airport Authority
during this year's October seminar that the nation has 299 airports, of which 29 of them are international
airports.
Figure 1-1 shows the number of airline passenger for Indonesia. In recent years due to economic growth, air
traffic demand in Indonesia has increased quickly. In particular, the growth of domestic flights has been
remarkable, accounting for more than 80% of the overall growth.
Figure 1-1 Number of Airline Passengers in Indonesia
20,000
18,000
16,000
14,000
12,000
Number of
Indonesian airline 10,000
passengers (ten 8,000
thousands of
6,000
passengers)
4,000
International
route
Domestic
route
2,000
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Year
Source: Created by the study team via BPS (Indonesia Central Statistics Agency)
1-2
Chapter 1
Figure 1-2 shows the percentage of passengers using each of the commercial airports in Indonesia in 2012.
Soekarno-Hatta Airport occupies more than 30% of the total number of passengers for the whole country.
Furthermore, Soekarno-Hatta Airport, Surabaya Airport, and Bali Airport occupy more than 50% of the total
domestic airline passengers for Indonesia. These three airports act as major airports with a large concentration
of passengers.
In particular, Soekarno-Hatta Airport maintains the function of a hub for Indonesia's domestic aviation
network, as well as the function of a gateway for international flights, recently, the airport facilities are
considerably congested.
Figure 1-2 Percentage of Passengers Using Each of the Airports in Indonesia (results from 2012)
ジャカルタ・スカルノハッタ
Jakarta Soekarno-Hatta
スラバヤ
Surabaya
デンパサール
Denpasar
22.8%
メダン
Medan
35.1%
マカッサル
Makassar
バリクパパン
Balikpapan
1.9%
2.4%
2.4%
ジョグジャカルタ
Yogyakarta
バタム
Batam
バンジャルマシン
Bandjarmasin
3.2%
Semarang
セマラン
10.1%
3.9%
4.1%
Others
その他
9.0%
5.1%
(3) Region Conditions
1)
Conditions regarding the City of Makassar
The city of Makassar is the provincial capital of South Sulawesi province in Indonesia. It has a population of
1,334,090 people (according to the 2010 census), and about 2.5 million people reside in the Makassar
metropolitan area. The city has an area of 175.77 km2 and a population density of 7,600 people per km2. It is
the largest city in the South Sulawesi province and eastern Indonesia. The city's economy relies heavily on the
service sector such as restaurants and hotels.
2)
Conditions regarding Makassar Airport
Makassar Airport is an international airport located 17 km from the city center of Makassar City, and as of
2013, a total of 9.65 million airline passengers use the airport each year.
1-3
Chapter 1
Photo 1-1 Photo of Current Conditions at Makassar Airport
Source: Google Map

Number of passengers
Figure 1-3 shows the recorded number of passengers using Makassar Airport.
Figure 1-3 Recorded Number of Passengers Using Makassar Airport
1,200
1,000
800
Number of usage
passengers
600
(ten thousands of
passengers)
400
Transfer
International
route
Domestic
route
200
0
2008
2009
2010
2011
2012
Year
Source: Created by the study team via AP-I data
1-4
2013
Chapter 1
AP-I
 Flight destinations
Makassar Airport provides the flights of 6 domestic airlines and 2 international airlines, and it supports
24 domestic routes in Indonesia and 2 international routes.

Airport facilities
The current airport site is approximately 7.6 km2 and has two runways. It has a passenger terminal
building, cargo terminal building and other airport related facilities. At the east of the airport is a military
base.
Figure 1-4 shows the floor plan of Makassar Airport, and Table 1-3 lists its main facilities.
1-5
Chapter 1
Figure 1-4 Floor Plan of Makassar Airport
Source: AP-I
1-6
Chapter 1
Table 1-2 List of the Main Facilities at Makassar Airport
Item
Airport
specifications
Runway
Sub item
Airport name
Makassar/ Sultan Hasanuddin International Airport
Operation
International, domestic flights
Airport code
IATA:UPG - ICAO:WAAA
Airport coordinates
05°03' 39" S/ 119°33' 16" E
Reference around elevation
47 feet (14.31m) MSL
Temperature
Average 33.5°C
Operation
24 hours
Operator
PT. Angkasa Pura I
No
13
31
3
21
Taxiway
PCN
Slope
Strip Dimension
2,500×45m
63/F/C/X/U
0.000%
2,620×300m
3,100m×45m
77/F/C/X/T
0.032%
3,202×300m
No
Dimensions
PCN
Slope
Type
A
158×23m
63/F/C/X/T
1.40%
Asphalt
B
217×26.50m
68/F/C/X/T
1.40%
Asphalt
C
800×23m
34/F/C/X/T
1.40%
Asphalt
West Parallel
(WP)
3,100×23m
77/F/C/X/T
1.40%
Asphalt
68/F/C/X/T
77/F/C/X/T
77/F/C/X/T
1.40%
Asphalt
D
968×23m
945×23m
385×23m
1.40%
Asphalt
E
335×23m
77/F/C/X/T
1.40%
Asphalt
F
335×23m
77/F/C/X/T
1.40%
Asphalt
H
127.5×23m
77/F/C/X/T
I
204×23m
77/F/C/X/T
J
182×23m
77/F/C/X/T
Name
Dimensions
PCN
Type
No
Old
450×125m
63/F/C/X/U
Concrete
1-15
New
939×169m
74/R/C/X/T
Concrete
B01-28
Cargo
110×100m
74/R/C/X/T
Concrete
South Parallel
(SP)
Apron
Dimensions
Asphalt
Asphalt
1.40%
Asphalt
Source: AIP INDONESIA and AERODROME MANUAL
c)
Airside facilities
There are two runways, and operations at the main runway started in 2010. The main runway is 3,100
m×45 m (with bearings 03-21, north-northwest - south-southwest). It also has a parallel taxiway and a
high-speed evacuation taxiway.
The other runway is 2,500 m×45 m (with bearings 13-31, west-northwest - east-southeast), and since
its parallel taxiway is sectional, it has a turning pad on both sides. It has VFR (visual flight) that only
approaches runway 31.
The current method of operating the runways depends on the direction of the wind, but 90-95% of
flights takeoff and land on the main runway. Currently, 81,000 flights takeoff and land at the airport
per year.
1-7
d)
Chapter 1
Terminal facilities
The passenger terminal building was completed in 2008, and there is an apron in front of the west side
of the main runway. The terminal building has a 1-floor basement and is 3 floors above ground in
some areas of the airport. The terminal building is used for both domestic and international flights.
Figure 1-5 shows the terminal facility layout.
1-8
Chapter 1
[2nd Floor]
[1st Floor]
Figure1-5 Terminal Facility Layout at Makassar Airport
Source: AP-I
1-9
Chapter 1
• Curbside / departure and arrival lobby
Curbside is available for departing passengers in front of the departure lobby, and there is an area for taxis
and space for drop-offs. There are two lanes. One is used for stopped vehicles and the other for driving.
Curbside for arriving passengers is located at the 1st floor basement. This road is separated from the
curbside used by departing passengers.
• Transit hotel
There is a hotel located on the 1st and 2nd floor of the terminal building, which is located between the
arrival gates. The hotel began providing accommodations in 2014 and can be used by transit flight
passengers. The entrance is located between the departure and arrival gates and the road in front of the 1st
floor hotel check-in has a drop-off space for hotel guests to use.
• Departure gate
There is security located at the entrance of the terminal building for departing passengers, and passengers
can enter after showing their airplane tickets. Only airline passengers are allowed to enter the check-in
area.
The check-in area has a passenger lounge, information desk, airline ticket booths provided by each airline,
convenience stores, and so on.
Photo 1-2 Photo of Current Conditions of the Arrival Gate Facilities
Arrival gate (building exterior)
Arrival gate (building interior)
Source: Photo taken by the study team
1-10
Chapter 1
• Check-in area
There are island shaped check-in counters (2 islands and 48 counters), which passengers can use to
check-in. There is no distinction between domestic and international flights. All departing passengers
check-in at this location.
Baggage for check-in is placed on a conveyor belt located behind the check-in counter, and screening
(X-ray inspection) is performed in-line. If the inspection of the baggage fails, the passenger is called and
the baggage is opened and manually inspected in front of the passenger.
Photo 1-3 Photo of Current Conditions of the Check-in Counter Facilities
Check-in counter
Conveyor belt
• Departing passenger security check
After check-in, passengers proceed to the security check located in the center of the 1st floor. After this,
they can take an escalator to the 2nd floor departure lounge.
The security check inspects carry-on luggage using an X-ray device, and there are 3 metal detector
systems installed for inspecting passenger belongings.
Photo 1-4 Photo of the Current Conditions of the Security Check Facilities
Security check
Security check
1-11
Chapter 1
• Departure lounge for domestic flights
The departure gates are arranged from Gate 1 to Gate 6, and passengers traveling domestically must show
their boarding passes at boarding time to board their flights. Up to the time of boarding, passengers can
spend their time in the terminal building stores and lounge.
Photo 1-5 Photo of Current Conditions of the Domestic Departure Gate Facilities
Domestic departure Gate 4
Domestic departure Gate 1
• Departure lounge for international flights
The departure gate used for international flights is Gate 7. It is positioned horizontally with Gate 6 and
has its own separate space. It also has a gate lounge. Passengers traveling internationally walk along the
same path as domestic flight passengers up to the gate lounge. International flight passengers must
proceed through Immigration and the security gate to enter.
The boarding bridge is shared with the domestic flight lines and a walkway for international flight
passengers is located next to departure Gate 6, which connects to the boarding bridge.
Photo 1-6 Photo of Current Conditions of the International Departure Gate Facilities
International Departure Gate 7
International Departure Gate 7
1-12
Chapter 1
• Boarding bridge, bus gate
Passengers passing through the gate can board their flights by either using the boarding bridge or by using
the business operations stairs located from the fixed bridge section of the boarding bridge to walk down to
the apron and then take a ramp bus to a remote spot to board their parked aircraft by means of a ramp.
Photo 1-7 Photo of the Current Conditions of the Boarding Bridge Facilities
Boarding bridge exterior view
Boarding bridge interior
Stairs for walking down to the apron
Bottom of stairs for walking down to the apron
• VIP lounge
There is a local government VIP lounge located on the 3rd floor of the terminal building. The lounge can
be accessed by the stairs or escalator located on the 2nd floor of the terminal building.
1-13
Chapter 1
Photo 1-8 Photo of the Current Conditions of the VIP Lounge Facilities
VIP lounge
VIP lounge
• Arriving passenger flow
Arriving passengers enter the terminal building from the boarding bridge, and then walk to the center of
the building via a walkway that is separated from the area for airside departing passengers on the 2nd
floor of the building. There are two escalators servicing Gates 1-3 and Gates 4-6 respectively, as well as a
staircase leading down to the 1st floor. After going down to the 1st floor, passengers will meet up with a
bus gate, from which a walkway connects to the baggage claim area. Restrooms are located along the
walkway, as well as a Prayer Room.
Photo 1-9 Photo of the Current Conditions of the Arriving Passengers Walkway
From the boarding bridge to the arriving
passengers walkway
Arriving passengers walkway (arriving
passengers, transit passengers)
Escalator and stairway from the 2nd floor to the Connection with the bus gate (passengers making
1st floor
access from a remote spot)
1-14
Chapter 1
• Transit passengers counter (Transit Desk)
Transit passengers proceed to the transit passengers counter (Transit Desk) located in front of the baggage
claim area, and then pass through a security check and to go up to the 2nd floor.
The security check inspects carry-on luggage using an X-ray device, and there are 3 metal detector
systems installed for inspecting passenger belongings.
Photo 1-10 Photo of the Current Conditions of the Transit Passenger Facilities
Transit passengers counter (Transit Desk)
Security check area for transit passengers
• Baggage claim area
There are 4 turntables, of which Turntables 1-3 are for domestic flights and Turntable 4 is for
international flights. Turntables 3 and 4 are separated by a door.
Photo 1-11 Photo of Current Conditions of the Baggage Claim Area Facilities
Baggage Claim 1 and 2
Baggage Claim 2 and 3
• Arriving passengers exit
Security staff is on duty at the arriving passengers exit of the terminal building and passengers who exit
the building are not allowed to enter again. There are taxi counters lined up in front of the outside of the
1-15
Chapter 1
terminal building, but since this section is divided by a fence, only arriving passengers are able to enter
this area.
Photo 1-12 Photo of the Current Conditions of the Arriving Passengers Exit
Arriving passengers exit
Outside terminal building of the arriving
passengers exit
a)
Control tower
The control tower is located at the northeast of the current passenger terminal. The two runways and
the current passenger apron are viewable from the tower.
Photo 1-13 Photo of Inside the Control Tower
Existing terminal direction (southwest direction)
New runway direction (southeast direction)
b)
Refueling facilities
Currently, there are four 2,000 kL airline fuel tanks, supplying a total amount of 8,000 kL of fuel.
Additional land for tanks has already been obtained in preparation of a future facilities upgrade.
Aircraft are currently refueled using the refueling method, but hydrant development, with the
exception of piping, has been completed, and procurement of piping material has been made so that
construction can be carried out in connection with AP-I's apron upgrade work.
As a safety measure, spraying equipment for water and fire extinguishing agents (foam) have been
prepared, and storage warehouses have been installed to hold hazardous material.
1-16
Chapter 1
Photo 1-14 Photo of Current Conditions of the Refueling Facilities
Panoramic view of refueling facilities
Pipe (for pipeline)
Fuel tanks and fire extinguishing equipment
Hazardous materials storage warehouse
1-17
c)
Chapter 1
Planned site for future upgrade
Figure 1-6 shows the land acquisition diagram obtained from AP-I. According to Figure 1-6, the
current passenger terminal building is planned to undergo upgrade for both sides.
Figure 1-6 Conditions of Airport Upgrade Land Acquisition
AP-I completed acquisition
Source: AP-I
The photo shows the conditions of the land acquisition located at a position up to the refueling
facilities at the southwest of the passenger terminal building.
Photo 1-15 Conditions of the Airport Upgrade Land
Southwest side of the terminal doorway
Between the terminal and the refueling facilities
(land already acquired)
Landscape: Planned construction location of the
Terminal northeast upgrade section
3rd runway
(terminal southeast direction)
1-18
3)
Chapter 1
Conditions surrounding AP-I
AP-I is a 100% state-owned enterprise, and manages and operates 13 airports located in the eastern part of
Indonesia, when dividing Indonesia into eastern and western sections. AP-I is financially independent and
receives no subsidies from the government, and therefore, in the case of the airport upgrade, AP-I must ensure
profitability after acquiring the necessary funding on its own.
Figure 1-7 shows the organization chart of AP-I. As of 2011, AP-I has 360 staff members at its headquarters
and a total of 3,554 staff members when including the staff at each airport.
Figure 1-7 Organization Chart of AP-I
Operational Audit Department Head
Corporate Administration Department
Head
Engineering Audit Department Head
Marketing and Business Development
Audit Department Head
Head of Internal Audit
Corporate Communication
Department Head
Corporate Secretary
Finance Audit Department Head
Legal Department Head
President Director
Human Capital & General Affair Audit
Department Head
Corporate Planning Department Head
Material Procurement Department
Head
Head of Corporate
Planning & Performance
Service Procurement Department
Head
Corporate Performance Monitoring &
Evaluation Department Head
Quality Management Department
Head
Head of Procurement
Procurement Planning and
Administration Department Head
Operation Director
Technical Director
Marketing and
Business
Development
Director
Finance and IT
Director
Human Capital
and General Affair
Director
Risk Management Department Head
Head of Risk Management
and Compliance
Corporate Social Responsibility
Cooperation Department Head
Compliance Department Head
Head of Corporate Social
Responsibility
Corporate Social Environment
Department Head
Airport
Services
Group Head
Passenger,
Airline &
Cargo
Services
Department
Head
Airport
Compliance,
Performance
& Quality
Assurance
Department
Head
Fire Fighting &
Rescue
Department
Head
Safety, Health
&
Environment
Group Head
Airport
Security
Group Head
Airport
Facilities
Readiness
Group Head
Airport
Equipment
Readiness
Group Head
Project
Management
Office Group
Head
Business
Development
Group Head
Aviation
Marketing
Group Head
Non Aviation
Marketing
Group Head
Accounting
Group Head
Finance
Group Head
Information
Technology
Group Head
Human
Capital Group
Head
Training &
Development
Group Head
General Affair
Group Head
Safety
Management
System
Department
Head
Screening
Check Point
Department
Head
Civil Airside
Department
Head
Mechanical,
HB & Water
Technique
Department
Head
Project
Program
Department
Head
Business
Planning &
Development
Department
Head
Airline
Marketing
Department
Head
Retail
Marketing
Department
Head
Cost
Accounting
Department
Head
Treasury
Department
Head
IT Planning &
ERP
Department
Head
Organization
Dev. &
Change
Management
Department
Head
Training
Module
Development
Department
Head
Office
Administration
Department
Head
Safety, Health
&
Environment
Department
Head
Terminal
Security
Department
Head
Civil Landside
Department
Head
Project
Portofolio
Department
Head
Subsidiary &
Partnership
Department
Head
Cargo
Marketing
Department
Head
F&B
Marketing
Department
Head
Finance
Accounting
Department
Head
Fund
Management
Department
Head
Software
Development
Department
Head
Property &
Advertising
Department
Head
Tax
Management
Department
Head
Account
Receivable
Management
Department
Head
IT Operation
Department
Head
Non Terminal
Security
Department
Head
Electricity
Department
Head
Electronic
Department
Head
Customer
Service
Department
Head
Budget
Management
Department
Head
1-19
Network &
Infrastructure
Department
Head
Compensatio
n & Industrial
Relation
Department
Head
Career &
Talent
Management
Department
Head
Training
Management
Department
Head
Training
Facilities
Department
Head
Office
Facilities,
Operation &
Maintenance
Department
Head
Asset
Management
Department
Head
Chapter 1
1-20
Chapter 2
Study Methodology
Chapter 2 Study Methodology
(1) Study Content
This study investigates the construction of the newly conceived BB/RH Network as a method to alleviate
congestion at Soekarno-Hatta Airport, and based on these results, investigates the scalability of Makassar
Airport to operate as a regional-hub airport. Based on the assumption of a future project, JICA overseas
investment and other financial means will be utilized with regards to Makassar Airport upgrade development,
and project formulation is an objective based on infrastructure development projects in anticipation of the use
of the superior technology and know-how of Japanese companies.
Makassar Airport, which is the subject of this study, commenced service of a new passenger terminal in 2008,
but due to strong demand, the terminal is already facing a situation in which it is exceeding its passenger
terminal capacity, and as a result, upgrade of Makassar Airport has become a pressing issue. AP-I, the
company that operates Makassar Airport, is currently updating its master plan that it drafted in 2009, and is
planning an airport upgrade in consultation with outside consultants.
This study is being carried out independently of the master plan of AP-I with the intent of proposing to local
stakeholders in Indonesia an upgrade plan for Makassar Airport that incorporates the requirements of a
regional-hub airport needed in the realization of the BB/RH Network, and thereafter, an integration planning
draft will be created to propose the integration of the network with the master plan of AP-I.
The methodology of the study was to first hold consultation with local stakeholders including DGCA, AP-I,
and PT. Garuda Indonesia (hereafter referred to as Garuda Indonesia), and then perform, in the case that the
BB/RH Network is applicable, an air traffic demand forecast for Makassar Airport, while also clarifying the
requirements needed for a regional-hub airport in order to effect the usage of the BB/RH network. After this,
we implemented field surveys at Makassar Airport, and after extracting the challenges that are facing the
current airport, we carried out a conceptual design of a future Makassar Airport that fulfills the airport
requirement specifications of a regional-hub airport. Following this, we calculated the project costs. Lastly,
we carried out funding plans, economic and financial analysis, and business scheme studies, and then devised
a business schedule, while investigating the feasibility of the project.
The following figure shows the relationships between the study team and the stakeholders.
2-1
Chapter 2
Study Methodology
Figure 2-1 Stakeholders of Indonesia and Japan related to this Research and the Relationship of the Stakeholders
(2) Research Methodology and Structure
1)
Research Methodology

Related materials and information collected from relevant domestic and international stakeholders

Analysis and study of collected information

Field surveys

Regular meetings held with local stakeholders and preparatory consultation for the meetings

