ACN invests US$10m to build aircraft maintenance facility in Indonesia

The construction's first phase is expected to be done in eight months.

Asia Cargo Network’s (ACN) subsidiary, ACN Aeroteknik, invested US$10m for the first phase of the Kertajati Aircraft Maintenance construction.

ACN Aero Teknik signed two Head of Agreements with local government enterprise Bandarudara Internasional Jawa Barat (BIJB), owners of Kertajati International Airport in West Java, Indonesia.

Of the two deals, the first indicated plans to create a maintenance, repair, and overhaul (MRO) facility at Kertajati International Airport, whilst the second sought the development of a one-stop experience facility which include an airport transit hotel, shopping mall, food court, and exhibition centre at the facade of the airport building covering 15,000 square metres of land space.

The Kertajati Aircraft Maintenance will be the first MRO hangar at the Indonesia-based airport and the second such hangar facility in West Java after Bandung.

The aircraft maintenance will be built on an area of nine hectares and the ACN has agreed to provide a US$10m investment for the first phase of the construction targeted to be completed in the next eight months. 

Meanwhile, 590-hectares of the Kertajati International Airport development will be dedicated to the logistics hub, Aerocity, which is an industry and warehousing centre. It will become a leading green airport city and will include the creation of a leisure mall, a three-star and five-star hotel, and meetings, incentives, conferences, and exhibitions facilities.

The ratification of the two agreements also aimed at enlarging operations and service capabilities for the region, following the closure of Bandung Husein Sastranegara International Airport in 2021.

ACN Group CEO Marco Isaak said this coordination with BIJB will be a “gamechanger” to the aviation and logistics sector as the MRO market in Indonesia is expected to soar by 9.2% annually over the next three years.

“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,” he added.