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tate-owned airport operator Angkasa Pura I (AP I) is going to team up with US aerospace giant Boeing to set up maintenance, repair and overhaul (MRO) facilities in Indonesia in the near future.

AP I corporate secretary Miduk Situmorang said the firms planned to construct the MRO facilities at Lombok International Airport in Lombok, West Nusa Tenggara and Sultan Hasanuddin International Airport in Makassar, South Sulawesi.

“Both airports are in strategic locations and Makassar is the aviation hub in the eastern part of Indonesia. The feasibility study is currently being carried out and we expect to finish it this year,”
Miduk said.

“We hope we can sign a memorandum of understanding with Boeing in the end of 2012.”

He said that AP I planned to clear a 500-hectare plot of land in each location to provide adequate space for the facilities.

If everything goes according to plan, the construction of the aircraft maintenance centers could begin in the first half of 2013. “The aviation industry in our country is getting stronger, making the MRO business more promising every year. We see huge potential for Boeing maintenance here because a lot of airlines, including in Indonesia, use these [Boeing] aircraft,” he added.

In addition, he said that the joint MRO plan was part of Boeing’s offset programs for Indonesia, that were previously announced by Indonesian Ambassador to the US Dino Patti Djalal at the Transportation Ministry in May.

Dino said the US-based company committed to providing offset programs, a common industrial compensation practice, for both civil and military programs.

The Transportation Ministry, airport operators, domestic airlines, and aviation experts are currently discussing other alternative forms of offset programs — including technology transfers, counter-trades and the opening of a research and development center in Indonesia, among other options to help Indonesia maximize the benefits of its relationship with Boeing.

Indonesia has lobbied Boeing for years for the programs, since the purchase of its aircraft has created jobs for many American workers and helped boost the US economy.

Privately-owned budget carrier Lion Air, for instance, secured Boeing’s largest-ever deal when it ordered 230 aircraft, including 201 Boeing 737 MAXs and 29 Next Generation 737 ERs, for US$21.7 billion (Rp 200 trillion). US President Barack Obama witnessed the signing of the purchase agreement in Bali in 2011.

Moreover, the Indonesian Military also plans to buy Boeing-made Apache advanced attack helicopters.

Boeing previously agreed to similar programs for nations such as India, Malaysia, Saudi Arabia and South Korea.