ACN Aero Teknik, an Asia Cargo Network subsidiary, has signed two agreements with local government enterprise Bandarudara Internasional Jawa Barat (BIJB) owners of Kertajati International Airport, West Java. The first of the agreements lays out plans to establish a Maintenance, Repair, and Overhaul (MRO) facility at Kertajati International Airport. The second agreement is for the development of a one-stop experience facility including an airport transit hotel, shopping mall, food court and exhibition centre at the facade of the airport building covering 15,000 sqm of land space.
Kertajati Aircraft Maintenance will be the first MRO hangar present at Kertajati International Airport and the second such hangar facilities in West Java after Bandung. It will be built on an area of nine hectares, and Asia Cargo Network has agreed to make an initial investment of US$10 million to carry out the first phase of construction which is targeted for completion in the next eight months.
This commercial decision is in line with strategic plans to expand not only the development of Kertajati International Airport as a travel hub in West Java, but also plans to expand operations to include MRO capability in West Java. Asia Cargo Network will be integral to these expansion plans in the first phase. In Phase 2, an area covering five hectares will be subsequently developed to increase, and add more hangar growth, and further investments will be made over the coming years.
The total land size for the MRO is 84 hectares and Asia Cargo Network’s entry is seen to be the start of major redevelopment plans for the airport as it positions itself to become the logistics hub and aircraft maintenance centre facility of Indonesia. According to the DKUPPU of the Ministry of Transportation, some 46 percent of aircraft in Indonesia conduct their MRO activities overseas, thus leaving an opportunity for growth in the local market. By essentially growing MRO capabilities outside Jakarta and westward, costs can be made more efficient, and the opportunity for growth is made more possible.
Marco Isaak, Group CEO of Asia Cargo Network said, “The MRO market in Indonesia is expected to grow by 9.2 percent annually over the next three years, and we’re proud to be working with BIJB and various other government agencies to bring to life what will be a game-changer to both aviation and logistics. After the construction of Phase 1 and Phase 2 are completed in 2023, Kertajati Aircraft Maintenance will be able to serve MRO to dozens of aircraft every month, thus the fiscal benefit to the West Java economy is immense. Particularly with the addition of many new jobs in this sector, as well as further sustain the growth of the Indonesian aviation industry.”
The group said 590-hectares of the Kertajati International Airport development will be dedicated to the logistics hub Aerocity (industry and warehousing centre). It is aiming to become a leading green airport city and will include the creation of a leisure mall, a 3-star and 5-star hotel, and MICE facilities among others.