The Development of Indonesia’s Aerospace Industry

by | Oct 7, 2022 | Uncategorized | 0 comments

What are some of the promising prospects of the Aerospace Industry in Indonesia? How will it perform in the future?

Source: The Conversation

After the pandemic, countries have started to open travel bans and created regulations about the acceptance of international travelers. With this, it is safe to assume that the aviation industry has bounced back from the negative effects of the pandemic. In addition to that, this poses potential prospects towards the industry as people have continued to travel and fly to other countries. 

Globally, the aviation industry has been impacted significantly by the Covid-19 pandemic. But to ensure the resilience of the airline industry, companies had introduced new methods to adjust to the current situation. Such as passenger distancing, digital immunity passports, and contact tracing. 

What do you think about the aviation industry in Indonesia? What are its prospects? How do Indonesian airports support aviation growth? Read more to find out!

Overview of Indonesia’s Aerospace Industry

Indonesia’s number of air passengers in Indonesia is expected to grow 30% on a year-to-year basis to 140 million in 2018. These numbers are expected to grow in the future and is also one of the largest markets in Southeast Asia. Considering Indonesia’s Archipelagic location, aviation and aerospace are extremely vital to Indonesia and its economy. Not just for transportation of people, but also for the mobility of goods. 

The current President of Indonesia, Joko Widodo, has implemented several measures to support the industries by prioritizing 5 sectors: infrastructure, tourism, energy, maritime, and food. The development will be done by the Ministry of Transportation especially in remote areas to ensure equal growth and boost the local economy. 

One of the developments is the development of airports. With the increase of digitalization and development of airports, the aviation industry have also felt the increase and positive effects.

The Development of Airports in Indonesia 

Globally, airports created more value than any aviation subsector in most regions. Airports had enjoyed annual aggregate economic profits of USD 5 billion on average, from 2012 to 2019 with an economic profit margin around 3%. Indonesia itself has at least 683 airports and 34 of them are commercial airports. One of the state-run airport operators include PT Angkasa Pura I and PT Angkasa Pura II. in 2019, there were over 19 million international air passengers departing from all across the country. 

In 2020, the number of flight routes amounted to 216 and it was expected to keep growing in the next few years. Despite the crisis, the airport industry is still functioning. In Soekarno Hatta International Airport in Tangerang, there are approximately 1,200 -1,700 takeoffs and landings which is considered as a high amount when being compared to other countries. 

Future Prospects of the Aerospace Industry

In general, the aviation industry serves positive prospects in the future for future investments. Not only that, but the growth of its airports are also aligned with the development of the aerospace industry which serves as a positive prospect in the future. 

It is noted that Indonesia is the only country in Southeast Asia with a complex aircraft manufacturing capability. Showing the country’s ambition to expand its aviation industry, Indonesia’s Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan encourages Boeing to set up business operations in Indonesia to help spur the national economy. I

Enter Indonesia’s Aerospace Industry with BRIGHT Indonesia

It would take a lot of in-depth research about the aerospace industry in Indonesia. In order to enter the Indonesian market, you would need the right local partner to assist you. 

BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.

BRIGHT Indonesia provides several services such as Market Insight Research, Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:

  1. Provide assistance for you in expanding and developing your business by identification of potential partners.
  2. Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arrange business meetings, and act as a liaison.
  3. Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
  4. Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.


For more information, email info@brightindonesia.net.

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