Creation of proposal content

Presentation, proposal, and opinion exchange for the local stakeholders
2-2
2)
Chapter 2
Study Methodology
Research structure
Figure 2-2 Research structure
2-3
Chapter 2
Study Methodology
(3) Research schedule
1)
Overview of local and national study
The study was implemented from September 25, 2014 to February 27, 2015. During this time, we did two
field surveys and had three local consultation sessions and debriefings. The study schedule is as shown
below.
Figure 2-3 Research Schedule
2014
September
2015
October
November
December
January
1st local consultation
and field survey
2nd field survey
(environment)
2nd local consultation
(executive debriefing)
3rd local consultation
February
March
Field survey
 Interim report #1
Air traffic demand
forecast and collection of
airport information
Domestic operations
 Interim report #2
 Submission of draft report
Project environment study and
outline design
 Debriefing
session
Project cost calculation and economic evaluation
Creation of draft report
2-4
Report summary
 Submission of report
Chapter 2
Study Methodology
2)
Field surveys
The field surveys and local consultation were carried out according to the following schedule.
Table 2-1 Field Survey Schedule
Visitation date Visitation location
Interviewees
1st local consultation and 1st field survey
10/16 (Thurs.)
Garuda Indonesia
Garuda Indonesia: EVP, Operations, six other participants
AP-I
AP-I: Technical Director
10/17 (Fri.)
DGCA
DGCA: Sub Director Airport Management
10/20 (Mon.) - Small and Emerging DGCA: Secretary of DGCA, Director of Airport
10/22 (Wed.)
Airport Seminar 2014 AP-I: President Director
(at Bali)
AP-II: President Director, etc. and many aviation officials
10/23 (Thurs.)
Garuda Indonesia
Garuda Indonesia: VP, Strategic Planning, three other participants
(Overall coordination AP-I: Technical Director, three other participants
meeting)
AirNav: ATM Officer, one other participant
10/24 (Fri.)
DGCA
DGCA: Director of Airport
Garuda Indonesia
Garuda Indonesia: VP, Ground Service
Makassar Airport
AP-I: Head of Airport Operation, one other participant
(Field survey)
10/25 (Sat.)
Kendari Airport
Site visit only
(Field survey)
10/30 (Thurs.)
DGCA
DGCA: Secretary of DGCA, one other participant
AP-II: Head of Strategic Planning
AP-II
10/31 (Fri.)
Aviation Consultant
Hong Kong
2nd field survey (environment)
11/19 (Wed.)
DGCA
DGCA: Airport Environmental Specialist
11/20 (Thurs.)
AP-I: Safety Health & Environment Department Head, three other
AP-I
participants
11/21 (Fri.)
Makassar Airport
AP-I: Airport Manager
(Field survey)
AirNav: General Manager Makassar ATSC
2nd local consultation
12/1 (Mon.)
Garuda Indonesia
Garuda Indonesia: VP, Strategic Planning, two other participants
AP-I: Technical Director
AP-I
12/9 (Tues.)
DGCA: Deputy Director for Scheduled Flight Service
DGCA
Garuda Indonesia: EVP, Operation
12/11 (Thurs.)
DGCA: Directorate of Airport, one other participant
Garuda Indonesia
Garuda Indonesia: SM, Network Planning, two other participants
(Executive Debriefing) AP-II: Head of Strategic Planning, one other participant
AirNav: ATM Officer, one other participant
12/12 (Fri.)
DGCA
DGCA: Acting Director General, two other participants
3rd local consultation
1/12 (Mon.)
DGCA
DGCA : Director of Airport
1/13 (Tues.)
AP-I
AP-I: Technical Director, two other participants
1/20 (Tues.)
AP-I
AP-I: President Director, Seven other participants
1/21 (Wed.)
Garuda Indonesia
Garuda Indonesia: EVP, Operation, Four other participants
2-5
Chapter 2
Study Methodology
2-6
Chapter 3
Justification, Objectives and Technical Feasibility of the Project
Chapter 3 Justification, Objectives and Technical
Feasibility of the Project
1)
Background and Overview of the Project
The economic growth in Indonesia has created a growing problem of congestion at the Soekarno-Hatta
Airport due to an increase in air traffic demand. The Indonesian government, as a method to alleviate air
traffic and airport congestion in Jakarta, has planned and promoted measures such as upgrading
Soekarno-Hatta Airport and enhancing facilities at the Karawang Airport, but these plans have not proceeded
as planned due to land acquisition problems and other issues. Currently, the Soekarno-Hatta Airport has been
forced to operate at about three times its passenger terminal capacity. These congestion problems related to
the air routes and airports in the Jakarta metropolitan area are not limited to the Jakarta metropolitan area only,
but the growth in Indonesian air transport has, in turn, created a situation for a potentially large bottleneck
with regards to achieving sustained economic growth in Indonesia.
In light of this situation, our analysis results show that the congestion problems at Soekarno-Hatta Airport,
from the perspective of an aviation network, are really caused by two reasons: (1) Air routes in Jakarta are
extremely concentrated, and (2) a massive number of small and medium sized aircraft (single aisle aircraft)
using the airport.
Therefore, this project proposes, as a method to alleviate air traffic and airport congestion in Jakarta, the
transporting of a large quantity of air passengers via a small number of airport slots by connecting large-sized
jets (twin aisle aircraft) to Soekarno-Hatta Airport and the new regional-hub airport, while simultaneously
introducing a newly conceived aviation network (Broad-Band/Regional-Hub Network; hereinafter referred to
as the "BB/RH Network") that connects highly convenient frequent operations for the regional-hub airport
and local airports through the use of small-sized jets (regional jets and turbo props). The introduction of this
BB/RH Network is expected to greatly reduce air traffic and airport congestion in Jakarta.
Figure 3-1 BB/RH Network Concept
(1) Current Network
Jakarta
Area
(2) BB/RH Network
International
Flight
Jakarta
Area
Local Airport
Local Airport
Regional Jet
JKT Airports
Twin Aisle
CGK
Downtown
Single Aisle
Regional
Hub
Downtown
Easy
Access
3-1
Broad-Band
Turobo Prop
Chapter 3
The results of our consultation with local stakeholders in Indonesia have confirmed the appropriateness of
upgrading Makassar Airport to be a regional-hub airport that utilizes the BB/RH Network since it is already
positioned as the gateway with eastern Indonesia and is expected to have increased demand in the future as
the Sulawesi provincial capital.
Makassar City is a central city in eastern Indonesia located about 1,500 km east of the Jakarta metropolitan
area. Makassar Airport is an international airport located 17 km from the city, and as of 2013, a total of 9.65
million airline passengers use the airport each year. Operations of a new shared passenger terminal started in
2008, but due to strong aviation demand, the terminal is already exceeding its passenger terminal capacity.
This study investigates the construction of the BB/RH Network as a method to alleviate congestion at
Soekarno-Hatta Airport, and based on these results, investigates the scalability of Makassar Airport to operate
as a regional-hub airport.
Figure 3-2 Position of Makassar and Makassar Airport
Airport
Highway
17km
1,434km
Makassar
Downtown
Jakarta
Source: 2014 Google
Furthermore, the goals and effects of this project are not limited to alleviating air traffic and airport
congestion in Jakarta and upgrading the facilities at Makassar Airport. Indonesia is aiming at obtaining the
status of a developed nation by the year 2025 based on its master plan (MP3EI) for accelerating and
expanding economic development in Indonesia. The country is divided into six economic corridors (Sumatra,
Java, Kalimantan, Sulawesi, Bali - Nusa Tenggara, and the Papua - Maluku Islands), and the development is
expected to improve the potential of regional economies and promote domestic connectivity enhancements.
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Chapter 3
Figure 3-3 Economic Corridors Map
Source: Indonesia Economic Development Acceleration and Expansion Master Plan (MP3EI)
Indonesia's land area spans approximately 2,000 km north to south and 5,100 km east to west for a total of
area of 1.91 million km2 (5.1 times larger than Japan) including sea areas. In addition, Indonesia is an island
nation composed of 17,000 large and small islands, and as a result of this, it requires a lot of cost to develop
infrastructure to connect each of the regions. In consideration of the land situation of Indonesia, correction of
the extreme concentration of air traffic in the Jakarta metropolitan area will naturally lead the country into
prosperity, and it is expected that the advocated BB/RH Network will be able to contribute to the economic
development of eastern Indonesia by increasing the connectivity of regions in eastern Indonesia with the
extremely concentrated Jakarta metropolitan area, while also contributing to correcting the domestic income
inequality problems faced by Indonesia. Furthermore, after confirming the effectiveness of the BB/RH
Network in this project, it is expected that it will be able to be applied to not only eastern Indonesia, but to all
of Indonesia. Therefore, this project is consistent with the policy of the new government listed "emphasis on
infrastructure development in order to correct the domestic income inequality between Java and non-Java".
2)
a)
Positioning of the Makassar Airport Upgrade with regard to the Upper Level Plan and related Plans
Relationship with the Government's Development Plan
Indonesia's national development plan is composed of a 20-year long-term national development plan,
a 5-year mid-term national development plan, and an implementation plan. The descriptions of the
long-term national development plan for each field are strictly conceptual, showing the 20-year vision
and policy direction. In other words, no description is given of individual projects. Indonesia's
government announced the above mentioned "Economic Development Acceleration and Expansion
Master Plan" (MP3EI) in May 2011, as the backbone of 2010 - 2025 long-term plan.
The Indonesian government, based on the above national long-term development plan, has proceeded
under the vision of "A Prosperous, Democratic, and Fair Indonesia" to improve its business
environment and develop its infrastructure, while continuing to stabilize its overall macroeconomic
position in the midst of increasingly intense international competition. Accordingly, it formulated the
national mid-term development plan (RPJM2010 - 2014) with the aim of sustaining and accelerating
3-3
Chapter 3
its steady economic growth, and based on this national mid-term development plan, the Ministry of
Transportation and DGCA created the mid-term strategic plan (RENSTRA 2010 - 2014).
Currently, the national development planning agency (BAPPENAS) is concentrating its efforts on
implementing the revision work for the next national mid-term development plan (2015 - 2019).
Makassar Airport is positioned as the gateway to eastern Indonesia and is specified as one of
Indonesia's airports in the ASEAN Open Sky. It occupies an important position in air transportation in
Indonesia, and based on this background, the Ministry of Transportation, in order to facilitate the
revision of mid-term strategic plan, has shown in its PM69 Tahun 2013 that it is preparing Makassar
Airport to be a 4F class (Code 4: runway length of 1,800m or more; Code F: wing span between 65m
and 80m (supporting the A380)) airport by the year 2020.
b)
AP-I's Master Plan for Makassar Airport
AP-I is currently managing and operating 13 airports in eastern Indonesia, but among these airports
under AP-I's jurisdiction, Makassar Airport has been positioned as the gateway to eastern Indonesia
and it boasts of being in the No. 3 position for number of airline passengers following only Surabaya
Airport and Bali Airport. After the enactment of the Aviation Law No. 1/2009 directive, airport
operators including AP-I are required to be financially independent and profitable and to procure their
own means of funding for airport development projects. AP-I is currently moving forward with its
plans to obtain foreign investment including PPP, expand its non-aero revenue, and promote its future
initiative project Airport City.
AP-I formulated its master plan for Makassar Airport in 2009, but as of 2013, the number of airline
passengers using the airport already exceeds the passenger terminal capacity, so it started revising the
master plan from April 2014. AP-I's current master plan for Makassar Airport (as of November 2014)
aims to increase non-aero revenue, enhance commercial facilities inside the airport terminal, promote
its airport plan incorporating the Airport City Concept, with combining general aviation, cargo,
logistics bases, and free trade areas.
This study is being carried out independently of the master plan of AP-I with the intent of proposing to
local stakeholders in Indonesia an upgrade plan for Makassar Airport that incorporates the
requirements of a regional-hub airport needed in the realization of the new BB/RH Network, and
thereafter, adjustment and coordination work will be implemented to conform the network with the
master plan of AP-I.
3-4
Chapter 3
Figure 3-4 AP-I's Future Plan for Makassar Airport
Source: AP-I
3-5
3)
Chapter 3
Recorded Number of Airline Passengers in Indonesia
a)
Recorded Number of Airline Passengers in All of Indonesia
When looking at the movement in the recorded number of airline passengers in all of Indonesia over
the past 10 years (2003 - 2013), the strong growth of the economy as well as the launch and expansion
of LCC (Low Cost Carriers) such as Lion Air have contributed to the recording of a very high growth
of passengers on average of 14% per year (14% for domestic flights and 12% for international flights).
Figure 3-5 Changes in the Number of Airline Passengers in Indonesia
20,000
15,000
Number of Airline
Passengers in
Indonesia
(ten thousands of 10,000
passengers)
International
route
Domestic
route
5,000
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Year
Source: Created by the study team via BPS (Indonesia Central Statistics Agency)
b)
Recorded Number of Airline Passengers Using Soekarno-Hatta Airport
Soekarno-Hatta Airport is located in Tangerang in Banten Province in the suburbs of the Jakarta
metropolitan area in Indonesia. It is Indonesia's gateway for international flights and occupies a very
important position as the only international airport in the Jakarta metropolitan area. The southern
runway and Terminal 1 were constructed for the Soekarno-Hatta Airport in 1985, and Terminal 2 and
the 2nd runway on the north side were constructed in 1993. Since then, no major renovation work has
been done to the airport facilities. In order to respond to the strong airline demand growth in Indonesia,
the newly built Terminal 3 was opened in 2009 and is currently undergoing upgrade construction
(planned to be completed in 2015). Following this, Terminal 1 and Terminal 2 are scheduled to be
renovated, and this development work of Terminals 1, 2, and 3 is planned to increase the passenger
terminal capacity of Soekarno-Hatta Airport to 62 million passengers per year by 2018.
On the other hand, Soekarno-Hatta Airport had a yearly airline passenger number of 37 million people
in 2008, but with a passenger growth of about 13% per year, the number of airline passengers has
already reached about 60 million passengers per year as of 2013. As of 2013, the airport boasts of
having the world's 10th largest airline passenger number. Currently, the quick population growth and
urbanization of the Jakarta metropolitan area are expected to cause an even larger increase in the
number of airline passengers using Soekarno-Hatta Airport in the future.
3-6
Chapter 3
Figure 3-6 Recorded Number of Yearly Passengers Using Soekarno-Hatta Airport
7,000
6,000
5,000
Number of airline
passengers
(ten thousands of
passengers)
4,000
3,000
2,000
1,000
0
2009
2010
2011
Year
2012
2013
Source: Created by the study team via ACI data
In addition, the number of aircraft departing and arriving at Soekarno-Hatta Airport was around
400,000 per year as of 2013 and this is approaching the capacity of the runway. In the future, the
capacity limitations of the runway at Soekarno-Hatta Airport will create a situation where connections
will not be able to be freely made with local airports, and this will also create a large impact on the air
traffic demand at Makassar Airport in the future.
In order to alleviate the air traffic and airport congestion in Jakarta, various studies and initiatives have
been taken up until now, but the root solution required to alleviate the air traffic and airport congestion
in Jakarta is to either upgrade Soekarno-Hatta Airport or to build a new airport in the Jakarta
metropolitan area. However, there are currently no prospects for resolving land acquisition problems.
The following is a summarization of the efforts being made against the air traffic and airport
congestion problem in the Jakarta metropolitan area.
i)
Optimizing Operations of the Runway at Soekarno-Hatta Airport1
AP-II has worked in cooperation with AirNav Indonesia and DGCA to introduce a new operating
procedure for improving the existing system, and this has shortened the amount of time aircraft
occupy the runway. The result has been an increase from 64 aircraft departures and arrivals per
hour to 72 aircraft departures and arrivals per hour on the runway (as of June 2014). In the future, a
goal is to achieve 86 aircraft departures and arrivals per hour, but it will be quite difficult to expand
runway capacity beyond these flight improvements.
1
Investor Daily, “Soetta Runway Capacity Goes up to 72 Movements”, 26 June, 2014
3-7
ii)
Chapter 3
Operation of Halim Airport in the Metropolitan Area of Indonesia2
The Indonesian government started on January 10, 2014 the commercial use of Halim Airport,
which had been used by the Indonesian Air Force and VIPs, as a temporary solution until the
completion of Karawang Airport in the Jakarta metropolitan area. As of November 2014, Citilink, a
subsidiary of Garuda Indonesia, began operating flights at a rate of 20 aircraft departures and
arrivals per day for its regular passengers, so it does not seem possible to alleviate the fundamental
congestion problems at Soekarno-Hatta Airport. On the other hand, Lion Air is showing interest in
purchasing operating rights to use Halim Airport, which is currently operated by AP-II, and there
are also studies being done, which should be complete by July 2015, regarding how to expand the
airport terminal capacity from the current capacity of 4 million passengers to 12 million
passengers3. Furthermore, AP-II, which currently holds the operating rights, is waiting for the
decision by the Indonesian government4.
iii) Upgrade Plan for Soekarno-Hatta Airport
As a response to the passenger terminal capacity shortage at Soekarno-Hatta Airport, upgrade of
Terminal 3 is currently underway. With current operations at 3 times that of passenger terminal
capacity, this upgrade is expected to somewhat alleviate congestion.
The upgrade work at
Terminal 3 is planned to be completed in 2015, and after this, Terminal 1 and Terminal 2 are also
planned to undergo renovations. All of the passenger terminal development work is expected to be
completed by 2018. On the other hand, plans for creating a new Terminal 4 and a 3rd runway in
order to respond to future air traffic demand have not materialized due to land acquisition and
funding problems. In particular, there are a great number of impoverished residents occupying the
land planned to be used for the 3rd runway. It is expected that an enormous amount of time will be
needed to just resolve rights issues, so in all practicality, land acquisition will be extremely
difficult.
iv) New Airport Construction in the Metropolitan Area (Karawang Airport, Lebak Airport)
JICA, in its "Jakarta Metropolitan Special Area and Investment Promotion Master Plan Research
(MPA)", which started in May 2011, raised the issue regarding the urgency of carrying out an
upgrade plan for Soekarno-Hatta Airport or constructing a new airport. Among the proposals made
was the idea of developing a new airport for domestic and international flights in the southern area
of the Karawang region. In this proposal, a 3-stage upgrade is planned utilizing the PPP scheme
under the assumption that air traffic demand will be 100 million passengers per year in the future5.
Currently, procedures are being undertaken in accordance with the procedure for installing and
operating new airport facilities defined by the Indonesian Aviation Law. According to the Aviation
Law, Article 200 specifies the position of domestic airport systems; Article 201 specifies the
determination of the position of the airport (including coordinate points and a master plan); Article
2
Investor Daily, “Waiting for Spatial Planning Revision: Karawang Airport Replaces Halim”, 11-12 January,
2014
3
Jakarta Post, “Lion to spend $436m to take over Halim airport”, 15 October, 2014
4
Investor Daily, ”AP II Ready to Leave Halim”, 20 October, 2014
5
Investor Daily, “Construction of Karawang Airport Expedited”, 25 January, 2014
3-8
Chapter 3
215 specifies airport construction permits; and Article 217 specifies airport operation permits. The
plan is proceeding in accordance with the stipulations of these articles, and currently determination
of the positioning of the domestic airport system pursuant to Article 200 has already been
completed for Karawang Airport.
Additionally, Lion Air has invested 2.6 billion IDR in Rebaku in Banten Province in southern
Jakarta, and has announced a plan for developing a new airport. This plan sets forth the
construction of 4 runways on a land area of 5,500 ha, which is twice the size of Soekarno-Hatta
Airport. It also aims at being able to accommodate 50 million airline passengers per year, with a
schedule to start construction next year.6 Recently inaugurated President Joko Widodo is also
positive about the future of this plan in an attempt to connect it with a reduction of infrastructure
costs in Indonesia7. On the other hand, it is positioned away from the Jakarta metropolitan area and
would require an enormous amount of funding, so it will be important to watch for future
developments, including those related to Karawang Airport.
c)
Recorded Number of Airline Passengers Using Makassar Airport
After AP-I was given operating jurisdiction over Makassar Airport in 1987, the area saw the economic
growth of Makassar City, as the Sulawesi provincial capital, and the development into a trading hub
connecting with regions in eastern Indonesia. Makassar Airport started operations of its first
international route for Malaysia Airlines in 1995 and has since steadily expanded. On August 20, 2008,
service began for the new passenger terminal, which is currently the main terminal, in order to make
replacement with the old passenger terminal, and in January 2010 operation began for the 2nd runway,
which is 3,100m long. As of 2014, it is the only major airport in Indonesia besides Soekarno-Hatta
Airport to possess two runways.
By looking at the change in the number of airline passengers of Makassar Airport from 2008 when it
started operations in the new passenger terminal, it is apparent that the airport has experienced rapid
growth with 9.65 million passengers per year as of 2013, of which approximately 70% are domestic
travelers. Over the past 5 years, the average increase per year of passengers is 17% (from 2008 - 2013).
International flights only account for 1-2% of the total percentage, but have also grown 23% per year
over the past 5 years. Furthermore, Makassar Airport is positioned as the gateway to eastern
Indonesian regions and is characterized by transfer passengers, which account for approximate 25% of
its total usage.
6
7
Jakarta Globe, “Lion Group to Start Building Lebak Airport Next Year”, 13 November, 2014
New Straits Times, “Lion Group plans IPO for new Banten airport”, 30 November, 2014
3-9
Chapter 3
Figure 3-7 Recorded Number of Airline Passengers Using Makassar Airport
1,200
1,000
Transfer
800
Number of airline
passengers
(ten thousands of
passengers)
600
International
route
400
Domestic
route
200
0
2008
2009
2010
2011
Year
2012
2013
Source: Created by the study team via AP-I data
Figure 3-8 Passenger Purpose Ratio for Major Airports in Indonesia8
100%
90%
80%
70%
Passenger 60%
purpose ratio
50%
40%
30%
20%
10%
0%
Transfer
International
route
Balikpapan Airport
Medan Airport
Makassar Airport
Bali Airport
Surabaya Airport
Soekarno-Hatta
Airport
Domestic route
Major airports in Indonesia
Source: Created by the study team via materials from DGCA and AP-I
As mentioned above, Makassar Airport reached 9.65 million airline passengers for the year 2013, and
it is currently exceeding its passenger terminal capacity (domestic flights: 7.6 million passengers;
international flights: 1 million passengers). In addition, Makassar Airport is currently processing
approximately 25 aircraft departures and arrivals per hour during peak hours (8:00am-9:00am), but is
8
The airline passenger numbers for 2012 only make use of Soekarno-Hatta Airport.
3-10
Chapter 3
dealing with a shortage of spots during this time period. On the other hand, runway capacity, including
the 1st runway and 2nd runway, is still considered to have room to grow at the current time.
Figure 3-9 Aircraft Movements per Hour at Makassar Airport
30
25
20
Aircraft
movements
per hour
15
Departure
Arrival
10
5
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Time
Source: Created by the study team based the Makassar Airport timetable (December 2014)
4)
Necessity of this Project and Business Scope
As mentioned above, Indonesia has up until now been able to achieve a large growth in air traffic demand,
but faces the problem of not having sufficient aviation infrastructure to support this growth. Indonesia
currently has no prospects for creating a fundamental solution to the air traffic and airport congestion in
Jakarta that have become a bottleneck for air transportation growth throughout Indonesia, while the country
also faces the problem of excessive passenger terminal capacity at Makassar Airport. The BB/RH Network
proposed by this project would help alleviate congestion of air routes and airports in Jakarta via aviation
network reconfiguration, which can be implemented without overly relying on the need to develop the
airports in the Jakarta metropolitan area. In addition, the project facilitates the upgrade of Makassar Airport
by allowing it to function as a regional-hub airport, which increases the connectivity of the Jakarta
metropolitan area with airports in eastern Indonesia and makes it possible to meet the future demand of
increased air traffic demand in Indonesia.
The business scope assumed by this project includes the upgrade of Makassar Airport to the scale of 21
million passengers for the year 2024 based on the air traffic demand forecast described hereafter, as well as
the new construction/upgrade of passenger terminal facilities incorporating the requirements needed of a
regional-hub airport, apron upgrade, baggage handling system construction, and roads and parking lots
around the passenger terminal. With regards to the addition of the 3rd runway, since it is possible to deal with
the existing air traffic demand with the current two runways, and since AP-I is planning to increase facilities
starting in the year 2024, this study does not assume runway facilities will be increased.
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Chapter 3
(2) Required Studies in the Content Determination of the Project
As a study required in the content determination of the project, an air traffic demand forecast was
implemented for Makassar Airport in order to determine the scale of the upgrade of Makassar Airport.
Following this, a study was carried out, after taking into account the airport capacity limits at Soekarno-Hatta
Airport, with regards to the capacity of Makassar Airport as it relates to the introduction of the BB/RH
Network. Finally, airport requirement specifications needed of a regional-hub airport were formulated based
on field studies, study of case studies of hub airports in the United States, and consultation with local
stakeholders.
1)
Demand Forecast
At the time of making the air traffic demand forecast for Makassar Airport, we carried out an environmental
analysis regarding factors that could impact air traffic demand, and after having consultation with local
stakeholders and based on the results of air traffic demand forecasts of other airline related agencies, we
established the air traffic demand forecast values for Makassar Airport to use in this project.
a)
Environmental Analysis regarding Factors that could Impact Air Traffic Demand
The number of airline passengers in all of Indonesia has grown on an average of 14% per year over
the past 10 years (2003 - 2013), and strong air traffic demand growth is expected to continue in the
future. In this section, analysis is made of the environmental factors that could influence air traffic
demand in Indonesia and at Makassar Airport.
i)
Growth in Population and Income of the Middle Class
The population of Indonesia as of 2013 was 248.82 million people (BPS: Central Board of
Statistics of Indonesia), which is the fourth largest in the world and occupies 40% of the total
population among ASEAN10 countries. According to the Central Board of Statistics of Indonesia,
9
population is expected to continue to grow at about 1% per year on average, and from 2010 to
the middle of the 2020s the working population is anticipated to expand, with Indonesia
expecting to enjoy a population bonus period by the year 203010. In addition, the potential for
middle-class income to rise is extremely high, and the increase in middle-class income will make
it possible for the middle-class to utilize air transportation, which, in turn, is expected to
contribute to strong air traffic demand growth.
ii)
Economic Growth
Growth in GDP is expected to occur with the increase of Indonesia's population. The real GDP of
Indonesia grew 5.8% year-on-year in 2013, and it is expected that it will continue to grow at an
average of about 6% per year up until 201911. It is also anticipated that GDP per capita will rise
from 36.64 million IDR in 2013 to 65.46 million IDR in 2019.
9
Indonesia Population Projection 2010-2035
JICA Republic of Indonesia Overview, February 2014
11
IMF, World Economic Outlook, 2014
10
3-12
Chapter 3
Figure 3-10 Changes and Expectations in Indonesia's GDP per Capita
7,000
6,000
GDP per capita
(ten thousands of
IDR)
5,000
4,000
3,000
2,000
1,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
0
Year
Source: IMF, World Economic Outlook, 2014
iii) Strengthening the Hub Function of Makassar Airport
Eastern Indonesia is expecting to experience remarkable economic growth in the future in light of
its rich abundance of natural resources and tourism attractions. The development of eastern
Indonesia also brings the prospects of a significant increase in air traffic demand for Makassar
Airport as the gateway. In particular, one of the assumptions in constructing the BB/RH Network,
which is being studied in this project for alleviating the congestion of Soekarno-Hatta Airport, is
that it will strengthen the hub function of Makassar Airport. In particular, it is expected to achieve
two things: (1) increase the number of transfer passengers at Makassar Airport making
connections between airports in eastern Indonesia and airports in the Jakarta metropolitan area,
and (2) increase the number of transfer passengers as a result of the transfer of control to
Makassar Airport to carry out transit function operations between airports in eastern Indonesia
and airports in western Indonesia, a function that is currently being carried out by Soekarno-Hatta
Airport.
iv) ASEAN Open Sky
Aviation liberalization in ASEAN regions (liberalization of the 3rd, 4th, and 5th “Freedom of the
Air”) is planned to be implemented in 2015. The increase in business activity, business travel,
and tourist travel accompanying the improved connectivity in the ASEAN region will most likely
afford Indonesia's airlines and airport operators with great business opportunities. Indonesia is
also planning on opening up its 5 international airports, which include those in Jakarta, Surabaya,
Bali, Medan, and Makassar, and this is anticipated to further develop the economics of the
regions surrounding Makassar Airport and also greatly increase the number of international
passengers using Makassar Airport.
b)
Air Traffic Demand Forecast for Makassar Airport
Based on the results of consultation with local stakeholders and in consideration of factors that could
impact air traffic demand, an air traffic demand forecast for Makassar Airport has been established at
3-13
Chapter 3
an air traffic demand forecast value of 21 million airline passengers a year (14.5 million domestic
flight passengers, 800 thousand international flight passengers, and 5.7 million transit passengers) for
the year 2024, which is the air traffic demand forecast value planned by the current master plan. This
air traffic demand forecast value has been used as the baseline of this project.
Figure 3-11 Air Traffic Demand Forecast for Makassar Airport (AP-I)
Base Case Forecast in UPG Passenger
2044
40M
2013 - 2024
 GDP Growth: 5.4%/year
 Traffic Growth: 7.3%/year
2024
21M
 UPG Passenger
2024
(2013)
Demand
21mil (9.6mil)
Domestic 69% (75%)
International 4% ( 2%)
Transit
27% (23%)
2013
9.6M
Source: Created by the study team via AP-I materials
This air traffic demand forecast value assumes a growth of 7.3% per year, but the number of airline
passengers for domestic flights between the years 2008 and 2013 rose greatly at a rate of 17% per year.
As a result, some of the local stakeholders desire a future gross potential that can respond to even
greater air traffic demand, as well as a phased-approach that can correspond to the increased air traffic
demand. Therefore, the airport upgrade plan for Makassar Airport requires that emphasis be placed on
"future gross potential" and a "phased-approach".
Furthermore, the results of analyzing the growth rate in the number of airline passengers in regions of
Indonesia, which was a study carried out by aviation related agencies, shows that the forecast values
of AP-I adopted in this study are mostly identical to the forecasts provided by other aviation related
agencies.
Figure 3-1 Forecast of the Growth Rate in the Number of Airline Passengers Provided by the related Agencies
AP-I (adopted
Boeing12
Airbus13
IATA14
this time)
Forecast of the growth rate in
the number of airline passengers
7.7
6.9
6.4
7.3
(% / year)
12
13
14
Boeing, Current Market Outlook 2014 (South East Asia-South East Asia)
Airbus, Global Market Forecast 2014 (Domestic Asia Emerging)
IATA, Indonesia Domestic Market, Oct, 2014
3-14
2)
Chapter 3
Makassar Airport Capacity Study Accompanying the Introduction of the BB/RH Network
After analyzing the current airport network at Makassar Airport, we studied the amount of airport capacity
required for Makassar Airport when introducing the BB/RH Network under the assumption of the air traffic
demand forecast of the year 2024. The study on airport capacity implemented a route analysis between
Soekarno-Hatta Airport and Makassar Airport as the constraint of the future airport network, and thereafter,
carried out a broader analysis for the network between Makassar Airport and airports in eastern Indonesia.
a)
Current Airport Network Analysis for Makassar Airport
Makassar Airport currently has 24 domestic routes mostly for flights to eastern Indonesia and 2
international routes for flights to Kuala Lumpur and Singapore for a total of 26 established routes. It
operates approximately 260 scheduled aircraft departures and arrivals per day.
Figure 3-12 Current Airport Network Connecting Makassar Airport
Source: Created by the study team from the December 2014 Makassar Airport timetable
The flight frequency share among the different airlines and aircraft fleet operating at Makassar Airport
shows that 3 large airline companies occupy nearly 100% of the flights with the LCC Lion Air holding
a share of 51%15, the state-owned airline Garuda Indonesia holding a share of 32%16, and Sriwijaya
Air, which is in the third position for domestic flights, holding a share of 16%. Classified by aircraft
fleet, the flight frequency share for single aisle aircraft such as the B737 and A320 occupies 73%,
regional jets and turbo props such as the CRJ1000 and ATR72 occupy 26%, and twin aisle aircraft
such as the A330 currently occupies 1%.
15
16
Includes the subsidiary companies Wings Air and Batik Air
Includes the subsidiary company Citilink
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Chapter 3
Figure 3-13 Flight Frequency Share at Makassar Airport by Airline / Fleet
Others
1%
ATR72
16%
Sriwijaya
Air
16%
Garuda
Indonesia
32%
A330
1%
CRJ1000
10%
Lion Air
51%
A320
4%
B737
69%
Next, the flight frequency share among the different airlines and aircraft fleet operating between
Soekarno-Hatta Airport and Makassar Airport shows that between Soekarno-Hatta Airport and
Makassar Airport frequent operation of flights currently accounts for approximately 34 round-trip
flights per day on average, of which approximately 33 of the round-trip flights are made using single
aisle aircraft such as the B737 and A320. In the future, congestion will worsen at Soekarno-Hatta
Airport and if flight frequency does not rise above this level, a bottleneck will form for routes between
Soekarno-Hatta Airport and Makassar Airport and this would most likely greatly hinder not only the
expansion of Makassar Airport, but also the expansion of the network in eastern Indonesia.
Figure 3-14 Flight Frequency Share between Soekarno-Hatta Airport and Makassar Airport
35
30
25
Number of
20
round-trip
flights
(flights / day) 15
10
Sriwijaya Air
A330
A320
Garuda
Indonesia
B737
Single aisle
aircraft
Lion Air
5
0
By airline
By aircraft
b)
Broad-Band (Twin Aisle Aircraft) Flights between Soekarno-Hatta Airport and Makassar Airport
Twin aisle aircraft are usually utilized for long haul international flights, but in order to effectively use
the limited airport slots at congested airports, the seating capacity of twin aisle aircraft is being used to
the greatest extent possible for short haul domestic flights so as to transport a large number of airline
passengers at one time.
i)
Example of Short Haul Domestic Flight Operation of Twin Aisle Aircraft in Japan
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Chapter 3
In Japan, since airport slots are limited at Tokyo International Airport (Haneda), many twin aisle
aircraft are being introduced for main routes regardless of whether the flights are short-haul
domestic flights. Although these aircraft are currently retired, the short-distance SR model (short
range) of the large B747 and 400D model (D for domestic) were both widely utilized for
domestic flights. Currently, All Nippon Airways, Japan Airlines, and Skymark Airlines make
frequent flight use of twin aisle aircraft such as the B777, B787, B767, and A330 for main routes
that include Haneda Airport to Chitose Airport (894 km), Haneda Airport to Itami Airport (514
km), Haneda Airport to Fukuoka Airport (1,041 km), and Haneda Airport to Naha Airport (1,687
km).
ii)
Current Situation of Short Haul Domestic Flight Operation of Twin Aisle Aircraft in Indonesia
Indonesia is also seeing an increase in the use of a fleet of twin aisle aircraft in hopes of
alleviating congestion caused by limited airport slots at Soekarno-Hatta Airport. In an interview
with local officials, we learned that DGCA took the initiative 4 years ago to recommend the use
of twin aisle aircraft for the main routes of domestic flights, but airlines were reluctant to
introduce the use of twin aisle aircraft for domestic routes.
However, now with the worsening of the air traffic and airport congestion in Jakarta, Garuda
Indonesia has started introducing twin aisle aircraft to its domestic routes (as of December 2014,
it has started introducing twin aisle aircraft for Jakarta - Bali, Jakarta - Surabaya, Jakarta Balikpapan, Medan - Makassar, and Jakarta - Makassar, which is the subject of this study). In
addition, Lion Air is also making investigation as to whether introduce twin aisle aircraft for
domestic flights and had ordered 5 B787s (however, it was announced that in January 2014 the
order for the B787s was canceled and replaced with an order for B737-900ERs17).
Furthermore, during the "The Ministry's National Working Meeting" held on December 9, 2014,
the new Minister of Transportation Ignasius Jonan announced that "there would be a 50%
reduction in landing fees for the use of twin aisle aircraft for domestic flights at major airports18",
so it has become clear that the government in Indonesia is promoting the operation of twin aisle
aircraft for domestic flights.
c)
Future BB/RH Network Assumptions and Airport Capacity according to Function
This project assumes the adoption of twin aisle aircraft for frequent operations between
Soekarno-Hatta Airport and Makassar Airport as a model based on Japan's long history of using twin
aisle aircraft for short haul domestic flights. We carried out the aviation network analysis for this
project based on the results of consultation with local stakeholders and under the following
assumptions.
i)
We set the flight frequency between Soekarno-Hatta Airport and Makassar Airport to be the
same as the number of current flights.
17
18
Jakarta Globe, “Lion Air to Cancel Order of Dreamliners for Smaller 737 Aircraft”, 28 January, 2014
Jakarta Post, “Incentive Prepared for widebody aircraft”, 10 December, 2014
3-17
Chapter 3
As described by the air traffic demand forecast, conservative assumptions have been made
regarding efforts to upgrade airport capacity at airports in the Jakarta metropolitan area, so
instead of overly relying on airport development in the Jakarta metropolitan area, we established
a goal of achieving the transportation of passengers in eastern Indonesia, which includes those
using Makassar Airport. Also, even if airport capacity is increased for the Jakarta metropolitan
area, the extreme concentration in the Jakarta metropolitan area still needs to be corrected, and
from the perspective of eastern Indonesian development, it is considered that the effectiveness of
the BB/RH Network will remain unchanged either way.
ii)
The use of twin aisle aircraft between Soekarno-Hatta Airport and Makassar Airport establishes
a high-density seat configuration.
Garuda Indonesia has already adopted the use of twin aisle aircraft for domestic flights. However,
the cabin configuration of the flights is suited for long haul international flight operations, and
has not yet been optimized for short haul domestic flight operations. This study made reference to
the cabin configurations of the twin aisle aircraft of Japanese airlines and it was assumed that
high-density seat configuration for the number of seats on small twin aisle aircraft such as the
A330 and B787 is between 300 to 400 seats, and the number of seats on large twin aisle aircraft
such as the B777 is between 400 and 500 seats. By adopting the high-density seat configuration
of twin aisle aircraft, not only is it possible to increase the number of available seats per flight,
but it is also possible to reduce the operating costs of airlines per seat, and therefore, will
contribute to improvement in the operating economics of airlines.
iii) In addition this will basically reduce the direct flight frequency between Soekarno-Hatta Airport
and airports in eastern Indonesia and allow passengers to make use of connecting flights at
Makassar Airport. It is also possible to improve convenience for passengers by using small
aircraft (regional jets and turbo props) for frequent operations between Makassar Airport and
airports in eastern Indonesia.
According to the results of a previous field survey carried out beforehand by this study project
with regards to the preferences of airline passengers in Indonesia with respect to direct flights and
transit flights, we have learned that airline passengers will actively choose flight routes with
transit flights when the fare of routes with transit flights is relatively cheaper than direct flight
routes and when transit convenience is improved (high flight frequency, convenience timetables
with lots of departures and arrivals, etc.). Based on the preference analysis of airline passengers
undertaken by this study, we have determined that the convenience of passengers can be
increased by offering frequent operations of small aircraft between Makassar Airport and airports
in eastern Indonesia, and have furthermore, established an airport capacity (passenger terminal,
number of spots) based on the analysis results of passengers choosing transit flights via Makassar
Airport as opposed to direct flights.
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Chapter 3
Based on the above assumptions, the results of passenger route choice analysis and the initial aviation
network analysis indicate that many airline passengers traveling between Soekarno-Hatta Airport and
airports in eastern Indonesia will choose a transit flight by way of Makassar Airport. In such a case,
since it is expected that the transit passengers using Makassar Airport will greatly increase, this
project has considered it appropriate to make classification of two functions: (i) a function related to
the BB/RH Network (BB/RH Function) that connects Soekarno-Hatta Airport with airports in eastern
Indonesia by way of Makassar Airport and (ii) an existing function that connects Makassar Airport
with the other major airports (including international air routes).
(i)
BB/RH Function
This function seeks to maximize transit convenience for the transit passengers of Makassar
Airport by connecting Soekarno-Hatta Airport with airports in eastern Indonesia by way of
Makassar Airport. The results of the initial network analysis show that there will be a need in the
year 2024 to process approximately 11 million passengers a year via the BB/RH Function. In
particular, in order to support 3-4 twin aisle aircraft per hour between Soekarno-Hatta Airport and
Makassar Airport during peak hours, it will be necessary to operate flights between Makassar
Airport and the airports in eastern Indonesia using small-sized jets at a rate of 15-20 flights per
hour.
(ii) Existing Function
This function mainly handles direct flight passengers between Makassar Airport and other main
airports (including international air routes). The results of the initial network analysis based on
the assumption of the operation of mostly single aisle aircraft, as has been the case until now,
show that there will be a need to process approximately 10 million passengers via the Existing
Function. In order to reduce the investment costs, airport operations that maximize existing
facilities are required.
3-19
Chapter 3
Figure 3-15 Conceptual Diagram of Future Airport Functions at Makassar Airport
Makassar
Airport Capacity
(2024）
Twin Aisle
11 Million
Soekarno-Hatta
Airport
Makassar Airport
BB/RH
Function
Small Aircraft
Central/Western
Indonesia
(Surabaya, Medan, etc)
10 Million
Single Aisle
Eastern
Indonesia
Existing
Function
International
(Singapore, etc)
21 Million
3)
Airport Requirement Specifications Needed in a Regional-Hub Airport
The field survey extracted the tasks currently facing Makassar Airport, and then, based on the investigation of
case studies at hub airports in the United States and after consultation with local stakeholders, we summarized
the airline requirement specifications needed for the BB/RH Function.
a)
Field Survey Extraction of Tasks Currently facing Makassar Airport
The field survey and materials obtained from AP-I were used to extract the tasks facing the current
facilities of Makassar Airport, the subject of this study.
i)
Issues related to the Area Layout of the Passenger Terminal

