US Aircraft Repair Company Persuaded To Invest In Batam

Minister of Industry Agus Gumiwang Kartasasmita (center) together with the Indonesian Consul General in Los Angeles, Saud P. Krisnawan (right) pay attention to the components of Unical's production in Los Angeles, United States. (Photo: Ministry of Industry)

JAKARTA - The Ministry of Industry is focused on encouraging the growth of the aircraft maintenance and repair industry or maintenance, repair and overhaul (MRO) in Indonesia. The sector is considered prospective because it is supported by the continued increase in the aviation industry business.

"We are optimistic that with the growing condition of the aviation industry in Indonesia, the MRO industry's opportunities to grow will be even greater," said Industry Minister Agus Gumiwang Kartasasmita in a statement received in Jakarta, Thursday, December 26.

At the weekend, Minister of Industry Agus accompanied by Secretary General of the Ministry of Industry Achmad Sigit Dwiwahjono along with members of the Regional Representative Council (DPD) Yorrys Raweyai and the Indonesian Consul General in Los Angeles, Saud P. Krisnawan, visited Unical as an MRO company in the United States.

Unical was founded in 1990 and is a provider of aircraft aftermarket components and maintenance services. Located in Los Angeles, this company has served commercial and military flights.

Unical has several subsidiaries with their respective specifications. For example, Unical MRO for aircraft storage and dismantling. Then, Unical 145 for MRO parts and aircraft components, as well as engine repair. Unical Aero for the production of parts, components and systems for commercial applications. Meanwhile, Unical Defense is to support the military.

"They want to expand their wings in Batam, because currently they are already serving spare part sales to Indonesia. In fact, they already have a sales office in Jakarta, "he said.

The Minister of Industry said that the MRO industry in Indonesia is increasingly competitive. Currently, it is able to provide various aircraft maintenance services, such as airframes, instruments, engines, radio, emergency equipment, and line maintenance.

"It means, we already have enough competitiveness. We hope that our MRO industry will not only serve domestic airlines, but also those from abroad, ”he said.

According to Agus, the MRO industry has an important role for the aviation industry because it is able to reduce expenses, one of which is the cost of importing aircraft components.

"In addition, the MRO industrial business is promising, in line with the increasing tourism sector and the economy in the country. In fact, it is also supported by the rampant construction of airports in various regions in Indonesia, "he added.

The Ministry of Industry projects that the business potential of the aircraft maintenance and repair industry in Indonesia in 2025 will reach US $ 2.2 billion, a significant increase compared to 2016 which amounted to US $ 970 million. This is in line with the government's efforts to spur the development of the domestic aviation service industry since 2000 so that its performance has grown in the last decade.

"In an effort to spur its competitiveness, the MRO industry itself has been given various fiscal incentive facilities such as tax holidays and exemption from import duties," said Agus.

Currently, the MRO industry in Indonesia is strengthened by around 32 companies that are members of the Indonesia Aircraft Maintenance Service Association (IAMSA). For this reason, the Ministry of Industry and all relevant stakeholders continue to collaborate to further improve the competitiveness of the national MRO industry. One of the strategic steps is the development of industrial human resources.

Concrete efforts, for example, the Ministry of Industry and IAMSA will work together in the construction of an education unit or the provision of expert teaching staff in the field of aircraft maintenance. Furthermore, cooperation is carried out with industries that will accommodate these graduates so that they can be immediately absorbed in work.

The Ministry of Industry noted that Indonesia will absorb as many as 12-15 thousand MRO experts in the next 15 years. Meanwhile, aviation technician schools in Indonesia currently only produce 200 experts per year, while the need is up to 1,000 people per year.