Indonesia is planning to invest IDR100 trillion ($7bn) in the construction of a greenfield airport in Jakarta to support the growing demand for air travel in the country.

State-owned operator Angkasa Pura II manages 16 airports across Indonesia and will carry out a feasibility study for the airport.

The airport operator will consider whether to construct the airport on its own or in collaboration with another firm once the study is complete, though the final decision will be taken by the state-owned Enterprises Ministry.

PT Angkasa Pura II president director Muhammad Awaluddin was quoted by Bloomberg as saying the site for the greenfield airport could be near to the Soekarno-Hatta airport or could be built on land reclaimed from the sea.

If constructed close to the existing airport, the new structure will require clearing of approximately 600 hectares of land. If it is built on a new location then reclamation of 2,000 hectares will be required.

“Jakarta and the surrounding areas with a population of about 50 million will need a multi-airport system that’s connected to meet the demand.”

Awaluddin told the news agency: “Jakarta and the surrounding areas with a population of about 50 million will need a multi-airport system that’s connected to meet the demand. The new airport will be a masterpiece of the country.”

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Soekarno-Hatta and Halim airports, which serve Jakarta and its suburbs, will not able to manage the growing number of passengers in the future. The airports managed a combined 73 million passengers in 2018.

Angkasa Pura II is already investing hundreds of million dollars in the construction of a new terminal and runway at Soekarno-Hatta International Airport in Jakarta. Passenger traffic at the airport is expected to increase 46% to 100 million within a decade.

Construction on the new terminal is scheduled to commence in 2021 and will be capable of managing around 45 million passengers. Existing terminals will also be modernised to accommodate 25 million passengers each from almost nine million passengers per year.

PT Angkasa Pura II is also working to choose a strategic investor for Kualanamu International Airport in Medan, Sumatra island. The airport operator will solicit proposals from 16 preferred bidders, mostly from Asia and Europe, to become an equity partner.

The selected partner may own a maximum of 49% in the joint venture (JV) operating Kualanamu airport.