Among the 65,000m2 of floor space in the passenger terminal building, the departure gate
lounge occupies almost 50% of the area, so even though there is plenty of space in front of
the gate, the area around the check-in counter is congested due to the uneven distribution of
space.

There are island type check-in counters in the check-in lobby, but since the escalator up to
the 2nd floor is located in the center of the passenger terminal, passenger flow is
concentrated among passengers waiting and finishing to check-in and passengers entering
from the passenger terminal doors, thus making the area congested.

Since there are only 1-2 international flights per day, the departure and arrival gate for
international flights is positioned next to Gate 6, but when implementing the facilities
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Chapter 3
upgrade, there needs to be a plan to prevent the passenger flow of the international and
domestic lines from mixing with each other.
ii)
Issues related to the Flow of Transfer Passengers

After transfer passengers arrive at Makassar Airport, they need to use the boarding bridge to
walk from the 2nd floor section into the passenger terminal by going down to the 1st floor,
and then after gathering in the center area to undergo transfer screening, they need to go
back up to the 2nd floor again to enter the departure lounge. In other words, they have to
perform two floor level changes. As a result, the walking distance for the transfer is very
far, and this design is not very accommodating to transfer passengers.

Among the spots for parking aircraft, there are 6 spots that connect with a boarding bridge.
All of the other spots are remote spots, so the overall percentage of spots that connect with a
boarding bridge is small. When using a remote spot, passengers need to be transported using
a ramp bus, and this can make it difficult to process transfer passengers quickly. In addition,
passengers that depart from remote spots need to walk down to the apron from the fixed
bridge section of the boarding bridge via a business operations staircase, and then take a
ramp bus to a remote spot to board. However, since the business operations staircase is steep,
it raises the issue of safety.
iii) Issues related to the Flow of Transfer Passengers

The absence of a baggage handling system makes it necessary for transfer passengers to
manually sort out their checked-in baggage, and it is difficult to sort through baggage within
a short period of time.
b)
Research of Case Studies at Hub Airports in the United States
Long-time established major airlines operating in the aviation powerhouse of the United States have
constructed a network for concentrating the flights of each airline with hub airports via a
"hub-and-spoke system" in order to ensure the efficient operation of their aircraft. Since it was learned
through interviews with local stakeholders that "there are currently no airports in Indonesia that take
into consideration transit flights", we carried out this case study of hub airports in the United States.
Traditional airlines (legacy carriers) in the United States have recently been consolidated into 3 major
airlines
following
the
mergers
of
Delta
Airlines/Northwest
Airlines
in
2008,
United
Airlines/Continental Airlines in 2010, and American Airlines/US Airways in 2013. These airlines have
been able to construct a hub-and-spoke system by linking partnering regional airlines with each of the
hub airports.
3-21
Chapter 3
Table 3-2 Hub-and-spoke System in the United States
Traditional airlines
American Airlines
US Airways
United Airlines
Delta Airlines
Hub airports
Chicago O’Hare
Denver
Houston George Bush
Los Angeles
Newark Liberty
San Francisco
Washington Dulles
Charlotte
Chicago O’Hare
Dallas/Fort Worth
Los Angeles
Miami
New York-LaGuardia
New York-JFK
Philadelphia
Phoenix
Washington, D.C
Atlanta
Cincinnati
Detroit
Minneapolis-St. Paul
New York-LaGuardia
New York-JFK
Salt Lake City
Seattle
Regional brand
United Express
American Eagle
Delta Connection
Regional airlines
Skyewest Airlines
Expressjet Airlines
Republic Airlines
Shuttle America
Trans States Airlines
GoJet Airlines
Mesa Airlines
Commutair
Envoy
PSA Airlines
Piedmont Airlines
Skywest Airlines
Expressjet Airlines
Republic Airlines
Air Wisconsin
Mesa Airlines
Endevor Air
Skywest Airlines
Expressjet Airlines
Republic Airlines
Shuttle America
Chautauqua Airlines
GoJet Airlines
Compass Airlines
Source: Created by the study team via airline websites and the ASCEND database
A hub airport has multiple runways in order to deal with a large number of departing and arriving
aircraft, and the passenger terminal is positioned in the center of these runways so that the ground
running distance of the aircraft is reduced to the greatest extent possible. The passenger terminal is
composed of access facilities such as the passenger loading apron, passenger terminal building, and
parking lots, but arrangement of these facilities is made so as to secure a smooth flow between
passengers, goods, and vehicles.
Passenger terminals are broadly classified into centralized terminals and distributed terminals.
Centralized terminals are composed of one large main terminal and associated satellite terminals,
whereas distributed terminals are divided into multiple main terminals.
Atlanta Airport is an example of a centralized airport. Atlanta Airport is used as a hub of Delta
Airlines and between the international main terminal and the domestic terminal there are 5 satellite
terminals A-E. The satellite terminals are positioned approximately 300m from each other, and
connection between the main terminals with the satellite terminals is made via a tram (subway) or
pedestrian underground walkway.
Chicago O'Hare Airport and Dallas-Fort Worth Airport are examples of distributed terminals. Chicago
O'Hare Airport is composed of four passenger terminals, 1, 2, 3, and 5 and each passenger terminal is
connected by ATS (monorail between terminals). Linkage with Terminal 1, a main terminal, and
satellite terminals, positioned about 300m away from each other, is made via a pedestrian
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Chapter 3
underground walkway (moving walk). Dallas-Fort Worth Airport is composed of 5 terminals A-E to
which each satellite terminal is connected by means of APM (Automated People Mover, Skylink).
In the case of centralized terminals, even though transfer passengers can easily move for transit, the
size of the main building increases and construction work is difficult when gradually making
upgrades.
In the case of distributed terminals, if movement between terminals is necessary for transfer, a
transportation system such as APM is required. However, it also has the benefit of providing departing
and arriving passengers of the airport a short traveling distance from the city to aircraft that have
landed at the airport. The arrangement of spots for large and small aircraft has two types of formations.
In the case of the Chicago O'Hare Airport used by United Airlines, both large and small aircraft make
use of the same satellite terminals, whereas in the case of Dallas-Fort Worth Airport used by American
Airlines or Atlanta Airport used by Delta Airlines, large and small aircraft make use of different
passenger terminals. The arrangement of aircraft is carried out by each airport to optimize its
operations depending on the number of flights and number of airlines.
Figure 3-16 Terminal Arrangement by Delta Airlines at Atlanta Airport
Source: Delta Airlines website
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Chapter 3
Figure 3-17 Terminal Arrangement at Chicago O'Hare Airport
Source: United Airlines website
Figure 3-18 Terminal Arrangement at Dallas-Fort Worth Airport
Source: Dallas-Fort Worth Airport website
Furthermore, Miami Airport and New York JFK Airport have large aircraft connected to the main
terminal, whereas small aircraft make access from the main terminal through corridors, and this
arrangement allows transit between large and small aircraft to be achieved in a small amount of time
and for a small amount of investment.
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Chapter 3
Figure 3-19 Example of the Corridor Concept in the United States
Miami Airport
New York JFK Airport
Source: Google Maps
c)
Regional-Hub Airport Requirement Specifications Formulation
As mentioned above, based on the results of task extraction via field surveys at Makassar Airport, case
studies at hub airports in the United States, and interviews with local stakeholders, formulation has
been established as follows below for the requirement specifications needed for the regional-hub
airport proposed by this project.
i)
ii)
Passengers: Transit should be stress free.

Minimization of walking distances

Minimization of level changes

Appropriate arrangement of inspection areas for transfer screening

Securing a sufficient number of transfer desks

Less "narrow paths" throughout transfer route

Easy-way-finding by instructions
Facilities: Realization should be made of simple airport facilities / efficient aircraft operation.

Reducing initial investment through use of the simplest airport facilities / reducing operating
costs

Passenger terminal in consideration of large aircraft / small aircraft that can reduce transit
times

Reduction of Transfer time of checked-in baggage from large aircraft to small aircraft

Reduction of taxiing distances

Arrangement of Apron and Taxiways that do not Cause Congestion
iii) Scalability: Guarantee should be made of flexible airport upgrade in the future.

Phased-approach that can respond to variations in the number of airline passengers and
changes in the market environment

Extensibility (including the Aero City concept) that can respond to increased air traffic
demand in the future
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Chapter 3
iv) Other considerations (including the unique characteristics of Makassar Airport)

Development of commercial facilities for expansion of non-aero revenue

Consideration of not only transfer passengers, but also passenger flow for departing and
arriving flights at Makassar Airport

Responding to cargo increases due to the operation of twin aisle aircraft

Securing conformity with existing land acquisition plans

Development of local airports in eastern Indonesia that connect to Makassar Airport via the
BB/RH Network (night time departure and arrival support operation capability)

Consideration of military aircraft operation restrictions for Makassar Airport
3-26
Chapter 3
(3) Outline of Project Formulation
1)
Approach to project formulation
The business scope assumed by this project includes the upgrade of Makassar Airport based on the results
of the air traffic demand forecast, as well as the new construction/upgrade of passenger terminal facilities
incorporating the requirement specifications needed of a regional-hub airport, apron upgrade, baggage
handling system construction, and roads and parking lots around the terminal building. Based on the results
of various studies and consultation with local stakeholders, the conceptual design of Makassar Airport will be
carried out in accordance with the following basic policy.

This project incorporates the regional-hub airport requirement specifications of Makassar Airport and
investigates the airport upgrade project estimating 21 million passengers per year for the year 2024
based on the air traffic demand forecast value.

We have ensured future gross potential by taking into consideration the possibility of an increase in
future air traffic demand in Indonesia in excess of the current estimation.

This projects adopts a phased-approach in which study is made starting with the year 2024 (Phase 1)
and ending with the grand design of the year 2044 (Phase 2). In moving toward the operation start in
the year 2024, consideration has been made of the implementation potential of the introduction phase
(Phase 0) to confirm beforehand the feasibility of the BB/RH Network.

Since two different roles will be required of Makassar Airport as it transitions into being a regional
hub, the study is classified into the BB/RH Function and Existing Function which have greatly
improved transit convenience as an airport function.

In consideration of the land acquisition difficulties, it is assumed that upgrade will utilize the existing
premises up to the year 2024. Furthermore, since measures can be made to cope with the existing
capacity of two runways, and since AP-I is planning to increase facilities for a 3rd runway starting in
the year 2024, this study does not assume runway facilities will be increased.
2)
Conceptual design and specifications of applied facilities
According to the approach above, the conceptual design of airport facilities, the passenger terminal in
particular, is studied. Several options which meet specifications required for a regional-hub airport are
examined, taking into consideration the current conditions of airport operation and land acquisition.
a)
The Study Team compared and evaluated several passenger terminal concepts that have been
adopted by other international airports, so as to analyze a passenger terminal which may embody a
regional-hub airport most practically in the BB/RH Network. The evaluation results are presented
in Table 3-3.
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Chapter 3
Table 3-3 Comparison of Typical Passenger Terminal Concepts
3-28
Chapter 3
The passenger terminal concepts were examined, placing importance to the following three points in
relation to a regional-hub airport in the BB/RH Network, taking into consideration the airport scale
(number of passengers and aircraft movements), aircraft types, and air traffic demand prediction:
1)
Transfer passenger convenience,
2)
Future growth potential/phased approach, and
3)
Cost (initial investment/operating cost).
In terms of transfer passenger convenience and future growth potential/phased approach, the satellite
concept has few constraints imposed by the main terminal and enables a flexible layout design, since
the satellite terminal can be located independently of the existing main terminal. However,
connection between the satellite and the main terminal needs to be considered, hence there is an
apprehension that the equipment and operation necessary for the connection and conveyance would
be costly.
In terms of cost, the linear/pier concepts are desirable, which have a close affinity with the existing
terminal. However, it is pointed out that there would be more limitations not only on transfer
passenger convenience and future growth potential but also on equipment handing due to the
constraints imposed by the existing terminal.
b)
Comparison of airport conceptual design options
The options of airport conceptual design, which meet the requirements of the regional-hub airport,
were examined, in consideration of: (i) the abovementioned evaluation results of passenger terminal
concepts and (ii) the current conditions of airport operation and land acquisition at Makassar Airport.
This study has selected the option which meets the specifications required by the BB/RH Network
and is most valuable to Makassar Airport and aircraft passengers in Indonesia, based on discussions
with local stakeholders.
In the evaluation of the options of airport conceptual design, four options are compared as presented
in Table 3-4.
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Chapter 3
Table 3-4 Comparison of Regional-Hub Airport Options
Options 1 and 2 are plans, where the design of the expansion is centered on the existing terminal
building. Options 3 and 4 are plans, where a new passenger terminal is independently constructed.
The major characteristics of each option are described below.
Option 1: Simple extension

This option extends the existing passenger terminal to the right and left and uses the right part
for the BB/RH function, and the existing passenger terminal and the left part for the existing
function.

For the BB/RH function, Code-E stands (for twin aisle aircraft) are to be located along the right
extension of the existing passenger terminal, and Code-C light stands (for regional jets and
turbo props) are to be concentrated in the right end area.

Since the existing passenger terminal is simply extended, the cost is low.

Future growth potential is low because limited land and only a few connection stands with
boarding bridges are available.
Option 2: Pier extension

This option extends the existing passenger terminal to the left, and uses the extended part for
the BB/RH function and the existing passenger terminal for the existing function.
3-30

Chapter 3
For the BB/RH function, Code-E stands (for twin aisle aircrafts) are to be closely laid out along
the left extended part, and the number of Code-C stands (for regional jets and turbo props)
connected to boarding bridges is maximized by adopting the pier extension.

The cost is low because this option will only require an extension of the existing passenger
terminal, and the connection slots with boarding bridges are available.

Future growth potential is low because of limited land and in particular, equipment handling on
the taxiway in the apron is complicated.
Option 3: Dedicated satellite (South Side Satellite)

This option extends the existing passenger terminal to the right and left, and constructs a new
satellite terminal to the south of this passenger terminal (at the opposite site of the existing
runway).

The new satellite terminal shall have a BB/RH function. The existing passenger terminal holds
the existing function and the main terminal function (check-in counter, baggage claim area,
etc.). Both terminals are to be connected through an underpass.

The satellite terminal will serve as the passenger terminal which places full importance to
transfer passenger convenience, and excels in consistency with any future expansion plan since
this new terminal is near the 3rd runway to be planned in the future.

The construction cost of the underpass between both terminals is high. The issue for this option
is how to provide convenience for the passengers who will use the satellite terminal for
departure from/arrival at Makassar Airport.
Option 4: Landside integration (North Side Satellite)

This option extends the existing passenger terminal to the left and constructs a new satellite
terminal along the existing road situated to the north of the existing passenger terminal.

The new terminals shall have the BB/RH function and the existing satellite terminal shall have
the existing function.

The satellite terminal is a passenger terminal which pays close attention to transfer passenger
convenience. Both terminals are connected without a runway crossing.

