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Indonesia`s Aviation Industry Potential to Reach US$2bn

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21 April 2016 08:06 WIB

TEMPO/Tony Hartawan

TEMPO.CO, Jakarta - Over the next four years, business potential of maintenance, repair and overhaul (MRO) industry in Indonesia is predicted to increase to US$2 billion from today’s US$920.

“Indonesia will be [the center] of MRO industry development in Asia-Pacific by 2022,” said Industry Minister Saleh Husin in the 4th Aviation MRO Indonesia (AMROI) 2016 Conference & Exhibition in Jakarta, Wednesday, April 20, 2016.

He said that since the government regulation on aviation service industry in Indonesia started to be relaxed in 2000, the development of Indonesia’s aviation service has increased rapidly in the past decade.

“A number of aviation industry [players] are competing heavily to win both domestic and regional markets,” he said.

According to him, with a population of 250 million and its strategic location, Indonesia needs air transport services to support both inter-islands and inter-regions connectivity.

“It’s a potential market for global investors to build Indonesia’s aviation industry.”

Report from the International Air Transport Association (IATA) found that the number of Indonesia’s air passengers will reach 270 million by 2034 or increase by more than 300% compared to 2014 with 90 million passengers.

“By 2020, Indonesia is predicted to be one among the top 10 world aviation markets, [it] could even reach top five by 2034,” he said.

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