The Coordinating Minister For The Economy Calls Aviation Industry Needs Efficiency To Be Able To Press Air Ticket Prices

Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso when visiting Batam Aero Technic (BAT). (Photo: Doc. Antara/Kemenko Perekonomian)

JAKARTA - Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso when visiting Batam Aero Technic (BAT) said that the government was encouraging efficiency in the national aviation industry to lower the price of aircraft tickets.

"Hopefully we can encourage tickets a little so that tickets are not expensive, from the efficiency in the second cost component regarding the treatment which was 25-30 percent earlier," he said in an official statement quoted by Antara, Sunday, August 28.

If there is efficiency in the cost of care components, he continued, the government can press again, so that passenger traffic will be able to drive the economy.

Sesmenko Susiwijono said that by utilizing the Special Economic Zone (SEZ), Batam City currently has Batam Aero Technic (BAT). As a treatment center and work center for handling aircraft repairs, BAT which began operating in 2014 at Hang Nadim Batam International Airport has main activities in the form of the Maintenance, Repair, and Overhaul (MRO) industry.

With an investment value of IDR 7.29 trillion, the presence of this SEZ is projected to save foreign exchange an average of 30-35 percent of the maintenance needs (MRO) of the National Aviation Company worth IDR 26 trillion per year. With the increase in HR capacity in the MRO field, the gradual absorption of the number of BAT workers reached 9,976 workers by 2030.

In order to ensure that aircraft operates smoothly, declared suitable and safe to operate (airworthy for flight), currently BAT has supported aircraft maintenance operations in more than 40 airports.

Meanwhile, BAT itself is also optimistic that it will be able to increase the utilization and optimization of the capabilities currently owned in line with the sustainable work plan (master plan). The main hope is that it can realize integrated aircraft maintenance, so as to reduce the work rate of various aircraft care to abroad.

In the medium term, BAT is expected to be able to capture various opportunities from the Asia Pacific market which has around 12,000 aircraft and a business value of US$100 billion by 2025.

Government support for BAT in business development has been realized in the formation of SEZs designed to support the growth and development of investment in Indonesia.

The government is committed to continuing to encourage investment in Batam. So that not only for Batam but also able to contribute to the national economy," said Sesmenko Susiwijono.