Indonesia Aircraft MRO Market Size, Share, Growth and Forecast, 2025-2035

Grounded fleets and new hangars keep repair work busy

The Indonesia aircraft MRO market was valued at USD 1.77 billion in 2025 and is projected to increase from USD 1.87 billion in 2026 to USD 2.99 billion by 2035, registering a CAGR of 5.35% during 2026–2035. Demand comes from airlines that fly a large narrow-body fleet across thousands of islands, from grounded aircraft returning to service and from defense operators that want local support. Greater Jakarta and Banten held the largest regional share, 36.0% in 2025, because the main airline bases and the largest hangars sit around Soekarno-Hatta. Batam and the Riau Islands grow fastest at 5.95% a year, as new hangars open at Hang Nadim Airport. The most important policy change is a cut in import duties on maintenance supplies to zero, which lowers the cost of parts that local shops still buy from abroad and helps them win work that left the country.

Which maintenance services does the estimate count?

The estimate measures spending on maintenance, repair and overhaul of fixed-wing aircraft operated in Indonesia. It covers engine shop visits, airframe heavy checks, component repair, line maintenance, modifications and cabin work, whether done by airline-owned shops, independent hangars, manufacturer-authorized centers or state-owned providers. Values are stated in USD million at current prices, converted from rupiah at average annual exchange rates.

The estimate excludes the purchase of new aircraft, spare engines bought as assets, fuel, crew training and airport ground handling. It counts work done for Indonesian operators by shops in the country, as well as the value of work they send abroad. The value chain runs from parts makers and lessors through maintenance providers to airlines, the air force and private operators.

Engine work and narrow-body fleets carry the most value

Why does engine work carry the most value?

Based on service type, the market is categorized into engine MRO, airframe heavy maintenance, component repair and overhaul, line maintenance and modifications and cabin services. Engine MRO led with 37.0% of 2025 value, because shop visits need costly parts and long labor hours. Engine MRO also grows fastest at 5.81% a year, as local shops add engine support that airlines once bought abroad.

How do narrow-body fleets shape repair demand?

Based on aircraft type, the market is categorized into narrow-body, wide-body, regional turboprop, business and general aviation, and military fixed-wing aircraft. Narrow-Body Aircraft led with 61.0% of 2025 value, because domestic airlines fly mostly single-aisle jets on short, busy routes. Military Fixed-Wing Aircraft grows fastest at 6.05% a year, as the government asks local firms to service air force transports.

Who performs most of the maintenance work?

Based on MRO provider, the market is categorized into airline-affiliated, independent, OEM-authorized and defense and state-owned providers. Airline-Affiliated MRO Providers led with 50.0% of 2025 value, because the Garuda and Lion groups run their own large hangars. Independent MRO Providers grow fastest at 6.08% a year, as new hangars in Bali and Jakarta take base and heavy checks from many carriers.

Which operators spend the most on maintenance?

Based on end user, the market is categorized into scheduled passenger airlines, low-cost carriers, cargo airlines, government and defense operators, and general aviation operators. Scheduled Passenger Airlines led with 43.0% of 2025 value, because full-service fleets fly longer routes and use more wide-body jets. Cargo Airlines grow fastest at 5.99% a year, as online shopping lifts freight flights between the islands.

Traffic, fleet repairs, hangars and duty cuts lift demand

How does air traffic across the archipelago lift demand?

Air traffic recovery lifts maintenance demand, because every extra flight adds cycles that trigger checks, part changes and engine shop visits. Indonesian carriers flew 97.05 million passengers in 2023, above the 91.32 million carried in 2019, according to World Bank data. Domestic flights carried 5.27 million passengers in October 2025, up 8.80% from the month before, while international flights carried 1.79 million, according to Statistics Indonesia. Because the country spans more than 17,000 islands, many towns can be reached quickly only by air, so airlines keep single-aisle and turboprop fleets flying hard. As a result, narrow-body aircraft held 61.0% of 2025 value, and line work stays busy at the main hub airports.

