Identifier
Created
Classification
Origin
06JAKARTA9692
2006-08-02 02:05:00
UNCLASSIFIED
Embassy Jakarta
Cable title:  

NORTH SUMATRA AIRPORT CONSTRUCTION FINALLY BEGINS

Tags:  ECON PGOV EAIR EINT ID 
pdf how-to read a cable
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UNCLAS SECTION 01 OF 02 JAKARTA 009692 

SIPDIS

SIPDIS
AIDAC

DEPARTMENT PASS USTR KATZ
DEPARTMENT PLEASE PASS AID
USAID FOR ANE/EAA, J. Kunder and R. Cavitt
Treasury for IA -- Anna Jewell
NSC for Holly Morrow

From American Consulate Medan # 27, 2006

E.O. 12958: N/A
TAGS: ECON PGOV EAIR EINT ID
SUBJECT: NORTH SUMATRA AIRPORT CONSTRUCTION FINALLY BEGINS

REFTELS: (A) 05 JAKARTA 11909

(B) 05 JAKARTA 12138
Summary
-------

UNCLAS SECTION 01 OF 02 JAKARTA 009692

SIPDIS

SIPDIS
AIDAC

DEPARTMENT PASS USTR KATZ
DEPARTMENT PLEASE PASS AID
USAID FOR ANE/EAA, J. Kunder and R. Cavitt
Treasury for IA -- Anna Jewell
NSC for Holly Morrow

From American Consulate Medan # 27, 2006

E.O. 12958: N/A
TAGS: ECON PGOV EAIR EINT ID
SUBJECT: NORTH SUMATRA AIRPORT CONSTRUCTION FINALLY BEGINS

REFTELS: (A) 05 JAKARTA 11909

(B) 05 JAKARTA 12138
Summary
--------------


1. With a June 29 groundbreaking ceremony, work began on
the construction of a new airport for North Sumatra at
t
Kuala Namu, about 30 miles east of Medan. The new airport
will become operational in 2009 with one runway 3750 meters
long and will eventually expand to two runways of the same
length. Traffic volume outgrew Medan Polonia Airport's
capability, and Polonia's location in the middle of a
densely populated area precluded expansion and raised
safety concerns. Construction of a new rail line and
highway will facilitate travel to the new airport's
location. The new airport should help economic growth in
the region and spur additional investment. END SUMMARY.

Work Finally Begun
--------------


2. Overcoming bureaucratic inertia and funding problems,
Indonesia's airport authority finally began serious
construction on the long-awaited airport for Medan.
Indonesian Vice President Josef Kalla, Transportation
Minister Hatta Radjasa, North Sumatra Governor Rudolf
Pardede, and other Indonesian and foreign dignitaries
attended a June 29 groundbreaking ceremony for Medan's new
aiport, to be located at Kuala Namu. Although planned for
more than ten years, until the ceremony the only indication
of a future airport was a fence around the perimeter and a
sign announcing the new airport.


3. The new airport, scheduled to be operational by 2009,
will be completed in three stages. First stage
construction on the fourteen thousand hectare site will
build one runway 3,750 meters long and 45 meters wide and a
passenger terminal with capacity to handle 5 million
travelers each year. Stage two will see the construction
of a second runway with the same dimensions and expansion
of passenger facilities. The final stage will increase
parking areas for aircraft and additional passenger

handling capabilities to manage an anticipated 10 million
passengers per year.

Old Airport Congested and Dangerous
--------------


4. The existing airport, Polonia, originally opened in
1928, now sits in the middle of Medan. Wedged between two
rivers and hemmed in by residential communities, Polonia
has no room to expand beyond its 144 hectares. Designed to
accommodate 900 hundred thousand passengers annually,
Polonia handled about 4.5 million passengers in 2005. The
overcrowding worsened after a February 2006 fire gutted the
international arrival terminal.


5. The proximity of densely populated areas so close to
the airport raised safety concerns. The fiery Air Mandala
crash in September 2005 underscored safety concerns of the
residents living close to the airport (ref B) and renewed
calls for action on the new airport. (NOTE: Consulate
Medan is less than one-half mile from the airport, though
not in line with the direction of the runway. END NOTE.)

JAKARTA 00009692 002 OF 002


The plane barely cleared the runway before crashing into
the neighborhood directly adjacent to the airport, killing
44 people on the ground.

Access to New Airport
--------------


6. Kuala Namu is located nearly 30 miles east of Medan,
closer to the Straits of Malacca, just off the main highway
between Medan and Tebing Tinggi. Given current traffic
patterns and road conditions, the drive from Medan center
to Kuala Namu takes over one hour. Additional traffic from
airport operations would likely greatly increase travel
time. In addition to the construction of the airport
facilities, GOI envisages a new rail line connecting Kuala
Namu and Medan in a 30 minute journey and a new toll road
from Medan to Tebing Tinggi that would reduce traffic
congestion on the existing roadway.

Not Just Jobs
--------------


7. Kuala Namu Airport will be a boon to the economy of
Medan and North Sumatra. Vice President Kalla said
contracts for the airport would be given to local companies
because of bad experiences with foreign contractors during
the construction of Soekarno-Hatta Airport in Jakarta.
Construction work will employ skilled and unskilled
laborers in the region. New jobs will be created from the
increased capacity of the new airport. Transportation of
goods to and from North Sumatra will be easier when the
airport is connected with Medan and the port of Belawan by
improved rail and road links. Tourism can benefit from the
closer proximity of the airport to Lake Toba, the
province's premier tourist attraction.

Comment
--------------


8. Medan, Indonesia's third largest city, has long
suffered with lamentable infrastructure and underdeveloped
facilities for travelers. Marriott has begun construction
of a new hotel in Medan, which is scheduled for opening in
December 2007. The new hotel and airport could mark the
beginning of development in improved accommodation for
business travelers and tourists, making Medan more
attractive to further investments. END COMMENT.
Pascoe