Indonesian State-owned airport operator PT Angkasa Pura II is set to spend $1.36 billion on transforming Jakarta's Soekarno-Hatta International Airport into an aerotropolis by 2014.

The proposed project to revamp the airport includes expanding the current Terminal 3 in the first stage, followed by Terminals 1 and 2.

According to local reports, when completed the new gateway will have additional parking spaces for 20,000 vehicles, a convention hall, a shopping centre, a new hotel and various recreational facilities.

Construction on the project is due to begin early next year and will be funded entirely by the airport operator and national banking funds.

During the project launch in Jakarta on Saturday (23 July), Laurensius Manurung, finance director at PT Angkasa Pura II said: "We will use AP II's internal cash of around $1.36 billion and national banking funds. We could probably issue bonds as well.

Salahudin Rafi, engineering operations director at PT Angkasa Pura II, said that the operator would develop an environmentally friendly airport with traditional Indonesian touches, adding that the gateway would "be transformed into an aerotropolis" .

Soekarno-Hatta International Airport already handles more passengers than it has the capacity for and is in need of expansion.

Tri Sunoko, president director of PT Angkasa Pura II, said that the expansion would be undertaken "to anticipate the airports' development for the next 20 years as the number of passengers it currently handles has exceeded capacity" .

The airport currently serves 44.3mppa, more than double its capacity of 22mppa. 

According to reports, Sunoko said that with the expansion the airport would be able to accommodate 62mppa by 2018.

Meanwhile, a fourth terminal to boost the airport's capacity to 87mppa will be built after the current construction project has been completed.