Sunday, 25 February 2018
Airport Kinesis & PT BIBU: Catalytic Effects of NBIA Existence


More 240.000 Jobs

This is the number of job which will be created by the aerotropolis project and the airport on day to day processing, this numbers take in consideration also the raise of the human development index reaching 0.7 to 0.8, this also will boost the taxation and the country development by creating value to value point and allow north and south america countries to install their facilities in Indonesia to supply asian countries and also to reduce costs.

 

1300 business and More

Expected businesses in north bali area and around North Bali International Airport (NBIA) facilities, this business includes the aeronautical and non aeronautical business and companies, it includes also countries who want and look for a platform to reach easily Asia Pacific and South Asian market.

 

Future Bali Economics after NBIA (Forecast for the north from Infrastructure Economics Intelligence Unit).

•A reduced poverty rate from 4.8% to 2.6% population (by dynamizing job and future employment sector and new touristic gateway)

•An increase of the tertiary and primary sector to reach 17.4% GRDP

•An increment of 3% of the GRDP per capita by balancing the economics

•A macro economic stability balanced by a new regional economic vibrancy

•The provincial Competitiveness Index will be expanded by 24%

•A better quality of life and infrastructure development index surge from 1:10 to 1:30 all depending on development

•of the physical infrastructures, technological infrastructures, Education and Social Stability.

•The standard of living will slightly swell to 3%


For NBIA, the Aviation Sector will be comprised of two distinct type of activities:

• Airlines : Transporting people and freight from the NBIA new airport

• Ground Based Infrastructure: that includes the airport facilities, the services provided for passengers like the automated passangers movers (APM) Train Station for passengers and goods, passenger on site at airports, baggage handling, ticketing, retail and catering, fuel services, and many other, including also off site activities like air navigation and air regulation.

 

The aviation sector will supports the GDP and the employment in Bali, through four distinct channels:

1. Direct which is related to the output and the employment of the private operator and the firm in the aviation sector;

2. Indirect which is related to the output and the employment supported and based on the supply chain (MRO, etc.);

3. Induced employment and output supported by the spending of those directly or indirectly employed in the aviation sector;

4. Catalytic which represent a spillover benefits associated with the aviation sector. Some of these include the activity supported by the spending of foreign visitors travelling to Bali via air, and the level of trade directly enabled by the transportation of merchandise;

 

Denpasar (South Bali area) already actually contribute for 2,2 % of the Regional GDP, from our expectation, NBIA will balance the regional imbalance generating an added value and raise by 2% the regional GDP to reach globally 4 %.

1. From our calculation, we expect 27% of the revenues coming directly through the output of the aviation sector (airlines, airports and ground services);

2. 24% of the revenues indirectly coming through the aviation sector’s supply chain, the MRO and Cargo (shipper’s tax, perishable and non-perishable storage).

3. 13% through the spending by the employees of the aviation sector and its supply chain

4. 17% of the revenues coming directly from Land (renting);

5. 19% of the revenues coming from the catalytic effect and benefits from tourism (including tax revenues, tax, etc...).

Author: Martin Jop
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