GMF president director Richard Budihadianto said that the company decided to work with BAI and develop integrated aircraft maintenance, repair and overhaul (MRO) facilities on Bintan because the island was close to Singapore, a home for many representative offices of international airlines and aviation business companies.

In addition to that, Richard said the fact that Bintan was part of the Batam-Bintan-Karimun free trade zone would benefit GMF.

'We want to increase our competitiveness by integrating our supply-chain management and the market,' he said on the sidelines of the signing.

The joint venture between GMF and BAI would try to cater to the market for maintenance of wide-body aircraft such as Boeing B747s and B777s and Airbus A330s.

The company planned to develop its first hangar next year, which was expected to be operational at the end of 2016. After that it would develop its second hangar, which would be equipped with aircraft component and engine shops.

The Bintan hangars would complement GMF's existing hangar facilities near the country's main gateway, Soekarno-Hatta International Airport in Cengkareng, Banten, just west of Jakarta.

Moreover, BAI president director Frans Gunara, who is also the chief operating officer at Gallant Venture Ltd, said that Bintan needed a world-class aviation facility to help develop Riau Islands' economy amid the ASEAN Economic Community (AEC) 2015 implementation.

'Gallant Venture is committed to supporting Garuda Indonesia and its partners and the aviation industry in Indonesia,' Frans said.

BAI is a subsidiary of the Salim Group's Gallant Venture Ltd, an investment holding company that manages industrial parks and resorts on Batam and Bintan islands. Gallant's total assets were worth approximately US$1.6 billion in 2012.(+++)

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