Indonesia is estimated to require investment in around 600 new aircraft in the short term to capitalise on the massive growth potential in the aviation sector. This projection appears in Boeing's Commercial Market Outlook (CMO) 2025 report, based on an analysis of various factors, including demographic conditions, economic growth, and the condition of Indonesia's current aircraft fleet. David Schulte, Managing Director of Boeing Commercial Marketing, Northeast Asia, Southeast Asia, and Oceania, said in Jakarta on Wednesday that Indonesia has a demographic advantage. Indonesia's large young population, estimated at 30 million in 2024 and projected to grow to 35 million by 2044, is a key driver. "Indonesia has a strong youth demographic, which means the desire and passion for travel may be slightly higher than the ageing demographic," Schulte said.
Furthermore, solid economic growth is also a catalyst. Indonesia's middle class is projected to grow by around 3% annually, while the upper middle class is projected to grow even faster, at 8% annually. Furthermore, the tourism sector plays a crucial role as a driving force. The report states that by the end of 2024, tourism will contribute approximately 5% to total gross domestic product (GDP) and is projected to continue growing. With a workforce of 12 million and international tourist spending estimated to reach IDR 291 trillion in 2024, this significant potential requires the support of adequate aviation infrastructure. Schulte cited the condition of Indonesia's aircraft fleet as another reason why Indonesia needs to add new aircraft. Data shows that although the number of aircraft increased from 398 in 2014 to 480 in 2024, new aircraft deliveries to Indonesia have been very low in recent years. Schulte explained that before the pandemic, Indonesia received an average of 30 to 40 new aircraft per year. However, this figure plummeted post-pandemic, with only four units delivered in 2020 and one unit delivered in 2023.
