Indonesia’s Push for European Aircraft MRO Licenses to Enhance Local Industry
JAKARTA, RAKYAT NEWS— The Indonesian Ministry of Industry (Kemenperin) is actively engaging with European countries in the field of Maintenance, Repair, and Overhaul (MRO) to secure licenses for Indonesia, aiming to increase the number of aircraft serviced domestically. Syahroni Ahmad, Director of Industrial Resource Access and International Promotion at Kemenperin, highlighted that MRO is a key focus for the ministry in its industrial services efforts.
“We are approaching other countries to enter Indonesia and integrate into the global value chain. We are encouraging European companies to provide MRO licenses as part of the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU CEPA) negotiations,” said Syahroni in Jakarta
Such licenses would standardize aircraft servicing in both Indonesia and Europe, ensuring uniformity and certification for MRO personnel.
The granting of MRO licenses to Indonesia is expected to increase the number of aircraft undergoing maintenance within the country. According to the global value chain (GVC) smilling curve, countries engaged in industrial services such as MRO, research and development (R&D), purchasing, design, distribution, and marketing gain significant strategic value.
Trade Minister Zulkifli Hasan indicated that the IEU-CEPA negotiations are expected to conclude by October 20, 2024, before the new administration takes office. These negotiations aim to enhance trade between Indonesia and the European Union, benefiting both economically through an increase in real Gross Domestic Product (GDP).
To date, Indonesia and the European Union have reached agreements on 11 out of 21 issues in the 18th round of IEU-CEPA negotiations. These agreements include Customs and Trade Facilitation, Trade Remedies, Economic Cooperation and Capacity Building, Technical Barriers to Trade (TBT), Sanitary and Phytosanitary measures, Small and Medium Enterprises, Dispute Settlement, Institutional and Final Provisions (IFP), and Transparency. Other issues being negotiated involve Good Regulatory Practices and Sustainable Food Systems (SFS).
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