FIELD VISIT TERMINAL 3 ANGKASA PURA II

SOEKARNO HATTA AIRPORT

OPERATION MANAGEMENT – MM5004

Syndicate 6 – BLEMBA 16
10/22/2014

Mario Nurdianto (29114066)

Muhammad Ihsan (29114031)

Muhammad Rifai (29114057)

Nugrahaeni Puspitasari (29114034)

Paul Mangiring GPB (29114035)

MBA ITB JAKARTA 2014

FIELD VISIT TERMINAL 3 ANGKASA PURA II SOEKARNO HATTA SYNDICATE 6 on October 22, 2014

Table of Contents
1. Organization Profile ...................................................................................................... 1
2. Brief Summary of The Project Management and Flow Chart ..................................... 4
3. Major Challenges / Problems ....................................................................................... 4
4. Critical Assessment of The Project Management Brief .............................................. 4
4.1. Current Project Being Managed To Meet Certain Aspect ..................................... 5
4.2. The Important Competitive Priorities ....................................................................5
4.3. Management Performance / Efforts ..................................................................... 6
4.3.1. What Management Has Done / Is Doing To Deliver The Performance ................. 6
4.3.2. Are They Successful? .......................................................................................... 6
4.4. Problems ............................................................................................................. 6
4.4.1. Outline Any Existing Problems ............................................................................. 6
4.4.2. Identify The Potential Cost of This Problems ........................................................ 6
4.5. Strategy .............................................................................................................. 6
4.5.1. What Strategy Chosen To Improve The Situation ................................................ 6
4.5.2. Why and What The Potential Impact .................................................................... 6
4.5.3. Are There Any Potential Difficulties in Implementation ......................................... 6
5. Conclusion and Lesson Learn...................................................................................... 4
6. Bibliography .................................................................................................................. 4

Appendix .............................................................................................................................. 4

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REVITALIZATION AND OPTIMIZATION SOEKARNO HATTA

INTERNATIONAL AIRPORT

FIELD VISIT REPORT TERMINAL 3 ANGKASA PURA II

Mario N, M. Ihsan, M. Rifai, Nugrahaeni P, Paul MGPB

Abstracts

Soekarno-Hatta International Airport currently served 40 million passengers while its

maximum capacity is 22 million. SHIA used two airport terminals, Terminal 1 and Terminal 2, to
serve passengers from and to Jakarta. This condition makes SHIA one of the busiest and the
crowdest airports in the world. To solve this problem, PT Angkasa Pura II, decided to build
another airport terminal, Terminal 3, to increase SHIA’s capacity. Terminal 3 is part of the SHIA
long term plan to have 4 terminals. When terminal 3 has completed, SHIA will have 20 million
extra passengers capacity.

Terminal 3 is part of Angkasa Pura II development for SHIA. PT Angkasa Pura also has
others plan to optimize SHIA. The plans are optimize runway 1 and runway 2 so airplanes
movement in the runway will not take time too long, build a new cargo village, and build an
integrated building to integrate SHIA Terminals and connect this building with a train station, bus
station, mall, and hotel.

Building a new airport terminal in a fully operated airport is not an easy task. PT
Angkasa Pura 2 has to make sure the process will not affect SHIA operation in operating
existing terminal. One of Angkasa Pura II decisions that affected the operation of SHIA is the
closing of M1 Road. The closing of the road created traffic jam in SHIA. Passengers need to
leave early from their house or hotel to catch their flight.

Angkasa Pura II divided the project in Terminal 3 into two phases. The first phase had
completed in September 2014 and its second phase was planned to be completed in July 2015.
To make the project finish faster, Angkasa Pura II decided to build Terminal 3 using Design-
Build Method.

Key words: Project Management, Terminal 3 Soekarno Hatta Project, Design Build.

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1. ORGANIZATION PROFILE
Angkasa Pura II is the one of the State-Owned enterprise in providing airport service

in western part of Indonesia, including Soekarno Hatta airport, which is the largest

airport in Indonesia. Currently, Soekarno Hatta airport has Terminal 1 which is

dedicated for domestic airline, Terminal 2 which servicing the international and national

flight, and the latest is Terminal 3, in current phase, dedicated for a low cost carrier

airport terminal. Development of Terminal is still continuing as large project to handle 20

million passengers as its capacity.

Figure 1 Angkasa Pura II Organization Structure

In reference to the Decree of Board of Directors number KEP.01.01/11/2012.2 on

the changes on management structure, duties transfer of board of director members,

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and the appointment of Board of Directors of Angkasa Pura II dated November 28,

2012, below is the organization structure of Angkasa Pura II.

