Maritime Coordinating Minister Luhut Binsar Pandjaitan asked French commercial aircraft manufacturer Airbus to be able to produce aircraft components in Indonesia.
The request was conveyed during a meeting with Airbus President Asia-Pacific Jean-Marc Nasr at the Ministry of Maritime Affairs Jakarta, Monday (4/2/2019).
“I asked them to make aircraft parts in Indonesian Aerospace. Then we also asked them to make their aircraft tires in Indonesia,” Luhut said.
The former Coordinating Minister for Politics and Security said that the demand to produce aircraft components in the country was aimed at optimally using raw materials in Indonesia.
“Like Michelin, Dunlop, and GT, we can absorb a lot of our rubber,” he added.
Unfortunately, Luhut claimed not to know the amount of investment needed by Airbus to realize the plan.
“The cost is calculated, what are the production costs, how much can be made, how much is the tire industry investment. We will offer to companies that can make airplanes,” he said.
Besides being able to absorb national rubber production, it is expected that Airbus component production in the country will be able to absorb domestic workers.
Luhut added that he also encouraged Airbus to immediately cooperate in the aircraft maintenance business.
He said that two airlines, Lion Air and Garuda Indonesia, had aircraft maintenance facilities in Batam and Bintan.
“They want to maintain maintenance for their Airbus 320 aircraft,” he said.
Luhut added that next April Airbus will come up with concrete proposals related to cooperation in Bintan and Batam.
According to the former Presidential Chief of Staff, Airbus was interested in the plan because domestic work would reduce costs 20 percent cheaper than having to do it in Singapore.
“So they are happy, they know that. Moreover, the skills of Indonesian people are great, if they have been trained,” he said.