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Viewing cable 06JAKARTA9692, NORTH SUMATRA AIRPORT CONSTRUCTION FINALLY BEGINS

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Reference ID Created Released Classification Origin
06JAKARTA9692 2006-08-02 02:05 2011-08-24 01:00 UNCLASSIFIED Embassy Jakarta
VZCZCXRO7714
OO RUEHCHI RUEHDT RUEHHM
DE RUEHJA #9692/01 2140205
ZNR UUUUU ZZH
O 020205Z AUG 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8157
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHBY/AMEMBASSY CANBERRA 9784
RUEHTC/AMEMBASSY THE HAGUE 3249
RUEHKO/AMEMBASSY TOKYO 9939
RUEHWL/AMEMBASSY WELLINGTON 0976
RHEHNSC/NSC WASHDC
RHHMUNA/USCINCPAC HONOLULU HI
RUEATRS/DEPT OF TREASURY WASHDC
RUEKJCS/SECDEF WASHDC
RUEAWJB/DOJ WASHDC
RHHJJAA/JICPAC HONOLULU HI
RUEKJCS/JOINT STAFF WASHDC
RHEFDIA/DIA WASHDC
RUCXNMC/NATMARINTCEN WASHINGTON DC
RUEAWJB/DOJ WASHDC//ICITAP//
RUENAAA/CNO WASHDC
RUEABND/DEA HQS WASHDC
RHHMUNB/JIATF WEST//J3/J5//
UNCLAS SECTION 01 OF 02 JAKARTA 009692 
 
SIPDIS 
 
SIPDIS 
AIDAC 
 
DEPARTMENT PASS USTR KATZ 
DEPARTMENT PLEASE PASS AID 
USAID FOR ANE/EAA, J. Kunder and R. Cavitt 
Treasury for IA -- Anna Jewell 
NSC for Holly Morrow 
 
From American Consulate Medan # 27, 2006 
 
E.O. 12958: N/A 
TAGS: ECON PGOV EAIR EINT ID
SUBJECT: NORTH SUMATRA AIRPORT CONSTRUCTION FINALLY BEGINS 
 
REFTELS:  (A) 05 JAKARTA 11909 
 
(B) 05 JAKARTA 12138 
Summary 
------- 
 
1.  With a June 29 groundbreaking ceremony, work began on 
the construction of a new airport for North Sumatra at 
t 
Kuala Namu, about 30 miles east of Medan.  The new airport 
will become operational in 2009 with one runway 3750 meters 
long and will eventually expand to two runways of the same 
length.  Traffic volume outgrew Medan Polonia Airport's 
capability, and Polonia's location in the middle of a 
densely populated area precluded expansion and raised 
safety concerns.  Construction of a new rail line and 
highway will facilitate travel to the new airport's 
location.  The new airport should help economic growth in 
the region and spur additional investment.  END SUMMARY. 
 
Work Finally Begun 
------------------ 
 
2.  Overcoming bureaucratic inertia and funding problems, 
Indonesia's airport authority finally began serious 
construction on the long-awaited airport for Medan. 
Indonesian Vice President Josef Kalla, Transportation 
Minister Hatta Radjasa, North Sumatra Governor Rudolf 
Pardede, and other Indonesian and foreign dignitaries 
attended a June 29 groundbreaking ceremony for Medan's new 
aiport, to be located at Kuala Namu.  Although planned for 
more than ten years, until the ceremony the only indication 
of a future airport was a fence around the perimeter and a 
sign announcing the new airport. 
 
3.  The new airport, scheduled to be operational by 2009, 
will be completed in three stages.  First stage 
construction on the fourteen thousand hectare site will 
build one runway 3,750 meters long and 45 meters wide and a 
passenger terminal with capacity to handle 5 million 
travelers each year.  Stage two will see the construction 
of a second runway with the same dimensions and expansion 
of passenger facilities.  The final stage will increase 
parking areas for aircraft and additional passenger 
handling capabilities to manage an anticipated 10 million 
passengers per year. 
 
Old Airport Congested and Dangerous 
----------------------------------- 
 
4.  The existing airport, Polonia, originally opened in 
1928, now sits in the middle of Medan.  Wedged between two 
rivers and hemmed in by residential communities, Polonia 
has no room to expand beyond its 144 hectares.  Designed to 
accommodate 900 hundred thousand passengers annually, 
Polonia handled about 4.5 million passengers in 2005.  The 
overcrowding worsened after a February 2006 fire gutted the 
international arrival terminal. 
 
5.  The proximity of densely populated areas so close to 
the airport raised safety concerns.  The fiery Air Mandala 
crash in September 2005 underscored safety concerns of the 
residents living close to the airport (ref B) and renewed 
calls for action on the new airport.  (NOTE:  Consulate 
Medan is less than one-half mile from the airport, though 
not in line with the direction of the runway.  END NOTE.) 
 
JAKARTA 00009692  002 OF 002 
 
 
The plane barely cleared the runway before crashing into 
the neighborhood directly adjacent to the airport, killing 
44 people on the ground. 
 
Access to New Airport 
--------------------- 
 
6.  Kuala Namu is located nearly 30 miles east of Medan, 
closer to the Straits of Malacca, just off the main highway 
between Medan and Tebing Tinggi.  Given current traffic 
patterns and road conditions, the drive from Medan center 
to Kuala Namu takes over one hour.  Additional traffic from 
airport operations would likely greatly increase travel 
time.  In addition to the construction of the airport 
facilities, GOI envisages a new rail line connecting Kuala 
Namu and Medan in a 30 minute journey and a new toll road 
from Medan to Tebing Tinggi that would reduce traffic 
congestion on the existing roadway. 
 
Not Just Jobs 
------------- 
 
7.  Kuala Namu Airport will be a boon to the economy of 
Medan and North Sumatra.  Vice President Kalla said 
contracts for the airport would be given to local companies 
because of bad experiences with foreign contractors during 
the construction of Soekarno-Hatta Airport in Jakarta. 
Construction work will employ skilled and unskilled 
laborers in the region.  New jobs will be created from the 
increased capacity of the new airport.  Transportation of 
goods to and from North Sumatra will be easier when the 
airport is connected with Medan and the port of Belawan by 
improved rail and road links.  Tourism can benefit from the 
closer proximity of the airport to Lake Toba, the 
province's premier tourist attraction. 
 
Comment 
------- 
 
8.  Medan, Indonesia's third largest city, has long 
suffered with lamentable infrastructure and underdeveloped 
facilities for travelers.  Marriott has begun construction 
of a new hotel in Medan, which is scheduled for opening in 
December 2007.  The new hotel and airport could mark the 
beginning of development in improved accommodation for 
business travelers and tourists, making Medan more 
attractive to further investments.  END COMMENT. 
Pascoe