A landmark occasion for the Indonesian aviation industry, ACN Aeroteknik, an Asia Cargo Network subsidiary, signed two Head Of Agreements with local government enterprise, PT Bandara Internasional Jawa Barat (BIJB), owners of Kertajati International Airport, Majalengka, West Java, on March 3, 2022.

The first of the agreements lays out plans to establish a Maintenance, Repair, and Overhaul (MRO) facility at Kertajati Airport. Whilst the second agreement is for the development of a one-stop experience facility including an airport transit hotel, shopping mall, food court, and exhibition center 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 Airport, and the second such hangar facilities in West Java after Bandung. It will be built on an area of 9-hectares, and Asia Cargo Network has agreed to make an initial investment of USD 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 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 two, an area covering 5-hectares will be subsequently developed to increase, and add more hangar growth, and further investments will be made over the coming years.

The ratification of the two Heads of Agreement is significant and signals the enlarging of operations and service capabilities for the region, given the closure of Bandung Husein Sastranegara International Airport earlier last year.

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 center facility of Indonesia.

According to the DKUPPU of the Ministry of Transportation, some 46% 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% 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 gamechanger to both aviation and logistics."

"After the construction of Phase 1 and Phase 2 is 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," added Isaak.

590-hectares of the Kertajati Airport development will be dedicated to the logistics hub Aerocity (industry and warehousing center). 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.

Chairman of the Indonesian People's Consultative Assembly (MPR) and Head of the Indonesian Chamber of Commerce and Industry (KADIN's Law Enforcement, Security and Defense Relations Agency), Bambang Soesatyo together with the Commissioner of BIJB Yayat Hidayat and BIJB President Director Muhammad Singgih signed the Heads of Agreement between BIJB and ACN Aero Teknik.

Also attending the signing ceremony were Director-General of Civil Aviation Novie Riyanto representing the Minister of Transportation Budi Karya; Commissioner of PT BIJB Yayat Hidayat, and President Director of PT BIJB Muhammad Singgih.

Other guests present included national entrepreneurs from the Metland Group, Hariyanto, who will build a Hajj Dormitory with various facilities on 50-hectares of land at Kertajati International Airport, West Java.