Indonesia’s Batam Airport to be fourth overseas location for Shilla Duty Free

By Luke Barras-hill |

L-R: IIAC President Lee Hak-jae; Shilla Duty Free Shop Division Manager Kim Tae-ho; PT.BIB President Pikri; and Indonesian Ambassador to Korea Zelda Wulan Kartika .

The Shilla Duty Free (Shilla) has inked a strategic partnership agreement with Incheon International Airport Corporation (IIAC) to open a new duty free shopping operation at Hang Nadim International Airport (BTM) in Batam, Indonesia.

Shilla will begin its business at the airport, which is located in the tourist destination of Batam in the Riau Islands, as early as the first half of next year.

Batam Airport will be the South Korean travel retailer’s fourth overseas location, building on its exciting concessions footprint at Singapore Changi Airport, Hong Kong International Airport and Macau International Airport.

As the only duty free shop operator at Batam Airport, Shilla will exclusively supply major goods such as alcohol, perfumes & cosmetics and tobacco.

“With regard to the new agreement in Indonesia, we are currently preparing for the opening and planning to open next year,” said a Shilla spokesperson.

An official signing ceremony was held this week at Batam Airport, with 11 officials in attendance including those from IIAC, Shilla and PT.BIB, a special local purpose corporation.

Shilla entry expects to spark investment in Batam

“With the signing of this agreement, the corporation expects that once the Shilla Duty Free Shop begins operating at Batam Airport, it will greatly contribute to revitalising the domestic economy, including creating new jobs and generating foreign currency profits,” read a statement.

“In addition, the corporation expects that the opening of the Shilla Duty Free Shop will serve as a catalyst for the advancement of domestic companies into Batam Airport in the future.”

Lee Hak-jae, President of IIAC, added: “In the future, in the process of promoting new overseas business, including the operation of Batam Airport, we will actively promote the national economy by expanding joint ventures with excellent domestic companies and exporting the ‘Korean-style airport platform (K-Airport)’ as a whole.”

Milestone for Shilla: IIAC President Lee Hak-jae (fifth from left) alongside Shilla Duty Free Department Manager Kim Tae-ho (sixth from left), PT. President Pikri (seventh from left), Indonesian Ambassador to Korea Zelda Wulan Kartika (eighth from left) and other officials at the signing ceremony.

IIAC signed a 25-year agreement with the Batam Indonesia Free Zone Authority in December 2021 to oversee Batam Airport’s operations and maintenance.

The large-scale development is South Korea’s first overseas airport operation and construction project.

Shilla ranked in third place in the TRBusiness Top 10 International Operators report with sales of approximately KRW5.95 trillion/US4.76 billion (including 100% of the HDC-Shilla Duty Free JV’s contribution, plus revenue from overseas operations such as the 44% shareholding it holds in 3Sixty Duty Free).

Click here for more on Shilla’s 2022 performance via an interview with Executive Vice President/Sales HQ Younghoon Kim.

Images source: IIAC.

The Americas

Details emerge of JFK T1 commercial programme and duty free tender

Qualified travel retail operators are being invited to participate in a request for proposals...

Europe

Avolta wins nine-year contract for 26 stores at Istanbul’s Sabiha Gökçen

Avolta is growing its presence in Türkiye by securing a nine-year contract for 26 food &...

Europe

Mondelez WTR launches Win a Diamond pop-up with Lagardère at CDG

Mondelez World Travel Retail (WTR) has unveiled an enhanced iteration of its Win a Diamond...

image description

In the Magazine

TRBusiness Magazine is free to access. Read the latest issue now.

E-mail this link to a friend