Heaptalk, Jakarta — Deputy Minister of Industry Faisol Riza has fully supported the InJourney Aviation Services (IAS) plan to develop an Aerotropolis. This concept integrates airports with surrounding areas, including industrial zones, residential spaces, warehouses, meeting venues, and retail businesses.
Indonesia’s government continues accelerating infrastructure development to enhance connectivity, a key factor contributing to the high operational costs in the logistics sector. According to World Bank data, logistics costs in Indonesia account for 23 percent of the country’s Gross Domestic Product (GDP), significantly higher than the ASEAN average of around 14%.
“We support IAS’s initiative, as this ecosystem is expected to drive and stimulate various industrial sectors, particularly the cargo and logistics industries,” the Vice Minister said during the meeting with IAS representatives at the Ministry of Industry office.
Faisal highlighted that establishing the Metropolis could lead to the emergence of promising new business clusters, with a broad economic multiplier effect due to the improved connectivity of goods and people.
From an investment perspective, Faisol noted that the Aeropolis offers several advantages. Primarily, it benefits from the existing transportation infrastructure, which is well-integrated with adequate road networks.
“Additionally, there is substantial infrastructure support to meet water and electricity needs, which are already well-developed. The development plan should highlight these advantages, as not many areas have such features,” he added.
As a government partner, IAS President Director Dendi Tegar Danianto emphasized that the company has garnered extensive experience over the past five years in the logistics and cargo terminal industries. Currently, IAS manages nine major air cargo hubs and 39 cargo terminals across Indonesia to support the distribution needs of domestic, export, and import industries.
“Air cargo is generally more expensive than land and sea transport. However, for industries that prioritize time sensitivity or require speed, we can cater to those needs. Our pricing is also competitive compared to other countries,” Dendi explained.
To maximize the potential of these air cargo hubs, Dendi revealed that IAS plans to develop an 80-hectare Aerotropolis at Yogyakarta International Airport. This area will include residential units, offices, sports centers, hospitals, retail businesses, warehouses, hotels, and exhibition venues.
“The warehouses will be strategically located with dedicated access to the airport, close to the MICE center for exhibitions, making it a comprehensive area that boosts the economy in Kulon Progo,” Dendi concluded.