The future growth potential of this option is low because of limited land, and there is a long
taxiing distance between the new satellite terminal and the runway.
Through discussions with local stakeholders about the abovementioned comparison results of the
four options, it has been agreed to promote “Option 3: Dedicated Satellite”. This option places
importance to: (i) transfer passenger convenience, which is the most important requirement of the
BB/RH Network and (ii) future growth potential, which is a requirement to be a gateway airport of
the Indonesian eastern region where continuous growth is greatly expected. Regarding the selected
dedicated satellite concept, the AP-I leaders have appreciated that expansion in the current available
land has some limitations, hence, this concept, which envisages construction of the 3rd runway in the
3-31
Chapter 3
future stage and the layout of a new satellite terminal between the existing and the 3rd runway, fully
ensures consistency with the existing AP-I master plan.
c)
Plan of airport facilities
The plan of airport facilities for the selected dedicated satellite concept is stated below.
i) Scale of passenger terminal
The scale of passenger terminal, hereinafter expressed as an index of total floor area, is set at
210,000 m2 by using: (i) a basis of 10,000 m2 per one million airline passengers/year and (ii) 21
million passengers/year predicted air traffic demand in 2024. Since the total floor area of the existing
passenger terminal is 65,000 m2 that of the new and expanded passenger terminals is roughly
estimated at 150,000 m2. In due consideration of the specific condition wherein Makassar Airport
has a high percentage of transfer passengers, this study plans: (i) a 60,000 m2 expansion of the total
floor area for the existing passenger terminal, and (ii) construction of a new satellite terminal having
a total floor area of 88,000 m2.
Table 3-5 Scale of Passenger Terminal
Phase 1 (2024)
Airport function
Satellite terminal
(BB/RH function)
Scale of passenger terminal
New
88,000 m2
Existing main terminal
(Existing function)
Existing
65,000 m2
Expansion
60,000 m2
Total
Total
213,000 m2
Annual
number of
passengers
(million)
11
10
21
ii) Number of slots
The required number of slots is calculated by airport function, estimating the number of passengers
per hour during peak operation hours from the annual number of airline passengers at Makassar
Airport. The number of slots has been calculated for: (i) Code E (wing width: more than 52 m and
less than 65 m, wheel track: more than 9 m and less than 14 m) for twin aisle aircraft like B777,
B787, and A330, and (ii) Code C (wing width: more than 24 m and less than 36 m, wheel track:
more than 6 m and less than 9 m) for B737, A320, major regional jets, and turbo props.
Table 3-6 compiles the number of slots in Phase 1 (2024) by airport function. Airport expansion
compatible with the required slots is needed.
3-32
Chapter 3
Table 3-6 Required Number of Slots by Airport Function/Size
Annual
Phase 1 (2024)
Number of
Airport Function
Passengers
Slot Size
Number of Slots
(million)
Code C
20
BB/RH function
11
Code E
5
Code C
26
Existing function
10
Code E
2
Total
Total
53
21
iii) Connection underpass between terminals
The project plans an approximately 1 km long underpass crossing the runway so as to connect the
existing passenger terminal and the satellite terminal within a short time. The underpass shall enable
not only conveyance of passengers and checked-in baggage but also passage of ground support
equipment (GSE) and vehicles. In addition, introduced are Automated People Mover (APM) for
passenger transfer between the existing and satellite terminals and a baggage handling system for
smooth transfer.
iv) Cargo terminal
The total floor area of the air cargo terminal is set at 10,000 m2 so as to handle 94,900 ton of cargo
volume in 2024, which is the predicted air cargo demand by AP-I, based on a typical rate of 10-20
ton/m2 (cargo volume/floor area).
v) Road/parking area
A parking area is prepared in front of the passenger terminal as a means of airport access since no
track system will be provided in Phase 1 (2024).
3)
Contents of proposed project
a)
Summary of facility plan in Phase 1 (2024) and general airport plan
The facilities planned in Phase 1 (2024) are summarized in Table 3-7.
3-33
Chapter 3
Table 3-7 Outline of Facilities for the Year 2024 (Phase 1)
Item
Satellite
terminal
(New
construction)
Main terminal
(Expansion)
Terminal
appurtenances
(New
construction)
Airside
infrastructure
(Expansion)
Target of
Development
Satellite
terminal
Main terminal
Connecting
system between
terminals
Utility facilities
Apron
Details of Development
Remarks
Satellite terminal and appurtenances
Concession area,
Transfer security check area,
Transfer baggage check area,
Check-in baggage sorting area,
Total floor
area:
88,000 m2
Main terminal and appurtenances
Chick-in area,
Concession area,
Airport security area,
Baggage claim area,
Total floor
area:
60,000 m2
Expansion of
existing passenger
terminal
Connection underpass, APM,
Baggage handling system for transfer
Connection
distance
1 km
Study of alternative
connecting methods
other than APM
Utility building,
Power receiving-transformer/
air conditioning/ water supply/
water treatment equipment
Apron upgrade
Development of cargo terminal and
aircraft maintenance area
-
Area:
596,200 m2
Area:
115,000 m2
Total floor
area:
10,000 m2
Taxiway
Cargo terminal
Other
Size of
Facilities
Excluding hydrant
(included in AP-I
plan)
Transfer after new
facilities
Aircraft
maintenance
area
-
New facilities
(development to be
done by airlines)
Parking area
and roads
Area:
114,000 m2
Increased facilities
3-34
Chapter 3
Figure 3-20 General Plan of Airport (Year 2024: Phase 1)
Main terminal upgrade
New satellite terminal
facilities
3-35
a)
Chapter 3
General plan of airport (Phase 2: 2044)
The general plan of the airport in Phase 2 (2044) is presented in Figure 3-21 as a future grand design.
It is predicted that 40 million airline passengers/year, which are roughly equivalent to four times the
current volume, would use Makassar Airport in 2044 and the capacities of the runway and passenger
terminal would be inadequate. The AP-I future plan also includes the 3rd runway located parallel to
the existing runway to the south and a new satellite terminal between both runways. This upgrade
project envisages the addition of the 3rd runway at the same location as in the AP-I plan and
symmetrical expansion of the satellite terminal in Phase 2 (2044), and therefore ensures consistency
with the AP-I master plan on the whole.
Figure 3-21 General Plan of Airport (Phase 2: 2044)
Expansion of Satellite
Terminal
3rd Runway
3-36
4)
Chapter 3
Issues on proposed technology/system and solutions
a)
Participation in BB/RH Network operation of local airlines
In this project, the prospect of project feasibility has been brought about through verification of the
possibility of the BB/RH Network and reasonableness of the regional hub airport with local
stakeholders. Meanwhile, participation of the local airlines that will actually operate this network is
essential to the successful implementation of the BB/RH Network. Lion Air (LCC), Garuda
Indonesia (state-owned airline), and Sriwijaya Air (third-ranked local airline in Indonesia) have
shared 80% of the Indonesian domestic airline market. Therefore, aviation network reconfiguration
involving these local airlines is needed in the case where the current BB/RH Network is incorporated
into project implementation
However, Lion Air and Garuda Indonesia have already ordered a large
number of single aisle aircraft in their expectation of future increase in air traffic demand.
Table 3-8 Aircraft Operated/Ordered by Major Indonesian Airlines
Airline
Aircraft
Nos. of
Aircraft
Operated
Nos. of
Aircraft
Ordered
ATR72
30
17
Dash 8 Q300
2
-
B737
115
280
A320
3
231
B747
2
0
152
528
Aircraft class
Turboprop
Lion Air19
Single aisle aircraft
Twin aisle aircraft
Total
Airline
Aircraft class
Aircraft
Nos. of
Aircraft
Operated
Nos. of
Aircraft
Ordered
Turboprop
ATR72
8
22
Regional jet
CRJ1000
15
3
B737
80
52
A320
32
49
A330
20
15
B777
6
4
B747
3
-
152
528
Garuda Indonesia20
Twin aisle aircraft
Total
Airline
Sriwijaya Air
Aircraft Class
Aircraft
Nos. of
Aircraft
Operated
Nos. of
Aircraft
Ordered
B737
38
-
38
-
Total
Source: Created by the study team based on ASCEND database (November 2014)
19
20
Including subsidiaries of Wings Air, Batik Air
Including subsidiary of Citilink
3-37
Chapter 3
Due to the situation where Soekarno-Hatta Airport, the only airport in Jakarta Metropolitan Area, is
experiencing overcapacity due to continuing economic growth but its passenger handling capacity is
limited, the way to securing the operation lines for a large number of single aisle aircraft is a big
issue for each airline. On the contrary, in case the BB/RH Network is introduced, proper measures
will be needed which include changing the orders from single aisle to twin aisle aircraft or small
aircraft, although a large number of single aisle aircraft has already been ordered as mentioned
above.
b)
Integration with AP-I master plan
Through hearing of AP-I’s intention during the course of this study, it is confirmed that AP-I has also
formulated their master plan independently. Therefore, discussions and a detailed plan are needed in
the next stage to integrate the existing AP-I master plan and the dedicated satellite concept having
the BB/RH Network concept.
AP-I has fully understood the BB/RH Network concept and studied the increase of the Code E slots
for twin aisle aircraft among others. However, AP-I has made no detailed plan of the said part and
has not considered any necessary overall airport plan for materializing the BB/RH Network. AP-I
has an aim to increase non-aero revenues by increasing concession areas, and the project needs to
coordinate the plan in detail so as to reconcile the BB/RH Network concept and AP-I’s intention.
3-38
Chapter 4 Evaluation
Impacts
of
Chapter 4
Evaluation of Environmental and Social Impacts
Environmental
and
Social
This chapter presents an evaluation of the potential environmental and social impacts associated with the
upgrading of Makassar Airport including the construction of the new terminal building (for passengers) and cargo
handling system, the expansion of the apron, the construction of roads (around the terminal building) and parking
areas, and the arrangement of essential facilities for BB/RH Network in eastern Indonesia. In this chapter, there is
just a preliminary evaluation for the 3rd runway and other facilities, which will be planned at a later stage.
Environmental monitoring has been implemented based on the Environmental Impact Study, more commonly
referred to as Analisis Dampak Lingkungan: AMDAL in the context of Indonesian environmental planning
procedures and regulations, detailed description in (4)1) in April 1995 for Makassar Airport. AP-I submits reports
for environmental monitoring twice a year. Some parts of this chapter refer to the reports submitted in the first half
of 2014.
(1) Present Environmental and Social Conditions
Present environmental and social conditions around Makassar Airport, as well as future prospects without the
projects, are described as follows:
1)
a)
Status
Natural Environment
The natural environment of Indonesia and the area around Makassar Airport is described as follows:

Location and Topography
Makassar Airport is an international airport which is located on the border of Makassar and
Maros, approximately 17 km from the center of the city of Makassar, the provincial capital of
South Sulawesi. This is the main airport in the eastern part of Indonesia (6.3 million passengers
per year in 2012).
Figure 4-1 shows a photograph of the terminal building and apron from the control tower, while
Figure 4-2 and Figure 4-3 show the topographic map around the airport. Makassar Airport is
located approximately 10 km from the sea and its elevation is 14.4 m (above sea level). The
surrounding lands are relatively flat and open facing the sea.
4-1
Chapter 4
Figure 4-1 Makassar Airport (From the control tower toward the terminal building and apron)
2nd Runway
Apron
Terminal Building
Figure 4-2 Topographic Map (South Sulawesi)
Makassar Airport
Source: Created by the study team (based on the map from “Badan Informasi Geospasial”)
4-2
Chapter 4
Figure 4-3 Topographic Map (Around Makassar Airport)
Plantｓ
Paddy Field
Rainfed Paddy Field
Garden
Forest
Thicket
Dry Fields / Field
Control Tower
Terminal Building
2nd Runway
Makassar

Climate
Sulawesi Island is located in central Indonesia and right on the equator, so this island has a
tropical monsoon climate (Am) according to the Koppen Climate Classification Sub-type
(high-temperature and humidity). Consequently, Makassar has a relatively low annual average
temperature range. In 2013, the average highest temperature per month was 33.2 °C and the
average coolest temperature per month was 23.5 °C (Figure 4-4).

Total precipitation in 2013 was approximately 3,200 mm (one of the highest levels of
precipitation in the world). Makassar has distinct wet and dry seasons with the amount of
precipitation in December and January accounting for half the total annual rainfall. Meanwhile,
precipitation per month from June to October is less than 30 mm (Figure 4-5).
The average wind speed per month in 2013 was 4.6 knots and stronger winds tend to be
experienced during the monsoon season between December and February (Figure 4-6).
4-3
Chapter 4
Figure 4-4 Monthly Average Temperature in 2013
34.0
Temperature (℃ )
32.0
30.0
28.0
Average
26.0
Maximum
24.0
Minimum
22.0
20.0
1
2
3
4
5
6
7
8
9
10 11 12
Month
(based on Badan Pusat Statistik Kota Makassar, “Makassar dalam angka 2014”)
Figure 4-5 Monthly Precipitation in 2013
1200
Rainfall (Mm)
1000
800
600
400
200
0
1
2
3
4
5
6
7
8
9
10
11
12
Month
(based on Badan Pusat Statistik Kota Makassar, “Makassar dalam angka 2014”)
Figure 4-6 Monthly Wind Speed in 2013
35
Average Wind Speed
Average Wind Speed （ m/s）
6.0
Maximum Wind Speed
30
5.0
25
4.0
20
3.0
15
2.0
10
1.0
5
0.0
Maximum Wind Speed (m/s)
7.0
0
1
2
3
4
5
6
7
8
9
10
11
12
Month
Source: Created by the study team (based on Directorate of Conservation, Ministry of Forestry,
“Peta Kawasan Hutan Konservasi Provinsi Sulawesi Selatan Bagian Selatan”)
4-4

Chapter 4
Natural Forests and Conservation Area
There are no conservation areas near Makassar Airport and the nearest protected forest (Hutan
Lindung) is approximately 10 km from the airport. Bantimurung Bulusaraung National Park,
which is one of the largest limestone karst ecosystems on earth, is located within 20 km from the
airport.
Figure 4-7 shows the conservation area of the south part of South Sulawesi.
Figure 4-7 Map of Forest and Conservation Areas (Southern South Sulawesi)
Keterangan: Legend
Kawasan Hutan: Forest Area
APL: Other Land Use / Not Forest Area
Kawasan Konservasi: Conservation Area
Danau; Tubuh Air: Lake; Body of Water
Hutan Lindung: Protected Forests
Hutan Produksi: Production Forest
Hutan Produksi Konversi: Production Forest Conversion
Hutan Produksi Terbatas: Limited Production Forest
Makassar Airport
10km

Mangroves
With a coastline of 81,000 km, Indonesia has the second largest area of mangrove coverage in the
world after Brazil. The total extent of mangroves amounted to 7.7 million ha in 2006. However, it
decreased to 5.5 million ha in 2011. In South Sulawesi, mangrove cover amounts to 77,000 ha,
but only 31.90% are in good condition and 33.50% are damaged.
The airport is located approximately 10 km from the sea. Therefore, the projects have no direct
impact on growing environment of mangrove.
b)
Environmental Contamination and Pollution
Relevant environmental contamination and pollution issues in Indonesia and the area around Makassar
Airport are as follows:

Noise
The Decree of the State Minister of Environment, Number: KEP-48/MENLH/11/1996 regarding
Noise Level Standard set the standards for noise emissions in Indonesia. Enforcement of airport
noise standards is the responsibility of the Minister of Transportation.
4-5
Chapter 4
Reports on environmental monitoring described that environmental monitoring for noise has been
implemented at six points around Makassar Airport and one point did not meet the standard in the
first half of 2014 (adopting WECPNL as index for evaluation).

Air Pollution
The Government Regulation of the Republic of Indonesia No.41/1999 on Air Pollution Control
was enacted in May 1999.
Based on the environmental monitoring report documents, atmospheric measurements have been
taken at six points around Makassar Airport and all points met the required standard in the first
half of 2014.

Water Pollution
The Government Regulation of the Republic of Indonesia No.82/2001 (on the Management of
the Water Quality and Control over Water Pollution) was enacted in December 2001. Moreover,
the Decree of the State Minister of Environment, Number: KEP-51/MENLH/10/1995 set
standards for liquid waste quality for industrial activities.
Environmental monitoring reports showed water quality measurements (e.g., pH, BOD5, COD,
TSS, DO, Total Coliform) are taken regularly and that water quality measurements after the
sewage treatment plant (STP) met the required standard in the first half of 2014.

Waste
The Government Regulation of the Republic of Indonesia No.18/1999 (on the Management of
the Waste of Hazardous and Toxic Materials) was enacted in February 1999. In this regulation,
disposal methods of “Hazardous Waste (Limbah Bahan Berbahaya dan Beracun) called “B3” are
defined.
At Makassar Airport, according to the interview results, hazardous waste is collected at the
exclusive-use facility (in the fuel station) and processed in accordance with Indonesian
regulations. Domestic waste is incinerated in the airport area and carried to the local waste center.
4-6
c)
Chapter 4
Social Environment
Population, land use, and industry of Indonesia and the area around Makassar Airport are as follows:

Population
The population of Indonesia is expected to increase from 241 million in 2010 to 257 million by
2015 and 271 million by 2020. The population in South Sulawesi is projected to increase from
8.1 million in 2010 to 8.5 million by 2015 and 8.9 million by 2020 (Table 4-1).
Table 4-1 Population Growth (from 2010 to 2035)
Province
2010
2015
2020
2025
2030
2035
Jakarta
9,787
10,277
10,694
11,037
11,268
11,381
South Sulawesi
8,137
8,546
8,906
9,206
9,444
9,603
Indonesia
240,673
256,621
271,237
284,315
295,624
304,896
Source：Created by the study team
(based on the Ministry of Environment, “State of the Environment Report Indonesia 2012”)

Land use
The land around Makassar City is mostly used for agriculture (e.g., irrigated paddy fields,
unirrigated paddy fields, corn and cow grazing). The area around Makassar Airport is also
used for agriculture excluding the residential area in the southwest part of the airport. There
are also industrial parks in the suburbs. Figure 4-8 below illustrates the existing land use in
and around Makassar Airport.
4-7
Chapter 4
Figure 4-8 Spatial Map (2008-2028)
- Settlement areas
- Commodity Irrigated Paddy Fields, Unirrigated
Paddy Fields, Corn and Cow Grazing
- Industrial Areas
Makassar Airport
Source: Created by the study team (based on Spatial Map, South Sulawesi Province)

Industry
According to the Makassar government statistics (2014), the agricultural processing industry
accounts for 45.15% of the total production value in Makassar. Secondly, forest industry accounts
for 7.53% and textile industry accounts for 5.92%.
Vegetables are the main agricultural products of the area (e.g., beans and chilli). Moreover, fish
production was 9,373 tons in 2011 and 11,924 tons in 2012.
4-8
2)
Chapter 4
Future Prospects without the Projects
If the projects are not realized, impacts are considered as follows:

Congestion at Soekarno-Hatta Airport will not be reduced. Therefore, it will have a negative
impact on the Indonesian economic development in the future. Meanwhile, Makassar Airport,
which is already considered a gateway to eastern Indonesia and with fewer restrictions for
expansion, is considered as a suitable regional hub airport.

Population in South Sulawesi will increase rapidly (similar to other areas in Indonesia), therefore,
Makassar Airport will rapidly reach the limit of its capacity in the future. Congestion at Makassar
Airport will occur and it will have a negative impact on the social and economic development of
the eastern Indonesia region.
(2) Positive Environmental Impacts of the Projects
Predicted value of passengers and operation for airline routes through the projects has not been estimated yet.
Therefore, the possibility of environmental improvement effects through the utilization of large aircraft
between Jakarta and Makassar is described in this section.
The amounts of emission before and after the utilization of large aircraft are calculated under the following
conditions:

One large aircraft carries passengers currently being transported by three representative aircraft.

