Indonesia considers merging airport operating companies Angkasa Pura I and Angkasa Pura II

It has always seemed a little strange that where Thailand, Malaysia and Vietnam each have one main organisation to manage their airports, Indonesia has two. There may be historical reasons for it, but they are increasingly anachronistic.

API manages 15 airports across Indonesia and APII manages 20. Both are wholly state-owned enterprises under the Indonesian Department of Transport.

API is responsible for the operation and development of certain airports in central and eastern Indonesia, while APII focuses on airports in the west of the country.

Now there is talk of merging them, essentially to improve operational efficiency. In the past the government has considered an IPO on each of them as well as a variety of public-private deals and foreign investments, with the air transport industry as a whole recovering.

But while the government is pondering that, this might be the time to give serious consideration to a scheduled set of auction tranches to attract concessionaires.