Industry Minister Reveals Local Content in Indonesian-Produced Aircraft, Turns Out It's This Much
Industry Minister Agus Gumiwang Kartasasmita has revealed that Indonesia’s aviation industry is quite promising, though much work remains to be done. He projects that Indonesia could become the fourth-largest aviation market in the world by 2030.
Referring to a report from the International Air Transport Association (IATA), he assessed that the growth of the national aviation sector will proceed rapidly in the coming years.
“So, not long from now, we will become the fourth-largest aviation industry market in the world in 2030, based on IATA’s projections,” said Agus in his presentation at the signing of a memorandum of understanding with Airbus Asia Pacific at the Office of the Ministry of National Development Planning/Bappenas, Wednesday (6/5/2026).
Agus added that the global aircraft market is currently in a positive trend. Based on 2024 McKinsey data, the number of aircraft worldwide has reached a record high of 15,700 units. In addition to fleet growth, the International Civil Aviation Organisation (ICAO) also projects a significant increase in the number of domestic flights and aircraft passengers in Indonesia.
“Based on ICAO projections, the number of domestic flights and passengers in Indonesia will increase significantly, reaching around 7.4 million flights with prospects of nearly 690 million flights by 2045, or three times larger than this year’s record,” he continued.
He also disclosed that several types of aircraft made by PT Dirgantara Indonesia (PTDI) already meet the Domestic Component Level (TKDN) of over 20%, with some even reaching 45%.
“PT Dirgantara Indonesia has also developed flagship products with TKDN value achievements, including the NC212 at 42.16%, CN235 at 38.74%, C295 approaching 21%, and the N219 which is the highest approaching 45%,” he explained.
Agus continued that the increasing demand for aircraft fleets will certainly also increase the need for components, including for maintenance, repair, and overhaul activities.
Indonesia also already has an aircraft maintenance, repair, and overhaul (MRO) industry. Currently, there are 64 MRO companies across Indonesia, including the Indonesia Aircraft Management Services Association (IAMSA), which contributes to the defence industry sector.
However, he acknowledged that Indonesia’s MRO industry is facing increasingly complex challenges.
“Especially with the trend of declining numbers of operating aircraft in Indonesia, and also high cost pressures,” he revealed.
Nevertheless, he encouraged the national aerospace industry to remain optimistic in utilising existing opportunities. This includes through the Joint Declaration of Intent (JDI) that has been carried out with Airbus Asia Pacific.
“We should be more optimistic, and we must prepare ourselves to welcome and fully utilise the bright prospects of the aerospace industry, including MRO, for the sake of the red and white,” he stated.
He also hopes for strong collaboration so that Indonesia’s aviation industry is ready to welcome the potential increase in flights in the future.
“We hope for strong collaboration that not only produces a strategic framework but also brings real technology transfer, increased local content in the aerospace aircraft manufacturing industry, fulfilment of human resource capacity in technology, aerospace, MRO, and also enhancement of Indonesia’s role in the global supply chain,” he concluded.