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British Energy Firm BP Enters Indonesia's Avtur Market

March 2019

PT AKR Corporindo, Indonesia’s logistics and supply chain company operating in fuel and basic chemical distribution, has entered a joint venture with British Energy Firm BP to be a new player in Indonesia’s avtur or jet fuel market. This step was taken to curb the recent price increase of jet fuel in the market, with President Joko Widodo hinting the possibility of opening the market to private companies.

Currently, Pertamina, the state-owned oil and gas holding company, is the only supplier of jet fuel to Soekarno-Hatta International Airport. Their monopoly has received negative response from domestic airlines, such as PT Garuda Indonesia, Lion Air and PT AirAsia Indonesia, as the recent price increase from Pertamina had given them no choice but to pass it on to customers.

Backlash over the price hike has prompted the president to order a review on domestic jet fuel prices. In response, Pertamina has lowered avtur price by 3% to 56 cents per liter. The airlines have followed through by reducing the price of plane tickets by as much as 60% for certain domestic routes.

(Sources: The Jakarta Post; Bloomberg)

Airbus Encouraged To Produce Aircraft Components In Indonesia

February 2019

The Indonesias Government has requested Airbus to produce aircraft components in collaboration with Dirgantara Indonesia, an Indonesian aerospace manufacturing company. The country is also asking the aeronautics giant to manufacture aircraft tires in Indonesia.

Indonesia also plans to foster cooperation between Airbus and local airline companies in the sector of aircraft maintenance business. This is in line with the fact that Lion Air and Garuda Indonesia already have aircraft maintenance facilities in Batam and Bintan.

The local manufacture aircraft components in Indonesia is being proposed to optimize utilization of raw materials and create local jobs.

Airbus is in the process of conducting calculations for production cost, determining production capacity and investment value for the aircraft tire industry. In April 2019, Airbus is expected to reveal a proposal on aircraft maintenance business in Batam and Bintan.

(Sources: Antara News; Defense World)

Indonesian Defense Ministry Procuring Helicopters Worth USD 513 Million

January 2019

State-owned aircraft manufacturer, PT Dirgantara Indonesia (PT DI), and the Defense Ministry have signed a contract to purchase eight H225M Cougar helicopters and nine Bell 412EPI helicopters. The deal is estimated to be worth USD 330 million and USD 183 million respectively. The Cougar helicopters are a product of cooperation between PT DI and Airbus Helicopters, France. Bell helicopters is sourced from Bell Helicopter Textron Inc., Canada.

The procurement was made under the discretion of President Joko Widodo to be used for natural disaster management. The Cougar helicopter will be used as transportation for Indonesian Air Force in disaster affected areas, meanwhile the Bell helicopters will be given to the Indonesian Army Force. The procurement of the Cougar helicopters is to be completed within 24 months, while the Bell helicopters are going to take 36 months in consideration of limited production capacity of the company of 10 units per year.

Subsequently, the ministry is looking to acquire a special aircraft to address forest fires. The purchase is expected to be carried out this year.

(Source: Tempo)

Indonesia Seeks To Expand Submarine Capacity

November 2018

France’s Naval Group, present at Indo Defence 2018, is looking to fulfil Indonesia's submarine requirements with its Scorpene submarine. It matches the navy’s requirement as Scorpene offers oceanic with shallow water capabilities. The company is also looking to partner with state-owned shipyard PT PAL and consider building in-country.

Naval Group is a recognized naval platform designer and manufacturer with Transfer of Technology export program, in line with Indonesian government New Defence Bill. Besides Naval Group, Thyssenkrupp Marine Systems TKMS and Howaldtswerke-Deutsche Werft are eyeing the same opportunity.

The Indonesian Navy targets a fleet of 10 to 12 submarines. Presently, it has four submarines in its fleet, with one Nagapasa-class still to be delivered. The Indonesian Navy is looking to acquire additional attack submarine, on top of the three Nagapasa-class boats in delivery. The Nagapasa-class is known as Chang Bogo class internationally. 

The next generation of India's conventional attack submarines, the Kalvari Class, is based on the Scorpene Class submarines. India is planning for a fleet of six vessels, with three currently in service and three under construction.

