Lawmaker urges regulatory review to boost Indonesia’s MRO sector

Batam (ANTARA) – An Indonesian lawmaker is urging the government to adjust aviation regulations to strengthen and enhance the competitiveness of the domestic Maintenance, Repair, and Overhaul (MRO) industry.Deputy Chair of Commission VII of the House of Representatives (DPR) Chusnunia Chalim said on Friday that the government must consider the capabilities and competitiveness of the industry while also working to accelerate state revenue generation.”Some regulations need to be further detailed, including examining the effects if they are relaxed,” she said during a visit to the Batam Aero Technic (BAT) facility at Hang Nadim Airport in Batam, Riau Islands.BAT is one of Indonesia’s largest MRO facilities, offering base maintenance, line maintenance, component maintenance, and aircraft painting across a 30-hectare area. Its clients include Cebu Pacific, Philippine Airlines, and SpiceJet.Chalim said the government needs to review several regulations that continue to burden industry players. One of the issues, she noted, involves prohibitions, restrictions, and the imposition of taxes on MRO business actors.”Income tax and several other taxes are imposed on aircraft workshops, but not on airlines. Can those rules be relaxed to empower MRO players more?” she questioned.BAT President Director Riki Supriadi Suparman said he wants policy certainty that would equalize the cost of MRO services in Indonesia with those in other countries.He pointed to import duties that still apply to certain aircraft components because of non-specific HS Code classifications.”Aircraft engines for ATR, for example, are still subjected to import duties because their HS Code is the same as for electric turbines,” Suparman explained, urging for the creation of specific codes for aircraft components.He said some components for Boeing 737 or A330 engines are already exempt from import duties.He added that customs territory regulations also contribute to the cost burden.”Components enter Batam for free because the area is designated as a Free Trade Zone (FTZ), but when installed on an Indonesian aircraft, they are still subject to TLDDP (Other Places within the Customs Area) regulations,” Suparman detailed.”Whereas if installed on a foreign aircraft, they are exempt from fees,” he added.He called for uniform policies to ensure the Indonesian aviation industry can compete with other countries.