"Danantara's large assets and liquidity can help our aerospace industry," he remarked at the signing of the cooperation agreement between PT Dirgantara Indonesia (DI) and PT Yogya Presisi Teknitama Industri (YPTI) in Jakarta, Wednesday.
With Danantara's support, state-owned aircraft manufacturer PT Dirgantara Indonesia (DI) is expected to expand its operations independently, without needing external investment.
Riza drew attention to a substantial rise in the demand for aircraft components, coupled with an increased need for aircraft fleets.
McKinsey and Company data revealed that the global backlog of aircraft fleet orders reached a record high of 15,700 units in 2024.
Assuming the production capacity from 2023 remains constant, global aircraft manufacturers would require 13 years to fulfill the required number of units.
This situation has prompted major global aircraft manufacturers, such as Boeing and Airbus, to increase their supply chain capacity for raw materials and components from various countries.
Consequently, the high demand for aircraft fleets presents an opportunity to bolster Indonesia's domestic aviation industry, according to Riza.
As quoted from Boeing, an International Air Transport Association (IATA) study predicts Indonesia will become the fourth-largest aviation market globally by 2036, Riza stated.
This was also conveyed at the 2023 International Civil Aviation Organization (ICAO) where it was projected that number of domestic flights and passengers would rise to 7.6 million flights and 690 million passengers by 2045, marking a threefold increase from 2024.
Earlier, Indonesian President Prabowo Subianto stated that the Danantara Investment Management Agency should support national development by optimizing the management of Indonesia's wealth.
Prabowo stated that the government has demonstrated its commitment to managing state assets with rigorous financial discipline and responsible governance.
During his administration's first 100 days, they successfully secured around US$20 billion through state fund efficiency measures.
After being hampered by inefficiency, corruption, and poorly targeted spending, these funds will now be allocated to be managed by Danantara and invested in 20 or more national projects as part of industrialization and downstreaming.
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Translator: Ahmad Muzdaffar, Resinta Sulistiyandari
Editor: Azis Kurmala
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