Why do grounded fleets and parts shortages raise spending?

Fleet life extension and global supply constraints raise maintenance spending, because airlines must repair older aircraft rather than replace them quickly. Of 570 aircraft owned by Indonesian airlines in November 2025, only about 360 were airworthy, according to Bisnis.com. Lion Air Group had 182 of its 297 aircraft flying at the same time. Danantara set aside Rp23.67 trillion for Garuda Indonesia in November 2025, and its managers said most of the money would go to maintenance so grounded jets can return in 2026. Worldwide, IATA counted more than 17,000 aircraft on order, nearly 12 years of production, which keeps older jets flying longer. Consequently, heavy checks and engine shop visits take a larger part of airline budgets through 2035.

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How is new domestic hangar capacity bringing work home?

Domestic capability expansion brings work back from overseas shops, because new hangars and approvals let local providers take larger checks. Batam Aero Technic opened its seventh hangar at Hang Nadim Airport on Nov. 19, 2025, with more than 10,000 square meters of floor space and 27 maintenance lines across its site. FL Technics Indonesia opened a facility on 17,000 square meters of land at Bali's Ngurah Rai airport on Dec. 2, 2024, offering line, base and heavy maintenance. PT Dirgantara Indonesia and Batam Aero Technic then signed a memorandum on April 10, 2026, to share resources and train technicians. Even so, about 70% of engine and component work in the Indonesia aircraft MRO market still went overseas in late 2025. Therefore, Batam and the Riau Islands become the fastest-growing zone for maintenance spending.

Why do lower import barriers on parts cut repair costs?

Lower import barriers on parts cut repair costs, because most spare parts used in Indonesian hangars still come from abroad. Imports supplied 93% of maintenance spare parts, and about 200 of 557 civil aircraft needed repairs, when the trade ministry eased import restrictions in a regulation effective March 10, 2024, according to Kontan. The government then cut import duties on maintenance supplies to 0% under Finance Minister Regulation 50 of 2026, announced on July 25, 2026, according to Investortrust. Industry Minister Regulation 16 of 2026 sets operating guidelines for maintenance providers in the same package. As a result, local shops can offer shorter turnaround times and compete for engine and component jobs that went to overseas shops.

Engine partnerships and hub plans reshape repair work

How is the rise of on-wing engine support changing service?

On-wing engine support is rising, because airlines want to keep engines flying longer between costly shop visits. StandardAero signed a memorandum with GMF AeroAsia on Nov. 4, 2025, to offer joint on-wing support, starting with the CFM56-7B that powers the Boeing 737NG family, according to AviTrader. About 270 CFM56-7B engines operate in Indonesia, and more than 4,200 operate across the wider region. About 46% of national fleet maintenance was still done overseas in June 2026, mainly high-value components and engines, according to speakers at the Indonesia MRO Summit. Consequently, engine MRO keeps the largest service share and grows fastest at 5.81% a year as more work stays in the country.

Why are integrated repair hubs and overseas sites emerging?

Integrated repair hubs are emerging, because parts move slowly across a country of more than 17,000 islands. Officials at the Indonesia MRO Summit in Batam on June 9, 2026, named Batam, Jakarta, Surabaya and Makassar as priority hub locations to cut parts turnaround time. BP Batam, the island's development authority, plans about 100 hectares of extra land near Hang Nadim Airport, and industry leaders said about 90% of airframe and hangar work can already be done in the country. GMF AeroAsia also signed a 20-year concession on Oct. 5, 2026, to run a maintenance facility at Muscat International Airport in Oman. As a result, local providers gain scale at home and new customers abroad.

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Is there an opening in military and state fleet support?

