INDONESIA. The Shilla Duty Free has signed a partnership agreement with Incheon International Airport Corporation (IIAC) to open a duty free store at Batam Hang Nadim International Airport in the first half of next year.
IIAC struck a 25-year agreement with the Batam Indonesia Free Zone Authority in December 2021 to oversee Batam Airport’s operations and maintenance.
Shilla will be the sole duty free retailer at the airport, which serves tourist destination Batam, the largest city in the Riau Islands in Indonesia. The offer will include all key categories, including spirits & wines, tobacco and perfume & cosmetics.
The company told The Moodie Davitt Report that it is currently preparing for the opening and will reveal details in due course.
The Batam Airport opening will be the retailer’s fourth entry as a duty free retailer in an airport outside South Korea, with other operations at Singapore Changi, Hong Kong International and Macau International airports.
IIAC said: “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.
“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.”
Incheon International Airport Corporation President Lee Hak-jae said: “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’ as a whole.” 
