Budiarto Airport, situated in Curug, Tangerang, is emerging as a focal point in Indonesia’s aviation transformation. As policymakers explore new economic frameworks beyond commercial airline operations, the proposal to establish Budiarto as a Special Economic Zone (SEZ) for a General Aviation Hub represents a strategic convergence of infrastructure, human capital, and technological innovation. It signifies Indonesia’s ambition to position itself not merely as a user of airspace, but as a builder of its aviation ecosystem.
A New Momentum for Indonesia’s Aviation Economy
Over the past two decades, Indonesia’s aviation sector has evolved into one of the main arteries of the national economy. Air mobility is no longer merely a symbol of technological progress but a strategic enabler in the value chain of logistics, trade, and tourism. With steady domestic passenger growth averaging 7-9 percent annually, the proliferation of low-cost carriers (LCCs), and expanding inter-island connectivity, aviation has become a key driver of economic development.
Yet beneath the dominance of scheduled commercial aviation lies an underdeveloped segment: general aviation (GA). This segment covers all non-scheduled and non-military flight activities — from flight schools and executive charters to aerial mapping, medical evacuations, and private recreational flying. In developed aviation economies such as Canada, the United States, and Australia, general aviation forms the backbone of aerospace ecosystems, fostering innovation, training, and maintenance industries for light and medium aircraft.
Indonesia’s general aviation sector, however, remains scattered, costly, and often constrained by airspace sharing with dense commercial operations. This fragmentation has created structural bottlenecks in human resources development, technological innovation, and infrastructure readiness. Against this backdrop, the proposal to develop Budiarto Airport in Curug, Tangerang, into a General Aviation Special Economic Zone (SEZ) emerges not just as an economic initiative but as a strategic nation-building effort — one that aims to achieve self-reliance in aviation capability and talent.
Budiarto Airport: Strategic Position and Development Potential
Budiarto Airport (WICB), a public facility managed by the Ministry of Transportation through the Airport Operator Unit (UPBU) Budiarto, holds a unique geographic advantage within the Jakarta–Tangerang–Serang economic corridor. Located roughly 45 minutes from Soekarno-Hatta International Airport and only about 15 minutes from the Tol Legok access point, Budiarto is connected directly to the Jakarta–Merak toll network and nearby modern urban centres such as BSD City and Gading Serpong.
Technically, the airport has two intersecting runways — Runway 12–30 (2,000 meters x 45 meters) and Runway 22–04 (1,600 meters x 45 meters) — capable of accommodating light to medium aircraft for training and maintenance operations. The airport occupies approximately 469.09 hectares across five villages within the Curug and Legok districts, making it one of the largest aviation education complexes in Southeast Asia. Its flat topography and ample reserved land make it ideal for integrated development without significant land acquisition beyond existing boundaries.
From a connectivity standpoint, the airport sits within an emerging economic growth zone of Tangerang Regency. The proximity to industrial clusters, an educated workforce, and modern infrastructure gives Budiarto a comparative advantage as a future general aviation hub. The Tol Legok connection enhances logistical efficiency, allowing seamless access for both human capital and material transport to and from the airport complex.
Integration within Regional and National Development Planning
Spatially, Budiarto’s proposed SEZ aligns with the Regional Spatial Plan (RTRW) of Tangerang Regency, designating the Curug–Legok area as a strategic education and transportation zone. The Banten Province Long-Term Development Plan (RPJPD 2025–2045) also identifies the Tangerang–Serang Economic Corridor as a driver for high-technology industries, vocational education, and professional services.
This alignment ensures that the Budiarto General Aviation SEZ concept is not an isolated project but part of a broader strategic framework linking regional planning, human capital development, and industrial diversification. Nationally, it supports Indonesia’s Aviation Development Master Plan, National Logistic Ecosystem (NLE) initiative, and the government’s drive for green and digital transformation within the transport sector.
Thus, from both a spatial and policy perspective, Budiarto’s transformation into a general aviation SEZ is consistent with Indonesia’s long-term objective: building a resilient, innovative, and inclusive aviation ecosystem.
The Rationale for Establishing a General Aviation SEZ
Special Economic Zones in Indonesia are designed to accelerate regional growth through fiscal incentives, simplified licensing, and integrated infrastructure. Within the aviation context, establishing a General Aviation SEZ at Budiarto Airport offers several compelling rationales:
Regulatory Efficiency: Aviation is a highly regulated industry, often burdened by fragmented permits. SEZ status would enable a One Stop Service (OSS) framework, allowing flight schools, MROs (Maintenance, Repair, and Overhaul), and R&D institutions to secure operational licenses under a single administrative authority.
