Jakarta. Cigarette company Gudang Garam (GGRM) has invested Rp 300 billion ($19.26 million) into its subsidiary, airport operator Surya Dhoho Investama (SDHI).

Heru Budiman, Gudang Garam's Corporate Secretary, said Thursday that this capital increase aims to bolster the operational activities of Dhoho Airport in Kediri, East Java, which is developed by Gudang Garam through SDHI.

According to Heru, SDHI has issued 300,000 new shares, each with a nominal value of Rp 1 million, all of which were acquired by GGRM.

As a result of this investment, SDHI's capital has risen from Rp 14 trillion to Rp 14.3 trillion. Gudang Garam now holds a total of 14,299,999 shares, valued at Rp 14.29 trillion, while Surya Duta Investama retains one share worth Rp 1 million.

The Dhoho Kediri International Airport was officially inaugurated last Friday by Chief Investment Minister Luhut Binsar Pandjaitan and Transportation Minister Budi Karya Sumadi. This Rp 12 trillion airport, spanning over 300 hectares and designed to accommodate 1.5 million passengers annually, aims to enhance connectivity in East Java and become a hub for both domestic and international travel.

Financed by Gudang Garam under a Public-Private Partnership (PPP) scheme, the airport is the first in Indonesia to utilize an unsolicited PPP model, with funding and initiative coming solely from the private sector, thus avoiding the use of the state budget.

Since its inaugural flight in May, two airlines—Citilink and Super Air Jet—have been providing flights between Kediri and Jakarta, as well as Kediri and Balikpapan.

Additionally, several other airlines, including Lion Air, Batik Air, and AirAsia, have shown significant interest in establishing routes at Dhoho Airport.