Model of E-Marketing Communication on MICE Destination

over Launching Kertajati Airport

Amirudin

, Heri Setyawan

Business Administration Department, State Polythecnic of Jakarta, Depok, Indonesia

Keywords: aerocity, aetropolis, accessibility, business MICE, leisure

Abstract: The opening of the new airport is a stimulus to improve synchronization and coordination between the

central and regional governments in developing e-marketing communications for MICE (Meeting Incentive

Conference Exhibition) destinations. In short, if tourists feel more satisfied with MICE destinations, they

will be followed by searching for other MICE destinations. Firstly, knowing the readiness of MICE

destinations in order to capture market segmentation and win market positioning strategies. Identifying

whether Majalengka district can align with other cities as MICE destinations after the opening of Kertajati

airport. At last, develop marketing policy and communication strategies to advance Majalengka district as a

MICE destination after the opening of Kertajati airport. Having a model for the development and

strengthening of e-marketing communications for MICE destinations in other cities after the opening of

Kertajati airport by using online and offline-based marketing concepts. Management of data processing on-

line marketing using MS Office software and internet networking. While off-line marketing uses descriptive

statistics (descriptive statistics) with percentage formulaeation analysis then processed and interpreted

descriptively-comparative-qualitative.

1 INTRODUCTION

West Java International Airport (BIJB) is located in

Kertajati Subdistrict, Majalengka Regency, about 68

km from Bandung City, the capital of West Java

province.Meanwhile, business line are conducting

International Airport Business in West Java as well

as building and developing Kertajati Aerocity,

including planning, funding, development,

operations and management, and also

maintainenance too development with the aim to

implement International Airport business in West

Java and sustainably develop Kertajati

Aerocity.Furthermore, the ownership (per December

31, 2017) 97,7% by Pemerintah Provinsi Jawa Barat

and 2,3% PT Jasa Sarana. Authorized Capital

Rp2.500.000.000.000,00 then Issued and Fully Paid-

in Capital Rp808.500.000.000,00. Total Employees

76 people.Question 1: what kind of investment

procedure business MICE model can be applied to

strengthen MICE destinations?Question 2: is there

an airport presence to the welfare of surrounding

residentsaround? The author expected, it has a

model of investment procedure business MICE

fordeveloping and strengthening MICE destinations

in other cities after the opening of Kertajati airport

by using based on aetropolis concepts.According to

But, how we can reach to Kertajati airport? Look at

this map.

According to Shen, aetropolis is a new city in the

airport complex of all arterial road infrastructure,

toll roads and integrated rail network. Aetropolis is

connected to the entire network of traffic needs both

people and goods. This airport is a commercial area,

business, trade, warehousing, finance-banking, hotel,

hospital and so on. Everything that buyers and

sellers need related to flight services is available

here. All aspects of business are connected within

the airport complex so as to facilitate the movement

of people and goods. Radius connected between

connections within the Airport complex takes 20-30

minutes. Inside the aetropolis requires 3 aspects,

namely functional form, spatial form, and

connection or communication. (Flores-Fillol,

Ricardo, Miquel-Àngel Garcia-López, and Rosella

Nicolini, 2016) (Shen, Danyang, and Yunchun Cao.

2016) (Yun, Jieheerah, 2015).

Amirudin, . and Setyawan, H.

Model of E-Marketing Communication on MICE Destination over Launching Kertajati Airport.

DOI: 10.5220/0009869500002905

In Proceedings of the 8th Annual Southeast Asian International Seminar (ASAIS 2019), pages 5-9

ISBN: 978-989-758-468-8

Picture 1: Map of BIJB

Source : PT BIJB

Picture 2: Business MICE

Source : PT BIJB

Question: Are threre any palces for business MICE?

Yes, they are. Kertajati’s airport provide land for

commercial purposes as wide as 672Ha.

2 METHOD

This paper use primarily data and secondary data as

well as observation and the interviewing random

sample. For the secondary data, the author use

Annual Report for analysing and interpreting it.

According to Brown, sustainability reporting

approach to review research on the business MICE

destination. Therefore, sustainability reporting is

believed to be able to present a business perspective

that is more comprehensive, effective, transparent

and integrated in one report format sustainability

reporting and is believed to be able to present a

business perspective that is more comprehensive,

effective, transparent and integrated in one report

format.

(Brown, J., & Dillard, J, 2014) (Cheng, M.,

Green, W., Conradie, P., Konishi, N., & Romi, A.,

2014) (Lai, A., Melloni, G., & Stacchezzini, R.,

2016) (Reuter, M., & Messner, M, 2015). How does

look like Kertajati aerocity? Look at this picture.

The aerocity that will be developed by PT BIJB is

built on 3.480 Ha of land where there are busniess

MICE covering an area of 672 Ha.



(PT BIJB,

Annual Book Report, 2017, 2018) (PT BIJB,

Company Profile, 2017, 2018).