In the purpose of the Terminal 3 development, Angkasa Pura II established

project management team under Director of Airport Development and Technology

Figure 2 Project Management Unit

Director of Airport and Technology supported by 3 function: Airport Structure and

Environment, Airport Development, and Technology Development. The organization is

also supported by 3 Project Management Unit. The project management organization

was established to be more focus on the development organization structure

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Figure 3 Project Implementation Unit

2. BRIEF SUMMARY OF THE OPERATION

The operation in Terminal 3 ultimate project is focus on Total Quality

Management, which may defined as managing the entire organization so that it

excels on all dimensions of products and services that are important to the

customer 1. It has two fundamental goals:

 Careful design of the product or service

 Ensuring that the organization’s system can consistently produce the design

Management structure implemented in this Terminal 3 project is also

implemented management concept by George R. Terry, defines management as a

process consisting of planning, organizing, actuating, and controlling, performed to

determine and accomplish the objectives by the use of people and resources.

1
Operation and Supply Chain Management Chase and Jacobs 13E

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Figure 4 Terminal 3 Management Structure

Planning and Controlling activity is under the responsibility of Director of Aiport

Development and Technology as the top manager. In the beginning, managers think of

their actions in advance, as planning activities, and in the end of cycle activities, they

attemps controlling, to ensure there is no deviation from the norm or plan.

Project Management Unit (PMU) is organizing the project, coordinate the human

and material resources of the organization. PMU is asssisted by administration project

manager, and supported by three manager, in program project, engineering project, and

finance project.

Actuating is the motor which encourage all resources perform each duties as set

in the plan. This special team called Project Implementation Unit (PIU), which has clear

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structure with specific job and not treated as not treated as additional role for the

primary job. PIU consist of program project officer and site project officer

Work Method

Five agenda which be Angkasa Pura II focus in developing Soekarno Hatta Airport are:

a. Runway 1 and 2 optimization to increase the capacity

b. New Terminal 3 development and Terminal 1 and 2 revitalization

c. New cargo village terminal development

d. Development of supporting facilities, such as business area, commercial area,

and also the accesabilty

e. Integrated Building Development connecting Terminal 1 and Terminal 2, with one

stop service and multi function building, It will also have railroad station which

linking downtown and airport, inter-terminal connected transportation, bus

terminal, shopping mall, hotel, parking area.

Terminal 3 Ultimate Project implements the Design-Build method instead of

conventional method, works under a single contract, thereby integrating the role of

designer and constructor. Rather than split the work into two contract, as the practice in

conventional method, in the design build method avoid the conflict usually happens

between the designer and the contractor since it is single point of responsibility,

complete the project faster, minimize the change order, and more efficent.

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Figure 5 Conventional Method vs Design Build Method

During year 2013, Soekarno Hatta International Airport (SHIA) is 10th busiest airport in

the world2 with total passengers of 59.7 million total passengers based on Airport

Council International

Basic policy concerning decisions on project content

1) Basic policy of the study :

Respective master plans drawn up by AP-II and the Directorate General Civil Aviation (hereafter,
DGCA) have not been coordinated; rather, the two master plans stand as independent, parallel
documents.

2) Forecast for demand and airport capacity

2
http://en.wikipedia.org/wiki/World's_busiest_airports_by_passenger_traffic

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Plans for a new airport are being considered for 2017 onwards when the demand for air travel can
be expected to exceed 60 million passengers annually but at this stage the plans are still in a state
of flux. Therefore, this study will remain within the parameters of annual passenger numbers to a
maximum of 60 million with the use of two runways

3) Analysis of revenue structure and identification of management issues

Therefore, it is believed that there is significant room for improvement. In specific terms, there is
a need for increase in space available for leasing following the expansion of the terminal
buildings, improvement in the quality of shops and inclusion, as customers, of those visitors to the
airport who at present are unable to enter the terminal buildings when they send off or meet
passengers

4) Goal setting and basic policy for the expansion project

a) Goal setting for the expansion project

b) Basic policy for the expansion project

c) Basic policy for commercialization of the project

3. The Major Challenges and Problems in Managing Terminal 3 Ultimate Project

During the project execution, there some challenges and problems facing, especially

regarding to the inconvenience occurred around area of the project. The needs of

expansion and upgrading the capacity, while in the same time, the airport is also still

serving on requirement, as consequence, the airport must contend with the following

condition:

 Congestion in terminal building

 Congestion on the apron

 Congestion in airport parking lots

Traffic jam always happens in the SHIA area, especially when in the rush hour.

