When Indonesia can produce its aircraft and use it as a means of transportation on the inter-island, such as the R80 or N250 plane, what is the impact would Indonesia get, both positively and negatively based on economic theory or perspectives?

Last Updated Oct 11, 2017

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Mochamad Racka Nugroho Maulana Putra
Mahasiswa Fakultas Teknik UI 2017

If Indonesia can produce the airplane, it will very usefull. Specially in east area of Indonesia, everything in there in very expensive, because food or something from Jakarta or another region in Java took a very long time to get there. Just like the demand law, if the demand is getting higher, the price is also getting higher. Because the demand is getting higher and the goods are taking a long time to arrive, it will make scarcity of that good. So the airplane is help us because it also control the price of goods and control the stock too. But, there's a negative impact, the negative impact is when we make an airplane, we do not make it without spending our money, and to make the spare parts too. And also we must build an airport in that island, that also take money from the state budget. Mochamad Racka Nugroho MP-1706021404-Industrial Engineering

Answered Oct 11, 2017

I think it's great for Indonesia to make their own airplane. It's good for Indonesia's stature in the aviation business. I researched about the price of the plane and I'm delighted to find out that the aircraft prices are the relatively same as its competitor. Indonesia will get a positive results such as opening jobs, especially when airlines company from other country buy the aircraft it will increase indonesia's foreign exchange. In the end, what matters is the quality of the aircraft. If the aircraft doesn't match its competitors, Indonesia is definitely going to lose money. From the past, local products can't match import products such as Esemka cars.

Sources :

Juandito Berel Irianto/ Industrial Engineering/ 1706065330

Answered Oct 11, 2017
Radityo Rahadian
Industrial Engineering

In my opinion, the idea of making own airoplane product such as R80 or N250 plane its a great idea for our country, but beside that thinks, as we know in habibie era, it totally failed there for making an aeroplane company, but today is a different era, the goverment are likely to support this idea. As we know indonesia is the biggest island country in the world, so it needs more air transport for the transportation. This idea for making the company is also open  big job employement opportunities that will be effect on economics in Indonesia. And it will increase our country income because this is a local product.

Answered Oct 11, 2017

I think this will be a huge impact to Indonesia's transport and aviation industry. This will be the first aircaft that is made by Indonesia. This will be very useful and helpful for archipelago country like Indonesia to connect people inter-island and also this program will need a lot of wrokers so there will be thousands of jobs that are available. This news will spread as soon as possible, so when our aircrafts started to operate, other countries will slowly see our changes and if these aircrafts are all well performed maybe other country would be interested to order R80 or N250. But in economy, we're not only focused on profits, we'll have to get used to loss too. We would have to think the problem that might happen such as crash, that will make us lost trillions of rupiah even if it's only a single crash. Audrey Maharani Bhinuko - Industrial Engineering International Program - 1706019785

Answered Oct 11, 2017

We know that these days, Indonesia are very left behind from other country in Asia.  New innovation of breakthrough such as the R80 or N250 is needed for one of our step catching up with other country.  However, of course that this innovation have both positive and negative impact for Indonesia.  We know the demand law says that if the demand is getting high, the price will also getting high.  Means that in positive way, we now can reach island especially in remote area much more often and easy so the price there will not as high as before because the stock of the goods there will increase.  But in negative way, if this R80 and N250 product is a failure and can't compete with other aircraft, we will lose our money for nothing and can drag the economy of Indonesia in a much worse condition.


Andri Prabowo


Industrial Engineering

Answered Oct 11, 2017

[Positive Impacts]

Having planes for the use of inter-island transportation is a very advanced move for Indonesia and it's very good. Indonesia, with 17,504 islands and 3.257.483 km square of water area, need air and water transportation to accelerate the process of supplying, Without the transportation, there will be a high chance of scarcity in certain islands which is effecting the economic state of Indonesia. 


[Negative Impacts]

Even though airplanes are needed, airplanes are not comparative advantage for Indonesia. The production cost of one airplane is so expensive. In economic perspective, the production cost for airplanes are still high due to the unavailability of people to press the production cost to achieve low amount of money.


Febe Monika


Industrial Engineering

Answered Oct 11, 2017

First of all I am thankful that we once had a president who is an expert in the making of airplanes. I believe that there are a lot of positive effects that Indonesia can get from building our own airplane. Firstly, our overall economy can increase due to lower cost because we don't have to import from other countries. Secondly, our economy will also increase due to more job opportunities available, which could solve the problem of unemploynment due to the implementation of e toll cards. Also, with the help of Habibie's company, Regio Aviasa Industri (RAI), we could get a boost in building the airplane. The only negative impact is the money needed to produce the airplane. However, this problem is also being taken care of with Habibie's help in asking for the community to crowdfund the building of an R80 airplane, and I hope that there can be more crowdfunding so there can be more airplanes in the future.


*Source in comments

Answered Oct 11, 2017

Launched back in 1995, N250 plane was the pride of Indonesia, but due to the monetary crisis, this N250 project was discontinued. 