(Sources: Shephard; Defence Connect)

Indonesia Plans To Acquire C-130J Super Hercules And CH-47 Chinooks

October 2018

Ryamizard Ryacudu, Indonesia’s defense minister, recently confirmed Indonesia’s intention to purchase new tactical airlifters and heavy-lift helicopters from the United States to support the country’s ongoing effort to modernize its military. Indonesia is looking to purchase five Lockheed Martin C-130J Super Hercules and between three to five Boeing CH-47 Chinook heavy-lift helicopters. Any purchase of the C-130J and CH-47 will likely be carried out through Foreign Military Sales channels.

The country plans to purchase new aircraft for six of its airlift squadrons by 2024. Currently, Indonesia has a mix of light and medium aircrafts as well as a dozen of “B” and “H” variants of the C-130. In recent years, the inventory of the airlift fleet has increased from the transfer of nine C-130Hs from Australia. However the loss of five C-130s since 2000 has brought down the total number. There have also been servicability issues with some of the old aircraft.

Indonesia has been stepping up its relatively small airlift fleet to bridge a capability gap in getting timely help to remote disaster-prone islands spread across an archipelago of over 17,000 islands. 

(Source: DefenseNews)

Turkey And Indonesia Collaborate On UAV Development

September 2018

Turkish Aircraft Industries (TAI) has expanded its partnership with Indonesia’s state-owned aerospace firm PT Dirgantara Indonesia (PTDI) to develop a new medium-altitude long-endurance (MALE) unmanned aerial vehicle (UAV) for Indonesian Air Force (Tentara Nasional Indonesia – Angkatan Udara: TNI AU). The development will promote technology transfers from Turkey to Indonesia to support joint development and localized manufacturing. Through this collaboration, PTDI is seeking to reduce dependency on manufacturers in Western countries. 

This is in line with a previous agreement between the two parties signed on 17 January this year to develop the new UAV with an operating altitude of 40,000 feet. TAI has modified its MALE UAV, Anka, to meet Indonesian’s regulations by integrating Indonesian suppliers into its supply chain. The development would be finalized within one to three years. 

The UAV project follows on a framework signed by two companies on July 2017 to collaborate on PTDI’s N219 and N245 small and regional turboprop projects which are still under development.

(Sources: Jane’s 360; Ainonline)

Citilink Signs Fleet-wide Contract For In-Flight Wi-Fi With Inmarsat

August 2018

Inmarsat, the world's leading global mobile satellite communications provider, inked a contract with Mahata Aero Teknologi (MAT), an Indonesian wireless technology provider, to provide inflight connectivity service for Indonesian low-cost airline Citilink, a subsidiary of Indonesia's national airline, Garuda. It will also partner with Lufthansa Systems and Lufthansa Technik to implement Bring Your Own Device (BYOD) connectivity to create an innovative onboard experience and increase customers' loyalty. The installations of Inmarsat’s GX Aviation inflight broadband solution onboard a fleet of 50 Airbus A320 aircraft will commence later this year.

GX Aviation is the world's first and only global, high-speed inflight internet service delivered through a wholly-owned and operated network of High-Throughput Satellites (HTS). This move allows Citilink to fulfil its long-term inflight Wi-Fi ambitions. The digital BoardConnect platform's open architecture and utilisation of modern docker technology will enable a range of e-commerce services during flight.

(Source: Inmarsat; GetConnected Aero)

EU Removes Safety Ban On All Indonesian Airlines

July 2018

In June 2018, the European Commission announced that it had removed all Indonesian airlines from its EU Air Safety list following further improvements in Indonesia’s safety standards. The clearance has provided Indonesia with the opportunity to restore the confidence of the international community on the country’s aviation sector. All 55 Indonesian airlines will now be qualified to fly in the area of the European Union.

Earlier, Indonesia’s aviation industry was criticised for its safety standards. The Canada-based Air Transport Association (IATA) had expressed concern  multiple times over at least one air crash occuring in Indonesia each year, since 2010. Therefore, it advised the country to upgrade its air traffic management system, particularly at a time when Indonesia was coping with the rising number of aircraft in the sky.