Military and state fleet support offers a clear opening, because the government wants local firms to service air force aircraft that were once maintained abroad. In August 2026, Defense Minister Sjafrie Sjamsoeddin asked PT Dirgantara Indonesia and GMF AeroAsia to use a maintenance facility under construction at Kertajati Airport in West Java. He cited GMF's heavy maintenance of the C-130 Hercules, work that Lockheed Martin had handled earlier. Plans for military fleet modernization add newer transports that will need long-term support. PT Dirgantara Indonesia already runs a certified maintenance training center in Bandung. Consequently, military fixed-wing aircraft become the fastest-growing aircraft type for maintenance through 2035.

Can data-driven planning cut costs for aging fleets?

Data-driven planning offers a second opening, because older aircraft need more checks and suffer longer waits for parts. IATA reported that the global fleet's average age rose to 15.1 years from 13.4 years before the pandemic. The same IATA study put extra maintenance costs from supply chain problems at $3.1 billion in 2025, with more than 5,000 aircraft in storage worldwide. Tools for predictive maintenance use engine and system data to plan part changes before failures ground an aircraft. Indonesian carriers with many idle jets can use these tools to choose which aircraft to repair first. In turn, providers that sell planning and health monitoring with hangar work can win longer contracts.

Imported parts, scarce technicians and airline debt weigh

How do imported parts and layered taxes raise costs?

Imported parts and layered taxes raise costs, because about 93% of aircraft components still come from abroad. Industry leaders said in June 2026 that customs codes do not fully fit aviation, so some parts are taxed as general industrial goods. As a result, local shops pay more and wait longer for parts than foreign rivals do. The 0% duty on maintenance supplies and a planned special import scheme should ease part of this burden.

Why do scarce certified technicians limit growth?

Scarce certified technicians limit growth, because each new hangar line needs licensed engineers and inspectors. The civil aviation directorate said in June 2026 that the number of internationally certified technicians produced each year is limited. Consequently, providers compete for the same staff, and hiring becomes a limit on new hangar lines. Training partnerships, such as the plan for Batam Aero Technic to hire graduates of PT Dirgantara Indonesia's training center, can widen supply.

How does airline financial stress delay maintenance?

Airline financial stress delays maintenance, because carriers short of cash postpone checks and leave aircraft parked. Grounded aircraft still carry lease and fixed costs, so each day of delayed repair deepens losses for the operator. As a result, providers face uneven order books and less predictable hangar loading. Some airlines turn to ACMI leasing to cover routes, while state funding for Garuda Indonesia should restore steadier repair volumes in 2026.

Why do foreign approvals slow the capture of export work?

Foreign approvals slow the capture of export work, because airlines from other countries usually require shops approved by their own regulators. Batam Aero Technic was still in the final stage of European certification in November 2025, although it already held approvals from Malaysia, Thailand, the Philippines and India. Consequently, some foreign customers wait before moving work to Indonesia. Earlier approvals and joint ventures with engine makers can shorten this delay.

Greater Jakarta leads while Batam grows fastest

Why do Greater Jakarta and Banten lead repair spending?

Greater Jakarta and Banten held 36.0% of 2025 value and grow at 4.75% a year, because the main bases of the largest airlines sit around Soekarno-Hatta International Airport. GMF AeroAsia runs four hangars at the airport, and its Hangar 4 can handle up to 16 narrow-body aircraft at once. FL Technics Indonesia also runs a hangar of about 15,000 square meters at Soekarno-Hatta that can hold three narrow-body aircraft at once.

How do Batam and the Riau Islands grow fastest?

Batam and the Riau Islands held 27.0% of 2025 value and grow fastest at 5.95% a year, because Batam Aero Technic keeps adding hangars at Hang Nadim Airport. Its site has seven hangars on a 21-hectare technopark, and Philippine Airlines and Cebu Pacific have sent aircraft there. The local free trade authority plans about 100 more hectares near the airport. Licensing for new projects in the zone is also being simplified.

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What shapes maintenance demand in West Java?

