INDONESIAN AVIATION FLYING HIGH AFTER YEARS OF TURBULENCE

Almost every time you read something about Indonesian aviation you will hear about the 1997 Asian financial crisis and how it stifled Indonesia’s aviation industry. What happened that caused this devastating crisis for Asia’s once-vibrant economies that were used to decades of rapid growth?

The causes of Asia’s problems were complex, and understanding them fully is beyond the scope of this article. Basically, what happened the Thai baht collapsed in July 1997 and Thailand was forced to let its currency float. Within just a few weeks, what was just a local financial crisis became a regional problem spreading to Indonesia within months.

Now, over 21 years later after Jakarta was plunged into a deep recession, we are reading headlines like “Indonesia’s aircraft industry is ready to take off again.” What are the signs that a recovery is happening and what are the problems to overcome?

In the 1980s before the Asian financial crisis, Indonesia’s aircraft industry supplied major jetliner makers like Boeing and Airbus. Now there are two companies that are getting back to the glory days of Indonesian plane manufacturing.

These are state-run aircraft manufacturer PT Dirgantara Indonesia (DI) and privately-owned domestic aircraft-maker

PT Dirgantara Indonesia

Founded in 1976, DI was then known as “Nusantara Aircraft Industry” and had 16,000 employees. They became subcontractors to major aircraft companies, including Boeing, General Dynamics, Airbus, and Fokker. Following the 1997 Asian financial crisis, they were forced to downsize, cutting 12,000 jobs and delay the development of new aircraft. A major restructuring program was implemented they were re-introduced as PT. Dirgantara Indonesia.

Now with this restructuring, since 2012 DI has been able to manufacture 60 aircraft and helicopters, exporting them to Thailand, Senegal, and South Korea. They are now developing new types of aircraft, one being the N-219 transport, a 19-seat plane for missions in remote areas.

Also, they are working with Korea Aerospace Industries to develop a fighter aircraft for both Indonesia and Korea. Referred to as “IFX” (Indonesia Fighter eXperimental) and KF-X in Korea. Based on the history of other similar programs, the new plane probably won’t enter service until 2025.

PT Regio Aviasi Industri (RAI)

Indonesia’s RAI is also taking off with its development of the R-80 aircraft, an 80-seat regional transport aircraft. Up to 155 R-80 planes have been ordered by local airlines, and the prototype is targeted for flight tests by 2022.

Problems to Overcome

Indonesia is the only Southeast Asia country with complex aircraft manufacturing ability. Other Southeast Asian countries, such as Thailand, Malaysia, and Singapore, focus on manufacturing parts, maintenance, repair, and overhaul services.

However, even with this manufacturing capability and all this progress with the resurgence, the Indonesian aircraft industry faces challenges. Poor maintenance, safety issues, and lack of support are some of the main ones.

Indonesia’s aircraft industry is still behind others in the region despite its potential. The overall trade value of Indonesia’s aerospace products is still below Singapore, Malaysia, the Philippines, and Thailand.

PT Filder Portal Indonesia

Peter Ritzmann of PT Filder Portal Indonesia is now riding this wave of progress after the many years of the Indonesian aviation industry trying to crawl back to prosperity. Providing aviation consulting in Jakarta and specializing in helicopters for cargo transportation, contact him today for expertise in Indonesian Aviation.