Batam Free Trade Zone Management Agency (BP FTZ) head Mustofa Widjaja said the agency had received information from GMF AeroAsia, a subsidiary of national flag carrier Garuda Indonesia, on the cancellation of the development of an aircraft hangar to be used as an MRO facility at Hang Nadim.

It had also been informed about the company'€™s plan to move the construction project to Bintan Island where the Salim Group was reportedly to build a special airport.

'€œGMF AeroAsia has cancelled its aircraft hangar development plan at Hang Nadim and will move it to Bintan. We don'€™t know the exact reasons for the change because technically, Hang Nadim Airport is much more ready and has fulfilled standards for the development of an MRO facility,'€ said Mustofa.

The MRO development plan was marked by the signing of a memorandum of understanding (MoU) on the development of a Garuda maintenance facility on a 48-hectare plot of land at Hang Nadim between the BP FTZ head and GMF president director Richard Budihadianto in Batam in June 2013.

Mustofa said it was unfortunate that based on information his agency had received, GMF AeroAsia had later signed a contract with the Batam, Bintan and Karimum (BBK) FTZ Council on the development of an MRO facility on Bintan Island on the sidelines of the Singapore Air Show last year.

'€œThey [GMF and the FTZ BBK] agreed to develop an MRO facility at the airport that is still planned, but I don'€™t feel disappointed because Garuda investments are still being taken forward in Riau Islands,'€ said Mustofa.

Nevertheless, he said, BP FTZ would question GMF AeroAsia'€™s decision with parent company Garuda Indonesia. (ebf)(+++)

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