REPUBLIKA.CO.ID, JAKARTA -- The domestic aircraft maintenance, repair, and operations (MRO) industry has grown by nine percent in last five years. I Gusti Putu Suryawirawan, Industry Ministry's director general for resilience and development of international industrial access, stated that with such high growth, the aircraft MRO industry is a promising business area that should be utilized properly.
The Sultan Hasanuddin International Airport in Makassar, South Sulawesi, and Frans Kaisiepo International Airport in Biak, Papua, in Indonesia have the potential to develop this kind of industry. The MRO industry in the two airports is essential to streamline the cost of maintenance.
"Not only aircraft such industry can also handle the MRO of helicopters that have become one the main means of air transportation in eastern Indonesia," Suryawirawan remarked in a written statement received by Antara on Friday.
The government is currently working to develop the aircraft MRO industry by promoting and facilitating interested visitors. The government has also prepared several MRO industries that are integrated with the Raja Haji Fisabilillah International Airport in Bintan, Riau Islands, and Kertajati International Airport in Majalengka, West Java.
The potential of the MRO industry in Indonesia is expected to reach US$2.2 billion in 2025, a significant increase as compared to $970 million in 2016. This is in line with the government's efforts to spur development of the domestic aviation services industry since 2000 and has led to its growth in the last decade.
"Our MRO industry is becoming increasingly competitive. It is now capable of providing various aircraft maintenance services, including airframe, instrument, engine, radio, emergency equipment, and line maintenance," the ministry's director general for metal, machinery, transportation, and electronics industry Harjanto pointed out.
In 2016, airlines around the world spent $72.81 billion for aircraft maintenance. Of this value, North America was the largest contributor, with $21.2 billion, followed by Europe, at around $20.7 billion; and Asia Pacific, with $13.3 billion.
In 2025, the global aircraft maintenance market is expected to continue to show a positive trend, with a growth of 3.9 percent to reach $106.54 billion. Asia Pacific will experience the highest growth of 5.8 percent as compared to 0.9 percent in North America and 2.35 percent in Europe, Harjanto explained.
According to Harjanto, MRO companies in Europe and North America have begun focusing on high-tech and capital-intensive industries. Maintenance services for aircraft are classified as labor intensive and will be offered to other parties.
"This situation will provide opportunities for the MRO industry in the Asia-Pacific region, including in Indonesia," he pointed out.
Such business opportunities need to be utilized by 32 national MRO companies incorporated under the Indonesia Aircraft Maintenance Service Association. To this end, the Industry Ministry, along with all relevant stakeholders, will continue to collaborate in order to further enhance the competitiveness of the national MRO industry.
Strategic steps that need to be taken to support the industry include developing industrial human resources and an integrated industrial park, fulfilling 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 an Aircraft Engineering Center in Indonesia," Harjanto added.
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