Investment Attractiveness: Fiscal incentives such as tax holidays, VAT exemptions, and streamlined import processes for aircraft parts can attract both domestic and foreign investors. Charter operators, flight academies, and tech-based aviation startups could anchor their operations at Budiarto, benefiting from reduced entry barriers.
Optimization of State Assets: Much of Budiarto’s land is state-owned and underutilized. Through Public Asset Utilization Partnerships (Kerja Sama Pemanfaatan or KSP), the government can create economic value from idle land while maintaining public ownership and the educational role of PPI Curug (Indonesian Civil Aviation Polytechnic).
Regional Economic Development: Tangerang Regency already hosts a robust industrial base and a skilled workforce. The SEZ can generate thousands of new jobs, stimulate local entrepreneurship, and promote the growth of an aerotropolis — an aviation-driven urban ecosystem combining education, research, and innovation.
Building the General Aviation Ecosystem
The envisioned SEZ is not merely an industrial estate but a comprehensive aviation ecosystem. Its key clusters include:
Flight Training & Simulation Centre: Pilot schools, ATC academies, and technician training centres.
MRO Complex: Facilities for maintenance, repair, and overhaul of light to medium aircraft.
Charter & Fixed Base Operator (FBO) Zone: Executive aviation services, passenger lounges, and hangarage.
Aviation R&D and Tech Start-up Zone: Incubators for avionics, drone systems, and AI-based flight operations.
Aviation Heritage & Learning Park: Public education and aerospace tourism facilities.
Together, these clusters will transform Budiarto into Southeast Asia’s first General Aviation Hub built upon education, sustainability, and technological innovation.
Economic, Social, and Environmental Impacts
Economically, the proposed Budiarto General Aviation SEZ holds the potential to attract investments of approximately Rp 6.2–8.1 trillion, according to comparative benchmarks from Indonesia’s National Council for Special Economic Zones (Kemenko Perekonomian, 2024), which indicate that the average investment for aviation-related SEZs—such as Batam Aero Technic SEZ and Lombok Mandalika SEZ—ranges between Rp 5 and 9 trillion in the first ten years of development. Based on data from the Indonesian Investment Coordinating Board (BKPM, 2023), each Rp 1 trillion in SEZ investment typically generates 800–1,000 direct jobs, suggesting that Budiarto’s activation could create around 5,000–7,500 direct employment opportunities, primarily in flight operations, maintenance, logistics, and education.
Furthermore, according to the Directorate General of Civil Aviation (DGCA, 2023) and INACA reports, around 35% of Indonesia’s light and medium aircraft maintenance is still performed abroad—equivalent to Rp 3.5–4.2 trillion in annual expenditures. By localising even one-third of this activity through the SEZ’s integrated MRO cluster, Indonesia could retain approximately Rp 1.2 trillion annually within the domestic economy. In parallel, Politeknik Penerbangan Indonesia (PPI) Curug currently graduates around 400 cadets annually; with the SEZ’s expanded flight training and vocational ecosystem, the educational capacity could rise to 1,000 aviation professionals per year, reinforcing Indonesia’s human capital pipeline in line with the National Aviation Human Resource Roadmap (Kemenhub, 2023). These projections combine official statistical baselines with sectoral productivity ratios used by BKPM and Bappenas, ensuring policy-level accountability and methodological consistency.
Socially, the project will elevate Curug and Legok from semi-rural communities into vibrant centres of aviation education and enterprise, creating a new middle class and fostering technology literacy. Nevertheless, potential social displacement or rising land prices must be mitigated through inclusive community development plans and vocational upskilling initiatives.
Environmentally, Budiarto already possesses an integrated master plan and environmental impact assessment (AMDAL) that includes noise mitigation, water management, and green zoning. Implementation of green airport principles — solar power, waste recycling, and vegetative buffers — will ensure that sustainability is embedded from the outset.
Institutional Framework: The SEZ Administrator
The success of Budiarto’s SEZ depends not only on infrastructure but on governance. Under Government Regulation No. 40/2021, each SEZ must have an Administrator under the Coordinating Ministry for Economic Affairs, responsible for investment facilitation, licensing, and supervision.
For Budiarto, the ideal structure includes:
SEZ Administrator Budiarto: Core coordinator ensuring cross-agency synergy and compliance.
UPBU Budiarto (Ministry of Transportation): Retains authority over aviation safety and operational integrity.
Banten Provincial SEZ Council: Synchronizes local policy and infrastructure support.
Technical One Stop Service Unit: Integrates all permits for construction, importation, and air operations.
