Foreign Firms Control 70 Pct of MRO in Indonesia

Batam (Antara) - Foreign companies control about 70 percent of aircraft maintenance, repair and overhaul (MRO) industry in Indonesia, President Director of PT Garuda Maintenance Facilities AeroAsia Richard Budihardianto said here on Friday. He said that of the US$900 million MRO market in Indonesia, only 30 percent were operated by Indonesian companies. And of the 30 percent, about 70 percent were operated by the GMF Aero-Asia. Richard predicted that the MRO industry market in Indonesia would continue to develop and reach US$2 billion in 2015. In order to win the market, GMF AeroAsia continued to develop the industry and open new MRO facilities in a number of locations in Indonesia to expand its market. Besides developing MRO industry in the country, GMF AeroAsia also expand services to the world market. The MRO services of GMF overseas reached US$60 million, he said. In the meantime, Commercial Section Head for Batam's Hang Nadim airport Dendy Gustinandar said his side had run out of spaces for MRO facility locations. "All plots of land for MRO facilities have been allocated. There are three MRO companies in Batam. Besides the GMF, there are also MROs belonging to the Lion and IAM groups," he said. He said that Hang Nadim airport was ready to assist MRO companies to win the market in Indonesia. "This is done so that they would not remove their businesses to overseas," Dendy said. Head of Batam Free Trade Zone Authority Mustofa Widjaya said his side would extend facilities to MRO investors. "Batam is a free trade and free port zone. It is free from import duties. All goods are exempted from value added tax of luxury goods," he said. The Batam location, which is near Singapore, is also expected to make it easy for industries to operate MPO in Batam. "The arrival of logistics needs is also expected be faster because it is near Singapore," he said. (*)