GVK, an India-based conglomerate, is ready to invest US$500 million as part of its commitment to develop the new international airport Kulon Progo, in Yogyakarta, a province in the Indonesian island of Java.

GVK will create a joint venture with Indonesian state-owned airport operator Angkasa Pura I. The project is scheduled to start its development by the end of the year. GVK is currently planning to discuss the duration of the concession with the Indonesian government.  

Kulon Progo international airport will be designed to handle 20 million air passengers per year. The new airport will replace the existing Adisucipto International Airport in Yogyakarta due to capacity problems and limited availability of land around the airport. 

GVK is an Indian conglomerate headquartered in Hyderabad, India. GVK encompasses several primary business sectors such as: Energy, Resources, Airports, Transportation, Hospitality and Life sciences. It is among the largest infrastructure conglomerates in India.

Angkasa Pura I has already been preparing plans for the new international airport for several years. Kulon Progo airport will be the first Indonesian airport that will be constructed without financial aid from the government.

GVK and Angkasa Pura I already teamed up for the modernization and expansion of Ngurah Rai International Airport on Bali (completed in 2013). Here GVK holds a 65 percent stake as airport operator.

Karthi Gajendran, President of Airport Development at GVK, said:

"GVK is convinced the new airport in Yogyakarta will be a lucrative investment as air traffic and air passenger growth in Indonesia is high, particularly provided Indonesia's economic growth will be back above +5 percent year-on-year levels. Gajendran."