This governance model adopts the principle of single authority, multiple coordination — ensuring administrative efficiency while upholding strict aviation safety oversight.
Hybrid Governance: Balancing Economy and Safety
Aviation management must reconcile economic flexibility with uncompromising safety. Thus, Budiarto’s SEZ governance should embody a hybrid model, balancing commercial agility and regulatory discipline.
| Institution / Actor | Role and Function in Budiarto SEZ Governance |
| SEZ Administrator (Coordinating Ministry for Economic Affairs) | Manages investment licensing and operates the One Stop Service (OSS) system. |
| Ministry of Transportation (UPBU Budiarto) | Ensures aviation safety, air traffic management, and operational compliance. |
| PPI Curug (Indonesian Civil Aviation Polytechnic) | Serves as an educational anchor for human resource development and innovation. |
| Tangerang Regency Government | Aligns regional planning (RTRW), provides supporting infrastructure, and fosters local empowerment. |
| Private Investors (e.g., GA, MRO partners) | Develops commercial facilities such as hangars, FBOs, and R&D units. |
| Local Communities | Act as social partners and beneficiaries through community-based training and entrepreneurship programs. |
Compliance Matrix: SEZ Requirements vs. Budiarto’s Current Condition
| SEZ Requirement (PP No. 40/2021) | Existing Condition at Budiarto | Compliance, Action Plan & Responsible Entity |
| Minimum 50 ha with clear administrative boundaries | 469.09 ha across five villages (Curug & Legok) | Compliant; BPN & UPBU Budiarto: land mapping and legal boundary formalization |
| Accessibility to the transportation network | Close to Tol Legok and Tangerang–Serang artery | Compliant; Tangerang Regency & Bina Marga: upgrade access road and signage |
| Globally competitive economic activities | GA operations, MRO, flight training, FBO, R&D | Compliant; Ministry of Transportation & Coordinating Ministry for Economic Affairs: cluster designation |
| Basic infrastructure (water, power, drainage) | Existing but requires capacity expansion | Partially compliant; PLN & investors: upgrade power grid and green energy supply |
| SEZ Administrator establishment | Not yet established | Gap; Coordinating Ministry for Economic Affairs: initiated through Presidential Decree |
| Environmental feasibility and AMDAL | Integrated master plan and AMDAL approved | Compliant; Ministry of Environment & UPBU: periodic review and updates |
| Private investment commitment | Initial interest from GA operators and MROs | In progress; BKPM: facilitate Letters of Intent (LoI) and KSP framework |
| Local community engagement | PPI Curug training programs are ongoing | To be expanded, Tangerang Regency & PPI Curug: develop Community Aviation Program |
Ten-Year Strategic Roadmap
Over the next decade, the development of the Budiarto General Aviation SEZ is envisioned to progress through a four-phase roadmap that ensures both regulatory clarity and industrial maturity. The first phase (2025–2026) will focus on preparation and regulation, including the completion of feasibility studies, finalisation of the master plan, formal SEZ designation, installation of the SEZ Administrator, and establishment of a one-stop service (OSS) system to streamline investment processes. The second phase (2027–2029) will mark the infrastructure kick-off, with utilities constructed, access to the Tol Legok corridor enhanced, and the launch of pilot training academies and MRO facilities to attract early investors and operational tenants. The third phase (2030–2032) will accelerate innovation expansion through the establishment of a fully functional aviation R&D campus, a thriving technology start-up zone, and the scaling of Fixed Base Operator (FBO) networks alongside progressive certification processes, integrating education, business, and innovation within a cohesive ecosystem. Finally, the fourth phase (2033–2035) will consolidate Budiarto’s position as a globally connected hub, featuring export-oriented MRO capabilities, a regional centre of excellence for general aviation training, and embedded sustainable operational practices — transforming Budiarto Airport into the preeminent ASEAN General Aviation Hub and a model for Indonesia’s long-term aviation industrial policy.
Conclusion: From Vision to Implementation
The proposal to establish the Budiarto General Aviation SEZ transcends mere economic ambition; it represents Indonesia’s aspiration to master its skies through education, innovation, and sustainability. Success will depend not on the elegance of the concept but on the consistency of policies, the certainty of regulation, and the maturity of governance.
Central government must ensure policy coherence, regional authorities must provide adaptive support, investors must uphold long-term commitments, and local communities must be integrated as active participants. When these elements align, Budiarto will not only become the first general aviation hub in ASEAN but also a symbol of Indonesia’s transformation into an “Aviation Nation” — a sovereign, innovative, and sustainable power in the regional sky economy.
References
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