Indonesia’s aerospace and aviation sector is entering a period of steady development, offering niche opportunities for international collaboration. Indonesia presents a dynamic environment for Canadian aerospace companies, thanks to its:
4.6% of Indonesia’s GDP comes from the aviation sector.
2nd fastest growing aviation sector in the world, after China.
CAD 3.8 million in Canadian aerospace exports went to Indonesia in 2024, including aircraft parts, simulators, and aviation technologies.
683 airports across Indonesia, including 35 commercial hubs managed by state-owned enterprises.
Indonesia’s aerospace industry is steadily growing, driven by rising domestic demand, regional connectivity, and government-led modernization efforts. Under President Prabowo Subianto’s “Golden Indonesia 2045” vision, aerospace is prioritized as a strategic sector. The plan focuses on revitalizing commercial aviation, expanding airport infrastructure, and strengthening domestic manufacturing through state-owned enterprise (SOE) PT Dirgantara Indonesia (PTDI).
The Canada–Indonesia Comprehensive Economic Partnership Agreement (CEPA) expected to be ratified in 2026 will improve market access for Canadian aerospace firms by reducing tariffs and improving regulatory transparency. As bilateral ties deepen, Canadian companies offering aircraft components, avionics, training systems, and sustainable aviation technologies are well-positioned to support Indonesia’s growing aviation and defense sectors.
Over the next 5 years, Indonesia’s aerospace industry is forecast to grow steadily. Government initiatives in defense modernization, commercial aviation, and infrastructure development will drive this growth. With active international partnerships and a supportive investment climate, Indonesia is positioning itself as a key aerospace hub in Southeast Asia. Canadian companies have opportunities to contribute to and benefit from this growth.
For more information on Aerospace in the Indonesian market, contact julia.pangkey@international.gc.ca.
