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Jakarta Post

Neighbors control half of Indonesia’s $1b aircraft maintenance market

  • Riza Roidila Mufti

    The Jakarta Post

Jakarta   /   Mon, November 18, 2019   /  08:30 am
The Jakarta Post Image
Technicians of Garuda Maintenance Facility (GMF) Aero Asia check the condition of a Garuda Indonesia Airbus A330-300 at a hangar at Soekarno-Hatta International Airport.(JP/Jerry Adiguna)

More than half of the demand for aircraft maintenance, repair and overhaul (MRO) services for the Indonesian market is met outside the country, an industry group says, pointing to resource  constraints from human capital to available land. Indonesia’s Aircraft Maintenance Services Association (IAMSA) estimated the country’s MRO market at around US$1 billion. However, only 45 percent of this demand is handled by local players. The rest of the business goes to neighbors Singapore, Malaysia, Thailand and Taiwan. Domestic players for MRO services, or the workshops to ensure aircraft’s airworthiness for passenger and cargo transportation, include state-owned flag carrier Garuda Indonesia’s GMF Aero Asia and Lion Air Group’s Batam Aero Technic. There’s also the only foreign investor in the MRO business in the country, FL Technics Indonesia from Li...