After the EU ban on Indonesian air carriers was implemented in 2007, several Indonesian airlines were removed again over the next couple of years. However, most Indonesian airlines remained banned. In June 2016, the European Commission removed Citilink, Lion Air and Batik Air from the list, after they were considered to have met international standards. Earlier, in 2009 and 2010, the EU had already lifted bans on Garuda Indonesia, Airfast Indonesia, Ekspres Transportasi Antarbenua (Premiair), and Indonesia AirAsia. However, only Garuda Indonesia actually serves flights to Europe.

Considering the country’s air travel market is expected to triple over the next 20 years to 270 million passengers, the latest decision of the EU to remove all Indonesian airlines from the ban list provides sound evidence that safety standards in Indonesia’s aviation have improved.

(Sources: Indonesia Investments; Antara News; European Commission)

PTDI Receives Funding From Indonesia Eximbank

June 2018

The Indonesian aerospace firm PT Dingantara Indonesia (PTDI) has signed in June 2018 an agreement with the Indonesian Export Financing Agency, or Indonesia Eximbank, to receive funding of RP 354 billion (USD 25.5 million) in support of international military sales.

State-owned PTDI designs, develops, and manufactures civilian and military regional commuter aircraft. It would use the one-year loan to export CN-235 turboprop aircraft to Nepal and Senegal. Both Nepal and Senegal had ordered the CN-235 aircrafts for military use. The planes would be customised based on specification requests. For example, Nepal, a landlocked state in the Himalayas, had asked PTDI to manufacture an airplane able to land on short runways. Meanwhile, Senegal, a former French colony in West Africa, needed aircraft to reinforce its Maritime Patrol Aircraft (MPA) fleet.  Both countries had also requested that their planes have a vehicle-carrying ability and facilities for VIP passengers.

The planes are expected to be delivered in April 2019. PTDI also indicated that additional funds would be available at a later date to support CN235 exports to other countries in target markets, such as South East Asia and Africa.

Other than PTDI, the state-owned train manufacturer PT Industri Kereta Api (INKA) has also received a credit facility to support the export of its trains to Bangladesh.

(Sources: The Jakarta Post; Jane’s 360)

Expanded Financial Support For Indonesia Defense Companies

May 2018

On 3 May 2018, a Memorandum of Understanding (MoU) was signed between PT Askrindo (Persero) and the National Association of Private Defense Industries (Pinhantanas) to support the development of private sector defense companies. The agreement was faciliated by the Ministry of Defence (MoD) of Indonesia. 

PT. Askrindo (Persero) is a State-Owned Enterprises (SOEs) engaged in insurance / underwriting. The organisation also provides guarantees on loans extended by banks to small and medium enterprises (SMEs), helping bridge the funding gap for SMEs which are eligible but do not have enough collateral to obtain credit from bank and non-bank financial institutions. 

As part of this agreement, PT Askrindo will provide expanded credit support and bank guarantees for the Indonesian defense companies, helping them expand their capabilties and tap on the state-owned defense companies' rising demand for subcontractors.

The Indonesian defense minister said that the signing of the agreement represented the trilateral synergy among the Indonesian defense ministry, nation-owned defense agencies, and national finance organisations in supporting the development of the country’s indigenous defense industry and military abilties.

(Sources: The Diplomat, Jane's 360)

(Photo: AWG97CC BY-SA 4.0)

Lion Group Finalises USD 5.5 Billion U.S. LEAP-1A Engine Order

April 2018

In March 2018, Transportation Partners, the leasing arm of Lion Group, and CFM International finalized an order for 380 LEAP-1A engines to power Airbus A320neo/A321neo aircraft. The engine order, valued at USD 5.5 billion, was originally announced in February 2016, while the aircraft order was made in March 2013.

Lion Group has also ordered 544 LEAP-1B engines to power its Boeing 737 MAX 8, Max 9, and MAX 10 aircraft, of which 10 are currently in service with Lion Air. With a fleet of 924 LEAP engines at a total value of USD 13.4 billion in service or on order, Lion Group has become the largest LEAP engine customer in the world.

The deal also includes an extension of the 25-year Material Service Agreement (MSA) for CFM56-7B, CFM56-5B, and LEAP-1B engines originally signed in 2014 and expands its scope to include the LEAP-1A engines.