With all the technology and high quality engineers we have in this country, I think this is the right time for Indonesia to start developing in air transport sector. R80 plane project needs at least 1000 engineers, and the company (PT RAI) also prioritize Indonesian to work there. This indicates that aircraft industry needs a high number of workers, and this will reduce the amount of unemployment in Indonesia. As a mean of transportation on the inter-island, i think it would cost lower if we compare it to another aircraft. We know that Indonesia imported airplanes from another country and it makes the price to fly is higher.

But, to develop air transport sector, we need so much money. We also need to compete with another advanced airplane company. And if we failed, we would loss so much money which the government has invested. This will lead to unstable economic condition in Indonesia.




Answered Oct 11, 2017

The idea of locally-produced aircraft has been existent since the late 1990s, promoted by former president of Indonesia B. J. Habibie, who was an aerospace engineer himself. Two decades later, the idea has been through much process and it is now nearly a reality for Indonesia to be an aircraft-producing country. The IPTN N250 is set to be re-launched into the market next year after being cancelled in 1997, and the RAI R80 prototype is in its final stages of completion. The impact for Indonesia is that the demand for short-haul aircraft from international aircraft producers such as Boeing, Airbus, or ATR will be moderately reduced because of the increased supply from domestic production. However, the demand for long-haul aircraft capable of long-distance travel will still be existent, as Indonesia is yet to produce long-haul aircraft. Both the R80 and the N250 are short-haul, only accomodate regional travel, and require a lot of money to produce. Indonesia doesn't have the financial capability to produce long-haul aircraft yet, so the demand for imported aircraft must still exist, otherwise funding will have to be cut short due to shortage. Only when Indonesia has the financial and technical ability to produce long-haul airliners will the demand for imported aircraft be reduced.

Jonathan Farrel K - 1706065324

Answered Oct 11, 2017

One positive aspect of this situation is the employment it will create. The production of such aircrafts are expected to employ thousands, depending on the scale. Another one is the stimulation it starts in our national aviation industry. With the production of those aircrafts, markets for its maintenance will also open, not to mention the wave of innovations it will create should the government allow for local competition in the market. The use of locally-engineered products will grow confidence in innovation and hence expand the high-tech industry with the rise of enterprises in said industry. Moreover, ideally, a locally mass-produced and procured product will cost less than its imported counterpart, should it reach its economies of scale. Although, in the case of N250, it is priced similarly to its foreign competitors at around USD28million. The impact of a cheaper means of inter-island transportation can be dramatic especially to Indonesia's eastern outermost islands. This can minimize prices of staple goods and more in Papua, hence create an economy more desirable for business and competition, which can stimulate major economic growth there.

On the other hand, the major issue of a nationally or locally-produced aircraft is its feasibility in our often politically and economically unstable country, as such projects require huge capital investment; the initial N250 project by PTDI had to be stopped at the late 90s due to the Asian Financial Crisis of 1997 and subsequent fall of the New Order. Moreover, users and service providers may trust foreign manufacturers over local ones, which means the demand may be too low for the equilibrium price to be above the costs of production, unless the government makes policies to widely promote and support the local aviation industry. Also, there exists a dilemma of how the government should regulate this industry: should it be monopolized by the government, there may be a lack of competitive innovation; if it was an oligopoly, cases of corruption is feared; if it is only lightly regulated, the production may not meet its ideal economies of scale to be cheap enough to compete.



Answered Oct 11, 2017

I think the launch of aircraft such as R80 and N250 will cause more of the positive side. First of all, Indonesia area is consist of sea and island that's why we need plane for transportation. All this time we always rely on imported airplane which cost a lot. Actually at 1990s B.J. Habibie already got this idea but the production need to stop due to the monetary crisis. I think this time is the right time to launch our own aircraft since passanger rate in Indonesia increase significantly. The negative impact of this idea is the cost that the goverment should pay will be very expensive because of the materials and they have to creates more land for the aircraft. Ryda Tazkia 1706020010 Industrial Engineering

Answered Oct 11, 2017

R80 Turboprop Airplane is designed and manufactured by great Indonesian engineers all around the world and ofcourse by our former president B. J. Habibie. We are proud Indonesian to know that our nation has the best work in aircraft technology with its R80 airplane’s design and interesting specification. Therefore this project has layout more work land of employment in terms of business and marketing or even design and manufacture.

This turboprop airplane will also save Indonesia alot of money because when the plane releases in 2021 we don't have to import them anymore. As mention by the only child of our former president and one of the heads of this project, the R80 benchmark should be above the ATR but the price is much cheaper than the ATR. Due to its production is in Indonesia, spare parts are also made in Indonesia.

