Bappenas Welcomes PT DI-Airbus Agreement on Aerostructure Development at G20 DMM Side Event

Minister for National Development Planning/Head of Bappenas Suharso Monoarfa witnessed the signing of a Memorandum of Understanding (MoU) between PT Dirgantara Indonesia and Airbus on cooperative improvement of the Aerostructure and Maintenance, Repair, and Overhaul (MRO) business at the “Harnessing the Ecosystem of Aerospace Industry in Indonesia” G20 Development Ministerial Meeting (DMM) Side Event in Belitung on 7-8 September 2022. “I welcome this collaboration between PT DI and Airbus as a sign of capacity expansion within the framework of global collaboration. This MoU is expected to further advance the cooperation between the two companies, as well as increase the participation of the Indonesian aerospace industry in the global aerospace industry value chain. We hope that this will also trigger new collaborations in the future,” Minister Suharso said in Belitung, Wednesday (7/8).

The signing of the MoU was also witnessed by the French Minister of Development and the Ministry of National Development Planning/Bappenas’ Deputy for Economic Affairs Amalia Adininggar Widyasanti. PT DI CEO Gita Amperiawan said this MoU was very strategic for PT DI, especially in terms of increasing its role in the industrial ecosystem. “The signing of this MoU is expected to boost the competence and business value of PT Dirgantara Indonesia’s aerostructure, which is estimated to reach US$500 million in the next 10 years. With this collaboration, PT Dirgantara Indonesia is expected to increase its role in developing the domestic industrial ecosystem,” said Gita.

Through the production of the N219 aircraft, PT DI aims to increase its contribution in efforts to expand connectivity and accessibility, both between large and small cities, as well as between small cities. The N219 is designed to be able to meet the needs of operations in regional characteristics which are areas with high elevation, short takeoff and landing ranges on runways, short airport operating times, unpredictable weather, limited airport facilities, and areas with geographical conditions in the mountains, which are difficult to reach.

The N219 aircraft has also met the Domestic Component Level by 44.69%, according to Presidential Regulation No. 12/2021 on Amendments to Presidential Regulation No. 16/2018 on Government Procurement of Goods/Services. As a way to face global market competition, the N219 aircraft has also pocketed certification from the Ministry of Industry. “PT DI and Airbus agrees on how we can strengthen strategic cooperation. Not only placing Indonesia as a market, but also how PT DI has significantly become a player in the aviation industry,” explained Gita.

About the Development Working Group

The Development Working Group (DWG) is one of the working groups of the 2022 G20 Indonesia Presidency which aims to discuss development issues in developing countries, least developed countries (LDC) and island countries (Small Island Developing States/SIDS). The DWG was first formed at the 2010 G20 Summit in Toronto, Canada with the main task of discussing the G20 priority agendas in the field of development. The DWG identifies development challenges, and then formulates the best solutions to promote economic growth in developing and low-income countries as an effort to mitigate the global financial crisis.

During the Indonesian Presidency of the G20 in 2022, the DWG raised four priority issues, namely:
1) Strengthening Recovery from the Covid-19 Pandemic and Ensuring Resilience in Developing Countries, Underdeveloped Countries, and Archipelagic Countries through the three key pillars of MSMEs, Adaptive Social Protection, and Low-Carbon Green and Blue Economies
2) Increasing Private and Blended Financing in Funding Sustainable Development in Developing Countries, Underdeveloped Countries, and Archipelagic Countries
3) Renewing the Global Commitment to Multilateralism for Sustainable Development
4) Coordinating the progress of achieving the SDGs in the G20 and updating the G20 Development Commitments.

The DWG’s focal points, organized by the Ministry of National Development Planning/Bappenas, are the 1^st DWG Meeting in Jakarta (24-25 February) and the 2^nd DWG Meeting in Yogyakarta (24-25 May). A third DWG meeting will be held in Bali between 10 August to 12 August 2022. The G20 Indonesia Presidency will also hold the G20 Development Ministerial Meeting in Belitung on 7-9 September 2022.