In addition to the engine order, CFM International will also provide MRO services to Lion Group’s CFM56 and LEAP engines until their own MRO shop, Batam Aero Technic (BAT) in Batam, Indonesia, is completed. CFM International has been supporting the development of Lion Group’s new engine maintenance and test cell facility since 2016, providing project management and expert advice starting from design, construction and commissioning for the new facility. When completed, BAT will have maintenance and overhaul capability for both CFM56 and LEAP engines. CFM will provide CFM56 and LEAP engine overhaul training with knowledge transfer that supports the development of highly-qualified local engine MRO specialists.

Lion Group has been a CFM International customer since 2000 and its entire single isle narrow-body fleet, in service or on order, is powered by CFM engines.  

(Sources: CFM International; Aerospace Manufacturing & Design; Air Transport World)

A400 Atlas For Indonesia

March 2018

Indonesia is set to become the second export customer of the Airbus A400M Atlas airlifter, with the Indonesian Air Force intending to buy two Airbus Defence and Space (DS) A400M transport aircraft. The aircraft will be used to support the civil government in transporting supplies between the western and eastern regions of the country, in a bid to tackle price disparity, and also to undertake basic humanitarian assistance and disaster relief operations. According to Jane's, the A400Ms will be operated across the Indonesian Air Force’s Aviation Squadrons 31 and 32 located at Halim Perdanakusuma and Abdul Rachman Saleh respectively.

Indonesia is the world’s largest island country, an archipelago with some 17,000 islands – around 6,000 of them inhabited. It stretches from Borneo in the north to East Timor in the south and from the eastern Indian Ocean in the west to Papua New Guinea in the east, and covers an area of 740,000 square miles.

(Source: Jane's; Asian Military Review)

Aircraft MRO In Indonesia Projected To Expand

February 2018

Indonesia's domestic aircraft maintenance, repair, and operations (MRO) industry has grown by 9% in last five years. The country’s aircraft MRO business is projected to continue to expand in coming years, in line with the growth of the country’s aviation industry and the increasing number of aircraft operating in the country. The MRO business in Indonesia is dominated by Garuda Maintenance Facility Aero Asia (GMF Aero Asia), a subsidiary of Garuda Indonesia airline, which claims to have captured around 75% of the MRO market in the country. The remaining market share is split among other providers.

The Indonesian government continues to boost growth of the aircraft MRO industry in the country.  As part of its plans, MRO facilities and capabilities are being developed at several airports in the country, namely the Raja Haji Fisabilillah International Airport in Bintan, Riau Islands, and Kertajati International Airport in Majalengka, West Java, among others.

Additionally, Bintan is developing an Airport and Aerospace Industry Park on an area of 4,000 hectares. This integrated aviation area is expected to be be the most complete in Indonesia, with several supporting facilities, such as airports, aircraft repair facilities, flight training, as well as business and residential areas.

(Sources: Antara News; Darta aero Teknik; Insider Network)

Turkey And Indonesia Team Up To Develop UAVs

February 2018

Indonesia’s state-owned aerospace firm PT Dirgantara Indonesia (PTDI) has announced that it will collaborate with Turkish Aerospace Industries (TAI) to develop a new medium-altitude, long-endurance (MALE) unmanned aerial vehicle (UAV), with an operating altitude of 40,000 feet. The UAV project is projected to be completed within one to three years.

The TAI Anka is a family of UAVs developed by Turkish Aerospace Industries for the requirements of the Turkish Armed Forces, and is classified as a MALE UAV. The Anka was weaponized last year, armed with Turkey’s own MAM-L mini air-to-surface missile and CİRİT laser-guided air-to-surface rocket, both made by Roketsan. TAI has developed two more variants, the Anka-B and Anka-S. The Anka-B carries an Aselsan synthetic aperture radar and greater payload. For operations beyond line-of-sight, TAI produced the Anka-S, with a Turksat 4B satcom system installed in a more bulbous nose.

TAI and PTDI have in 2017 also signed a framework agreement covering TAI's participation in conceptual design activities for the 50 seat N245 aircraft project and joint marketing activities for the N219 aircraft.