Picture 3: Aerocity at Kertajati

Source : PT BIJB

Furthermore, we analyze the socio-economic

conditions near the airport area related to economic

and trade activities. With the presence of the

aetropolis in the airport complex, land prices in the

region tend to rise. Therefore, commercial

companies, warehousing and private companies

compete with each other for land adjacent to the

aetropolis. So that the use of land is balanced

between the commercial area and the greening area,

it must be regulated by the government so that the

region gets a fresh and healthy

atmosphereAccording to the literature, the concept

of aerotropolis refers to the area surrounding the

airport complex and has been promoted

commercially to revitalize urban areas. However, at

Kertajati airport, this development has not been of

interest to industrial consumers or housing

developers.This paper discusses how to further

promote so that Kertajati airport is in demand by

people and goods who will use the services of both

arrivals and departures. (Shen, Danyang, and

Yunchun Cao. 2016). Thus, this is a business model

of aeorocity at Kertajati airport for those who want

to investment on business MICE. (Public Relation of

PT BIJB, 2018).

1. Letter of Intention (surat perjanjian)

2. Investment/ business proposal (proposal

investasi/bisnis)

3. Evaluation (evaluasi)

4. MoU/Refundable Deposit (nota

kesepahaman/uang jaminan)

ASAIS 2019 - Annual Southeast Asian International Seminar

5. Business Plan Discussion/Feasibility Study &Due

Dilligence (Diskusi Rencana Bisnis/Implementasi

Kelayakan & Uji Tuntas)

6. Design Development (Permits & License)

Perencanaan pengembangan (izin dan lisensi)

7. Joint Venture/Joint Operation/Land

UtilizationAgreementKerangka

Perjanjian/Kerjasama

Operasional/PerjanjianPemanfaatan Tanah

8. Construction/Operation

Konstruksi/Pengoperasian



Picture 4: Investment Prcedure Business Model

Source : PT BIJB

Next opinion,Yun said, Because of the volume of

distribution of goods and the movement of people

using airport services both arrivals and departures,

scientists suggest the formation of cities within the

airport complex. All the facilities needed by a city

should be available in an airport complex such as a

railroad network, toll roads, arterial roads and close

to the seaport. Kertajati Airport, which was

operational two years ago, fulfilled the requirements

for the formation of an aetropolis. (Yun, Jieheerah,

2015).

3 RESULT AND DISCUSSION

According to Wang, firstly:price is the only element

of the marketing mix that contributes to income

(mainly related to product, promotion and place

costs) and influences the financial achievements of

the airport. Secondly, the determination of airport

rates generally aims to cover operational costs and

get funding for development investment,especially

for airports that apply the principle of cost-based in

determining aeronautical rates.Commercial airports

need to review the marketing communication

approach as an effort to introduce and increase the

movement of aircraft, passengers and cargo which

form the basis for revenue for the airport. Moreover,

for airports that will only operate like Kertajati

International Airport, an effective and integrated

approach is needed to market airport services to

potential customers with messages so that customers

can design and implement their respective marketing

goals. (Wang, K. J.; Hong, W. C.

2011).Furthermore, the promotion mix approach

currently used by the company is advertising, direct

marketing, personal selling, sales promotion, public

relations, and social media.For the place aspect, the

company uses a Business to Business (B2B)

approach with airlines (related to passengers and

cargo), airport service providers (such as ground

handling, in-flight catering, aircraft maintenance,

and government-provided services such as air traffic

control, customs, immigration), airport support

services to passengers (such as retail, F & B, parking

vehicles, catering and travel), providers of

commercial areas (such as advertising agents, real

estate), or suppliers (such as construction and

engineering companies). In addition, the airport also

uses a Business to Customer (B2C) approach with

end users or indirect relationships through

intermediaries such as airlines, retail providers, or

real estate agents. Meanwhile, the marketing

strategies adopted by Kertajati International Airport

are as follows:

 Airport Network in cooperation with national and

/ or regional airport groups, such as Seoul

Incheon International Airport, Singapore Changi

Airport Group, Dubai Airport, and others;

Alliance Anchor Hub as the main hub airport for

airline alliance connectivity such as

Singapore,Changi,Tokyo Haneda, and others;

 Airport City/Aerocity development Kertajati

International Airport is synergized with airports

in the world that provide the majority of services

for an urban area without leaving the area;

 Multi-Port Capital Development of aerocity with

strong intermodal connectivity;

 Airports as airport end destinations that provide

retail facilities or service centers for certain

communities;

 Airport Business Traffic that is devoted to

serving business trips (both scheduled and non-

scheduled;

 Airport Low Cost Carrier Base which focuses on

low cost airline services, such as: Kuala Lumpur;

 An airport Air Cargo Platform which is devoted

to meeting the needs of cargo freight operators.

