The construction of a new airport in Kediri, Indonesia has spurred Hyundai Motor Company to expand its operations in the region, highlighting the potential of the nation’s underdeveloped infrastructure.
The facility, which is slated to open in 2021, is expected to significantly boost the economic development of the surrounding areas. This, in turn, has motivated Hyundai Motor Company to invest in the region, as the automaker sees potential to capitalize on the increased transportation links that the airport will enable.
The airport construction project is part of a larger initiative to modernize the infrastructure of Kediri, which has lagged economically in comparison to other regions of Indonesia. The government has allocated an estimated IDR 8.5 trillion (approximately $588 million) for the project, which will span over 1,000 hectares and feature two runways, a passenger terminal, and a freight handling area.
The potential of the airport to facilitate greater trade between Kediri and other parts of the country has enticed Hyundai Motor Company to expand its operations in the area. The automaker has already announced plans to construct a new manufacturing plant and a research center in the region.
Hyundai Motor Company’s decision to invest in the region is a testament to the potential of the project to catalyze the economic growth of Kediri. The airport is likely to facilitate the development of new industries, such as tourism, which could create thousands of jobs in the area.
Though the project is still in its early stages, the prospect of increased industrial activity as a result of the airport’s construction has already transformed the prospects of Kediri, with Hyundai Motor Company being one of the first to capitalize on the potential of the region.