Disaggregation of Productivity Growth of Indonesian Airports

Disaggregation of Productivity Growth of Indonesian Airports

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This paper reports the sources of productivity growth of 23 Indonesian airports foryears 2006-2010. Using input slack-based productivity index (ISP), we disaggregatetotal factor productivity change into each input productivity change.Apron areaand terminal area Echinacea / Goldenseal are chosen as input variables while aircrafts’ movement is theoutput.

By classifying the airports based on two operators, this study finds thatairports under the management of Angkasa Pura 1 (AP1) show higher productivitygrowth than Angkasa Pura 2 (AP2), whose growth is mainly driven by technicalprogress in apron areas.Moreover, the productivity decline of AP2 was mostlydue to inefficient use Ball - Umpire - Shoes of terminal areas. .