Business aircraft manufacturers are seeing Indonesia as the emerging country for business aviation in Asia. They believe that sales, albeit still relatively slow, are poised to grow, mainly due to favorable economic and geographic conditions.
Indonesia signed a letter of offer and acceptance (LOA) with the U.S. government to buy eight new Boeing AH-64E Apache helicopters during U.S. Defense Secretary Chuck Hagel’s recent trip to Southeast Asia. The Pentagon valued the transaction at $500 million; it represents the first sale of Apaches to Indonesia.
The supply of parts, assemblies and services for Boeing products has created valuable new economic opportunities in Southeast Asia in recent years. In fact, since 2009, Boeing suppliers have established aerospace manufacturing centers for commercial aircraft production in five Southeast Asia countries: Vietnam, Malaysia, Indonesia, Thailand and Singapore. Meanwhile, Boeing suppliers in other countries, including Australia and Malaysia, have added new commercial or defense manufacturing capacity to their portfolios.