Threrefore, Kertajati International Airport is a

new airport (green field airport) striving to position

itself as The Best Gateway for Business and

Tourism. In order to realize this goal, the Company

uses several approaches such as regional potential by

Model of E-Marketing Communication on MICE Destination over Launching Kertajati Airport

looking at the Regional Economic GDP, cultural and

tourism potential, andsupportgovernment for the

economic development of the region. Furthermore,

In the development of the concept of aerocity

implemented by Kertajati International Airport, the

market share was identified as 3 (three) large groups,

namely: passengers, cargo and aircraft. These three

groups are markets that can guarantee the

sustainability of Kertajati Aerocity's operational

activities. The type of passenger market in question

is the number of passengers at Kertajati Airport,

both domestic and international. This type of market

cannot be separated from the presence of an

introduction and pick-up. Therefore, the passenger

market is the number of passengers, deliverers and

pickers. The cargo market consists of 2 (two) types,

namely domestic and international cargo handled by

Kertajati Airport with the type of cargo carried by

passenger aircraft (belly). The aircraft market

consists of domestic and international aircraft. (PT

BIJB, Annual Book Report, 2017, 2018) (PT BIJB,

Company Profile, 2017, 2018)

After conducting interviews with random sample

and primary data and also analyzing secondary data,

the following facts were obtained. Therefore,

Kertajati Airport is included in the MICE destination

base on 8 criteria:accessibility, destination image,

stakeholder support, places of interest, large-scale

meeting facilities, accommodation facilities,

environmentally friendly conditions, exhibition

facilities, professional human resources (HR).

According to Li, The purpose of this study was to

determine the e-marketing optimization of Kertajati

Airport as a stepping stone for MICE activities in

Majalengka, West Java. The existence of the airport

is beneficial and prosperous for the local

community. Kertajati Airport is the proudest and

second largest airport in Indonesia. The airport was

built based on a feasibility study which stated that

demand for airport services and aviation services

increased rapidly along with the increasing tourism

industry in Indonesia. Therefore, many airports in

other regions in Indonesia are needed. As a result of

the existence of Kertajati airport, the industries that

follow will get multiflyer-effects so that people's

welfare increases. Foreign investors and property are

given facilities so that tax gains will increase rapidly

as well. (Li-Ting (Grace) Yang, Zheng Gu, 2015).

Picture 5.

Looking at the data of the Ministry of Hajj and

Umrah of Saudi Arabia, the public's interest to leave

Umrah every year in the Ciayumajakuning area

continues to increase. For example, in 2015

(117,469 worshipers); 2016 (118,218 worshipers);

and 2017 (140,153 worshipers). The number of

moslem population in West Java province is the

highest in Indonesia, around 41 million or 97%. A

statement from the provincial government of West

Java noted that it needed 1500 flights for umrah per

year. Meanwhile, economic growth 2017= 6.82 %,

investor increase, the population of Majalengka is

increasing 1.2 million. (PT BIJB, Annual Book

Report, 2017, 2018) (PT BIJB, Company Profile,

2017, 2018) (Public Relation of PT BIJB, 2018)



(Bappelitbangda, Kabupaten Majalengka, 2018).

Question: is there any place for leisure after business

MICE activities over?

Yes, they are.Panyaweuyan Terraces, Argapura

district is one of the many people talking about.

The view of the farm's terraces created by

farmers really refreshes this eye!

Argapura Sub-district in this contour hasland

sloping25 to 40 percent. The steep hills with an

altitude of about 400-2000 masl are used by the

people to paddy and garden.Crops that have been

felt and become superior are: leaf onions, rice,

sweet potatoes, shallots, and so on. So, what will

we do? We can invest as soon as possible and as

much as we have.

4 CONCLUSION

MICE business development in the Kertajati airport

area which will become the first aetropolis in

Indonesia depends on integrated road infrastructure

and e-marketing optimization. As a result,

construction, property and housing developers will

grow rapidly both within the airport complex and in

ASAIS 2019 - Annual Southeast Asian International Seminar

the surrounding area surrounding the airport. The

speed of Kertajati airport development depends on

the partnership between the central and regional

governments and the private sector. The Kertajati

airport provides land to build Hotels, Apartments,

Hospitals, Sports & Saunas, Logistics & Carrier,

Lounge, F&B, Duty Free Stores, Biz & Commerce

Centers, Theme Parks, Hajj Embarkation & Umra.

(PT BIJB, Annual Book Report, 2017, 2018) (PT

BIJB, Company Profile, 2017, 2018).

So, the presence of Kertajati Airport's aerocity is

expected to increase the activities of the tourism

industry and public welfare, especially in

Majalengka Regency, West Java. (

Andy Fred Wali &

N. Gladson Nwokah, 2018) (Noelia Sánchez-Casado,

Ilenia Confente, Eva Tomaseti-Solano, Federico Brunetti,

2018).

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Model of E-Marketing Communication on MICE Destination over Launching Kertajati Airport