Request for Indonesian airport $ 6bn to join Singapore raises eyebrows | The plane

Medan, Indonesia – The $ 6bn idea to turn Indonesia’s airport into a hotbed of Singapore and Kuala Lumpur has raised concerns among tourists who are skeptical of the visibility and feasibility of the project.

Indonesian government airport operators and an Indian-led agency are considering converting Kualanamu airport in North Sumatra into one of the busiest airports in the region of 50 million people each year.

Under a plan announced earlier this month by Angkasa Pura II and the GMR Airports Consortium, the airport will see the number of passengers increase five times compared to the epidemic before at Kuala Lumpur International Airport and Changi.

The GMR Airports Consortium, formed by India’s GMR Group and French Aeroports de Paris, has pledged $ 56 trillion ($ 3.9bn) as part of a 25-year airline agreement, with the remainder coming from the Indonesian side.

The sudden announcement of the deal, however, has sparked controversy in the tourism industry in North Sumatra, with some stakeholders asking why they were not consulted and indicating that the airport was “sold in India”.

“I think it’s okay for me to give it to foreign supervisors but it should be clear what is going on,” Mercy Panggabean, chief executive of Medan PT Wesly Tour & Travel, told Al Jazeera. “Why were tourists not invited to discuss their tenders? There was no news of this until we found out on television that GMR Airports Consortium had won. “

The Panggabean said although the local workers did not oppose the agreement, the Angkasa Pura II government should clearly explain more about the project.

“Does this mean that there will be more trips to Kualanamu? So what is the purpose here?” he said.

Clement Gultom, general manager of Boraspati Tour and Travel in Medan, told Al Jazeera that he was also surprised by the announcement, although he “has never seen any Indonesian company with a similar record” such as GMR Airports Consortium in connection with aviation development.

GMR Group operates at Delhi Indira Gandhi International Airport and Hyderabad International Airport in India and has airline contractors in Greece and the Philippines. Aeroports de Paris and owners Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget in France.

Despite concerns within the tourism industry, Djamanat Samosir, an Indonesian legal expert, told Al Jazeera that there was not much of an agreement that seemed risky.

“His actions and medical procedures show that this was fair and transparent,” Samosir said. “They have made a clear agreement between the various parties to express their expectations and there is no surprise in this.

However, Samosir said it was impossible to know more about the project without seeing the real connection.

“This is the most important thing we need to know,” he said.

Angkasa Pura II and GMR Airports Consortium did not respond to a request from Al Jazeera for comment.

Earlier this month, Kartika Wirjoatmodjo, deputy minister of state for public enterprises, told parliament Kualanamu International Airport “it will be an international airport” because of its “excellent location”.

Srinivas Bommidala, chairman of GMR Group for Energy and International Airports, said the company wanted to “transform the airport into a global hub”.

‘Bad Money’

Currently the airport serves as a hub for people traveling to other parts of Sumatra such as Aceh or Batam. Prior to the COVID-19 epidemic, the airport had a few flights to Singapore and Malaysia.

Gultom, general manager of Boraspati Tour and Travel, questioned the timing of the development given the collapse of international travel during the epidemic.

“There is no problem entering the country but going back to the country of origin is also difficult,” he said. “There are many obstacles that hinder you. The journeys will not return to where they were.”

He said the target of 50 million passengers did not appear to be possible, questioning why the GMR Airports Consortium would have approved the deal.

“Will it benefit them? This is very difficult for me, ”he said, adding that the agreement would be difficult to repay.

“In my opinion, it’s bad money,” he added. “How can he make money?”