GMR launches operations of Medan Airport in Indonesia

Visakhapatnam Angkasa Pura Aviasi (APA), the joint venture company of GMR Airports Limited (subsidiary of GMR Infrastructure Limited) and Indonesia's State-owned airport operator Angkasa Pura II (AP2), on Friday announced that it has assumed the operational charge of the Kualanamu International Airport in Medan, Indonesia (Medan Airport).

The joint venture formally took over the operations of Medan airport in the presence of Budi Karya

Sumadi-Minister of Transportation (MOT), Erick Thohir-Minister of State-Owned Enterprises (MSOE), Edy Rachmayadi-Governor of North Sumatra and Muhammad Awaluddin-President Director, Angkasa Pura 2.

Speaking on the occasion, Srinivas Bommidala, Chairman-Energy & International Airports, GMR Group, said, "GMR Airports Limited is delighted to be part of such a momentous occasion. We would like to take this opportunity to reiterate our commitment to transforming Medan Airport into the western international hub of Indonesia and contributing to the overall infrastructure development of the country. Our participation in the project is in line with Hon'ble Prime Minister, Narendra Modi's 'Look East' policy and President Jokowi's commitment to developing infrastructure in Indonesia."

The Group, which developed Hyderabad and Delhi airports and is in the process of developing Bhogapuram International Airport in Andhra Pradesh, said the development of Medan Airport under the joint venture will lead to further growth in tourism and business activities between India & Indonesia. "This also reinforces GMR Group's credentials as one of the largest airport developers and operators globally," Bommidala said.

With this, the GMR Group has expanded its international footprint. It is the only Indian airport operator with a significant presence in South-East Asia and Europe. At present, GMR is operating the Mactan Cebu International Airport (MCIA) in the Philippines and recently finished the construction of Clark Airport, Philippines. Medan airport would be the second operating asset in the company's portfolio in South-East Asia. The group is also coming up with a Greenfield airport at Crete in Greece (Europe).

GMR Airports Limited had bid for the development and operation of Medan Airport. The international

selection process was conducted by PT Angkasa Pura II to select a strategic partner for Medan Airport.

APII is a state-owned enterprise handling 20 airports in Indonesia.

In November 2021, GMR Airports Limited was announced as the winning bidder. The Shareholders'

Agreement (SHA) and Share Subscription Agreement (SSA) with Angkasa Pura II was signed in

December 2021. With the signing of the agreements, GMR had entered into a 49:51 partnership with

APII.