(Sources: Center for Aviation; The Jakarta Post; AIN Online)

Indonesia Keen To Attract Boeing Investment Into The Country

January 2018

Indonesia's Coordinating Minister of Maritime Affairs Luhut Panjaitan has expressed that U.S. aerospace company Boeing should have a more significant presence in Indonesia given that it gets a lot of business from the country. Orders from Indonesia include local budget carrier Lion Air's reported order of 443 planes, which is Boeing's biggest in 2017. Lion Air is the largest single buyer of Boeing's new 737 Max aircraft. The Indonesian air force is also a major client and it plans to order CH-47 Chinook twin-engine helicopter manufactured by Boeing Vertol. Boeing and Indonesia have collaborated in areas such as commercial aviation safety, efficiency and aerospace industry development, to support the country's economic development and growth in its aerospace sector. Indonesia's aggressive airline expansion coincides with its plan to attract 19 million tourists per year starting 2019. 

The Boeing Current Market Outlook forecast for South East Asia projects a need for 4,210 new aircraft valued at USD 650 billion over the next two decades. The region is expected to generate annual traffic growth at 6.2%, outstripping the global growth rate of 1.5%. Singapore is Boeing’s South East Asia headquarters, where operations range from commercial aircraft and defense procurement, services support and training to advanced research collaboration with the public and private sectors. Other key markets where Boeing has a strong business footprint include Brunei, Indonesia, Malaysia, the Philippines, Thailand and Vietnam.

(Sources: Boeing; The Straits Times)

Whitesky Kicks Off Jakarta – Bandung Helicopter Service

December 2017

Indonesia-headquartered helicopter and fixed wing operator PT Whitesky, has launched a helicopter service from Jakarta to West Java’s capital of Bandung, with the fare of IDR 36 million (USD 2,664) per trip for six passengers. Whitesky Aviation CEO said that the service, known as Helicity, has received a permit from the Indonesian Transport Ministry allowing the use of its services as open public transportation mode. The company operates 30 helicopters across Indonesia.

The air charter business, while well known in developed countries, remains uncommon in Indonesia since only a very few privileged customers can afford the price tag. As a result, air charter companies typically serve the utility and logistics, medical evacuation, VIP transportation and aerial survey needs of resource-sector companies. Whitesky Aviation currently already caters to premium customers, mostly from the corporate sector. The company has  private hangars at Halim Perdanakusuma airport and Sepinggan in Balikpapan, East Kalimantan. This new permit now allows it to expand its services to non-corporate customers and to leverage on the growing affluence of the Indonesian consumer.

(Sources: PT Whitesky; The Jakarta Post)

Soerkarno-Hatta International Airport's New Automated Border Control Infrastructure

November 2017

Vision-Box, the worldwide leader in Passenger Experience and Automated Border Control solutions, in collaboration with its local partner PT Jaya Teknik, has inaugurated an advanced biometric Automated Border Control (ABC) infrastructure system at Soerkarno-Hatta International Airport’s (CGK) brand-new terminal 3. The ABC solution provides CGK and the Direktorat Jenderal Imigrasi a modern technology cornerstone for its new terminal to quickly and accurately process arriving and departing passengers while enhancing airport security. Together, these cutting-edge authentication and verification systems represent the first major deployment of Automated Border Control eGates in the country. It is also the first-of-its-kind mobile border control system for immigration officers to efficiently process passengers, taking advantage of a quick and secure user-centric system.

Completion of the 3rd terminal, as well as renovations to Terminals 1 and 2, allows CGK to increase its passenger traffic significantly. By the end of 2017, the airport is slated to reach a targeted 61 million annual passengers. This is a remarkable 84% increase from its current 33 million annual passenger capacity. Already serving passengers since August 2016, Terminal 3 will reach its full capacity of 25 million yearly passengers once completed in 2017.

(Source: Vision-Box)

Indonesia's Naval Defense System Needs A Boost

October 2017

The Indonesian Minister of Maritime Affairs and Fisheries expressed that Indonesia needs to boost its naval weapons defense system to effectively protect its maritime sovereignty against illegal fishers and foreign ships. The maritime area of Indonesia is a big source of aquatic resources, thus it is a prime source of fish and other seafood. Unfortunately, the vast maritime area of the country has become a fishing den for foreign fishing fleets that catch fish illegally, causing Indonesia's fish stocks to become depleted. 