Previously, for the domestic flight, which need 1 hour check-in prior the flight,

passengers can go from Jakarta downtown two hour before the flight. Now they need

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and highly suggested to go 1 hour earlier, or 3 hours before the departure time to avoid

trapped in the traffic jam

There also problems related to stakeholders, especially local government of

Tangerang district, which impact to project completion, since the access road nearby

the airport is very crowded. The importance of considering the ultimate goal should be

supported by the authority to create regulation in line with the project development,

instead of contrary to it.

4. CRITICAL ASSESMENT OF THE OPERATIONS PROCESSES

4.1 How the current operations being managed to meet certain aspects in the

strategy map perspectives

The expansion project in the final result is expected to accommodate 25 million

passenger per year, increase from current capacity of 4 million passenger. The

development is carried out by the consortium of Kawahapejaya Indonesia KSO, which

consist of PT. Wijaya Karya Tbk, PT. Waskita Karya Tbk, Hyundai, PT. Pembangunan

Perumahan Tbk, and PT. Jaya Teknik, with total worth of Rp. 4.7 trillion budget

As of mid-May 2014, PT. Angkasa Pura (AP) II has declared that Terminal 3

expansion and development project of Soekarno-Hatta International Airport has reached

about 31 percent of completion. To meet the certain aspects, the project is managed in

below activities:

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 In the first phase, the project is scheduled for completion in September 2014.

There is package of work which covering the completion of the domestic

terminal, domestic concourse, parking area, and overpasses for departures and

arrivals.

 The second package will include the international terminal, international

concourse, parking area, and VVIP building, which set to be completed in July

2015.

Director of Angkasa Pura II Try Sunoko explained as of February 25, 2014, the

construction progess in the end of February is 16.05%. Added by by Daryanti,

Corporate Secretary of Angkasa Pura II, in the end of April 2014 the progress is already

reached 25-26 percent of completion, and by the middle of June 2014, its completion

has reached 31 percent. The terminal 3 ultimate project, including the apron, is planned

to be finish in the end 2015.

Bellow is the strategy to meet the certain aspect in strategy map perspective

One Thousand Workers

The project is involving about 1,125 workers in various types of work, comes

from 5 contractor PT WIKA, PT. PP, PT. Waskita Karya Tbk, PT. Jaya Teknik, and

Hyundai.

Twenty Four-Hours Operation

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The operation consist of 3 shift, which each shift is eight hour, to support 24

hours operation. Accommodation for workers is located nearby the project, and there is

a transportation provided to assist workers go to the project location in batch. This

amenities is also to ensure each shift can start and finish the operation in the punctual

time.

The Manager of Project Commercial in Terminal 3, Mr, Tumbur is optimistic the

construction project of phase I can be finished in September 2014, even though in the

last rainy season, the project faced some problems. The workload was decrease and

must stop if it was the outdoor job when it was raining, but the strategy is shifting

directly and concentrate to the basement finishing job.

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Figure 6 Construction Activities

Four Gate Operation

When phase I is accomplished, Terminal 3 will have 4 (four) gate with 8 (eight)

aerobridge, an aisle connected the gate directly to the plane. The entire of terminal 3

will have 24 gates with 40 aerobridge. In most current practice, passengers directly

walk from gate or taken by airport bus to the plane and then take the stair to enter the

plane. Only international flight or national flight served used aerobridge, even it is also in

limited number

All the facility in phase I will be ready in January 2015, after that contractor will renovate

the Terminal 3 old building with estimation 6 months completion. Angkasa Pura II

claimed the development of Terminal 3 Ultimate has reached 60% as of October 2014.

The rest of 40% will completed until July 2015

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4.2. The Important Competitive Priorities

Terminal 3 Project is reflection how PT. Angkasa Pura II operates through its vision and

mission. Its visions are:

 To become leading and professional world-class airport management company

and

 To achieve its vision, Angkasa Pura II committed to implement a holistic and

gradual transformation for the first 5 years

Figure 7 Gradual Transformation

In line with the vision, there are priorities in developing the Terminal 3 Ultimate Project

 Terminal 3 Project is the first development phase, prior continue to other

development plan, This is to ensure that there is minimal risk will be impact to

the main airport services

 Railway Connection between Airport and Jakarta downtown

In the downtown, Manggarai train station will be first point of the station to the

airport. The advantages are bigger capacity other than other public

transportation, fast, energy saving, and environmental friendly.

