LION Group, the parent company of Lion Air, is embarking on the development of a huge airport in Banten province, not far from Indonesia’s capital, the group’s chief executive officer (CEO) announced on Wednesday.
“We’ve received the permit from the Transportation Ministry,” Rusdi Kirana said at the headquarters of aircraft manufacturer Airbus here.
Rusdi said development of a new airport in Indonesia is important, especially in light of the country’s growing middle class and demand for air transportation.
He added that Lebak, an impoverished part of underdeveloped Banten, was chosen as it is close to Jakarta and to help boost the local economy.
Rusdi said his company has received a permit to develop 4,000ha of land in Lebak, twice the size of Soekarno-Hatta International Airport, the country’s main airport that is also located outside Jakarta.
He added that the project would get under way next year.
Lion Group plans to build four runways and a commercial centre as well as a railway connection.
“We want to build a shopping centre near the airport to develop the small and medium enterprises (in the area) so that tourists would not have to go far away (if they want to shop),” Rusdi said.
The funding for the project will be borne by a consortium, he added, without elaborating on business partners or the project’s total budget.