At present, Indonesia has small patrol ships to cover the vast archipelago, however, this would not suffice given that the country's archipelago is 70% water. With more than 17,000 islands to patrol across an archipelago three times bigger than Texas, the Navy is also looking to procure several new types of assets including submarines, fast-missile boats and frigates to increase their coastal surveillance capabilities.

(Sources: The Jakarta Post; Maritime Security & Coast Surveillance Indonesia)

Indonesian Transportation Ministry To Offer Komodo Airport Project

October 2017

The Indonesian Transportation Ministry will soon offer the Komodo Airport (located in Labuan Bajo) expansion project to investors. The investment is reported to be worth IDR 2 trillion (USD 149.48 million). The Ministry revealed that Australian and Korean investors are keen on the project and have been competing for it.

Labuan Bajo is a city at the western tip of Flores Island in the Nusa Tenggara region of Indonesia, and is the launching point for trips to Komodo Island and Rinca Island. Labuan Bajo is one of 10 destinations the government is prioritizing for tourism development in a bid to create what the government campaign calls “10 new Balis”. Renovation of Komodo Airport will be vital to accommodate the surge of visitors. The Indonesian government is planning to upgrade the airport's facilities to achieve an international airport status.

Besides Komodo Airport, the Ministry is also calling for state-owned enterprises to participate in managing other several airports, such as the Temindung Airport in Samarinda, Juwata Airport in Tarakan, Kalimarau Airport in East Kalimantan, Radin Inten Airport in Lampung, Sentani Airport in Jayapura and Hang Nadim Airport in Batam.

(Sources: Kompas; The Jakarta Post)

Jabil To Establish State-of-the-Art Precision Machining Facility In Indonesia

September 2017

American EMS Manufacturer, Jabil Inc. has announced its entry into the aerospace precision machining market with the opening of its state-of-the-art manufacturing facility in Bandung, Indonesia. The facility, which offers affordable, high-mix, low-volume, simple to medium complexity solutions for the aerospace industry, also marks Jabil’s footprint expansion into Indonesia.

Located in the Bandung Teknopolis, the 90,000 square foot facility is an outgrowth of Jabil’s capabilities in machining, material science and precision engineering. The facility houses advanced precision machining technologies as well as special processes and finishing. Parts manufactured at Jabil Bandung include metal components for aircraft systems such as valve components, fittings, fasteners, plates, brackets, small housings and forks.

The Bandung facility is a key milestone for Jabil and is central to its aerospace and defense growth strategy. Jabil Bandung will augment the company's existing electronics and mechanical aerospace solutions, and enable it to provide end-to-end solutions for its customers.

(Source: Jabil)

Indonesia Trades Agricultural Products With Russia For 11 Fighter Aircraft

August 2017

State-owned PT Perusahaan Perdagangan has signed a creative MoU with Russia's Rostec to trade its coffee, palm oil, tea and other agricultural products for the latter's 11 Su-35 fighter jets, each of which is valued at USD 65 million. The Su-35 jets are known to have a super-maneuverability display. The MoU was signed earlier in August in Moscow, Russia and was announced by Indonesia Trade Minister Enggartiasto Lukita during his state visit.

Indonesia has well established defense relations with Russia, having undertaken a series of military purchases that date back to when Jakarta purchased its first Sukhoi jet from Russia 14 years ago. It is still in talks with Russia for the purchase of 2 diesel-electric submarines equipped with the Kalibr missile.

Apart from the defense and aerospace trade, Indonesia is also looking forward to opening more investment and trade deals with Russia, particularly in the fields of tourism, student exchange, energy or technology, and aviation. Indonesia has eased trade with Russia in 2012.

(Sources: The Aviationist; DW)

Turkish and Indonesian Aviation Companies Continues To Strengthen Collaboration

July 2017

Turkey's biggest aerospace comany Turkish Aerospace Industries (TAI) and Indonesian counterpart PT Dirgantara Indonesia (PTDI) has signed a framework agreement to combine efforts on aerospace domains to support the development of both countries' cooperation in aerospace industry.