Large aircraft is a general one which has three times as many seats as current representative
aircraft.
These conditions are just to simplify calculation and there is no plan to reduce the total flights to one-third of
the current number.
1)
Representative aircraft
There are approximately 34 round-trip flights between Jakarta and Makassar and approximately 31 round-trip
flights are by B737s. Therefore, the B737, which has approximately 180 seats, is set as the representative
small aircraft.
Large aircraft should be a general one having approximately 500 seats, three times as many seats as the
representative aircraft. The B777-300, which has 500–514 seats (2-class) in Japan, is selected as the
representative large aircraft.
2)
Amount of Emission
The amount of emission from the aircraft is classified into two kinds, i.e., during landing/take-off cycles (LTO
cycles) and during flights. Data on fuel consumption is necessary to calculate the amount of emission during
flights. Therefore, the amount of emission during LTO cycles is calculated by a simple equation in this
section.
4-9
Chapter 4
Table 4-2 shows the emission factors for LTO cycles as well as fuel consumption per aircraft type based on
the International Civil Aviation Organization (ICAO) database. Carbon dioxide (CO2) is the only greenhouse
gas (GHG) in the table and the amount of CO2 emission per one LTO of a B737 is 2,454.5 kg-CO2, whereas,
that of a B777-300 is 7,588 kg-CO2.
Table 4-2 Emission Factors for LTO Cycles as well as Consumption per Aircraft Type
Emission Factors as well as Fuel Consumption for LTO Cycles kg/LTO
Seats
Burnt
CO2
NOx
CO
HC
H2O
PM2.5
(2-class)
Fuel
B737
2454.5
9.1
8.0
0.9
958.4
0.1
779.2
Approx. 180
B777-300
7588.0
63.3
17.7
2.0
2962.9
0.1
2408.9
Approx. 500
(based on “EMEP/EEA Air Pollutant Emission Inventory Guidebook 2013 (updated in July 2014)”,
European Environment Agency)
3)
GHG Emission Reduction and Possible Application to Clean Development Mechanism (CDM)
Table 4-3 shows that the amount of CO2 emissions of three B737s is 7.4 t-CO2, whereas that of one B777-300
is 7.6 t-CO2. It means that there is no significant GHG emission reduction under the conditions in this section.
Other reviews are necessary to reduce GHG emission by the projects (e.g., to change to large aircraft which
have better emission factors, to monitor the fossil fuel consumption and calculate the detailed CO2 emission
including during flights, and to review the entire network of eastern Indonesia).
Before
After
Table 4-3 CO2 Emission Before and After Utilization of Large Aircraft
CO2 Emission (t-CO2)
Emission Factors for LTO Cycles（kg-CO2/LTO）× Number of LTOs（LTO）
2,454.5 kg-CO2/LTO × 3 LTO = 7,364 kg-CO2 = 7.4 t-CO2
7,588.0 kg-CO2/LTO × 1 LTO = 7,588 kg-CO2 = 7.6 t-CO2
For CDM projects, there is no restriction for domestic aviation, whereas international aviation is excluded.
However, for the majority of developing countries excluding Brazil, China, India, and so on, international
flights constitute the vast majority of GHG emissions from aviation activities and no relevant methodologies
have been approved. Moreover, in the High-level Meeting on International Aviation and Climate Change in
October 2009, there is a comment that a specific methodology needs to be developed for more efficient Air
Traffic Management (ATM) planning and terminal operations (departure and arrivals). It is necessary to
consider these present situations when applying for CDM.
(3) Adverse Environmental and Social Impacts of the Projects
Adverse environmental and social impacts of the projects and a comparative review of the alternatives are
described in this section based on the environmental checklist. Consultations with DGCA and AP-I were
conducted to collect and verify the detailed information.
4-10
1)
Chapter 4
Environmental and Social Impacts
Table 4-4 shows the environmental checklist for the projects based on the Japan International Cooperation
Agency’s (hereafter referred to as JICA) environmental checklist for Airports, the Japan Bank for
International Cooperation’s (hereafter referred to as JBIC) one and characteristic features of the projects
especially the tunnel under the terminal building. The result is that the projects have limited impacts on the
natural and social environment.
Table 4-4 Environmental Checklist
Category
1 Permits and
Explanation
Environmental
Item
(1)
EIA
and
Environmental
Permits
(2)
Explanation to
the
Local
Stakeholders
(3)
Examination
of Alternatives
2
Pollution
Control
1
(1)
Air Quality
Main Check Items
(a) Have EIA reports been
already prepared in official
process?
(b) Have EIA reports been
approved by authorities of
the
host
country’s
government?
(c) Have EIA reports been
unconditionally approved? If
conditions are imposed on
the approval of EIA reports,
are the conditions satisfied?
(d) In addition to the above
approvals,
have
other
required
environmental
permits been obtained from
the appropriate regulatory
authorities of the host
country’s government?
(a) Have contents of the
project and the potential
impacts been adequately
explained to the local
stakeholders
based
on
appropriate
procedures,
including
information
disclosure? Is understanding
obtained from the local
stakeholders?
(b) Have comments from the
stakeholders (such as local
residents) been reflected in
the project design?
(a) Have alternative plans
for
the
project
been
examined with social and
environmental
considerations?
(a) Do pollutants such as
SOx, NOx, and dusts in
Significance of
Potential
Environmental
Impacts
Potential
Environmental
Issues and
Problems
To be prepared
-
To be prepared
-
To be prepared
-
-
-
No
additional
environmental
permits should be obtained because
there is no plan to convert forest
land or relocate important buildings
(e.g., cultural heritage).
-
-
Meetings to explain the project with
local stakeholders have not yet been
held as of end-December 2014.
-
-
-
-
Alternatives are being reviewed.
pollution
by
The report for environmental
monitoring in the first half of 20141
Unclear
Air
caused
Confirmation of Environmental
Considerations
EIA (AMDAL in Indonesia) should
be implemented for the proposed
projects by the Ministry of
Environmental Regulation No.
5/2012.
EIA has not yet been conducted as
of end-December 2014.
Dokumen RKL & RPL Bandar Udara Sultan Hasanuddin Makassar Semester I Tahun 2014, AP-I,June 2014
4-11
Category
Environmental
Item
(2)
Water Quality
Main Check Items
effluents from aircrafts, cars,
and related facilities comply
with the country’s effluent
standards? Is there a
possibility that the effluents
from the project will cause
areas not to comply with the
country’s ambient air quality
standards?
(b) In case the atmospheric
measurements
do
not
comply with the country’s
ambient air quality standards
around the airport and
related facilities, will the
project worsen the air
quality? Are adequate air
control measures taken?
(a) Do pollutants such as
suspended solids (SS), and
oils contained in effluents
effluent standards (BOD,
COD, etc.)? Is there a
possibility that the effluents
from the project will cause
areas not to comply with the
country’s ambient water
quality standards?
Chapter 4
Significance of
Potential
Environmental
Impacts
Potential
Environmental
Issues and
Problems
effluents
aircrafts
Considerations
from
Low
Ditto
showed
that
environmental
monitoring activities on air quality
are implemented at six points
around the airport twice a year.
Atmospheric measurements (e.g.,
SO2, NO2, O3, CO, Pb, and TSP)
met the criteria determined by the
South
Sulawesi
Governor
Regulation No.69/ 2010.
However, the kinds of aircraft and
the number of airlines will be
changed. Detailed review and
monitoring should be implemented
continuously
and
adequate
mitigation measures should be
considered if it does not meet the
standard.
Low
Water
pollution
caused
by
effluents
from
related facilities
and the apron
showed
that
environmental
monitoring activities on water
quality are implemented for
effluents from the airport facilities
twice a year. Water quality
measurements (e.g., temperature,
pH, BOD5, COD, TSS, DO and
Total Coli) after sewerage treatment
plant (STP) meet the criteria
determined by South Sulawesi
Governor Regulation No.69/2010.
Proposed
projects
have
no
significant impacts on water quality.
Wastes generated from the airports
and other facilities are incinerated
and carried to the local waste center
based on the regulation (e.g.,
Government Regulation of the
Republic of Indonesia No.18/1999).
Hazardous waste is collected from
the exclusive use facility (in the
fuel station) and processed in
accordance
with
Indonesian
regulations.
The soil at the project site has not
been contaminated in the past.
There are four fuel tanks (2,000 kL)
in the fuel station, but adequate
measures
to
prevent
soil
contamination (e.g., fuel barrier)
have been prepared.
showed
that
environmental
monitoring activities on noise are
(3)
Waste
(a) Are wastes generated
from the airports and other
project facilities properly
treated and disposed of in
accordance
with
the
country’s regulations?
Low
Waste from the
airports
and
related facilities
(4)
Soil
Contamination
(a) Has the soil in the project
site been contamined in the
past? Are adequate measures
taken to prevent soil
contamination by leakage of
fuels?
Low
Soil
contamination
caused by leakage
of fuels from oil
stations
(5)
Noise
and
Vibration
(a) Does noise from aircraft
standards?
Significant /
Low
4-12
Noise
aircraft
from
Category
Environmental
Item
(6)
Subsidence
(7)
Odor
3
Natural
Environment
(1)
Protected
Areas
Main Check Items
(b) Is there a possibility that
noise and vibrations from
various sources, such as
airport user’s vehicles and
vehicles
for
airport
operations will adversely
affect ambient noise levels?
If impacts are anticipated,
are
adequate
noise
mitigation
measures
considered?
(c) In the case of tunnel
excavation inside or outside
the airport, is there a
possibility that the tunnel
excavation will have a
negative impact on noise or
vibration on the environment
around the airport?
(a) In the case of extraction
of a large volume of
groundwater, is there a
possibility that the extraction
of groundwater will cause
subsidence?
(a) Are there any odor
sources? Are adequate odor
control measures taken?
(a) Is the project site located
in protected areas designated
by the country’s laws or
international treaties and
conventions? Is there a
possibility that the project
Chapter 4
Significance of
Potential
Environmental
Impacts
Potential
Environmental
Issues and
Problems
Considerations
implemented at six points around
the airport twice a year.
Noise measurements excluding one
point met the criteria determined by
the South Sulawesi Governor
Regulation No.69/2010. Proposed
projects have no significant
impacts.
Moreover, aircraft noise pollution is
different from usual standards of
environmental noise; and the
monitoring,
assessment,
and
adequate
mitigation
measures
should be implemented based on
international standards (including
Japanese standard) if necessary.
There is a possibility that proposed
projects could cause an increase in
traffic around the airport. Adequate
considered, if necessary.
Low
Noise
and
vibration
from
airport
user’s
vehicles
and
vehicles
for
airport operations
Low
Noise
and
vibration
from
tunnel
during
construction
or
operation
Proposed projects include tunnel
excavation under the terminal
building.
However, the projects have low
impacts because they are located at
the center of the airport area
without land acquisition.
Unclear
Subsidence
caused by the
extraction
of
groundwater for
tunnel excavation
No
-
building.
The projects may have low impacts
because the length of the tunnel is
approximately 1 km. However,
extraction of groundwater may be
planned, therefore, the monitoring,
assessment,
and
adequate
implemented, if necessary.
There are no odor sources with the
projects.
No
-
4-13
The nearest conservation area is
located approximately 10 km from
the project site and there are no
impacts from the construction
phase.
Impacts
during
the
implementation phase should be
Category
Environmental
Item
Main Check Items
Chapter 4
Significance of
Potential
Environmental
Impacts
Potential
Environmental
Issues and
Problems
Considerations
No
-
checked as there will be an increase
in low level landing / take-off
flights over the conservation
area(((1)1)a).
There are no primeval forests,
tropical rain forests, ecologically
valuable habitats (e.g., coral reefs,
mangroves, or tidal flats) around
the airport.
No
-
There are no protected habitats of
endangered species.
No
-
No significant ecological impacts
are considered in accordance with
the projects.
No
-
Water use by the projects has no
significant impacts on the aquatic
environments around the airport.
Low
Tunnel excavation
No
-
building.
The length of the tunnel is
approximately 1 km, however, there
is a possibility that alteration of
drainage system may have an
impact on the groundwater flows.
Therefore, usage situation of the
groundwater around the airport
should be surveyed and adequate
implemented, if necessary.
The project site is not located in a
marine area.
No
-
will affect the protected
areas?
(2)
Ecosystem
(3)
Hydrology
(4)
Topography
and Geology
(a) Does the project site
encompass primeval forests,
tropical
rain
forests,
ecologically
valuable
habitats (e.g., coral reefs,
mangroves, or tidal flats)?
(b) Does the project site
encompass the protected
habitats
of
endangered
species designated by the
country’s
laws
or
international treaties and
conventions?
(c) If significant ecological
impacts are anticipated, are
adequate
protection
measures taken to reduce the
impacts on the ecosystem?
(d) Is there a possibility that
the amount of water (e.g.,
surface water, groundwater)
used by the project will
adversely affect aquatic
environments,
such
as
rivers?
Are
adequate
measures taken to reduce the
impacts
on
aquatic
environments,
such
as
aquatic organisms?
(a) Is there any possibility
that alteration of drainage
system
due
to
the
construction of airports and
related
facilities
will
adversely affect surface
water and groundwater
flows?
(b) Do the facilities affect
adversely flow regimes,
waves, tides, currents of
rivers, etc., if the project
facilities are constructed
on/by the sea?
(a) Does the project require
large scale change of
topographic/
geographic
4-14
The project site is located on land
that has already been developed and
there is no large scale change of
Category
Environmental
Item
Main Check Items
features?
(b) Is there a possibility that
civil works, such as cutting
and filling will cause slope
failures or landslides?
(c) Is there a possibility that
soil runoff will result from
cut and fill areas, waste soil
disposal sites, and borrow
sites?
Are
adequate
measures taken to prevent
soil runoff?
4
Social
Environment
(1)
Resettlement
(d) In the case of offshore
projects, is there any
possibility that the project
will erode natural beaches?
(a)
Is
involuntary
resettlement
caused
by
project implementation? If
involuntary resettlement is
caused, are efforts made to
minimize the impacts caused
by the resettlement?
(b) Is adequate explanation
on
compensation
and
resettlement assistance given
to affected people prior to
resettlement?
(c) Is the resettlement plan,
including compensation with
full replacement costs, and
restoration of livelihood and
living standards, developed
based on socioeconomic
studies on resettlement?
(d) Are the compensations
going to be paid prior to
resettlement?
(e) Are the compensation
policies prepared in the
document?
(f) Does the resettlement
plan pay particular attention
to vulnerable groups or
people, including women,
children, the elderly, people
below the poverty line,
ethnic
minorities,
and
indigenous peoples?
(g) Are agreements with the
affected people obtained
prior to resettlement?
(h) Is the organizational
framework established to
Chapter 4
Significance of
Potential
Environmental
Impacts
Potential
Environmental
Issues and
Problems
No
-
Low
Soil runoff caused
by the projects
(especially tunnel
excavation)
No
-
No
-
No
-
No
-
No
-
No
-
No
-
No
-
No
-
4-15
Considerations
topographic/geographic features.
The projects include no civil works.
The projects have low impacts
because it is located at the center of
the airport area without land
acquisition.
However, adequate measures for
waste soil disposal (e.g., from the
tunnel
excavation)
will
be
necessary.
The project site is onshore and well
away from natural beaches.
The project site is located at the
center of the airport area without
land acquisition. Therefore, no
involuntary resettlement will be
caused.
Category
Environmental
Item
(2)
Living
and
Livelihood
(3)
Heritage
Main Check Items
properly
implement
resettlement?
Are
the
capacity and budget secured
to implement the plan?
(i) Are any plans developed
to monitor the impacts of
resettlement?
(j) Is the grievance redress
mechanism established?
(a) Is there any possibility
that
the
project
will
adversely affect the living
conditions of inhabitants?
Are adequate measures
considered to reduce the
impacts, if necessary?
(b) Is there any possibility
that the project causes the
change of land use in
neighboring
areas
to
adversely
affect
the
livelihood of local people?
(c) Is there any possibility
that diseases, including
infectious diseases such as
HIV, will be brought due to
influx of workers associated
with the project? Are
adequate
considerations
given to public health, if
necessary?
(d)
Is
sufficient
infrastructure (e.g., roads)
available for the project
implementation?
If
the
existing infrastructure is
insufficient, is a plan
developed to construct new
infrastructure or improve the
existing infrastructure?
(e) Is there any possibility
that the airports and other
project structures will cause
a sun shading and radio
interference?
(a) Is there a possibility that
the project will damage the
local
archeological,
historical, cultural, and
Chapter 4
Significance of
Potential
Environmental
Impacts
Potential
Environmental
Issues and
Problems
No
-
No
-
No
-
land acquisition. Therefore, there
are no impacts on the living
conditions of inhabitants.
Significant /
Low
Congestion
of
secondary roads
associated
with
the increase of
passengers
Significant /
Low
Risk of diseases
associated
with
the increase of
passengers
and
workers
land acquisition. Therefore, there
are no significant impacts on the
land or water uses in neighboring
areas.
However, an increase in traffic
around the airport may be
considered.
When the detailed plan is
considered, adequate measures
should be prepared if necessary.
Change of airlines will be
considered in accordance with the
projects; and workers will increase
during construction.
considered, adequate mitigation
measures should be prepared for the
risk of diseases.
Significant /
Low
Expansion
of
access
roads
associated
with
the
demand
increase in the
future
Two-lane access road currently
exists, but the increase in
population and passengers may
require the widening of roads or
further road construction.
No
-
The projects have no impacts on
sunshading and radio interference.
No
-
There is no local archeological,
historical, cultural, and religious
heritage around the project site.
4-16
Considerations
Category
Environmental
Item
(4)
Landscape
(5)
Ethnic
Minorities and
Indigenous
Peoples
(6)
Working
Conditions
Main Check Items
religious heritage? Are
adequate
measures
considered to protect these
sites in accordance with the
country's laws?
(a) Is there a possibility that
the project will adversely
affect the local landscape?
Are necessary measures
taken?
(a) Are considerations given
to reduce impacts on the
culture and lifestyle of
ethnic
minorities
and
indigenous peoples?
(b) Are all of the rights of
ethnic
minorities
and
indigenous
peoples
in
relation
to
land
and
resources respected?
(a) Is the project proponent
not violating any laws and
ordinances associated with
the working conditions of
the country which the
project proponent should
observe in the project?
(b) Are tangible safety
considerations in place for
individuals involved in the
project,
such
as
the
installation
of
safety
equipment which prevents
industrial accidents, and
management of hazardous
materials?
(c) Are intangible measures
being
planned
and
implemented for individuals
involved in the project, such
as the establishment of a
safety and health program,
and
safety
training
(including traffic safety and
public health) for workers
etc.?
(d) Are appropriate measures
taken to ensure that security
guards involved in the
project do not violate safety
of
other
individuals
involved, or local residents?
Chapter 4
Significance of
Potential
Environmental
Impacts
Potential
Environmental
Issues and
Problems
No
-
The local landscape will not be
adversely affected by the proposed
structures.
No
-
No
-
land acquisition.
Therefore, the projects have no
impacts on the culture and lifestyle
of ethnic minorities and indigenous
peoples.
-
Degradation
of
working condition
Low
Safety risk
workers
for
Significant /
Low
Safety risk
workers
for
Significant /
Low
Safety risk for
residents
associated
with
the
security
guards
4-17
Considerations
Regulations related to working
conditions of Indonesia should be
adhered to.
If necessary, international standards
(e.g.,
the
World
Health
Organization (WHO)) and Labor
Standards Act (in Japan) should be
referred to.
There are four fuel tanks (2,000 kL)
in the fuel station, but adequate
measures to prevent fire (e.g., water
for firefighting, firefighting foam)
have been prepared.
Moreover, hazardous waste is
restricted for the exclusive use
facility (in the fuel station).
considered, the establishment of a
health and safety program and
safety training should be planned
for each phase.
In particular, adequate measures to
decrease the risk of pneumoconiosis
(e.g., sprinkling, air exhaust system,
and dust mask) should be
considered if tunnel excavation is
planned. Moreover, a place to rest is
shown to be beneficial.
land acquisition.
Therefore, the projects will have
low safety risks for residents
associated with the security guards,
Category
5 Others
Environmental
Item
(1)
Impacts
during
Construction
(2)
Monitoring
Main Check Items
Chapter 4
Significance of
Potential
Environmental
Impacts
Potential
Environmental
Issues and
Problems
(a) Are adequate measures
considered to reduce impacts
during construction (e.g.,
noise, vibrations, turbid
water, dust, exhaust gases,
and wastes)?
Significant /
Low
Negative impacts
on the social
environment
during
construction
(b) If construction activities
adversely affect the natural
environment
(ecosystem),
are
adequate
measures
considered
to
reduce
impacts?
(c) If construction activities
adversely affect the social
environment, are adequate
measures considered to
reduce impacts?
No
-
Low
Negative impacts
on the social
environment
during
construction
-
-
(a) Has the proponent
developed and implemented
monitoring program for the
environmental items that are
4-18
Considerations
but adequate measures should be
prepared if necessary.
- Noise
The working place is located at the
center of the airport and far from
the residential zone. However,
adequate
measures
such
as
construction methods with low
noise and vibration, and working
time (e.g., excluding night work)
- Muddy Water
Adequate measures (e.g., grit
chamber) to mitigate the impacts on
hydrology from muddy water
during construction should be
prepared.
- Dust
The working place is located at the
the residential zone. However,
adequate measures such as watering
- Exhaust gas
If necessary, detailed construction
plan should be prepared not to
cause the increase in traffic in
accordance
with
construction
vehicles.
- Waste
Waste disposal plan for the sand
production and construction waste
of the terminal building (and soil
disposal polluted by heavy metals
or oil, if necessary) should be
prepared.
The project sites are located at the
the natural or important ecological
habitats.
The projects have no significant
impacts on the natural environment.
The project sites are located at the
the residential zone.
The projects have no significant
impacts on the social environment,
but indirect impacts (e.g., increase
in traffic in accordance with
construction vehicles) will be
considered.
Reports
for
environmental
monitoring are submitted to DGCA
by AP-I twice a year based on the
environmental management and
Category
6 Note
Environmental
Item
Reference to
Checklist of
Other Sectors
Note on Using
Environmental
Checklist
Main Check Items
considered to have potential
impacts?
(b) What are the items,
methods and frequencies of
the monitoring program?
(c) Has the proponent
established an adequate
monitoring
framework
(organization,
personnel,
equipment, and adequate
budget to sustain the
monitoring framework)?
(d) Have any regulatory
requirements pertaining to
the monitoring report system
been identified, such as the
format and frequency of
reports from the proponent
to the regulatory authorities?
(a)
Where
necessary,
pertinent items described in
the Roads, Railways, and
Bridges checklist should
also be checked.
(b) If the airport is
constructed on the sea,
the Ports and Harbors
checklist should also be
checked.
(c)
Where
necessary,
the
Forestry
Projects
checklist should also be
checked
(e.g.,
projects
including large areas of
deforestation).
(a) If necessary, the impacts
to transboundary or global
issues should be confirmed,
if necessary (e.g., the project
includes factors that may
cause problems, such as
transboundary
waste
treatment,
acid
rain,
destruction of the ozone
layer, or global warming).
Chapter 4
Significance of
Potential
Environmental
Impacts
Potential
Environmental
Issues and
Problems
Considerations
monitoring plan (RKL & RPL) in
1995.
-
-
-
-
AP-I has persons in charge in the
head office and Makassar branch.
Environmental monitoring activity
has already been implemented.
The organizational chart is attached.
-
-
Regulatory requirements pertaining
to the monitoring report system are
identified
based
on
the
environmental management and
monitoring plan (RKL & RPL) in
1995.
-
-
It is unnecessary because the
proposed projects do not include
roads, railways, or bridges.
-
-
It is unnecessary because the
location of the proposed projects is
not on the sea.
-
-
It is unnecessary because there is no
significant deforestation.
-
-
There is a possibility that proposed
projects have impacts on GHG
emissions (described in (2)).
Other impacts to transboundary or
global issues are not considered.
(Based on checklists of JICA, “Guidelines for Environmental and Social Considerations” and JBIC,
“Guidelines for Confirmation of Environmental and Social Considerations)
4-19
2)
Chapter 4
Proposed Projects and Alternative Layouts
Proposed projects do not require additional land acquisition and have limited negative environmental and
social impacts, whereas the alternatives require additional land acquisition. Table 4-5 shows the different
layouts being considered for the proposed projects (Option 3 is the layout being proposed).
Options 1, 2 and 3 have the apron extension plan inside the airport area. On the other hand, Option 4 has the
apron extension plan outside the area. Option 4 has negative impacts on social environment caused by land
acquisition. Table 4-6 shows the impacts of proposed projects, alternatives and the case without the projects.
Option 3 has a comparative advantage over the other options considering the result of environmental checklist
(Table 4-4), congestion at Soekarno-Hatta Airport and the increase in demand at Makassar Airport in the
future.
Table 4-5 Comparison of Regional-Hub Airport Options
Source: Created by the study team (Option 3: Proposed Projects)
4-20
Chapter 4
Table 4-6 Comparative Table for the Proposed Projects and Alternative Layouts
Environmental Items
Proposed Project
Alternative Layouts
Case w/o the Projects
Layout (Option 3) and
(Options 4)
Option 1 and 2
Outline
Land acquisition is
Land acquisition is
No projects
NOT necessary
necessary
Mitigation for Congestion at
Good
Good
No
Soekarno-Hatta Airport
Adaptation to Increase in Demand
Good
Good
No
at Makassar Airport in the Future
2. Pollution
Negative Impact
Control
Negative Impact
(especially for noise /
vibration)
3. Natural
Negative Impact
Negative Impact
Environment
4. Social
Resettlement
Negative Impact
Environment Living and
Negative Impact
Livelihood
Heritage/
Landscape/ Ethnic
Minorities and
Indigenous People
Working
Negative Impact
Negative Impact
Conditions
5. Others
Impacts during
Negative Impact
Negative Impact
Construction
Monitoring
Negative Impact
Negative Impact
3)
Results of Interviews with DGCA and AP-I
Table 4-7 shows the contents of the interviews with DGCA and AP-I and the results are as follows:





The Environmental Department of DGCA has approximately 20 members and 70% of them are
specialized staff.
Projects at large airports including Makassar Airport should submit reports on environmental
monitoring based on the monitoring plan (RKL & RPL) to DGCA twice a year.
The criteria of AMDAL for airports are: (i) Length of the runway >1,200 m or (ii) Area of
terminal buildings (for passengers or cargo) >10,000 m2 unless the projects do not need land
acquisition such as the proposed projects.
Environmental departments of AP-I are at the Jakarta Head Office (Safety, Health, and
Environmental Group/Department: four members) and the local airports (Makassar Airport
Branch: two members). Reports for environmental monitoring are prepared by the members at
the local airports.
Site survey was implemented to collect detailed information (e.g., B3 waste disposal method, the
condition of fuel station, cargo terminal building, and control tower).
4-21
Date
Table 4-7 Contents of Interviews with DGCA and AP-I
Location
Members
Interviewee
Study Team
2014/11/19
09:20-10:30
DGCA
2014/11/20
09:00-10:00
AP-I
(Jakarta
Office)
2014/11/21
10:00-15:00
Chapter 4
Head
AP-I
(Makassar
Branch)
Interview Contents
Mr.
Emrizal,
Airport
Environmental Specialist
Nippon Koei Co.,Ltd.
Mr. Yoshida
Mr. Hisakawa
Mr. Nakagawara
 Organization for
environmental and social
consideration
 Case example (e.g.,
AMDAL, mitigation)
 Application of AMDAL
Mr. Dedi Ruhiyat, Safety,
Health and Environment
Department Head
Ms.
Karina
Pravitasari,
Safety
Health,
and
Environment Officer
Ms. Fukuhara
 Organization for
environmental and social
consideration
 Detailed information of
Makassar Airport
Person in charge for each
facility
Ms. Fukuhara
Nippon Koei Co.,Ltd.
Mr. Uehara
Mr. Yoshida
Mr. Hisakawa
Mr. Nakagawara
Nippon Koei Co,. Ltd.
Mr. Yoshida
Mr. Hisakawa
Mr. Nakagawara
 Interviews regarding
Environmental and Social
Considerations for each
facility
(4) Outlines of Relevant Environmental Laws, Rules, and Regulations in
Indonesia
1)
Outline of Environmental Laws, Rules, and Regulations for EIA
Environmental laws, rules, and regulations for Environmental Impact Assessment (AMDAL in Indonesia), as
well as related laws for resettlement plan and other environmental guidelines to be complied with are
summarized as follows:
a)
EIA system and related laws

Outline
In Indonesia, Law No. 4/1982 concerning environmental management represents the country’s
first and primary legislation on environmental management and planning. The method of
environmental management is determined by this law to preserve and conserve the environmental
resources (revised in 1997 and 2009).
Indonesia’s EIA system, called AMDAL, was initiated in 1986 and institutional responsivities for
environmental protection were determined. In 1993, a drastic revision, including reduction of the
screening process, was determined by Government Regulation No. 51/1993. Moreover, project
proponents are required to undertake AMDAL and obtain an environmental permit if the projects
have a possibility of significant impacts on the environment by Article 15 of Law No. 23/1997
concerning environmental management. The specific requirements for AMDAL and
environmental permits are stipulated in Law No. 32/2009 and Government Regulation No.
27/2012, respectively. The Ministry of Environmental Regulation No. 5/2012 imposes a “positive
list” for projects and/or activities that require a full AMDAL according to the type, scale, and
location of the activity for a variety of sectors. The specific procedures for AMDAL and the
public involvement are regulated under the Ministry of Environmental Regulations No. 16 and
No. 17/2012.
4-22

Chapter 4
Environmental Criteria
The South Sulawesi Governor Regulation No. 69/2010 shows the environmental criteria that the
projects at Makassar Airport need to meet. Table 4-8 shows the outline of the regulation.
Table 4-8 Outline of South Sulawesi Governor Regulation No. 69/2010
Category
Item
Air Quality
SO2
900 μg/m3 (1-hour)
NO2
400 μg/m3 (1-hour)
O3
230 μg/m3 (1-hour)
CO
30,000 μg/m3 (1-hour)
Pb
2 μg/m3 (1-hour)
TSP
230 μg/m3 (24-hour)
Water Quality
pH
6.0-9.0
BOD5
50 mg/L
COD
100 mg/L
TSS
200 mg/L
DO
Total Coli
5,000 mg/L
Noise
For Residents
75 dB(A)
(Airport)
For Activities and/or Buildings
80 dB(A)
Source: Created by the study team (based on South Sulawesi Governor Regulation No. 69/2010)

