Aircraft Maintenance Business is Still Promising

REPUBLIKA.CO.ID, JAKARTA – The domestic aircraft maintenance industry grew by nine percent over the past five years. With this growth, according to the Director General for International Industry’s Access and Development (KPAII) of the Ministry of Industry I Gusti Putu Suryawirawan, the aircraft maintenance industry is still a promising business.

“With a high growth business is still promising, therefore it should be utilized as well as possible,” said Putu through his statement in Jakarta, Friday (2/2).

Putu conveyed several airports that are potentially developed by this industry are Sultan Hasanuddin International Airport Makassar and International Airport Frans Kaisiepo Biak (Papua). The existence of MRO industry in these two airports is quite important to streamline the cost of maintenance.

“Not only aircraft, this MRO can be used for helicopter treatment that became one of the main air transportation of eastern Indonesia,” he said.

He added that the government will take steps to facilitate and inform investors about the potential of the business in Indonesia. “There are several MRO industries that have been integrated with airports, such as in Bintan and Kertajati,” continued Putu.

Meanwhile, Director General of Metal, Machinery, Transportation and Electronic Industries at the Ministry of Industry, Harjanto, said that the business potential of the MRO industry in Indonesia in 2025 will reach US $ 2.2 billion, up significantly from 2016 of US $ 970 million. This is in line with government efforts that spur the development of domestic aviation services industry since 2000 so that its performance has grown in the last decade.

“Our MRO industry is increasingly competitive, now we are able to provide various aircraft maintenance services, including airframes, instruments, engines, radios, emergency equipment and line maintenance,” he said.

Harjanto said that in 2016, the world’s airlines spend 72.81 billion US dollars for aircraft maintenance. Of this value, North America became the largest contributor of 21.2 billion US dollars, followed by Europe around 20.7 billion US dollars and Asia Pacific 13.3 billion US dollars.

By 2025, the world’s aircraft maintenance market is expected to continue growing by 3.9 percent to 106.54 billion dollars. Asia Pacific will experience the largest growth, which is 5.8 percent compared to North America 0.9 percent and Europe 2.35 percent, “he explained.

Meanwhile, according to Harjanto, MRO companies in Europe and North America began to focus on high-tech and capital-intensive industries. As for the maintenance services of aircraft classified as labor intensive, will be submitted to other parties.

“This condition will provide opportunities for the MRO industry in Asia Pacific including in Indonesia,” he said.

Business opportunities, need to be captured by the national MRO industry that currently number 32 companies, incorporated in Indonesia Aircraft Maintenance Service Association (IAMSA).

To that end, the Ministry of Industry together with all relevant stakeholders continue to collaborate in order to further enhance the competitiveness of the national MRO industry.

The strategic steps that need to be done in supporting it, among them is the development of industrial human resources, the development of an integrated industrial park, the fulfillment of quality standards, and strengthening the aircraft component industry.

“We will have more intense discussions with aircraft manufacturers, especially Airbus and Boeing in order to establish Aircraft Engineering Center in Indonesia,” said Harjanto.