JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that the Indonesian aviation and aerospace industries have bright prospects supported by geographical conditions in Indonesia, which is the largest archipelagic country in the world and has more than 17,000 islands stretching more than five thousand kilometers from east to west.

According to him, this condition will make air transportation the backbone of transportation and national connectivity, as well as the main driver of the Indonesian economy.

"The number of air passengers in Indonesia is expected to grow 30 percent from year to year to 140 million in the next few years, so that Indonesia is estimated to be the sixth largest air transportation market in the world in 2034," he said in a written statement quoted on Sunday, September 11.

The Minister of Industry added that the national aviation industry consists of the aircraft and component manufacturing industry, the Maintenance Repair and Overhaul (MRO) industry, and the drone manufacturing industry. Indonesia has around 31 MRO companies that support the aircraft industry and the aviation business.

These companies already have 145 Aircraft Maintenance Organization (AMO) certificates issued by the Indonesian Aircraft Maintenance Services Association (IAMSA).

The domestic MRO value in 2022 is projected to reach 1.7 billion US dollars, while the global MRO's business value reaches 93.5 billion US dollars. Global MRO's business competition going forward is getting tougher. Therefore, we encourage domestic MROs to collaborate with foreign partners to increase their capacity and capability," he said.

The Minister of Industry added that in line with digital transformation in various aspects of the economy, the government together with the Association of Unmanned Systems and Technology (ASTTA) are supporting the development of the drone industry.

The Minister of Industry said that the Indonesian aviation industry has slowly been able to reactivate previously grounded aircraft, due to its operations being stopped due to the impact of the pandemic. It was stated that so far there have been around 180 aircraft that have been grounded, 100 of which are sleek bodies that are usually used for domestic routes.

It takes about a year to complete this process because the reactivation process for each aircraft takes time, as well as the limited number of slots available at aircraft maintenance facilities. In addition, airlines also need time to make a profit so that they can pay the cost of the spare parts and maintenance required for the reactivation of the aircraft," he said.

Agus said that the Indonesian government through the 2015-2035 National Industrial Development Masterplan has established the aircraft industry to be one of the national priority industries with the focus of developing propeller aircraft, component industry, and the MRO industry.

"The government will continue to provide support to ensure the growth and sustainability of the aviation and aerospace industries, including further incentives for investment, above what I mentioned," explained the Minister of Industry., including PT Dirgantara Indonesia (Persero), the only aircraft manufacturer in Southeast Asia that has produced aircraft and helicopters for commercial and military purposes, with specialists in the aerostructure sector.

They are also the backbone of our national transportation and connectivity, as well as the main driver of the Indonesian economy. I am happy to see the three main companies, currently working very well to ensure that our airline is back in the air, concluded Minister of Industry Agus Gumiwang.


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