AMDAL System and Procedures
With reference to the airport sector, Regulation No. 5/2012 requires that the construction of
airports where the (i) Length of the runway >1,200 m or (ii) Area of terminal buildings (for
passengers or cargo) >10,000 m2 must undergo an EIA.
AMDAL includes the following documents shown below and obtaining and submitting the
environmental permit is required.
i.
Action plans on environmental impact analysis (ToR: KA-ANDAL);
ii.
Environmental impact analysis (ANDAL);
iii.
Environmental management plans (RKL);
iv.
Environmental monitoring plans (RPL); and
v.
Summary.
The first step of the AMDAL process is the preparation of the ToR: KA-ANDAL and approval by
the AMDAL Commission.
Before preparing the ToR: KA-ANDAL, the proponent is required to make a public
announcement of the proposed project through publication in a local newspaper, and the
stakeholders have a month in which to submit their comments and suggestions for the ToR:
KA-ANDAL. A public consultation meeting is held prior to finalizing the ToR: KA-ANDAL.
During this meeting the project proponent is expected to present a full description of the project
and the potential impacts associated with it.
Based on the approved ToR: KA-ANDAL, the proponent prepares the ANDAL, RKL, and RPL
documents and submits them for evaluation. AMDAL evaluation is a two-step process. In the
first round, the documents are reviewed by the Technical Committee. Based on the committee’s
comments, the documents will be revised by the proponent and re-submitted. If the revised report
is accepted by the Technical Committee, it is forwarded to the Appraisal Committee, and the
same review and revision process will take place as necessary. During the review process, an
additional public consultation is held to disclose the project assessment and to obtain feedback
from the stakeholders. Comments received from the AMDAL Commission and the public are
considered when the project proponent revises the reports.
Once the review finds the AMDAL process satisfactory, the relevant government agency (in this
case, MOE) will issue a letter of “approval to proceed with the project”. Once the AMDAL
document is approved by the AMDAL Commission and the project receives environmental
4-23
Chapter 4
feasibility approval, then the project proponent is required to obtain an environmental permit and
other required permits such as a permit for clearing the land before commencing construction.
The environmental permit becomes invalid if the proposed project is not undertaken within three
years of the issuance of the permit according to Government Regulation No. 27/2012 (Article
50).
b)
Related Laws for Land Acquisition and Resettlement
The proposed projects do not involve land acquisition, but the expansion projects of Makassar Airport
in the future may require land acquisition including resettlements. Related laws for land acquisition
and resettlement are described as follows:
The principal laws and acts of the Government of Indonesia in regard to land acquisition,
compensation, and resettlement include the following: i) Law of the Republic of Indonesia No. 2/2012
concerning Land Acquisition for Construction in the Public Interest; ii) Presidential Regulation No.
71/2012 concerning Implementation of Land Acquisition for Construction in the Public Interest (PP
No. 71/2012); and iii) Indonesian Appraising Standard 306 (Standar Penilian Indonesia 306: SPI 306)
(valid since April 2013).
Law No. 2/2012 and Presidential Regulation No. 71/2012, which provide guidance on the
implementation of the law, were promulgated in January 2012. The transitional provisions of the law
stipulate that land acquisition undertaken prior to the promulgation of the Act will be completed by
referring to the previous regulations/provisions. Therefore, there are only a few examples in which
land acquisition is carried out under the new Law No. 2/2012. However, the law provides clear
procedures and time frame for land acquisition, and fills several important gaps between the
Indonesian requirements and donors’ requirements that had existed in previous laws and regulations.
Major improvements from previous laws/regulations include the following: i) clear time frame for
land acquisition; ii) clear procedures by phasing of land acquisition from planning and preparation to
implementation and handing over of the land acquisition results; iii) clear budget allocation for all
phases of land acquisition stated in the regulations of the Ministry of Finance and Ministry of Home
Affairs; iv) evaluation of compensation amounts by an independent appraiser; and v) expanded
eligibility for compensation. In particular, the law recognizes that residents who manage and utilize
land are entitled to compensation and that all kinds of losses (loss of land and non-land assets, and
other losses that can be valued) are to be appraised by a professional appraiser plot by plot. The
remaining gaps include the principle of no depreciation for compensation of loss of structures, clear
provisions on livelihood restoration programs for severely affected persons and vulnerable groups to
ensure that their living standards do not decline, assistance for relocation (transition allowance), and
requirements for external monitoring.
4-24
c)
Chapter 4
Environmental Criteria for Aircraft Noise (in Japan)
Aircraft noise is a general problem associated with projects around airports. In Japan, the
environmental criteria for aircraft noise are determined as follows:
Table 4-9 Environmental Criteria for Aircraft Noise (in Japan)
Type of Area
I1)
57dB or less
II1)
62dB or less
1) Type I is an area mostly used for residents. Whereas Type II is an area which is necessary to preserve the usual living conditions excluding Type I.
Moreover, airports which do not have more than 10 LTOs, ones for police, fire, or self-defense force or ones at isolated islands are excluded.
(based on South Sulawesi Governor Regulation No.69/2010)
d)
JICA’s or JBIC’s Guidelines for Environmental and Social Considerations
Projects by JICA or JBIC are classified based on JICA’s “Guidelines for Environmental and Social
Considerations” or JBIC’s “Guidelines for Confirmation of Environmental and Social Considerations”,
respectively. Projects which have significant impacts on the environment are classified as Category A
and some actions are required (e.g., disclosure of EIA reports).
2)
Projects and Activities where EIA is needed
The first step is to prepare the “Action plans on environmental impact analysis (ToR: KA-ANDAL)” after the
approval of the Master Plan for Makassar Airport. Stakeholders’ conference will be held based on comments
which are submitted within a month after the public announcement. ToR will be finalized after the conference.
Detailed review of related laws and impacts on the environment in this chapter is necessary to make the ToR.
(5) Matters to be Completed by Related Authorities in Indonesia to
Realize the Projects
As already described in Section (4)2), the first step is to prepare the “Action plans on environmental impact
analysis (ToR: KA-ANDAL)” after the approval of the Master Plan for Makassar Airport. AMDAL and
environmental permits should be implemented and prepared before construction. Meanwhile, the proposed
projects do not require permits for forest clearances because there is no deforestation involved. Table 4-10 shows
the structure and the provisional ToR, Figure 4-9 shows the EIA system and procedures while Figure 4-10 shows
the system and procedures for land acquisition.
The 3rd runway which may be planned after the proposed projects requires resettlement associated with land
acquisition. Therefore, the resettlement plan and negotiation for compensation are necessary based on detailed
information on land acquisition (e.g., landowner, land use). Estimation of compensation, conference with
landowners and negotiation will be required. Furthermore, increase of LTO will cause negative impacts associated
with aircraft noise. Mitigation measures should be required (e.g., sound insulation wall, buffer zone).
4-25
Chapter 4
Table 4-10 Structure and Provisional ToR
Structure
Chapter-1 Preface
1.1 Background
1.2 Purpose and Effect of the
Projects
1.3 Relevant Laws
Chapter-2 Scope of the Survey
2.1 Outline of the Projects
2.2 Present Environmental and
Social Conditions
Provisional ToR
i) Necessary expansion of the terminal building and apron in accordance with
the increase in demand at Makassar Airport in the future.
ii) Necessary change for Makassar Airport as a regional-hub airport for the
purpose of congestion reduction at Soekarno-Hatta Airport.
(a) Background of the necessity of the projects and present problems
i) Population around Makassar City will increase rapidly (similar to other
areas in Indonesia), therefore, Makassar Airport will rapidly reach the limit
of its capacity in the future. Congestion at Makassar Airport will occur.
ii) Congestion at Soekarno-Hatta Airport, the main airport for Jakarta, is
caused by operating over the limit of its capacity.
(b) Necessity of the projects based on the present problems.
i) To reduce the number of aircraft movements at Soekarno-Hatta Airport.
ii) To make a plan for Makassar Airport in accordance with the number of
passengers in the future.
(c) The purpose and effect of the projects based on the demand.
i) To change Makassar Airport, the main airport in eastern Indonesia, to a
regional-hub airport. It will reduce the number of aircraft movements from
local airports in eastern Indonesia and congestion at Soekarno-Hatta
Airport.
ii) To expand the terminal building and apron for passengers at Makassar
Airport in the future.
EIA, related environmental laws, rules, and regulations in Indonesia
To show the results of AMDAL in the past (KA-ANDAL established in 1995
for this project).
KA-ANDAL established in 1995 will be reviewed. The result of this review
should be shown.
To show the spatial map (Makassar and Maros)
To show the activities which will adversely affect the environmental and social
impacts of the projects in each stage (planning stage, construction stage,
operation stage and the stage after the operation)
i) Planning Stage
The proposed projects do not involve activities which have significant impacts
(e.g., additional land acquisition).
ii) Construction Stage
Main impacts in the construction stage are considered as follows:
・ Negative impacts in the area around Makassar Airport caused by noise and
vibration
・ Water contamination caused by construction effluents and the stoppage of
the water treatment system during construction.
・ Dust pollution caused by construction.
・ Waste caused by construction (e.g., debris from the terminal building and
sand production)
・ Impacts caused by construction vehicles (e.g., increase in traffic)
iii) Operation Stage
Main impacts in the operation stage are considered as follows:
・ Noise pollution associated with the change of airlines
・ Adverse impacts on hydrology (e.g., groundwater) especially associated
with tunnel excavation
iv) The stage after the operation
Proposed projects have continuity.
Increase in traffic around the project site associated with the change of airlines
will occur and the size of the impact should be considered.
To show the present environmental and social conditions at the project site.
Results of the measurements (e.g., for noise, air, and water) based on
4-26
Chapter 4
Structure
Provisional ToR
KA-ANDAL established in 1995 should be shown.
If necessary, additional monitoring should be considered.
2.3 Scope of AMDAL
Main items which should be considered in the projects are as follows:
i) Survey and monitoring to verify the impacts of aircraft noise associated
with the change of airlines and adequate mitigation measurements (if
necessary).
ii) Survey and monitoring to verify the impacts on hydrology (e.g.,
groundwater) associated with tunnel excavation and adequate mitigation
measurements (if necessary).
i) iii) Adequate waste disposal methods for the waste during construction
(e.g., debris from the terminal building and sand production).
Chapter-3 Method of the Survey and Monitoring
3.1 Data Acquisition and Aircraft Noise
Analysis
To survey the aircraft noise as follows:
- Height: 1.2 m–1.5 m
- Measurement Period: a couple of weeks (from the start and end of flights)
*Weather should be considered
- Points: Points which have already been monitored based on the ANDAL in
1995 and a point in/near the expansion area of the apron.
- Relative methods to adopt the Weighted Equivalent Continuous Perceived
Noise Level (WECPNL) as index for evaluation.
Hydrology
To survey the groundwater level as follows:
- Points: Area near tunnel excavation
- Status of utilization of groundwater (e.g., well water) around the airport, if
adverse impacts are considered.
3.2 Forecast Measurements
Waste (during construction)
To estimate the amount of debris from the terminal building and sand
production. Survey the capacity of the disposal site.
Aircraft Noise
Experts should make a noise contour in the future based on the demand at
Makassar Airport.
Hydrology
Experts should survey the groundwater level in and around the airport and the
status of utilization of groundwater.
3.3 Evaluation
Water (during construction)
Experts should compare the capacity of the disposal site and the amount of
waste from the cities around the project site. Moreover, experts should evaluate
whether adequate waste disposal will be conducted or not.
Monitoring forms and environmental checklists based on the environmental
monitoring plan that will be established.
Regular monitoring based on the environmental monitoring plan that will be
established.
Chapter-4 Monitoring System
4.1 Project Proponent
4.2 Investigation Agency
4.3 Investigation Cost
4.4 Investigation Period
References
AP-I
Consultants (to be determined)
To be determined
To be determined
References (e.g., background materials) which are referred to establish
KA-ANDAL
Attachments
(a) Detailed description of the information related to the projects.
(b) Results of consultations with stakeholders.
(c) Curriculum vitae of the representative of the investigation agency.
Source: Created by the study team (based on the Ministry of Environmental Regulations No.8/2006)
4-27
Chapter 4
Figure 4-9 EIA System and Procedures
Source: Created by the study team (based on No.27/2012)
4-28
Chapter 4
Figure 4-10 Procedures for Land Acquisition
Source: Created by the study team (based on Decree No.2/2012)
4-29
Chapter 4
4-30
Research n Makassar Airport Upgrade Project
through Indonesian Aviation Network Reconfiguration
Chapter 5
Financial and Economic Feasibility
Chapter 5 Financial and Economic Feasibility
(1) Project Cost
1)
Estimated Project Cost for Makassar Airport Upgrade Project
The construction costs of this project are estimated as shown in Table 5-1.
As described in Chapter 8, this project was divided into several Packages, taking into consideration the
peculiarities of the introduction of BB/RH Network, a large-scale of the project, an autonomy of AP-I, and
airport management and operation concessioned to SPC.
The table below provides a division of Package 1-3, which will be analyzed in Chapter 8 in details
Table 5-1 Results of Estimated Construction Costs
Item
Construction Cost
Main Passenger Terminal
Satellite Passenger Terminal
Terminal Equipment
Utility Facilities
Underground Passage Construction (Only Tunnel)
APM・Undergrand Bagehan
New Apron Construction
New Taxiway Construction
Road Construction
Parking Construction
Cargo Terminal Construction
Contraction Total
Physical Contingency
Design
Total Project Cost
Package
1
2
1, 2
1
3
2
3
3
3
3
1
Quantity
Unit
60,000
88,000
1
1
1
m2
m2
LS
LS
LS
596,200
115,000
60,000
54,000
10,000
m2
m2
m2
m2
m2
JPY
11,000
15,000
4,200
2,000
10,000
10,000
8,945
1,725
300
270
1,500
64,940
3,247
3,247
71,434
5-1
IDR
USD
Domestic Portion Foreign Portion
107
146
41
20
98
98
87
17
3
3
15
634
32
32
697
860,113
1,172,881
328,407
156,384
781,921
781,921
699,428
134,881
23,458
21,112
117,288
5,077,794
253,890
253,890
5,585,574
267,165
364,316
102,008
48,575
242,877
242,877
217,254
41,896
7,286
6,558
36,432
1,577,244
78,862
78,862
1,734,968
Total
1,127,278
1,537,197
430,415
204,960
1,024,798
1,024,798
916,682
176,778
30,744
27,670
153,720
6,655,038
332,752
332,752
7,320,542
2)
Chapter 5
Assumptions on Cost Estimate
The assumptions on project cost estimate are shown in Table 5-2.
Table 5-2 Assumptions on Cost Estimate
Assumptions on Project Cost Estimate
Construction
・ Unit cost of the construction of the main passenger terminal is set at JPY
Cost
160,000/m2, based on examples of other airport projects in Indonesia.
・ It is assumed that equipment costs at terminal buildings include boarding
bridges, baggage handling, security, and flight information display.
・ Apron expansion work is assumed as concrete pavement construction and
is set at JPY 15,000/m2.
・ Unit cost of the construction for the satellite passenger terminal building
is set at JPY 180,000/m2, based on the specifications of buildings from
other
airports in Indonesia, and JPY 150,000/m2 for other parts of the
satellite building.
・
It is assumed that equipment at terminal buildings consist of boarding
bridge, baggage handling, security, flight information display.
・ It is assumed that the construction of utility facilities will consist of
power, water supply, and sewage works.
・ Apron expansion is assumed as concrete pavement, taxiway is expected
to be asphalt pavement, and construction cost is set at JPY 15,000/m2.
・ The road sand parking area is assumed to be asphalt pavement and
construction cost is set at JPY 5,000/m2.
・ Unit cost of the construction of cargo terminal is set at JPY 150,000/m2.
Physical
・Estimated at 5% of direct construction cost
Contingency
Design Cost
・Estimated at 5% of direct construction cost
5-2
Chapter 5
(2) Results of the Preliminary Financial and Economic Analyses
1)
Current Financial Situation of Makassar Airport
According to the Annual Report of Makassar Airport, although the operating income in 2009 was in deficit,
the income statement from 2010 to 2013 showed a pre-tax profit. The revenue in 2013 was recorded at IDR
271 million, which was around 2.3 times more than the revenue in 2009. The non-aero revenue in 2013 was
39.1% of the total revenue. In the past five years, there were remarkable increases in parking and concession
revenues (growth of 40% and 31%, respectively), and the percentage of concession revenue to the total
revenue has been gradually increasing (14% in 2013).
Table 5-3 Income Statement of Makassar Airport 2009-2013(IDR in millions)
2009
I
A
Revenue
Aero Revenue
Passenger Service (Domestic)
Passenger Service (International)
Landing, Positioning, and Stationing
(Domestic)
Landing, Positioning, and Stationing
(International)
Aviobridge
B
Non-Aero Revenue
Check-in Counter
Telephone/Water/Electricity
Parking
Lease
Advertisement
Concession
Others
Total Revenue
II
Expense
A
Personnel
B, C
Maintenance/Equipment
D
E
Rental Expense
F
Passenger Service Cost
G
Insurance Expense
H
Tax
Property Tax
Tax Incured from Services
Local Tax
I
General Expense
L
Depreciation
Others
Total Expense
Operating Profit
2010
2011
2012
2013
68,984
48,067
2,036
87,294
62,224
2,370
124,431
90,547
3,439
147,451
106,148
4,028
165,353
117,782
6,773
11,317
14,648
19,570
27,129
26,395
1,205
6,360
49,236
5,246
4,077
3,549
18,305
5,176
12,882
1,513
6,540
60,913
6,659
4,137
6,395
19,257
7,621
16,844
3,246
7,629
69,383
7,888
4,174
10,269
21,214
6,337
19,499
2,650
11,754
106,345
13,694
6,499
13,778
27,991
6,482
37,900
118,220
148,207
193,813
2,628
7,518
87,500
9,172
4,946
11,778
23,232
6,222
26,497
5,651
234,951
45,249
10,836
16,091
3,570
13,641
367
6,091
2,753
2,566
39,346
13,195
15,568
3,630
20,828
414
7,193
2,943
2,544
45,092
18,949
19,315
4,071
25,252
268
8,938
2,934
2,138
44,548
16,623
21,218
5,208
31,612
382
9,848
2,964
2,689
4,741
29,565
1,688
131,473
-13,253
7,369
29,533
523
137,184
11,022
7,688
38,677
374
168,355
25,459
7,315
55,692
382
192,447
42,504
48,807
19,590
26,684
6,059
37,274
137
9,721
3,338
1,020
5,251
9,378
61,302
169
218,986
52,712
271,698
Source：Created by the study team, based on the Annual Report of Makassar Airport
2)
Results of Preliminary Financial Analysis
This preliminary financial and economic analysis for the Makassar Airport Upgrade Project evaluates the
entire airport project that will introduce a full-scale BB/RH Network. Financial and economic analyses of this
project are based on the following assumptions:
5-3
a)
Assumptions
 Evaluation Period：
 Price level・Exchange rate：

Initial Investment：
Chapter 5
2016-2044 (29 years)
5 January 2015, (End day price)
USD 1 = IDR 12,484 ≒ IDR 12,500
Project costs are distributed as shown in Table 5-4
Table 5-4 Assumptions on Initial Investments
Unit: JPY in millions
Total (include inflation)
Foreing Portion
Domestic Portion
Construction Cost
Foreign Portion
Domestic Portion
Physical Contingency
Foreing Portion
Domestic Portion
Design Cost
Foreing Portion
Domestic Portion
Inflation (Construction)
Foreing Portion
Domestic Portion
Total
86,313
18,480
67,833
64,940
15,391
49,549
3,247
770
2,477
3,247
770
2,477
14,879
1,551
13,329
2016
2017
2018
81
162
487
81
19
62
162
38
124
487
115
372
2019
4,422
966
3,456
3,247
770
2,477
162
38
124
406
96
310
607
62
545
2020
12,537
2,751
9,786
9,741
2,309
7,432
487
115
372
649
154
495
1,660
173
1,486
2021
20,853
4,502
16,351
16,235
3,848
12,387
812
192
619
487
115
372
3,319
346
2,973
2022
21,406
4,560
16,847
16,235
3,848
12,387
812
192
619
487
115
372
3,872
404
3,468
2023
21,635
4,540
17,094
16,235
3,848
12,387
649
154
495
325
77
248
4,426
462
3,964
2024
4,730
989
3,741
3,247
770
2,477
325
77
248
162
38
124
996
104
892

Proportion of domestic/foreign portions： 76.3% of construction cost is set as domestic portion
76.3% of equipment is set as domestic portion


