E. Kalimantan. Indonesian airline Lion Air Group plans to build a 30-hectare maintenance, repair, and overhaul (MRO) facility at the airport serving Indonesia’s planned new capital, Nusantara, in East Kalimantan.

Nusantara Capital Authority (OIKN) Chairman Basuki Hadimuljono said the plan was formalized through a memorandum of understanding signed Friday by OIKN, the Indonesian Land Bank, and Lion Air Group.

“Lion wants to build an MRO facility here on 30 hectares, as well as a flight training facility,” Basuki said at IKN City Hall.

Lion Air Group had initially planned to establish a training center at the site. The plan was later expanded to include an MRO facility for aircraft maintenance, similar to the group’s existing facility in Batam, Riau Islands.

Basuki said OIKN facilitated discussions between Lion Air Group and the Indonesian Land Bank because land around the IKN airport is owned by the agency.

The airport is considered strategically attractive for the airline group because it has a 3,000-meter-long and 85-meter-wide runway capable of handling wide-body aircraft, Basuki said.

The development would add to plans to expand the airport's role as Nusantara develops as Indonesia’s new administrative capital.

Basuki also said OIKN had discussed the possibility of using the airport as an embarkation point for Muslim pilgrims traveling for the Hajj and Umrah.

“I have also been in communication with the Hajj minister about whether it could be used for Hajj and Umrah departures,” he said.

However, the airport is currently classified as a special-purpose airport rather than a commercial airport. Its conversion into a commercial airport is still awaiting a presidential regulation, Basuki said.

“God willing, we are just waiting for the presidential regulation to change it from a special-purpose airport into a commercial airport,” he said.

The airport, located in Penajam Paser Utara, is expected to play a greater role in supporting connectivity to Nusantara as the government continues to develop the new capital.

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