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aruda Maintenance Facility (GMF) AeroAsia has canceled plans to build a maintenance repair and overhaul (MRO) facility at Hang Nadim International Airport in Batam, Riau Islands.

The company, a subsidiary of national flag carrier Garuda Indonesia, intends to instead build it at the planned Bintan Resorts International Airport on Bintan.

GMF AeroAsia signed a memorandum of understanding (MoU) in June 2013 with the Batam Free Trade Zone Authority (BP FTZ) to build the facility at Hang Nadim International Airport on a 48-hectare plot of land.

BP FTZ head Mustofa Widjaja told The Jakarta Post on Tuesday that his office had received word that GMF AeroAsia had canceled its plan to build a hangar for the MRO facility at Hang Nadim and had decided to build it at the Bintan Resorts International Airport, which was being constructed by the Salim Group.

'€œWe don'€™t know for sure about the shift because technically, Hang Nadim airport is more prepared and meets the standards for an MRO facility,'€ said Mustofa.

According to Mustofa, based on information obtained by his office, although GMF AeroAsia had signed an MoU with BP FTZ, it had also signed a contract with the Batam, Bintan and Karimun (BBK) FTZ Council during the Singapore Air Show last year.

'€œIt [GMF and BBK FTZ Council] forged an agreement at the Singapore Air Show to build an MRO facility at the planned airport. But I'€™m not disappointed because Garuda is still investing in Riau Islands,'€ said Mustofa.

'€œA number of airlines from neighboring countries have expressed an interest in investing in the project at Hang Nadim,'€ said Mustofa.

Earlier, in a conference after the signing of the MoU, GMF AeroAsia managing director Richard Budihadianto said GMF and BP FTZ would form a small team to discuss the planned joint venture.

The team was to decide when the project would commence, the amount of investment by GMF as well as other short-term planning.

'€œWe will also build a GMF at Kualanamu International Airport in North Sumatra, but it will be different from the one at Hang Nadim, in accordance with the aircraft it will serve,'€ Richard said at the time.

The Salim Group, through the Bintan Resort International, developer of the Lagoi integrated tourist resort, is building the Bintan Resorts International Airport in Busung, Kuala Lobam, Bintan, with an investment of S$100 million. The airport, equipped with a 2.5-kilometer runway, will be the biggest private airport in Indonesia.

In its initial stage, the passenger terminal and other supporting facilities, such as air traffic control tower, fuel storage and safety center will be built. The airport will serve Boeing 737 and Airbus 320 aircraft.