Doing Business In Indonesia: 2012 Country - Export.gov

Aircraft & Parts
Overview Return to top
Unit: USD thousands
2010 2011
2012
(estimated)
2013
(estimated)
Total Market Size 3,235 2,782 3,347 3,681
Total Local Production 175 200 240 264
Total Exports 126 175 201 221
Total Imports 3,186 2,757 3,308 3,638
Imports from the U.S. 1,717 1,186 1,432 1,575
Exchange Rate: 1 USD 8,996 8,942 9,000 9,000
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources: Central Bureau of Statistics Indonesia, Trade Stats Express USA
Starting in 2000, the aviation industry in Indonesia experienced tremendous
development. In 1999, there were only five airline companies. As of December 2011,
there are 18 scheduled and 42-chartered airlines operating in Indonesia, with total fleet
of more than 500 aircraft serving 222 domestic routes and 47 international routes. Some
of them are operating as budget airlines, such as Lion Air, Wing Air, Garuda City Link
and Indonesia Air Asia.
With a population of more than 240 million spread over 13,000 islands, Indonesia
present itself as an enormous aviation opportunity as one of the fastest growing
domestic air traffic markets in the world. The increase in the number of airline
passengers in the last three years has been quite impressive. The number of domestic
passengers reached 43.8 million in 2009, and 51.8 million in 2010. In 2011, the number
of domestic passengers was 58.85 million, and 7.21 million international passengers. In
2012, Directorate General of Civil Aviation, Ministry of Transportation predicts that the
industry would grow by 15%.
On January 12, 2009, the GOI enacted the new Aviation Law No 1, 2009 that restricts
issuance of licenses to airline companies operating at least 10 aircraft. The law also
adopts the ICAO safety standards requirements. The government will impose sanctions
upon the airlines and their personnel if the safety requirements are not met. The new
law also implements the provisions of the Cape Town convention on international
interests in mobile aircraft equipment, which assures lenders protection of their interests.
In response to the improved financial securities, lenders such as U.S. Export Import
Bank and others are vigorously engaged in financing aircraft to sell and lease to
Indonesian companies.
Under the new law, a new government agency will be set up for managing the air traffic
control and navigation systems and it will be inaugurated in the first quarter of 2012.
The new law also will allow private companies to manage airports and compete with the
current operators, PT Angkasa Pura I and II.