Indonesian Aerospace Targets $3.1 Billion in Aircraft Production by 2029

JAKARTA, investortrust.id – PT Dirgantara Indonesia, or Indonesian Aerospace, a state-owned aerospace company, is targeting the production of 143 aircraft by 2029, with an estimated value of $3.1 billion. This ambitious goal includes the production of 46 CN235 aircraft, 31 NC212i aircraft, and 66 N219 aircraft, positioning Indonesia as a key player in the global aerospace industry.

To support this target, Indonesian Aerospace is taking significant steps to modernize its production capabilities. The company faces a major challenge due to aging machinery, with most of its equipment exceeding 15 years in service. This has led to declining productivity, lower reliability, and frequent production downtimes due to difficulties in sourcing replacement parts. To address this, PTDI has partnered with PT Yogya Presisi Tehniktama Industri (YPTI), a domestic CNC (Computer Numerical Control) manufacturer, to upgrade its machining facilities.

The collaboration will focus on acquiring and revitalizing Indonesian Aerospace’s production machinery, enhancing workforce training, improving product competitiveness, and strengthening the domestic aerospace supply chain. This initiative is also expected to reduce reliance on foreign components, making Indonesia’s aerospace sector more self-sufficient and globally competitive.

"Approximately 19% to 20% of each aircraft’s components are produced through machining processes," said Setia Diarta, director general of metal, machinery, transportation equipment, and electronics industries at the Ministry of Industry, during a memorandum of understanding (MoU) signing between Indonesian Aerospace and YPTI in Jakarta on Wednesday, March 12, 2025.

Expanding Global Footprint and Supply Chain Capacity

As a key supplier for major global aircraft manufacturers such as Airbus and Bell, Indonesian Aerospace is also looking to increase its aerostructure contracts. The company aims to expand its aerostructure business from $12.9 million in 2025 to $50 million by 2032, with machining parts contributing 10% to 20% of total aerostructure orders.

The global aerospace industry is experiencing unprecedented demand, with McKinsey & Company reporting an all-time high backlog of 15,700 aircraft orders in 2024. Given current production rates, manufacturers would need 13 years to fulfill these orders, creating opportunities for companies like Indonesian Aerospace to play a larger role in the global supply chain.

"By modernizing our machining capabilities and improving production efficiency, this partnership will not only support our growth ambitions but also help build a more independent and globally competitive aerospace industry," Setia added.