Minister Erick Thohir Assures No Layoffs as Angkasa Pura I and II Merged

TEMPO.CO, Jakarta - SOE Minister Erick Thohir officially inaugurated the merger of state-owned airport operators PT Angkasa Pura (AP I) and PT Angkasa Pura II (AP II) following successful integration. He assured that there would be no layoffs or reductions in the workforce due to the merger.

The two companies have now formally united into a single business entity, named PT Angkasa Pura Indonesia or InJourney Airports. “There is no question of layoffs; instead, we are focused on development and the integration of 37 airports into a unified service system,” stated Erick at the merger inauguration ceremony at the InJourney Airports office in Sarinah, Jakarta, on Monday, September 9, 2024.

During the event, he highlighted his previous achievement of merging four port companies PT Pelabuhan Indonesia (Pelindo) into a single Pelindo entity without any job losses. He emphasized that the merger resulted in increased efficiency and exceptional outcomes.

With the merger of PT Angkasa Pura, the minister aims to transform its business model. Management will adopt best practices from international airports, such as Singapore, which not only focus on transportation but also cultivate comprehensive ecosystems. The goal is to expand revenue beyond traditional aircraft services and generate significant non-aero revenue.

“We will enhance our business model to drive growth in both aviation and non-aviation revenue, as demonstrated by current successful practices,” said Erick.

In alignment with Erick Thohir, InJourney Airports President Director Faik Fahmi reaffirmed that there would be no employee reductions as a result of the merger. He emphasized that the merger is intended to expand and strengthen the company, rather than diminish it. “We are not reducing the number of employees or their benefits,” he stated at the same location.

Fahmi explained that the merger might involve adjustments in workplace locations. However, he emphasized that the potential for employee career advancement would be broadened. While acknowledging the need for streamlining and simplifying service procedures, Fahmi noted that regulations and bureaucracy would be reduced from 1,400 to 96.Although he did not provide specific details on the implementation process, he assured that governance would be simplified.

“Previously, we utilized various systems at airports that were not integrated. In the future, we will streamline these systems into just three: Airport Technology, Terminal Technology, and Enterprise Technology,” Fahmi explained.

Ilona Estherina

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