Under the agreement, TAI will participate in the ongoing conceptual design activities of Indonesian 50 seater N245 Aircraft Development Project performed by PTDI. PTDI and TAI will also perform joint marketing activities for the N219 Aircraft, and discuss the business case details in line with the market requirements. TAI and PTDI plans to work together on unmanned aerial systems, aircraft aerostructures and will contribute to the development of cooperation between the countries in the field of aeronautics.

(Sources: Turkish Aerospace Industries Inc., DefenseNews)

Lion Air To Operate Boeing 737 Max-10 For New Routes

June 2017

Lion Group – an Indonesian budget carrier – has purchased 50 new Boeing planes, the 737 Max-10, at the Paris Air Show. Lion Group Director explained that the planes will operate Lion Air’s new routes and international routes, such as to China, India, and South Korea, South Asia, as well as to several Indonesian tourist destinations.

Lion Group is planning to add new direct routes to 10 Indonesian tourist destinations, namely Tanjung Kelayang, Tanjung Lesung, Mandalika, Morotai, Borobudur, Danau Toba, Kepulauan Seribu, Bromo Tengger Semeru, Wakatobi, and Labuan Bajo. The 737 Max-10 is designed to land on short runways, which is an advantage for the Lion Group, as most of Indonesia’s tourist destination airports do not have a long runway. This investment is worth US$ 6.24 billion (IDR 87.5 trillion).

(Sources: Antaranews, Jakarta Globe)

SHIA Terminal 3 Officially Now Open To International Flights

May 2017

President Director of Garuda Indonesia and President Director of Angkasa Pura (AP) II – a state-owned airport service company – has inaugurated the Terminal 3 of Soekarno-Hatta International Airport (SHIA) for international flights. Presently, only Garuda Indonesia airline is available to operate its international flights from the terminal. The President Director of AP II is optimistic that all international flights will be operated from terminal 3 soon.

The set-up of most of the facilities in the terminal are completed, such as the flight information display system, 64 immigration counters, 30 auto gates for immigration, a parking building with a capacity of 1,200 cars, a large executive lounge, shuttle buses, a Family Assistance Center, and 17 parking stands for medium and large aircrafts.

Soekarno-Hatta International Airport is managed by state-owned airport services company Angkasa Pura II. It is the country's main port of entrance, and is the target of an ambitious expansion and renovation program with the aim to boost competitiveness by raising the airport's passenger capacity and flight frequency. The building of the third runway for SHIA started in April 2017.

(Source: Garuda Indonesia, Airport Solutions)

US New Investment In Indonesia Defense Worth US$ 10 Billion

April 2017

The visit of the US Vice President to Indonesia resulted a fruitful agreement between both countries. Both parties signed 11 commercial and investment agreements in Indonesia’s defense sector, which is worth US$ 10 billion. The investments details are as follows:

  • Lockheed Martin will provide advanced weapons specifically for Indonesia’s F-16 military jets;
  • ExxonMobil to trade its 1 million tons of liquid natural gas to Pertamina – a state-owned oil and gas company – for 20 years;
  • Tuboprop engines supplied to Indonesian aerospace company PT Dirgantara Indonesia by Honeywell; and
  • Investment worth US$ 2 billion to provide electricity metering system by a consortium of companies.

(Sources: New York Post,  WTOP)

PT Dirgantara Indonesia Strengthens Ties With Airbus

March 2017

CEO Airbus Helicopters Guillaume Faury and the CEO & President Director of PT Digantara Indonesia (PTDI) Budi Santoso have signed a MoU for PTDI to provide maintenance, repair and overhaul (MRO) services for Airbus’ helicopters in Indonesia. This MoU was signed during French President’s visit to Indonesia. PTDI Technology and Development Director, Andi Alisjahbana, stated that PTDI has bought many Airbus’ products and that this cooperation between the two companies will help to boost PTDI services.