Discount rate：
Implementation agent：
Tax：
b)
76.3% of design cost is set as domestic portion
12％
Makassar Airport Operating Company (AP-I) and Newly
Established Special Purpose Company（SPC）
Local tax, value-added tax (VAT) (10%), and corporate tax are not
included in the financial analysis (but included in economic
analysis)
Assumptions on Revenues
・ It is assumed that the revenues from Passenger Service Charges (PSC) would be changed
according to the results of passenger demand forecast.
・ The current PSCs are maintained initially (IDR 150,000 for international flights, IDR 50,000 for
domestic flights), but taking into account the inflation rate and the improvement of airport
services, it is assumed that PSCs will increase in 2018, 2024, and 2034. PSC for domestic flights
will increase from IDR 50,000 to IDR 75,000 →IDR 100,000 →IDR 125,000, respectively, and
PSC for international flights will increase from IDR 150,000 to IDR 200,000 →IDR 250,000
→IDR 300,000, respectively. Since PSC for domestic flights contains a VAT, aero revenue is
estimated by deducting the VAT.
・ Although landing, positioning, and stationing charges vary by aircraft type, an average charge per
aircraft is applied in this analysis based on historical data. Initially, the current charge (IDR
2,000,000 for international flights, IDR 300,000 for domestic flights) is maintained, but in order to
promote BB/RH Network, it is proposed that landing and other charges will be reduced by
18%-25% in 2018 (IDR 1,500,000 for international flights, IDR 250,000 for domestic flights).
5-4
Chapter 5
With the increase of large aircraft through the introduction of BB/RH Network, the reduction of
landing charges is expected to encourage the airlines to fly more frequently to Makassar Airport.
・ As commercial areas will be expanded through the expansion of Makassar Airport, non-aero
revenue would increase accordingly. It is assumed that lease and advertisement revenues will
increase according to the increase in floor areas from the airport expansion and the inflation rate.
Floor occupancy rate in the existing and new terminals are assumed to be 80%.
・ Due to the improvement of commercial facilities and the introduction of SPC’s know-how on
airport management and operation, the unit sale per passenger spent at the airport would increase.
It is assumed that concession revenue per international passenger would increase to the current
level of Airport of Thailand that operates Suvarnabhumi International Airport in Bangkok (USD
3.48 = IDR 42,744 in 2014). The concession revenues for domestic and transit passengers are
expected to increase by one-half of the level in Airport of Thailand.
・ For non-aero revenue after the airport expansion, concession and parking revenues are assumed to
be increased by passenger demand and inflation rate, and other revenues would be changed based
on inflation rate.
c)
Assumptions on Expenditure
・ Between 2019 and 2023, passenger service cost is assumed to increase by 10%, while the rest of
the costs, such as personnel, maintenance, electricity, water, and telephone, would increase on the
basis of the inflation rate.
・ At the time of the airport expansion in 2024, an increase in costs caused by the expansion of floor
areas at the terminals is anticipated. The costs of electricity, water, and telephone are expected to
increase on the basis of increased floor areas at the terminals, while the rest of the costs, such as
costs of personnel, maintenance and equipment, passenger services, and general expenses, would
increase by one-half of the increased floor areas. After the airport expansion, the cost of passenger
service is expected to increase on the basis of passenger demand and inflation rate, while the rest
of the costs would increase on the basis of inflation rate.
・ Between 2019 and 2023, the construction and investment for this project will be implemented
(Table 5-4). In addition to construction, physical contingency, and design costs, inflation cost
during the construction is included in financial and economic analyses. The total project costs
including inflation are estimated at JPY 86.3 billion.
・ The fund for initial investment is distributed by each project Package1, as shown in the following
table. Package 1 will be financed by Private Sector Investment Finance (PSIF), Package 2 will be
covered by equity from a Special Purpose Company (SPC) and other stakeholders and PSIF, and
Package 3 will be financed by equity (tax) from AP-I and others, international financial agents
such as the International Bank for Reconstruction and Development (IBRD), and commercial
banks. Of the required fund in Package 2, 70% is assumed to be covered by PSIF. The
amortization period and grace period of PSIF are set at 15 years and 5 years, respectively.
・ As for the fund required for Package 3, the proportion of equity, IBRD, and commercial banks are
set at 10%, 50%, and 40%, respectively. The amortization and grace period for IBRD’s fund are
1
See Chapter 8 for the details on Project Package.
5-5
Chapter 5
assumed to be at ten years and five years, respectively. The amortization period for commercial
banks is set at ten years with 10% interest.
Table 5-5 Financial Plan for Initial Investment
Unit: JPY in millions
% of Total
in Package
Total
2018
2019
2020
2021
2022
2023
2024
Total
Total Equity
88,000
13,798
212
212
4,107
666
12,233
2,056
22,630
3,126
23,851
3,598
20,330
3,126
4,637
1,013
Total Loan
AP 1: Package (1)
74,202
22,063
0
3,440
10,177
2,206
19,504
6,619
20,252
6,619
17,204
5,516
3,625
1,103
Loan (1) PSIF
SPC: Package (2)
Equity
22,063
36,019
10,806
2,206
5,134
1,352
6,619
8,937
2,634
6,619
9,410
3,106
5,516
8,937
2,634
1,103
3,534
1,013
Design
Package (2)
1,355
9,451
407
945
271
2,363
271
2,835
271
2,363
68
945
Loan (1) PSIF
Package (2)
25,213
25,213
3,782
3,782
6,303
6,303
6,303
6,303
6,303
6,303
2,521
2,521
Public Work: Package (3)
Equity (AP-1, etc.)
29,917
2,992
100%
68
68
30%
68
70%
10%
212
212
4,039
598
4,893
705
7,074
492
7,822
492
5,877
492
0
0
212
319
386
2,992
106
386
2,992
106
386
3,740
106
386
2,992
0
0
0
Design
Package (3)
Loan (2) IBRD
1,062
1,930
14,959
50%
0
212
386
2,244
Package (3)
Loan (3) Commercial Bank
14,959
11,967
40%
0
2,244
1,197
2,992
1,197
2,992
3,590
3,740
3,590
2,992
2,393
0
0
1,197
1,197
3,590
3,590
2,393
0
Package (3)
11,967
・ Depreciation of newly built facilities is calculated separately from the existing ones. Depreciation
of the existing facilities is set at the same level as in 2013, which will be maintained up to 2037
(30 years of useful life). Depreciation of newly built facilities is calculated on the basis of 30
years of useful life.
d)
Results of Preliminary Financial Analysis
Based on the above assumptions, the FIRR of this project was found to be 14.8% if the airport
expansion of Makassar Airport was implemented. Although the cash flow during the airport
construction deteriorated, the closing cash balances were positive throughout the entire project
implementation period. While non-aero revenue at the initial year of project was 36% of the total
revenue, this percentage is expected to increase to 53% by 2030 due to the improvement of
commercial facilities after the airport expansion and the introduction of improved know-how on
airport management and operation. Net present value (NPV) of this project is IDR 2,030,005 million.
5-6
5-7
FIRR
Total
79,798,858
2,161,157
6,223,559
88,183,574
19,050,903
15,368,123
1,188,219
4,131,912
20,688,254
2,030,005
14.8%
8,558,279
7,750,973
41,481,210
8,881,572
2,791,361
7,420,249
69,132,671
35,526,286
8,881,572
26,644,715
44,272,571
6,957,946
2,440,419
7,216,001
11,515,616
1,697,936
982,453
1,164,744
5,981,516
3,524,580
2,791,361
37,157,037
8,731,860
22,699,909
898,114
1,479,869
937,761
2,409,524
42,641,820
27,741,831
5,569,999
6,323,172
1,249,244
1,757,574
0
79,798,858
5,706,181
5,168,255
8,301,302
1,497,575
1,076,522
2,076,670
18,658,249
5,990,299
8,881,572
4,492,724
Profit before Tax
Corporate Tax
Profit after Tax
Cash Flow
Financial Demand
Initial Investment
Inicial Investment (Economic price)
Operating Expense
Corporate Tax
Interest
Repayment (Principal)
Total
Financial Supply
Sales
Capital
Loan
Total
New Cash Flow
Closing Balance
9,377,824
1,442,792
506,043
1,416,803
2,050,054
352,082
213,359
451,539
2,153,916
646,441
1,076,522
15,368,123
7,703,571
1,342,379
5,100,521
143,640
361,967
216,334
538,729
7,664,552
4,819,097
1,120,989
1,127,920
251,461
345,085
NPV
176,006
444,826
0
0
444,826
129,975
129,975
201,118
494,195
0
0
494,195
146,780
276,755
16,235
276,841
54,338
0
0
347,415
8,118
260,702
46,031
0
0
314,851
217,353
54,338
163,015
17,994
0
16,014
0
184,124
46,031
138,093
276,841
57,180
22,951
39,068
54,573
13,954
9,818
61,302
494,195
2
2017
311,249
15,021
217,757
3,789
35,118
14,869
24,696
182,946
92,233
37,697
35,382
8,118
9,516
260,702
54,961
22,060
35,517
49,612
12,634
8,602
61,302
444,826
1
2016
286,603
12,073
201,891
3,062
32,860
13,883
22,835
158,222
76,861
34,270
30,767
7,674
8,651
312,879
687,702
0
0
687,702
222,483
499,238
326,117
90,396
0
0
465,218
48,705
361,584
90,396
271,188
20,937
0
326,117
71,981
25,246
49,180
68,699
17,565
11,206
61,302
687,702
3
2018
468,023
24,917
352,305
3,516
31,276
15,931
40,079
219,678
110,680
46,111
40,689
10,219
11,979
-37,285
758,856
6,775
224,379
990,011
92,645
591,883
442,183
400,710
345,170
101,225
8,788
0
897,365
404,898
101,225
303,674
23,337
8,788
353,958
75,580
26,509
51,639
75,569
18,444
12,790
61,302
758,856
4
2019
509,225
31,000
379,991
4,350
33,425
17,075
43,384
249,631
132,815
48,647
44,758
10,832
12,578
-829,490
826,187
135,158
898,010
1,859,354
-22,046
569,837
1,253,707
1,136,276
367,185
106,054
34,785
119,669
1,881,401
424,217
106,054
318,163
27,004
34,785
401,970
79,359
27,834
54,221
83,126
19,366
14,973
61,302
826,187
5
2020
541,562
37,658
399,998
5,158
34,975
17,917
45,856
284,625
159,379
51,323
49,234
11,482
13,207
-1,667,289
894,184
263,370
1,591,414
2,748,968
-36,678
533,159
2,085,305
1,889,090
389,316
104,504
86,852
119,669
2,785,646
418,016
104,504
313,512
30,287
86,852
476,168
83,326
29,226
56,933
91,438
20,334
16,470
61,302
894,184
6
2021
568,589
45,745
413,647
6,117
36,596
18,808
47,676
325,596
191,254
54,146
54,158
12,171
13,867
-1,756,479
968,485
310,624
1,666,207
2,945,316
4,646
537,806
2,140,625
1,938,465
413,449
96,037
170,890
119,669
2,940,670
384,147
96,037
288,110
34,137
170,890
584,339
87,493
30,687
59,779
100,582
21,351
18,117
61,302
968,485
7
2022
594,821
55,569
424,685
7,254
38,292
19,751
49,271
373,664
229,505
57,124
59,573
12,902
14,560
-1,802,510
1,048,343
263,370
1,481,097
2,792,809
-267,954
269,852
2,163,476
1,958,342
439,811
90,242
247,565
119,669
3,060,763
360,966
90,242
270,725
38,664
247,565
687,376
91,867
32,221
62,768
110,641
22,418
19,929
61,302
1,048,343
8
2023
618,176
67,503
430,850
8,602
40,068
20,751
50,404
430,166
275,406
60,266
65,531
13,676
15,288
-140,816
1,859,622
101,283
362,452
2,323,357
20,484
290,336
472,982
428,091
1,239,118
83,042
288,338
219,393
2,302,873
332,166
83,042
249,125
1,527,456
204,582
71,755
216,792
246,388
49,924
21,922
61,302
284,834
81,619
288,338
1,859,622
9
2024
893,285
102,500
654,840
10,200
41,925
26,175
57,645
966,337
579,569
165,737
131,061
37,166
52,803
391,391
1,965,840
1,080,578
0
3,046,418
839,549
1,129,885
1,290,603
97,848
283,846
534,573
2,206,869
391,391
97,848
293,544
1,574,448
212,765
74,625
225,463
263,636
51,921
29,493
61,302
284,834
86,563
283,846
1,965,840
10
2025
937,788
118,855
677,184
11,665
43,075
27,012
59,998
1,028,052
621,560
172,367
140,557
38,653
54,915
485,110
2,079,993
0
0
2,079,993
-170,740
959,145
1,338,104
121,278
256,779
534,573
2,250,733
485,110
121,278
363,833
1,594,882
221,276
77,610
234,482
282,090
53,998
30,673
61,302
284,834
91,839
256,779
2,079,993
11
2026
986,086
137,819
700,291
13,339
44,257
27,888
62,492
1,093,906
666,593
179,262
150,741
40,199
57,112
584,945
2,202,859
0
0
2,202,859
-95,864
863,281
1,388,202
146,236
229,711
534,573
2,298,723
584,945
146,236
438,709
1,617,913
230,127
80,714
243,861
301,836
56,157
31,900
61,302
284,834
97,469
229,711
2,202,859
12
2027
1,038,672
159,809
724,186
15,255
45,471
28,808
65,143
1,164,187
714,889
186,432
161,662
41,807
59,396
691,616
2,335,311
0
0
2,335,311
-15,861
847,420
1,441,050
172,904
202,644
534,573
2,351,172
691,616
172,904
518,712
1,643,695
239,332
83,943
253,616
322,965
58,404
33,176
61,302
284,834
103,479
202,644
2,335,311
13
2028
1,096,110
185,308
748,896
17,445
46,718
29,776
67,967
1,239,200
766,684
193,889
173,375
43,479
61,772
805,940
2,478,329
0
0
2,478,329
69,882
917,302
1,496,812
201,485
175,577
534,573
2,408,447
805,940
201,485
604,455
1,672,389
248,905
87,301
263,760
345,572
60,740
34,503
61,302
284,834
109,894
175,577
2,478,329
14
2029
1,159,054
214,875
774,450
19,950
48,000
30,795
70,984
1,319,275
822,232
201,645
185,936
45,219
64,243
947,201
2,651,370
0
0
2,651,370
295,497
1,212,798
1,555,659
236,800
148,510
414,904
2,355,873
947,201
236,800
710,401
1,704,169
258,861
90,793
274,311
369,763
63,170
35,883
61,302
284,834
116,743
148,510
2,651,370
15
2030
1,246,607
238,038
795,115
29,363
49,208
37,015
97,868
1,404,763
881,805
209,711
199,408
47,027
66,813
Table 5-6
Operating Expense
Personnel
General Expense
Others (Rental, etc.)
Depreciation (Existing Facilities)
Depreciation (New Facilities)
Tax (Property, Services, Local Tax)
Interest Expense
Aero Revenue
Passenger Services (International)
Passenger Services (Domestic)
Landing, Positioning, and Stationing (International)
Landing, Positioning, and Stationing (Domestic)
Aviobridge
Counter
Non-Aero Revenue
Concession
Lease
Parking
Advertisement
Others
Operating Income
Unit:IDR in millions
Chapter 5
Income Statement and Cash Flow (1) 2016-2030
5-8
FIRR
Total
79,798,858
2,161,157
6,223,559
88,183,574
19,050,903
15,368,123
1,188,219
4,131,912
20,688,254
2,030,005
14.8%
8,558,279
7,750,973
41,481,210
8,881,572
2,791,361
7,420,249
69,132,671
35,526,286
8,881,572
26,644,715
44,272,571
6,957,946
2,440,419
7,216,001
11,515,616
1,697,936
982,453
1,164,744
5,981,516
3,524,580
2,791,361
37,157,037
8,731,860
22,699,909
898,114
1,479,869
937,761
2,409,524
42,641,820
27,741,831
5,569,999
6,323,172
1,249,244
1,757,574
0
79,798,858
5,706,181
5,168,255
8,301,302
1,497,575
1,076,522
2,076,670
18,658,249
5,990,299
8,881,572
4,492,724
Profit before Tax
Corporate Tax
Profit after Tax
Cash Flow
Financial Demand
Initial Investment
Inicial Investment (Economic price)
Operating Expense
Corporate Tax
Interest
Repayment (Principal)
Total
Financial Supply
Sales
Capital
Loan
Total
New Cash Flow
Closing Balance
9,377,824
1,442,792
506,043
1,416,803
2,050,054
352,082
213,359
451,539
2,153,916
646,441
1,076,522
15,368,123
7,703,571
1,342,379
5,100,521
143,640
361,967
216,334
538,729
7,664,552
4,819,097
1,120,989
1,127,920
251,461
345,085
NPV
1,057,234
2,808,419
0
0
2,808,419
378,022
1,590,820
1,617,776
264,309
133,410
414,904
2,430,398
1,057,234
264,309
792,926
1,751,185
269,216
94,424
285,283
395,646
65,696
37,318
61,302
284,834
124,055
133,410
2,808,419
16
2031
1,312,378
263,698
816,332
32,413
60,535
38,148
101,251
1,496,041
945,693
218,099
213,855
48,908
69,485
1,164,064
2,965,730
0
0
2,965,730
458,144
2,048,964
1,683,357
291,016
118,309
414,904
2,507,586
1,164,064
291,016
873,048
1,801,667
279,985
98,201
296,695
423,341
68,324
38,811
61,302
284,834
131,864
118,309
2,965,730
17
2032
1,372,218
292,124
838,115
35,780
62,058
39,331
104,809
1,593,513
1,014,211
226,823
229,349
50,865
72,265
1,278,120
3,133,940
0
0
3,133,940
543,686
2,592,650
1,752,611
319,530
103,209
414,904
2,590,254
1,278,120
319,530
958,590
1,855,820
291,184
102,129
308,562
452,975
71,057
40,364
61,302
284,834
140,204
103,209
3,133,940
18
2033
1,436,331
323,615
860,479
39,497
63,619
40,567
108,553
1,697,609
1,087,692
235,896
245,966
52,899
75,155
1,692,606
3,606,474
0
0
3,606,474
854,551
3,447,201
1,825,759
423,152
88,109
414,904
2,751,923
1,692,606
423,152
1,269,455
1,913,868
302,831
106,215
320,905
484,683
73,899
41,978
61,302
284,834
149,111
88,109
3,606,474
19
2034
1,797,680
430,200
1,104,300
43,600
65,220
41,860
112,500
1,808,794
1,166,498
245,332
263,787
55,015
78,162
1,799,829
3,775,872
0
0
3,775,872
934,968
4,382,169
1,903,035
449,957
73,008
414,904
2,840,904
1,799,829
449,957
1,349,872
1,976,043
314,945
110,463
333,741
518,611
76,855
43,657
61,302
284,834
158,626
73,008
3,775,872
20
2035
1,848,311
457,545
1,120,331
46,193
66,545
42,860
114,837
1,927,561
1,251,013
255,145
282,899
57,216
81,288
1,913,047
3,955,644
0
0
3,955,644
1,019,882
5,402,050
1,984,689
478,262
57,908
414,904
2,935,763
1,913,047
478,262
1,434,786
2,042,597
327,542
114,882
347,091
554,914
79,930
45,403
61,302
284,834
168,791
57,908
3,955,644
21
2036
1,901,202
486,629
1,136,596
48,940
67,897
43,889
117,252
2,054,442
1,341,652
265,351
303,395
59,505
84,540
2,032,692
4,146,487
0
0
4,146,487
1,109,615
6,511,665
2,070,987
508,173
42,808
414,904
3,036,872
2,032,692
508,173
1,524,519
2,113,795
340,644
119,477
360,974
593,758
83,127
47,220
61,302
284,834
179,651
42,808
4,146,487
22
2037
1,956,482
517,562
1,153,096
51,850
69,276
44,948
119,749
2,190,005
1,438,857
275,965
325,377
61,885
87,921
2,220,527
4,349,145
0
0
4,349,145
1,250,491
7,762,157
2,100,910
555,132
27,707
414,904
3,098,653
2,220,527
555,132
1,665,395
284,834
191,256
27,707
2,128,618
354,270
124,256
375,413
635,321
86,452
49,108
4,349,145
23
2038
2,014,286
550,460
1,169,836
54,933
70,684
46,039
122,334
2,334,858
1,543,105
287,004
348,951
64,360
91,438
2,354,444
4,564,415
0
0
4,564,415
1,450,653
9,212,810
2,197,364
588,611
12,607
315,180
3,113,762
2,354,444
588,611
1,765,833
284,834
203,657
12,607
2,209,971
368,441
129,226
390,430
679,793
89,910
51,073
4,564,415
24
2039
2,074,761
585,450
1,186,819
58,200
72,120
47,163
125,010
2,489,654
1,654,906
298,484
374,234
66,935
95,095
2,486,125
4,785,491
0
0
4,785,491
1,864,594
11,077,403
2,299,366
621,531
0
0
2,920,898
2,486,125
621,531
1,864,594
284,834
216,911
0
2,299,366
383,178
134,395
406,047
727,379
93,506
53,116
4,785,491
25
2040
2,130,402
616,652
1,203,553
61,130
73,377
48,152
127,538
2,655,090
1,774,808
310,423
401,348
69,612
98,899
2,612,868
5,020,127
0
0
5,020,127
1,959,651
13,037,055
2,407,259
653,217
0
0
3,060,476
2,612,868
653,217
1,959,651
284,834
231,077
0
2,407,259
398,505
139,771
422,289
778,295
97,247
55,240
5,020,127
26
2041
2,188,213
649,517
1,220,523
64,207
74,657
49,168
130,141
2,831,914
1,903,396
322,840
430,426
72,396
102,855
2,747,822
5,269,226
0
0
5,269,226
2,060,866
15,097,921
2,521,404
686,955
0
0
3,208,359
2,747,822
686,955
2,060,866
284,834
246,220
0
2,521,404
414,445
145,362
439,180
832,776
101,136
57,450
5,269,226
27
2042
2,248,298
684,134
1,237,732
67,439
75,958
50,210
132,825
3,020,928
2,041,301
335,754
461,611
75,292
106,969
2,891,567
5,533,756
0
0
5,533,756
2,168,675
17,266,596
2,642,189
722,892
0
0
3,365,081
2,891,567
722,892
2,168,675
284,834
262,408
0
2,642,189
431,023
151,176
456,748
891,070
105,182
59,748
5,533,756
28
2043
2,310,767
720,595
1,255,183
70,834
77,283
51,280
135,592
3,222,990
2,189,198
349,184
495,056
78,304
111,248
3,044,727
5,814,753
0
0
5,814,753
2,283,545
19,550,141
2,770,026
761,182
0
0
3,531,208
3,044,727
761,182
2,283,545
284,834
279,715
0
2,770,026
448,264
157,223
475,017
953,445
109,389
62,138
5,814,753
29
2044
2,375,734
759,000
1,272,881
74,400
78,630
52,378
138,445
3,439,019
2,347,810
363,151
530,924
81,436
115,698
Table 5-7
Operating Expense
Personnel
General Expense
Tax (Property, Services, Local Tax)
Interest Expense
Aero Revenue
Landing, Positioning, and Stationing (International)
Aviobridge
Counter
Non-Aero Revenue
Concession
Lease
Parking
Advertisement
Others
Operating Income
Unit: IDR in millions
Chapter 5
Income Statement and Cash Flow (2) 2031-2044
3)
Chapter 5
Results of Preliminary Economic Analysis
In addition to financial benefits derived from aero and non-aero revenues related to this project, the following
economic benefits are considered:
a) Indirect Impact from the Airport Expansion Construction
In this project, the total project cost is estimated at JPY 71.4 billion, and direct economic impact on the
construction industry in Indonesia and Japan are expected. Around 24% of Japanese products are expected to
be imported for this project. In addition to these direct economic impacts, there are indirect economic
impacts on suppliers that provide sub-components of construction materials and small and medium
enterprises that supply equipment and parts. Furthermore, through the establishment of BB/RH Network, the
demand for regional jets is expected to increase, which leads to a spillover effect on the Japanese domestic
economy.
According to the analysis made by Oxford Economics on the economic impact of airport projects on gross
domestic product (GDP), economic impact derived from airport projects include direct impact, indirect
impact, and induced impact (economic impact from spending of those directly or indirectly employed in the
airport such as food, goods, and a range of services). In Indonesia, the proportion of indirect impact to direct
impact is estimated at 55%. In this economic analysis, indirect economic impact of airport expansion
construction on GDP will be calculated, using the data calculated by the analysis made by Oxford
Economics.
Table 5-7 Economic Impact of Airport Projects on GDP (USD in millions)
Indonesia
Proportion to Direct Impact (%)
Japan
Proportion to Direct Impact (%)
Direct Impact Indirect Impact Induced Impact
1,544
855
723
100%
55%
47%
19,464
13,265
10,126
100%
68%
52%
Tourism
11,575
750%
21,780
112%
Source: Aviation Benefits Beyond Borders, ATAG (Air Transport Action Group), 2014
b) Indirect Impact from Increasing Commercial Revenue at the Terminals
In addition to revenue from commercial facilities at the terminal, it is considered that there are indirect
economic impact on related suppliers that provide goods and services to commercial facilities at the airport.
For instance, a manufacturing company that supplies water to airport shops would be benefited by the
increased sale caused by the airport expansion. This indirect impact from commercial revenue can be
calculated using the data on indirect impact shown in Table 5-8.
5-9
Chapter 5
c) Regional Economic Impact in the Eastern Region of Indonesia
This project of expanding Makassar Airport to a regional-hub airport is expected to contribute to the
economic development of the eastern region by enhancing the connectivity of regional network in eastern
Indonesia. The increase of flights to the eastern region is expected to bring economic benefits to
airport-related industries such as the tourism industry.
According to Table 5-8, economic impact of airport
projects on the tourism sector in Indonesia is far larger compared to that of Japan (around 7.5 times more
than direct impact), and not only Makassar Airport but also the surrounding islands are expected to benefit
from the tourism industry. Moreover, the eastern region is rich in energy resources, and through the
establishment of BB/RH Network, it is expected to promote the development of mineral resources by
improving access to the eastern region.
Among the above economic benefits, a) indirect impact from the airport expansion construction and b)
indirect impact from increase of commercial revenue at the terminals, are quantitatively calculated, and
therefore, will be included in the economic analysis. As for the economic benefit of (b), concession revenue
of the airport operators will be included in the calculation of indirect impact.
Based on the above assumptions, the EIRR of this project was found to be at 28.0%, which was considered to
be high.
5-10
5-11
EIRR
Indirect Impact (Concession)
2,113,536
33,605
5,872,234
Profit (Economic Price)
Indirect Impact (Construction)
1,076,522
Interest Expense
451,539
2,153,916
213,359
352,082
2,050,054
General Expense
1,416,803
506,043
1,442,792
9,377,824
Operating Expense
Personnel
15,368,123
Operating Income
Others
345,085
1,127,920
Parking
251,461
1,120,989
Lease
Advertisement
4,819,097
Concession
538,729
Counter
7,664,552
216,334
Aviobridge
Non-Aero Revenue
361,967
28.0%
12,166,877
50,290
35,077,622
2,791,361
5,981,516
1,164,744
982,453
1,697,936
11,515,616
7,216,001
2,440,419
6,957,946
44,272,571
79,798,858
0
1,757,574
1,249,244
6,323,172
5,569,999
27,741,831
42,641,820
2,409,524
937,761
1,479,869
898,114
Landing, Positioning, and Stationing (International) 143,640
22,699,909
5,100,521
8,731,860
37,157,037
1,342,379
7,703,571
Total
Aero Revenue
NPV
211,279
33,709
0
177,570
0
61,302
8,602
12,634
49,612
35,517
22,060
54,961
260,702
444,826
8,651
7,674
30,767
34,270
76,861
158,222
22,835
13,883
32,860
3,062
201,891
12,073
249,359
40,451
0
208,908
0
61,302
9,818
13,954
54,573
39,068
22,951
57,180
276,841
494,195
9,516
8,118
35,382
37,697
92,233
182,946
24,696
14,869
35,118
3,789
217,757
15,021
311,249
2017
2016
286,603
2
1
388,150
48,541
0
339,609
0
61,302
11,206
17,565
68,699
49,180
25,246
71,981
326,117
687,702
11,979
10,219
40,689
46,111
110,680
219,678
40,079
15,931
31,276
3,516
352,305
24,917
468,023
2018
3
39,566
58,250
2,514
379,512
8,788
61,302
12,790
18,444
75,569
51,639
26,509
75,580
353,958
758,856
12,578
10,832
44,758
48,647
132,815
249,631
43,384
17,075
33,425
4,350
379,991
31,000
509,225
2019
4
83,879
12,572
389,573
86,852
61,302
16,470
20,334
91,438
56,933
29,226
83,326
476,168
894,184
13,867
12,171
54,158
54,146
191,254
325,596
47,676
18,808
36,596
6,117
413,647
45,745
568,589
2021
6
100,655
12,572
354,251
170,890
61,302
18,117
21,351
100,582
59,779
30,687
87,493
584,339
968,485
14,560
12,902
59,573
57,124
229,505
373,664
49,271
19,751
38,292
7,254
424,685
55,569
594,821
2022
7
120,786
12,572
330,067
247,565
61,302
19,929
22,418
110,641
62,768
32,221
91,867
687,376
1,048,343
15,288
13,676
65,531
60,266
275,406
430,166
50,404
20,751
40,068
8,602
430,850
67,503
618,176
2023
8
-661,413 -1,403,065 -1,470,985 -1,494,916
69,899
7,543
397,419
34,785
61,302
14,973
19,366
83,126
54,221
27,834
79,359
401,970
826,187
13,207
11,482
49,234
51,323
159,379
284,625
45,856
17,917
34,975
5,158
399,998
37,658
541,562
2020
5
170,438
254,184
2,514
341,830
288,338
284,834
61,302
21,922
49,924
246,388
216,792
71,755
204,582
1,527,456
1,859,622
52,803
37,166
131,061
165,737
579,569
966,337
57,645
26,175
41,925
10,200
654,840
102,500
893,285
2024
9
673,402
272,601
400,801
283,846
284,834
61,302
29,493
51,921
263,636
225,463
74,625
212,765
1,574,448
1,965,840
54,915
38,653
140,557
172,367
621,560
1,028,052
59,998
27,012
43,075
11,665
677,184
118,855
937,788
2025
10
785,791
292,351
493,440
256,779
284,834
61,302
30,673
53,998
282,090
234,482
77,610
221,276
1,594,882
2,079,993
57,112
40,199
150,741
179,262
666,593
1,093,906
62,492
27,888
44,257
13,339
700,291
137,819
986,086
2026
11
905,669
313,533
592,136
229,711
284,834
61,302
31,900
56,157
301,836
243,861
80,714
230,127
1,617,913
2,202,859
59,396
41,807
161,662
186,432
714,889
1,164,187
65,143
28,808
45,471
15,255
724,186
159,809
1,038,672
2027
12
1,033,852
336,249
697,603
202,644
284,834
61,302
33,176
58,404
322,965
253,616
83,943
239,332
1,643,695
2,335,311
61,772
43,479
173,375
193,889
766,684
1,239,200
67,967
29,776
46,718
17,445
748,896
185,308
1,096,110
2028
13
1,171,260
360,611
810,650
175,577
284,834
61,302
34,503
60,740
345,572
263,760
87,301
248,905
1,672,389
2,478,329
64,243
45,219
185,936
201,645
822,232
1,319,275
70,984
30,795
48,000
19,950
774,450
214,875
1,159,054
2029
14
1,333,751
386,738
947,014
148,510
284,834
61,302
35,883
63,170
369,763
274,311
90,793
258,861
1,704,169
2,651,370
66,813
47,027
199,408
209,711
881,805
1,404,763
97,868
37,015
49,208
29,363
795,115
238,038
1,246,607
2030
15
)
Chapter 5
Table5-8 Results of the Economic Analysis (1) 2016-2030
5-12
5,872,234
Profit (Economic Price)
EIRR
Indirect Impact (Concession)
2,113,536
33,605
1,076,522
Indirect Impact (Construction)
2,153,916
451,539
Interest Expense
213,359
352,082
2,050,054
General Expense
1,416,803
506,043
1,442,792
9,377,824
Operating Expense
Personnel
15,368,123
Operating Income
Others
345,085
1,127,920
Parking
1,120,989
Lease
251,461
4,819,097
Advertisement
7,664,552
Concession
538,729
Counter
Non-Aero Revenue
216,334
Aviobridge
28.0%
12,166,877
50,290
35,077,622
2,791,361
5,981,516
1,164,744
982,453
1,697,936
11,515,616
7,216,001
2,440,419
6,957,946
44,272,571
79,798,858
0
1,757,574
1,249,244
6,323,172
5,569,999
27,741,831
42,641,820
2,409,524
937,761
1,479,869
898,114
361,967
Landing, Positioning, and Stationing (International) 143,640
22,699,909
5,100,521
8,731,860
37,157,037
1,342,379
7,703,571
Total
Aero Revenue
NPV
1,469,927
414,758
1,055,169
133,410
284,834
61,302
37,318
65,696
395,646
285,283
94,424
269,216
1,751,185
2,808,419
69,485
48,908
213,855
218,099
945,693
1,496,041
101,251
38,148
60,535
32,413
816,332
263,698
1,312,378
1,606,082
444,808
1,161,274
118,309
284,834
61,302
38,811
68,324
423,341
296,695
98,201
279,985
1,801,667
2,965,730
72,265
50,865
229,349
226,823
1,014,211
1,593,513
104,809
39,331
62,058
35,780
838,115
292,124
1,372,218
17
2032
16
2031
18
1,751,608
477,035
1,274,574
103,209
284,834
61,302
40,364
71,057
452,975
308,562
102,129
291,184
1,855,820
3,133,940
75,155
52,899
245,966
235,896
1,087,692
1,697,609
108,553
40,567
63,619
39,497
860,479
323,615
1,436,331
2033
19
2,173,359
511,597
1,661,762
88,109
284,834
61,302
41,978
73,899
484,683
320,905
106,215
302,831
1,913,868
3,606,474
78,162
55,015
263,787
245,332
1,166,498
1,808,794
112,500
41,860
65,220
43,600
1,104,300
430,200
1,797,680
2034
20
2,318,248
548,663
1,769,585
73,008
284,834
61,302
43,657
76,855
518,611
333,741
110,463
314,945
1,976,043
3,775,872
81,288
57,216
282,899
255,145
1,251,013
1,927,561
114,837
42,860
66,545
46,193
1,120,331
457,545
1,848,311
2035
21
2,471,879
588,415
1,883,464
57,908
284,834
61,302
45,403
79,930
554,914
347,091
114,882
327,542
2,042,597
3,955,644
84,540
59,505
303,395
265,351
1,341,652
2,054,442
117,252
43,889
67,897
48,940
1,136,596
486,629
1,901,202
2036
22
2,634,879
631,047
2,003,832
42,808
284,834
61,302
47,220
83,127
593,758
360,974
119,477
340,644
2,113,795
4,146,487
87,921
61,885
325,377
275,965
1,438,857
2,190,005
119,749
44,948
69,276
51,850
1,153,096
517,562
1,956,482
2037
23
2,861,867
676,768
2,185,099
27,707
284,834
49,108
86,452
635,321
375,413
124,256
354,270
2,128,618
4,349,145
91,438
64,360
348,951
287,004
1,543,105
2,334,858
122,334
46,039
70,684
54,933
1,169,836
550,460
2,014,286
2038
24
3,045,671
725,801
2,319,870
12,607
284,834
51,073
89,910
679,793
390,430
129,226
368,441
2,209,971
4,564,415
95,095
66,935
374,234
298,484
1,654,906
2,489,654
125,010
47,163
72,120
58,200
1,186,819
585,450
2,074,761
2039
25
3,231,057
778,387
2,452,670
0
284,834
53,116
93,506
727,379
406,047
134,395
383,178
2,299,366
4,785,491
98,899
69,612
401,348
310,423
1,774,808
2,655,090
127,538
48,152
73,377
61,130
1,203,553
616,652
2,130,402
2040
26
3,415,396
834,782
2,580,614
0
284,834
55,240
97,247
778,295
422,289
139,771
398,505
2,407,259
5,020,127
102,855
72,396
430,426
322,840
1,903,396
2,831,914
130,141
49,168
74,657
64,207
1,220,523
649,517
2,188,213
2041
27
3,612,117
895,264
2,716,853
0
284,834
57,450
101,136
832,776
439,180
145,362
414,445
2,521,404
5,269,226
106,969
75,292
461,611
335,754
2,041,301
3,020,928
132,825
50,210
75,958
67,439
1,237,732
684,134
2,248,298
2042
3,822,097
960,128
2,861,969
0
284,834
59,748
105,182
891,070
456,748
151,176
431,023
2,642,189
5,533,756
111,248
78,304
495,056
349,184
2,189,198
3,222,990
135,592
51,280
77,283
70,834
1,255,183
720,595
2,310,767
2043
28
4,046,279
1,029,691
3,016,588
0
284,834
62,138
109,389
953,445
475,017
157,223
448,264
2,770,026
5,814,753
115,698
81,436
530,924
363,151
2,347,810
3,439,019
138,445
52,378
78,630
74,400
1,272,881
759,000
2,375,734
2044
29
Chapter 5
Table5-10 Results of the Economic Analysis (2) 2031-2044
Chapter 6
Planned Project Schedule
Chapter 6 Planned Project Schedule
This upgrade plan for the airport includes the development of multiple terminals and annexed facilities, as
well as an apron and taxiway. In addition, the construction of these new facilities must proceed in parallel
with the operation of existing terminals. This chapter sets forth the implementation schedule up to Phase 1
(2024 start of operations) as shown in Table 6-1.
6-1
Chapter 6
Table 6-1 Planned Project Schedule
Year
2015
Quarter
2016
2017
2018
2019
2020
2021
2022
2023
2024
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
BB/RH Network plan
Airline network verification
Study of regulations
Makassar Airport upgrade plan
Overall plan
F/S
Selection of consultant
Basic plan
Bidding for concession
Apron /
Taxiway
Detailed design
Civil engineering work
Business operation
Terminal connecting Detailed design
underpass /
APM
Construction work /
System installation / T est run
Business operation
Cargo terminal /
Utility facilities
Detailed design
Business operation
Main terminal
(Expansion)
Detailed design
Business operation
Satellite terminal
(New construction)
Detailed design
Business operation
Legend
: BB/RH Network plan
: Makassar Airport overall upgrade plan
Adjustment period within development in terms of hardware such as
construction work, equipment installation, etc.
Development in terms of hardware such as construction work and equipment
:
installation
:
: Implementation in terms of software such as test run, transfer, training, etc.
: Business operation
： Workflow
6-2
Chapter 6
(2) Tasks related to the Planned Project Schedule
It should be noted that the planned schedule is subject to change with regards to any of the facilities based on
the intentions of AP-I and DGCA, as well as due to variations in the air traffic demand forecast.
This project is planning and proposing to upgrade the airport on land which has already been acquired, but
according to the master plan of AP-I, there is some land that still needs to be acquired by the time of starting
Phase 1. In the future, we will make confirmation with AP-I regarding the details of the site situation, while
we continue to move forward with the plan of integrating this project with the master plan. However, there is
a possibility that the plan and schedule will change depending on the progress of land acquisition.
Furthermore, there is also the possibility that a verification phase will be implemented to confirm the
feasibility of the BB/RH Network at a stage before the operation start in 2024, as well as adjust the schedule
as required based on discussions made with the local stakeholders.
(3) Setting a Schedule related to Environmental Impact Issues
This project is an upgrade project to be done on land which has already been acquired, for which there are no
notable environmental considerations to mention. No countermeasures period has been established for the
project, but reference should be made to Chapter 4 regarding the general environmental impact that will
accompany the civil engineering and building construction work.
6-3
Chapter 6
6-4
Chapter 7
Chapter7 Implementing Organization
(1) AP-I
AP-I is 100% state-owned enterprise established in 1964. It owns and operates 13 significant airports in
Eastern Indonesia including Makassar Airport. The company’s vision is “to be one of Asia’s ten best airport
management companies”. The company’s missions are as follows:
1. To increase the stakeholders’ value;
2. To become a government partner and boost economic growth;
3. To provide airport business through excellent service meeting the standards of security, safety, and
comfort;
4. To improve company’s competitiveness through creativity and innovation; and
5. To give a positive contribution to the environment.
The organization of AP-I is shown in Figure 7-1. Five directors (Finance and Information Technology
Director, Marketing and Business Development Director, Operation Director, Human Capital and General
Affair Director, and Technical Director) are under the control of the President Director and are responsible
for each section.
Fig 7-1 Organizational Chart of AP-I
Operational Audit Department Head
Corporate Administration Department
Head
Engineering Audit Department Head
Marketing and Business Development
Audit Department Head
Head of Internal Audit
Corporate Communication
Department Head
Corporate Secretary
Finance Audit Department Head
Legal Department Head
President Director
Human Capital & General Affair Audit
Department Head
Corporate Planning Department Head
Material Procurement Department
Head
Head of Corporate
Planning & Performance
Service Procurement Department
Head
Corporate Performance Monitoring &
Evaluation Department Head
Quality Management Department
Head
Head of Procurement
Procurement Planning and
Administration Department Head
Operation Director
Technical Director
Marketing and
Business
Development
Director
Finance and IT
Director
Human Capital
and General Affair
Director
Risk Management Department Head
Head of Risk Management
and Compliance
Corporate Social Responsibility
Cooperation Department Head
Compliance Department Head
Head of Corporate Social
Responsibility
Corporate Social Environment
Department Head
Airport
Services
Group Head
Passenger,
Airline &
Cargo
Services
Department
Head
Airport
Compliance,
Performance
& Quality
Assurance
Department
Head
Fire Fighting &
Rescue
Department
Head
Safety, Health
&
Environment
Group Head
Airport
Security
Group Head
Airport
Facilities
Readiness
Group Head
Airport
Equipment
Readiness
Group Head
Project
Management
Office Group
Head
Business
Development
Group Head
Aviation
Marketing
Group Head
Non Aviation
Marketing
Group Head
Accounting
Group Head
Finance
Group Head
Information
Technology
Group Head
Safety
Management
System
Department
Head
Screening
Check Point
Department
Head
Civil Airside
Department
Head
Mechanical,
HB & Water
Technique
Department
Head
Project
Program
Department
Head
Business
Planning &
Development
Department
Head
Airline
Marketing
Department
Head
Retail
Marketing
Department
Head
Cost
Accounting
Department
Head
Treasury
Department
Head
IT Planning &
ERP
Department
Head
Safety, Health
&
Environment
Department
Head
Terminal
Security
Department
Head
Civil Landside
Department
Head
Project
Portofolio
Department
Head
Subsidiary &
Partnership
Department
Head
Cargo
Marketing
Department
Head
F&B
Marketing
Department
Head
Finance
Accounting
Department
Head
Fund
Management
Department
Head
Software
Development
Department
Head
Property &
Advertising
Department
Head
Tax
Management
Department
Head
Account
Receivable
Management
Department
Head
IT Operation
Department
Head
Non Terminal
Security
Department
Head
Electricity
Department
Head
Electronic
Department
Head
Customer
Service
Department
Head
Budget
Management
Department
Head
7-1
Network &
Infrastructure
Department
Head
Human
Capital Group
Head
Training &
Development
Group Head
General Affair
Group Head
Organization
Dev. &
Change
Management
Department
Head
Training
Module
Development
Department
Head
Office
Administration
Department
Head
Compensatio
n & Industrial
Relation
Department
Head
Career &
Talent
Management
Department
Head
Training
Management
Department
Head
Training
Facilities
Department
Head
Office
Facilities,
Operation &
Maintenance
Department
Head
Asset
Management
Department
Head
Chapter 7
AP-I is the enterprise where it follows a financially independent accounting system. Since Makassar Airport
handles many passengers, Makassar Airport manages to make a profit in recent years.
AP-I has financial accounting guideline in accordance with the Financial Accounting Standards (GAAP)
applicable in Indonesia.The guideline was approved by Decree of the Board Number: KEP.131/OM.02.07/202
dated 31 October 2012.
AP-I carrys out the passenger terminal building development of their operating airport. The second terminal
of Surabaya Airport started to operate in February 2014 while the new terminal of Balikpapan Airport started
operations in March 2014.
The organization of Makassar Airport has the following directors which respectively managed their own
section and are all under the control of the airport general manager.
・Airport Operation and Readiness Director
・Airport Security Director
・SMS, QM and Costumer Service Director
・Sales Director
・Finance and IT Director
・Shared and Service Director
7-2
Chapter 8
Technical Advantages of Japanese Companies
Chapter 8 Technical Advantages of Japanese Companies
(1) Expected Roles of Participating Japanese Companies (financing,
supply of machinery and equipment, facility management, etc.)
1)
Basic Business Scheme for the Entire Project
The business scheme for setting standards for the entire upgrade project of the airport is as shown in Figure
8-1. This project assumes a business model for receiving usage payments as a service consideration from
AP-I, the operator of the airport, based on the establishment of SPC, founded on financing from Japanese and
Indonesian investors, to provide services for managing the ownership and maintenance required of the
increased facility assets accompanying the upgrade of the airport.
In addition, the details of financial analysis and funding for the project are studied in Chapter 5 and 9.
Figure 8-1 Basic Business Scheme for the Project
<Japan>
<Indonesia>
PPP Study Team
Financing
Investment
Mitsubishi Heavy Industries, Ltd.,
T rading companies, etc.
Commercial banks
Technical assistance
for operation
and maintenance
Airport management company,
Airport design consultants
Special Purpose Company (SPC)
(Increase of facilities, ownership,
operation, and maintenance management
of terminals)
Investment
Angkasa Pura 1
Investment
Investment
Investment companies, Investors
(Government infrastructure fund)
Overseas
investment
Service provision
JICA
AP-I
(Makassar Airport operating company)
Usage payments
Airport-related facilities,
Equipment manufacturers
Export
8-1
2)
Chapter 8
Necessity of Creating Project Packages
For the reasons mentioned below, it is necessary to study the business scheme for dividing the project into
multiple packages.
a)
Features of a BB/RH Network Deployed Airport
This project is not simply a project for upgrading the airport to accommodate increases in airline
passenger demand, but is also based on the aim of introducing the BB/RH Network. Stakeholders,
investors and promoters of the plan, differ between the facilities which should clearly reflect the goals
of the BB/RH Network and the general upgrade facilities for meeting the increase in airline passenger
demand. Therefore, it is thought that dividing and organizing these facilities into packages will most
effectively work to promote the goals of the entire project.
b)
Scale of the Business Project
The airport upgrade is a large-scale, long-term investment for AP-I, and it is assumed that the project
will be difficult to manage as a single collective project.
c)
Autonomy of AP-I
AP-I and AP-II are state-owned airport management companies that are expected to basically carry out
business operations as financially independent entities, and the subsidiary airport upgrade is regarded
as an independent project, not a public undertaking. AP-I has also been working to prepare its own
master plan for meeting the increase in airline passenger demand and has created a proactive
long-term vision for the year 2044, with a mid-term project targeting 2024.
The investment and procurement plans of AP-I with regard to the implementation of the master plan
have not been disclosed, but as mentioned in Chapter 7, AP-I has generated steady profits through the
development of the airport and growth of non-aero revenue in recent years. AP-I is using its own
capital as funding to attract investment and financing from companies in Indonesian and abroad, and it
is expected that it will proceed with its intentions on upgrading the airport on its own. We learned
through meetings and interviews that AP-I aims at increasing its non-aero revenue, and this intention
needs to be considered and reflected into the project.
d)
Considerations of the Business Operation Content Entrusted to SPC
AP-I, which is currently operating Makassar Airport autonomously, has accumulated the operation
know-how needed to provide passenger services and airline services such as the parking of aircraft.
The airport management companies in Japan possess a high-degree of business know-how as typified
by punctual operations and non-aero revenue, and although it will be difficult to entrust all of the
airport business operation duties to SPC in consideration of the uniqueness of passengers and airlines
in Indonesia, it will still be desirable if a portion of the operation duties were entrusted based on the
consultation of both parties. It is recommended that facilities and equipment that can be effectively
managed using the know-how of Japanese companies, especially duties related to facility management
and maintenance, be entrusted to SPC.
Business promotion will be able to proceed more efficiently by examining packages that conform the
entrusting of these business operations to the facility development.
8-2
3)
Chapter 8
Study of Project Packages
In consideration of the above, a study was undertaken regarding the project packages as shown in Table 8-1.
Among the specified packages, it is expected that SPC, with the participation of Japanese companies, will
proactively carry out Package (2). It is presumed that AP-I will take the initiative in carry out Package (1),
but since it is deeply connected to Package (2), there will need to be close cooperation such as that related to
the common designs between each of the implementing parties. Furthermore, Package (3) deals mostly with
civil engineering construction, so it should be able to be implemented as an AP-I project or as a public
undertaking.
Table 8-1 Business Package List
Classification
Package (3) (Lower objects)
Passenger terminal main building and annex
facilities
Cargo terminal
Utility facilities
Passenger terminal satellite and annex facilities
Connecting system between terminals
(Underground connection APM / Bus,
Underground baggage handling system, etc.)
Utility facilities
Expand apron
Expand taxiway
and annex equipments (guiding lights, etc.)
Fuel hydrant facilities
Underpass connecting terminals
Roads and parking lots
Project type
AP-I project
PPP-BOT
AP-I project or public undertaking
Ownership
AP-I
SPC
AP-I
Implementing entity
AP-I
SPC
AP-I
Applicable assets
Project costs *
(excluding reserve fund and design costs)
Remarks
Common remarks
- Underground baggage handling system
included in Package (2)
- Does not include aircraft maintenance hanger - Connecting transportation method (including
- Fuel hydrant facilities are to be managed by a
to be developed by the airlines
alternatives) to be decided in the plan of SPC
local fueling company
- GSE / ramp bus to be considered separately
- Does not include reserve fund or design costs
*As of January 5, 2015, 1 JPY = 100 IDR
(2) The Superiority of Japanese Companies when Implementing this
Project (from a Technical and Economic Viewpoint)
1)
a)
Technical Aspects
BB/RH Network Configuration Technology and Management
The goal of this project is to achieve the upgrade of the airport based on the proposal that positions the
BB/RH Network, as a new aviation network, in an ideal state. As described in Chapter 3, the study
team has created the airport concept under careful coordination with local stakeholders. When creating
the concept, the study team performed a cross-study pertaining to the aviation network reconfiguration
and airport plan based on their long cultivated history of managing airports and rich experience of
operating numerous aircraft in Japan. In this manner, adjustment and arrangement can be made
between all of the stakeholders, which include aviation authorities, airlines, and airport management
8-3
Chapter 8
companies in both Japan and Indonesia. Doing this will help make evident the unique integration
technology that the newly conceived BB/RH Network achieves, as well as the superiority of Japan for
taking a leading role in this project.
b)
Airport related Special Facilities
Japanese companies are good at providing high-quality airport related special facilities and technology.
In particular, the technology of Japanese companies can contribute to the project with respect to the
nature of configurating the BB/RH Network, as well as with regards to the highly effective
deployment of facilities for increasing the convenience of transfer passengers.
c)
APM
APM is recommended for this project as a means of connecting satellite terminals with existing
terminals. From the perspective of the nature of this project, this is a top priority of the plan to ensure
punctuality and safety.
Punctuality in transportation is regarded as extremely important to the transportation related facilities,
including airports, in Japan and other developed nations. Japanese companies have introduced many
systems to the United States and countries in Asia and the Middle East. These systems for
transportation facilities have been highly evaluated for their stability, high-density operation, and
safety. Furthermore, Japanese companies not only deliver the transportation and operation systems, but
also provide long-term operation and maintenance through periodical renewing contracts.
Photo 8-1 Washington Dulles Airport APM
Source: Mitsubishi Heavy Industries, Ltd.
8-4
Chapter 8
Photo 8-2 Atlanta Airport APM
d)
Environmental Technology
The facilities to be developed in this project include the many facilities inside the airport as well as the
terminal and apron. Many of these facilities must be designed in consideration of reducing burdens on
the
environment.
Japan,
as
an
environmentally
advanced
country,
has
introduced
its
environmental-friendly facilities, construction technology, and maintenance know-how to many
airports and similar types of social infrastructure, so we are confident in Japanese companies ability to
demonstrate their superiority. Specifically, the following systems and measures are considered.

