Kediri. Chief Investment Minister Luhut Binsar Pandjaitan and Transportation Minister Budi Karya Sumadi officially inaugurated the Dhoho Kediri International Airport on Friday. The airport, covering over 300 hectares and capable of serving 1.5 million passengers annually, is set to enhance connectivity in East Java and serve as a vital hub for both domestic and international travel.

The airport was financed by tobacco giant Gudang Garam through Surya Dhoho Investama under a Public-Private Partnership (PPP) scheme.

Luhut shared that he received initial reports from his deputy, Septian Hario Seto, regarding Gudang Garam's intention to build an airport in Kediri. Following this, he discussed the proposal with Budi Karya Sumadi to further explore the project.

"I asked Mr. Seto to calculate the investment for Dhoho Airport. Honestly, this investment was not profitable, as it was estimated at around Rp 12 trillion ($775 million) four to five years ago," Luhut said.

Luhut then directly approached Gudang Garam’s CEO, Susilo Wonowidjojo, to inquire about the commitment to the investment. "I was puzzled why he wanted to invest Rp 12 trillion here. I asked him several times, and he insisted that this was actually the government’s duty, but he wanted to proceed. Eventually, we assisted him and Mr. Budi with the airport management," he explained.

The Dhoho Kediri Airport is the first airport in Indonesia to operate under an unsolicited PPP scheme, originating from the private sector initiative with full government support. 

Luhut emphasized that the airport would greatly benefit the regional economy. The modern facilities will create new job opportunities, enhance community income, and position Kediri as a new economic center in East Java. "With the access toll road currently under construction, this airport will facilitate mobility for residents and the distribution of logistics in southern Java," Luhut added.

Minister Budi Karya Sumadi affirmed the government's commitment to ensuring the continued development of Dhoho Kediri International Airport. He noted that a toll road connecting Kediri to surrounding areas would soon be operational. "We hope Dhoho Kediri International Airport will become the second airport after Juanda Surabaya to serve hajj pilgrims for both Umrah and Hajj. We will coordinate with relevant parties to establish hajj dormitories and hotels for Umrah and hajj pilgrims, aiming for the airport to start serving Umrah pilgrims by the end of this year," said Budi Karya Sumadi.

Since launching flights in May, two airlines, Citilink and Super Air Jet, have been operating routes between Kediri and Jakarta, as well as Kediri and Balikpapan. Other airlines, including Lion Air, Batik Air, and AirAsia, are actively communicating to fill slots and establish routes at Dhoho Kediri Airport.

According to the Central Statistics Agency (BPS), in August 2024, the number of foreign tourist arrivals at Juanda International Airport in East Java reached 38,587, a 51.04 percent increase from 25,548 visits in August 2023.  Cumulatively, from January to August 2024, East Java recorded 222,078 foreign tourist arrivals, up 77.33 percent from 125,236 visits in the same period of 2023.