PTDI is already a licensed manufacturer of the NBO-105 light twin and Super Puma as well as a supplier of fuselage sub-assemblies. Airbus Helicopters and PTDI have provided a H215M helicopter and two H225M helicopters to the Indonesian Air Force, as well as two Fennec helicopters and two AS565 Mbe Panther helicopters to the Indonesian Army. As Airbus Helicopter’s partner in Indonesia, PTDI will be able to supply a number of auxiliary parts for these helicopters.  

(Sources: The Jakarta Post, Indonesian-Aerospace)

Russia Eyes Deals With Indonesia

February 2017

Russia has, this month, made reference to the openness of its military to cooperate with foreign partners and army, specifically mentioning Indonesia.

It should be noted that the Indonesian President, Joko Widodo had previously announced his intention to purchase weapons from Russia, including Kilo-class submarines and Sukhoi Su-35 multirole jet fighters. The country has turned to Russia in its attempt to upgrade its military deterrence capabilities, with talks of procuring advanced Russian defense equipment and the joint production of ammunition and arms highlighted during talks between both leaders in May 2016. 

Indonesia currently operates older iterations of the jet fighter, the Su-27 and Su-30. It only has two aging submarines in operation, despite its status as the world's largest archipelago. A cooperation with South Korea would soon see the country receive three more, albeit with inferior technology to that of the Russian Kilo class.

(Source: The Jakarta Post)

Angkasa Pura II Books IDR 6.65 Trillion Revenues In 2016

January 2017

Indonesia’s airport operator PT Angkasa Pura II (AP II) achieved IDR 6.65 trillion in audited revenues in 2016, which exceeded its initial revenue target of IDR 6.57 trillion. Last year, the revenue recorded was IDR 5.64 trillion, an 18% increase from the previous year.

AP II President Director, Muhammad Awaluddin, explained that its aero business arm contributed IDR 4.03 trillion of the revenue, while another IDR 2.62 trillion was secured via its other businesses such as advertising, cargo and properties.

The three new airport terminals operated by AP II around the country (which are located at Soekarna-Hatta International Airport in Tangerang, Banten; Husein Sastranegara Airport in Bandung; and Sultan Thaha Airport in Jambi) contributed positively to AP II earnings. AP II benefited from the incentives offered by the government under its new initiatives to encourage more international flights’ routes to Indonesia and also the operation of extra flights out of planned schedule by aviation companies. AP II has also established two new subsidiary companies – PT Angkasa Pura Propertino (APP), a property business, and PT Angkasa Pura Kargo (APK), a cargo business – to boost its non-aero businesses.

(Sources: The Jakarta Post, Kompas)

Hang Nadim International Airport To Evolve Into Aeropolis

December 2016

Hang Nadim International Airport, located 17 kilometers from East Batam in Indonesia has a 4,025 meter-long and 45 meter-wide runway, and is the longest airport runway in Indonesia. Moving forward, Hang Nadim International Airport will be developed into an aeropolis. The airport is managed by Batam Indonesia Free Zone Authority (BP Batam).

This aeropolis will be equipped with industrial facilities, e-commerce, a telecommunications network, logistics, hotels, retailers, entertainment and exhibition centres, as well as office spaces. With this renewed enthusiasm, Hang Nadim International Airport will play a major role in Batam’s development as a competitive region for trade and industry in South East Asia. BP Batam revealed that only 20% of the land is being utilized, hence, there are greater possibilities to further develop the area in future.

(Sources: The Jakarta Post)

Indonesia To Cooperate With Russia In Cyber Security

November 2016

In the past two years, analysts have called for Indonesia to improve its cyber security and defense networks. Indonesia and Russia have agreed to intensify cooperation in the security sector focusing on the distribution of digital information and regular consultation in security and defense. Coordinating Political, Legal and Security Affairs Minister, Wiranto said that the synergy is aimed to intensify cyber security technology in Indonesia amid concerns on the spread of radical ideas and also funding of terrorism through online platforms.

Issues related to military, counter terrorism, intelligence, cyber, drug and law were among issues discussed during the meeting. This cooperation is an extension to Russia-Indonesia’s defense technology support as Russia is one of Indonesia’s source countries for its military weapon hardware system. Russia and Indonesia have also discussed issues related to maintenance of military hardware.

(Sources : The Jakarta Post, Antaranews)