Airport

Introduction

The organization under review in this report would be PT. Angkasa Pura II, a government owned company in Indonesia who operates as an airport operator for airports in Western part of Indonesia on both aeronautical and non-aeronautical segments.

PT. Angkasa Pura II itself is a government owned company that has unique feature as it is directly operated under the Ministry Public Owned Enterprises but supervised by Directorate General of Civil Aviation (DGCA) under the Ministry of Transport.

It was established on 13 August 1984 as Jakarta Cengkareng Airport Corporation to operate the then newly built Soekarno-Hatta Jakarta International Airport and Halim Perdanakusuma Airport, both serving Jakarta. It then changed to its current name as PT Angkasa Pura II in 1986 and expanded to operate main airports in various cities in Western Indonesia on Jakarta FIR (PT. Angkasa Pura II, 2008).

Unlike in many developed countries where usually a single company manages individual airport, PT. Angkasa Pura II manages all airports in major cities that falls in the Jakarta FIR as shown on picture below.

Environment

One of the main public attention to the organization right now is how it could reach or maintain high level of investment in equipments to enhance safety as a result of the recent blip at Indonesia’s biggest airport at Soekarno – Hatta International Airport in Jakarta where the radar was off for certain period of time, causing delays, chaos both in the air and airport as well as safety risk. Luckily, there was no accident in that incident although it has caused a lot more of attention to the organization in which its ability to procure or maintain its equipments or systems, mainly in the Air Traffic Services division came into question.

Certainly the problems root in various environment factors such that not all of the airports it operate are profitable and hence often its profit could not be used wisely on securing procurement or proper...