6-6-2024 (JAKARTA) In a strategic move to capitalize on the burgeoning aviation market in Southeast Asia’s largest economy, the Turkish airport ground services company Celebi Aviation has announced the acquisition of an Indonesian peer, Prathita Titiannusantara (PTN). This acquisition, valued at 7.5 million euros ($8.2 million), marks Celebi Aviation’s entry into the Indonesian market, a nation poised for “massive” growth in the aviation sector, according to the company’s chief executive.
Speaking in an exclusive interview with Nikkei Asia, Celebi Aviation Group CEO Dave Dorner expressed optimism about the prospects of the Indonesian aviation industry. “The prediction is [that Indonesia] will become the fourth-largest aviation market globally within the next couple of decades,” he stated, adding, “There’s going to be massive growth in Indonesia for international-international or domestic-international connectivity.”
Indonesia, an archipelagic nation spanning over 5,000 kilometers from east to west, boasts a vast network of over 400 commercial airports, including 17 designated for international connections. These airports are operated by the Ministry of Transportation and the state-owned airport operator, Angkasa Pura Indonesia. In 2023, the country’s aviation sector handled an impressive 336 million passengers, a figure expected to soar to 390 million by 2030, according to the Indonesian Civil Aviation Association.
PTN, Celebi Aviation’s newly acquired subsidiary, currently operates at 26 airports across the Indonesian archipelago, including the nation’s busiest, Soekarno-Hatta International Airport near Jakarta, which served 50 million passengers last year, and the Makassar airport in South Sulawesi, a hub for eastern Indonesia that handled 9 million passengers in 2023.
As part of its business strategy for the Indonesian market, Celebi Aviation is eyeing an expansion of PTN’s ground handling services in Bali, capitalizing on the resort island’s planned airport extension. The CEO highlighted the significance of this move, stating, “Bali is a key location for us because the airport is being expanded there.”
The company’s entry into Indonesia coincides with the government’s concerted efforts to promote air connectivity and establish “super hubs” across the country. In 2020, President Joko Widodo announced plans to develop eight major airports into international transit hubs, underscoring the nation’s commitment to bolstering its aviation infrastructure.
Furthermore, the impending completion of the new capital airport in Nusantara, scheduled for July 2024, promises to further enhance Indonesia’s aviation landscape. This state-of-the-art facility is expected to become operational the following month, coinciding with the government’s plans to commence the relocation of some of its functions from Jakarta to the new capital city.
Celebi Aviation, which prides itself as a leader in emerging markets, brings a wealth of experience from operating in diverse regions such as Turkey, Hungary, and India. Dorner emphasized that the company’s resilience and flexibility, honed during the COVID-19 pandemic and in navigating Turkey’s volatile economy, have equipped them well to thrive in emerging markets characterized by inherent volatility.
“This makes us well suited to emerging markets,” Dorner asserted, “as there is a little more volatility than in some other markets.”