High Efficiency Equipments and Systems
The high efficiency equipments and systems listed below contribute not only to the environment,
but also to reducing life cycle costs, and are recommended for the long-term and stable use
required in operating airports.
-
Power generators
-
Cogeneration systems
Photo 8-3 Gas Engine Cogeneration System
8-5
-
Chapter 8
High efficiency heat source equipment
Photo 8-4 Centrifugal Chillers
-
Air-conditioning systems for large scale facilities and tropical areas
-
Energy-saving lighting devices
-
Energy management systems
Photo 8-5 Integrated Control and Monitoring Systems
 Utilization and control of natural energies
- Solar power generation systems
-
Natural lighting usage and sunlight shading
 Effective use of resources
- High-performance water treatment and recycling systems
-
Resource recycling
-
Waste treatment and power generation systems
 Construction technology
- Selection of environmentally friendly materials
-
Effective use of construction materials
-
Advanced quality control
-
Surrounding environment countermeasures
8-6
e)
Chapter 8
Construction management
This is a project to upgrade the existing airport, so construction works need to be carried out while
maintaining current airport functions. Developments are planned for each project package, but every
package contains complex construction plans that must be carried out so as not to obstruct airlines
operation and passengers using the airport.
In addition, the tunnel construction proposed by this project requires excavation underneath an
existing runway, and this requires the use of advanced technology and know-how when implementing
the building technology and construction plans. Furthermore, there also exists the issue regarding the
airport's desire to have a hydrant system installed at an early stage, and this work needs to be
implemented in parallel to the construction work to be done under the apron and runway.
Japan is a country advanced in using its land and Japanese companies have lots of experience
implementing and managing complex construction work such as the construction of tunnels
underneath active runways, building underground multi-level structures for subway systems, and so on.
In addition to being able to adopt the appropriate construction methods and techniques for a project
such as this one, Japanese companies are able to contribute highly to providing the rigorous
construction planning and enhanced on-site implementation management required in this project.
f)
Airport Operations
The airport will take on the function of a regional-hub airport, and therefore, it must carry out airport
operations such as handling the high density flights and complicated ground support, ensuring security
checks, and supporting smooth passenger transfer, embarking, and disembarking. Japanese airports,
which place a high emphasis on punctuality, are able to achieve these advanced operation support
duties while also maintaining safety. In this project, we intend to make use of our industry proven
know-how at Japanese airports to support the high density duties on the airside of the airport,
especially in consideration of the plan to make frequent use of twin aisle aircraft.
Furthermore, we should make note of the operations at LCC dedicated terminals at airports in Japan.
Their inexpensive, simple, but superior in function, and accommodating terminal design makes it
possible to achieve business operations with a high cost performance, and since the airport in this
project is also expecting the need to have a future LCC dedicated terminal according to phased
planning, which includes phase for verification, we believe that our know-how in this field is worth
referencing.
8-7
Chapter 8
Photo 8-6 Terminal 2 Building at the New Kansai International Airport (LCC Dedicated Facilities)
Source: New Kansai International Airport Co., Ltd.
At the same time, AP-I, the operator of the airport, has shown its intention of wanting to maintain its
financial independence in business operations by increasing non-aero revenue in addition to the
existing functions of the airport. In recent years, there have been many cases of airports in Japan
developing unique shopping malls for creating a concentration of stores such as shops and restaurants
in both the airside and landside of airports. These types of merchandising and management methods
also contribute to improving the attractiveness of the airport and the profitability of businesses.
2)
Economic Aspects
After making coordination with Indonesia regarding construction work and facility procurement, a proper
plan should be made with regards to the participation of local companies.
As a funding source, Japan's overseas investment and loans are advantageous and we expect that they will be
actively utilized.
8-8
Chapter 8
(3) Further Collaboration to apply Japanese Technologies
1)
Continuous Coordination with AP-I and DGCA
AP-I has been planning its own master plan for Makassar Airport to accompany the expected large increase in
airline passenger demand in the future, and we have had interviews with AP-I regarding its master plan, while
simultaneously having discussion on a draft for integrating the BB/RH Network advocated in this project for
the regional-hub airport concept with the master plan of AP-I. Also, we had repeated talks with DGCA
regarding this project since the approval of the them is needed with regard to airport plans including the
master plan and changes to taxes and other public dues such as landing fees. In the executive debriefing of
local stakeholders in December 2014, we received approval for the integration plan and from 2015 we need to
make continuous adjustments based on coordination with AP-I and DGCA. As indicated in this chapter, we
still need to carry out a detailed study with AP-I regarding the business project package. In order to make use
of Japanese companies technology and know-how, as well as maximize the cost-effectiveness of this project,
a thorough examination needs to be undertaken by companies in both Indonesian and Japan regarding the
selection of suitable technologies to introduce into the project, and the appropriate project package and
business scheme to adopt.
2)
Consultation with Other Indonesian Stakeholders (Promotion of the BB/RH Network)
This project aims at introducing the BB/RH Network to aviation networks in Indonesia with the goal of
reducing air traffic and airport congestion in Jakarta, and in order to accomplish this, we have been having
relevant discussions with local stakeholders other than AP-I and DGCA, and have been studying the potential
for accomplishing the tasks that need to be promoted, as well as accompanying projects. It is essential that a
leadership role be taken for the entire project with regard to issues that relate to the companies of each of
these stakeholders such as implementation of task extraction and problem-solving, continuation work, holding
of meetings, facilitation, and proposal of solutions.
It is expected that the detailed needs of each of the stakeholders as well as the required domestic policies for
Indonesia will be clarified during the implementation study for the BB/RH Network, and thereafter, we
believe it is important to reflect these needs and determined policies into appropriate airport plans and project
content.
3)
Financing and Investment from Japan
With the establishment of SPC, it is expected that, in addition to the contributions of participating Japanese
companies, financing can be procured from the "Japan Overseas Infrastructure Investment Corporation for
Transport & Urban Development (JOIN)". Furthermore, it is expected that JICA overseas investment will be
utilized as a source of funding. The development of the infrastructure section of the project allows for the
opportunity to study whether the project is applicable for an international yen loan in the future.
In addition, JICA's Preparation Study for Development Cooperation is anticipated to be used during future
detailed studies, and we will be asking for the support of these Japanese government agencies in the near
future.
8-9
4)
Chapter 8
Invitation of Indonesian Stakeholders
The BB/RH Network is a new global initiative, and although this project would be its first implementation,
there are some case studies that should be referenced with respect to airport networks and airport management
operations. It is recommended that AP-I, AP-II (the operator of Soekarno-Hatta Airport), and DGCA be
invited to Japan so that they can see firsthand the know-how possessed by Japanese airports and participate in
a technology tour. It is expected that the Japanese government would help support this type of invitation and
training tour.
8-10

Study on Makassar Airport Upgrade Project through the Indonesian

Transcription

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