The Indonesian government’s plan to expand the country’s airports will unlock the potential of its tourism industry as it will address the capacity constraints at major airports and the increase in international flight frequencies and new route openings will provide easier connectivity and more destination options for foreign tourists, says Fitch Ratings. The plan would lead to significant expansion of airport capacity across the nation, especially as 20 of the 26 major airports owned and operated by state-owned entities PT Angkasa Pura I (AP I) and PT Angkasa Pura II are facing capacity constraints. AP I and AP II together control 90% of the nation’s air passenger traffic. The capital expenditure for the expansion could potentially reach a substantial Rp50 trillion through 2020.