West Java held 15.0% of 2025 value and grows at 5.45% a year, because PT Dirgantara Indonesia builds and supports aircraft in Bandung. The company runs a certified maintenance training center there, which supplies technicians to other providers. A maintenance facility under construction at Kertajati Airport is meant to support air force aircraft, and the defense minister asked local firms to use it in August 2026.

How does East Java add regional demand?

East Java held 9.0% of 2025 value and grows at 5.25% a year, because Surabaya is a busy hub for flights to eastern Indonesia. Officials named Surabaya as a priority location for an integrated maintenance and parts hub in June 2026. Line work at the city's airport supports domestic and regional airlines.

Why do Bali and eastern Indonesia gain hangar work?

Central and Eastern Indonesia held 13.0% of 2025 value and grows at 5.65% a year, because Bali and Makassar host growing hangar and line work. FL Technics Indonesia opened a base and heavy maintenance facility at Ngurah Rai airport in December 2024. Officials also named Makassar as a priority hub to serve the eastern islands.

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Hangar openings, engine deals and duty relief

Digital records, health monitoring and inspection tools

• Digital maintenance planning links check schedules, parts stock and hangar slots, which helps airlines bring grounded aircraft back in a planned order.
• Engine health monitoring reads flight data to spot wear early, which supports on-wing repairs and fewer unplanned shop visits.
• Automated inspection with non-destructive testing tools finds cracks and corrosion faster during heavy checks on older airframes.
• Electronic technical records replace paper logbooks, which speeds audits by regulators and eases the transfer of leased aircraft between operators.

Airline-owned shops and independent hangars compete

Competition is led by airline-owned shops, with independent hangars and state-owned firms gaining ground. GMF AeroAsia, part of the Garuda Indonesia Group, offers airframe, engine and component work and added on-wing engine support with StandardAero in November 2025. Batam Aero Technic, which serves the Lion Air Group, runs seven hangars and 27 maintenance lines in Batam and also takes work from foreign airlines. FL Technics Indonesia competes for base and heavy checks from hangars in Jakarta and Bali. PT Dirgantara Indonesia supports military and state aircraft from Bandung and trains technicians for other providers. Providers compete on turnaround time, approvals from foreign regulators, parts access, engine capability and labor cost. Partnerships with engine makers and service firms help local shops add capability without building every skill alone.

Companies profiled and their roles in this market

Credence Research view on bringing repair work home

Credence Research's view is that Indonesian aircraft MRO spending will grow steadily through 2035, because a large grounded fleet must return to service and new hangars let more work stay in the country. Engine work already holds 37.0% of 2025 value and grows fastest, while military aircraft demand rises at 6.05% a year. Duty cuts on maintenance supplies and planned hubs should lower costs. However, scarce technicians, imported parts and weak airline finances could slow some programs. Greater Jakarta and Banten keep the largest share, while Batam and the Riau Islands grow faster as hangars open.

How the maintenance spending estimate was built

The report uses 2025 as the base year, with values in USD million at current prices. Market values come from the Credence Research model, which combines fleet size, flight activity and maintenance cost per aircraft. Regional shares are Credence Research estimates based on hangar capacity and hub locations by region, and segment splits by service, aircraft, provider and end user are also Credence Research estimates. Sources used are government statements, regulations, World Bank data, industry association statements, company announcements and news reports, and no interviews or surveys were used.

Domestic engine capacity and hub plans set the path to 2035

The market is expected to reach USD 2.99 billion by 2035, a 5.35% CAGR during 2026–2035, as traffic growth, fleet repairs and new hangars lift maintenance spending. Growth should be strongest in engine work, military aircraft support and in Batam and the Riau Islands, while Greater Jakarta and Banten keep the largest share. Providers that add engine capability and foreign approvals should win work that now leaves the country. In contrast, a long shortage of parts or new airline cash problems would slow the return of grounded aircraft.

Note: The depth of individual sections depends on data availability for this market. Volume, capacity, trade and other unit-based metrics are included where applicable.