Strategy for Optimizing Idle Land to Increase Non-Aeronautical Revenue: A SWOT and VRIO Approach

The decline in air traffic at Adisutjipto Airport, Yogyakarta, following the opening of Yogyakarta International Airport calls for revenue sources that do not depend on passenger volume. This study analyzes the existing condition of idle land, the internal and external factors influencing its optimization, and the company’s resource advantages, and then formulates a strategy for optimizing idle land to increase non-aeronautical revenue. A descriptive qualitative approach was employed in a single case study of the 4,945 m² Babarsari idle land owned by PT Angkasa Pura Indonesia, Adisutjipto Yogyakarta Branch Office. Primary data were obtained through semi-structured interviews with nine purposively selected informants; secondary data came from the partner selection document and the highest and best use (HBU) study. The data were analyzed through reduction, display, and conclusion drawing using weighted strengths, weaknesses, opportunities, and threats (SWOT) analysis, value, rarity, imitability, and organization (VRIO) analysis, and a value creation assessment. Data trustworthiness was tested through triangulation, member checking, and an audit trail. The results show that the land has clean and clear legal status, that the company’s strategic position lies in SWOT Quadrant I (+0.88; +1.68), and that four of the six resources generate sustained competitive advantage. Corporate reputation and the stakeholder network have not yet been utilized because organizational readiness, particularly specific regulations for land outside the Airport Master Plan (AMP) and communication with the community, is still being developed. The sports center alternative with integrated commercial facilities ranks highest on four of the five value creation indicators, although its net present value is lower than that of office space. These findings indicate that strategy selection depends not only on financial performance but also on organizational readiness and stakeholder relationships. Actual revenue realization will be evaluated once the business activities are in operation. The study recommends strengthening internal regulations, accelerating the cooperation process, and developing an asset utilization strategy that considers economic potential, implementation readiness, and business sustainability.