On March 2, ACN Aero Teknik, an Asia Cargo Network subsidiary, signed two Heads of Agreement with local government enterprise Bandarudara Internasional Jawa Barat (BIJB), the 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. 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 centre at the front of the airport building covering 15,000 m² of land space.
Kertajati Aircraft Maintenance will be the first MRO hangar present at Kertajati International Airport and the second such hangar facility 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 (£7.5 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 two, 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 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 centre 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 feasible.
