Indonesia Poised to Become World's Fourth Largest Aviation Market by 2036, Says Deputy Minister

JAKARTA, investortrust.id – Indonesia is projected to become the world’s fourth-largest aviation market by 2036, according to Deputy Minister of Industry Faisol Riza. Citing a 2024 study by the International Air Transport Association (IATA), Faisol highlighted the country’s growing air travel sector, driven by increasing domestic flights and passenger volumes.

A similar outlook was presented in a 2023 study by the International Civil Aviation Organization (ICAO), which projected that by 2045, Indonesia's domestic flights would rise to 7.6 million, with total passenger numbers reaching 690 million—more than three times the figures recorded in 2024.

"This growth underscores Indonesia’s critical role in the global aviation industry," Faisol said during a memorandum of understanding (MoU) signing ceremony between PT Dirgantara Indonesia (PT DI) and PT Yogya Presisi Tehniktama Industri at the Ministry of Industry’s office in South Jakarta on Wednesday, March 12, 2025.

Global Aircraft Demand and Supply Chain Opportunities

A 2024 report by McKinsey & Company revealed that the global aircraft backlog reached an all-time high of approximately 15,700 units. Based on the production capacity available in 2023, leading aircraft manufacturers would require 13 years to fulfill these outstanding orders.

This supply-demand imbalance has prompted major industry players, including Boeing and Airbus, to expand their supply chains for raw materials and components across various countries.

Indonesia’s Potential in Aircraft Component Manufacturing

Faisol emphasized that Indonesia’s domestic aerospace industry is well-positioned to capitalize on the surging demand for aircraft components. The country has a long-standing history in aircraft manufacturing, with PT Dirgantara Indonesia being the only aircraft producer in Southeast Asia.

Additionally, Indonesia has developed a robust aircraft component industry through the Indonesia Aircraft and Component Manufacturer (INACOM), which plays a key role in supporting the global aviation supply chain.

"PT DI is expected to strengthen its role in developing Indonesia’s aviation ecosystem—both as a lead integrator in aircraft manufacturing and as a tier-1 supplier enabling domestic industries to become tier-3 suppliers," Faisol stated.