MORE THAN A FLEETING AFFAIR
Airlines and their service industries are reaching new economies of scale as they work to maximize operational efficiency, add new value, and pamper passengers all the more.
Indonesia is an archipelago, and air transportation will always be the main choice for people to travel between districts, cities, and islands because it is the most efficient in terms of cost and time. It is our duty to provide more services and deliver new domestic destinations and routes to strengthen our network connectivity in order to support our customers throughout Indonesia with Lion Air, Wings Air, and Batik Air. That said, Thailand and Malaysia are two large countries with strategic locations as potential international hubs for Lion Air Group. In addition, both are large primary coverage areas for international flight connectivity networks, especially in Asia.
PT Angkasa Pura II recorded a robust performance in the first semester of the year due to our operational efficiency after implementing information technology in our airports. The growth of the tourism industry in Indonesia also contributed to our overall performance, and the visa-on-arrival policy plays a significant role in boosting the number of air travel passengers. Moreover, we are committed to developing digital services at all of its airports. Indonesia is a country with high quality IT infrastructure, and we must take advantage of this to drive digital services in order to add value for passengers. In driving digital transformation, we focus on three pillars: customer experience, efficiency in operational systems, and our business model. To digitalize our services, we introduced a mobile application called Indonesia Airport, which further enhances the customer experience.
The maintenance, repair, and operations (MRO) business, especially on the domestic side, is growing by about 9% YoY. According to our data, there is potential to grow more than 10% and this is an opportunity for MRO to create growth. GMF's strategy is to grow the group and be one of the top-10 MROs in the world in the coming years. We have two strategies: one organic and one inorganic. The first is to improve capability and increase capacity. In the second, we plan to form collaborations with a partner to expand GMF in the domestic and international market. Recently, we signed an MoU with our partner in South Korea because, like Indonesia, its growth is excellent. In South Korea, there is no institution concentrating on the MRO sector, and we need to be closer to our customers in South Korea. The strategy in South Korea is to have light maintenance and a fast-moving component and hangar.
Our business is primarily supporting the key players, namely airlines, in the aviation industry with support services. While we have a small investment, our core business in airport services includes some of the fastest-growing airlines in the world. In terms of fleet capacity, Lion Air and Garuda have ordered a lot of aircraft, though Sriwijaya is ordering aircraft as well. Then, we have Air Asia, which is active in Indonesia. CAS is the largest private company doing this, and we focus primarily on international airlines, with state-owned entities working for the state-owned airlines. Our market share for international airlines in Jakarta is well over 70%, and in other airports such as Bali and Surabaya, it is the majority. However, going forward we would also like to focus on some domestic airlines. Traditionally, airlines start by doing all the services themselves, but as they grow the business, they begin outsourcing support services.
MORE THAN A FLEETING AFFAIR
TABLE OF CONTENTS
Interview
Dr. Bambang Brodjonegoro, Minister , National Development Planning (Bappenas)
TBY talks to Dr. Bambang Brodjonegoro, Minister of National Development Planning (Bappenas), on acquiring financing for infrastructure projects and boosting private sector involvement in the country.
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Thomas Trikasih Lembong, Chairman, Investment Coordinating Board (BKPM)
Thomas Trikasih Lembong is the Chairman of BKPM. He was a former Minister of Trade of Indonesia from 2015-2016. Prior his appointment in the cabinet, he had a long professional career. He was a Co-Founder, Chief Executive Officer, Managing Partner, and Partner at Quvat Management Pte Ltd and also served as President Commissioner at PT Graha Layar Prima Tbk (BlitzMegaplex) since 2012. He was previously employed with Principia Management Group and the Equity Division of Morgan Stanley (Singapore) Pte. Ltd, among others. He received a bachelor's degree in architecture and urban design from Harvard. He also was elected Young Global Leader by the World Economic Forum in 2008.
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Tevita Lavemaau, Former Minister of Finance and National Planning , Tonga
TBY talks to Tevita Lavemaau, Former Minister of Finance and National Planning of Tonga, on the effect of climate change on the country, its work to combat inequality, and further areas of cooperation with Indonesia.
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Dr. Tito Sulistio, President Director, Indonesia Stock Exchange (IDX)
TBY talks to Dr. Tito Sulistio, President Director of Indonesia Stock Exchange (IDX), on the strong performance of the capital markets, its goals to increase the number of listed companies, and the growing importance of digital innovation.
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Amien Sunaryadi, Chairman, Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas)
TBY talks to Amien Sunaryadi, Chairman of Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), on preparing new block offerings, attracting greater investment into the sector, and pushing for exploration.
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Ronald Walla, President Director, PT Wismilak Inti Makmur
TBY talks to Ronald Walla, President Director of PT Wismilak Inti Makmur, on offering the public a more relevant value proposition, strengthening the ideology of Indonesia's founding fathers, and forging bigger profit margins.
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Teddy Tjokrosaputro, President Director, PT Rimo International Lestari (RIMO)
TBY talks to Teddy Tjokrosaputro, President Director of PT Rimo International Lestari (RIMO), on stepping back forcefully from the brink, using affordable housing as a springboard, and laying the groundwork for the country's future.
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In the House
As strong economic growth, an optimistic political outlook, and a partially successful tax amnesty to repatriate offshore wealth continue to drive up housing prices in Indonesia's major urban centers, demand for new housing and shares in developers plummeted in 2017.
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