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 Monorel Serpong – Airport

This route will serve the passengers from area of Tangerang and South

Tangerang district

4.3. Management Has Done and Is Doing To Deliver The Performance

Management and the organization, including PIU and PMU set the plan at first

stage. The plan is defined more the detail with some number of measurement as below

Target for achievement :

 Area: 361,000m2 (September 2014: 95,000m2 +

35,000m2 for parking)
 Car park: 2,400 units
 Passenger gates: 28 gates
 Total capacity: 25 million passengers per year
 Operational target: September 2014 (partial
operation) and July 2015 (project completion)

The project is performed by the consortium Kawahapejaya Indonesia KSO which

consist of Wijaya Karya 37 percent, Waskita 33 percent, Pembangunan Perumahan 8.5

percent, Jaya Teknik 5 percent, and Hyundai 15 percent. It also changed the work from

the conventional method to the design build method, put the contractor in single-point

responsibility to design and also build. The advantages is lower spending in overall, and

the project can be finished faster, reflected in the first stage of development of Terminal

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3, when the target for ground breaking is the same time with the inauguration of

President Republik Indonesia.

Below is the Soekarno Hatta Airport development project with each phase of work define

TARGET

Phase 1 Phase 2 Futuristic

The domestic terminal, The international Continue with the revitalisation

domestic concourse, parking terminal, international programme of Terminal 1 and
area, and overpasses for concourse, parking area Terminal 2
departures and arrivals and VVIP building

Key Performance Indicator (KPI) is utilized as measurement tools for the project

implementation. The target of completion is 850 days since the contract signed. The

work scope for consortium includes the Detail Engineering Design (DED) and

Construction (Design-Build) on main building terminal, access road, and the parking

area. As stated by Yudis Triawan, Manager of Relation and Protocols of Soekarno-

Hatta airport, the progress has reached 60% of completion, including the building and

road infrastructure.

Monitoring performance in detail, there are regular meeting held with all

members of consortium, regular meeting with the owner, take immediate action with

amendment if any disputes or changes as BPK approval and or others financial

government related. Material purchasing is also well prepared, if it is long lead item, the

material will be purchased soon to avoid the price fluctuation. The payment process are

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done as soon as the document is complete, to ensure the cash flow in line with

spending schedule.

4.4 Outline any existing problems in the operations and identify the potential

causes of these problems

The problems occurred during the project execution, from internal project itself, and also

from external factors, such as the social impact, which can be identified in below list

Internal

 A lot scope of work changes in Design and Build, with potential budget target of

Rp. 4.7 trillion will be over

 Potential of accident since there are parallel work done in the same area in the

same time.

 Unstable electrical supply, including the lighting is the obstacle for interior work

and also the construction work that really depends on the electrical power.

External

 Dispute on the area of 320 hectare in airport expansion, is postponed until clear

and certain decision about Tangerang regency and Tangerang city border

 Traffic jam in M1 area, impacted the delay for material delivery since the delivery

truck used the same access road with public.

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4.5. What strategy you choose to improve the situation? Why and what be the

potential impact? Are they any potential difficulties in implementation?

Potential Impact Potential Difficulties in

Problem Strategy
Implementation

Dispute on 320 Changes the Delay on construction Some obstacles in

hectare area in the development area to work implementation due to approval
airport expansion other area first, until the needed from central
plan dispute of city border is government and local
clear government
.

Many changes on Additional budget Higher overall budget none

plan contingency for the and construction to
potential changes delay

Parallel work done in Risk assessment is Construction work none

the same area performed to minimize delay
potential risk

Traffic Jam in M1 Traffic engineering and Delay on material none

area management to avoid delivery, which impact
traffic jam especially in on construction
peak hour progress

Unstable electricity Electricity generator Delay on works that none

supply back up need electrical supply
such as in
construction, also in
interior works which
need lighting. The
project is 24 hours
operation

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5. Conclusion and Lesson Learn

1. Design and Build are very good to speed up the construction and reduce cost

2. Budget Plafond (Rp. 4.7 trillion) should be decide first before start the operation

to avoid any increase the budget.

3. Design and Build avoid scope creeping

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6. Bibliography

Itochu Corporation, Shimizu Corporation, Jap n Airport Terminal Co., Ltd, Nikken Sekkei
Ltd, Nikken Sekkei Research Institute, Japan Economic Research Institute Inc. 2012, Study
on Soekarno Hatta International Airport Expansion and Upgrading Project in Jakarta in The
Republic of Indonesia.

Jacobs, F.R., and Chase, R.B. 2010, Operation and Supply Chain Management 13E, Mc
Graw Hill, New York.

Nugroho, E.A., 2014, “Infrastructure and Transportation.’ Investor Daily, 16 May, p. 25.

4 december 2013 World Construction Network

Tempo 18 Maret 2013

Press release Wijaya Karya 26 February 2013

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Appendix

Exhibit 1

Passengers by Year

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Exhibit 2
Operational Highlight

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