Dhoho International Airport (DIA) in Kediri, East Java, recently began commercial operations after facing delays and cost overruns. The airport was funded by Surya Dhoho Investama, a Gudang Garam subsidiary, with an investment of approximately 14 trillion rupiah. Originally projected to cost less than 10 trillion rupiah, the airport’s opening was delayed from last October. Surya Dhoho president director Istata Taswin Siddharta expressed confidence in the airport’s potential to benefit the development of the southern part of East Java.
Citilink Indonesia will be the first airline to offer round-trip flights from Jakarta to Kediri, operating twice a week with an Airbus A320 that can accommodate 180 passengers. DIA is designed for both domestic and international flights, featuring a 3,300-meter-long runway that can accommodate wide-body aircraft. The terminal’s initial capacity is 1.5 million passengers per year, with the potential to increase to 10 million annually based on traffic growth. Despite the promising infrastructure, analyst Brendan Sobie raises doubts about the airport’s ability to attract significant traffic due to its location and lack of rail access, referencing the struggle faced by Kertajati Airport in West Java.
Gudang Garam, a Kediri-based company, has been diversifying its business portfolio in recent years to offset declining cigarette sales, driven by government efforts to reduce smoking through increased taxes. The company’s revenue decreased by 4.6% to 118.9 trillion rupiah in 2023. Founded by Surya Wonowidjojo’s father in 1958, Gudang Garam saw leadership transition to Wonowidjojo’s late older brother in 1983, who managed the company until his passing in 2008. Wonowidjojo currently serves as the company’s president director, with his sister Juni Setiawati as president commissioner and his son Indra Gunawan as vice president director. The family ranked 16th on Indonesia’s 50 Richest list in December, with a net worth of $3.6 billion.
The completion and opening of Dhoho International Airport mark a significant milestone for Kediri and the surrounding area, with hopes for economic development and increased connectivity through air travel. While challenges in attracting airlines and passengers are anticipated, the airport’s facilities and potential for expansion offer promise for future growth and improved transportation options. The involvement of Gudang Garam in the project reflects the company’s strategic diversification efforts amid changing market conditions and government regulations aimed at reducing tobacco consumption. With Gudang Garam’s long-standing presence in Kediri and Indonesia, the success of Dhoho International Airport could further contribute to the company’s business diversification and overall growth strategy.