The R80 airplane has a risk of failure like the N250 that was shut down in 1998. The start up of the R80 was US$ 400 million dollars. Then soon opening the stock would be open for public. If ever the project did not go well, it way cost a big lost for the companies involved

Dara Abiyya Setiadi


Teknik Industri

Answered Oct 11, 2017

As we all know, Indonesia is one of the largest archipelago in the world. Surely, by producing the R80 it will makes the whole transporting, either a person or things more effective. And by using airplane we can actually explore the island that have great potential.
In a negative side, it will cost a lot to build a transportation, let alone producing an airplane

Nabila Puspa - 1706065394 - Industrial Engineering

Answered Oct 11, 2017

I think its good when Indonesia can produce its aircraft own such as R80 because It moves Indonesia stature's in the aviation business. And based on the news, The R80 need to have at least 1000 engineers to make it. Which is good because it opens the opportunity to work and minimize the unemployment. Until now, There are a lot of airline company already order the R80 such as Kalstar aviation, NAM-air, and Trigana air. Another positive impact of the R80 is that the aircraft itself is used for the inter-island, its good especially in East of Indonesia because there almost no airplane in there. In demand Theory, If the demand is high then the price is high too, therefore, its good to make the R80 to be the main transportation inter-island. It"ll get a lot of profit because when you make the aircraft, there are a lot of costs to make an aircraft. And because the project of R80 is supported by the government, it will use the APBN. So that is the negative impact.


Fahreza Ananda F


Industrial engineering

Answered Oct 11, 2017

indonesia as the biggest archipelago country needs some sort of transportation in which can transport people and things needed for our daily life such as foods and medical equipment. the R80 and N250 is on of the solution, this aircraft uses a propeller as the motor, this give them the advantage in landing and taking off in short distance runway and in indonesia most of the runway in remote places are short distance so this is a good prespective of the aircraft. other than it is efficient, these aircraft can also contribute in opening new employment sector, from its industry itself and the mechanic and flight attendant. the production of the aircraft can also trigger our engineer to improve the technology and make a breakthrough. indonesia can also reduce the usage of our devisa because we can make it by ourself in our country so that the budget can be use for something better for this country.

the downside of this program is it will need a lot of cost for making it and for the research. from the industrial side, if they can't fullfill the minimum production quantity and the selling target it will cost them a lot of money deficit. also if they can't fullfil the import target it will only cost the country a lot.

Mohammad Naufal Archie_1706065356_Industrial Engineering

Answered Oct 11, 2017
akmal shidqi addauly
Mahasiswa Fakultas Teknik UI 2017

Indonesia as one of the biggest archipelago country in the world need a transportation to connect the whole country. As we know airplane is the most efficient transportation to connect our country. While ship is still the main transportation for our country, we know that airplane is the one that we need right now. If our country can produce aircraft, it will bring a big benefit for the economic process in this country.

First, lets analyze the positive impact that will happen when Indonesia can produce aircraft.

  • Time, We know that the most essential thing in our life is timeTime is scarce, everything that we do need time and time is limited only 24 hours everyday. When Indonesia can produce aircraft, it will reduce the time needed to deliver the people or goods from an island to another. Getting on ship is relative cheap but the time needed to reach another island is longer compared to using an airplane
  • Reduce the Expenditure, If Indonesia can produce aircraft, the goverment didnt need to spend more money for importing airplane from other country so the budget can be use to improve our product
  • Increase the Income, We can export our finished product to other country and increase our income.
  • Job Vacancy, there will be many job vacancy for our local people because the company need people to build the aircraft or even sell it to other country
Now the Negative Impact that will happen if Indonesia can produce aircraft
  • Intervene, many side will try to intervene the airplane company. because they didnt want Indonesia to produce aircraft. If Indonesia produce aircraft ship company will be left out by many people because aircraft is more demanding than ship.
  • Political Instability, if this happen, it will greatly affect our economic growth. As we know that our third president, B.J Habibie already succeed in creating airplane many years ago, but due to something the company is closed by the goverment. This is the example of political instability

Answered Oct 11, 2017

I believe that this is a really good thing for the economy, this gives Indonesia lots of opportunities to make money since now we can sell aircrafts to other countries. We can also reduce the country's outcomes since now we don't have to import any more aircrafts. This also could reduce unemployment, because the aviation industry sure needs a lot of workers.

The downside, however, production of aircrafts such as this one sure as well needs a lot of money. If they couldn't produce and sell the minimum quantity of aircrafts, the industry could lose a lot of money.

Answered Oct 11, 2017

In my opinion, this is one of the "boost" to make Indonesia a better country. We can see that the amount of the outcome is smaller than if we import the aircraft from another country. As far as i know, that an aircraft is a small plane, so it will be more effective for the outcome. Because, the government don't have to make a bigger runway for the aircraft. The economy from metropolis can also spread easily to villages in another island, because it is easy to reach them. However, there are too the negative sides. As i said above, even if we can decrease the outcome, we will lack of income. Some of the aircraft should be exported instead of using it only for domestic. The world won't know about this aircraft and there's no "extra point" for indonesia in other countries eyes. We should tell the world about these indonesian aircraft, so they can buy it, and indonesia can have 1 more source of income.

Answered Oct 11, 2017

With R80 and N250 being created, it is an improvement for Indonesia itself. Current commercial airlines are not connected to all airports in Indonesia. That's why where more inter-island airlines are needed, especially for small islands. With more inter-island airlines available, it becomes more easier to reach small islands, both for goods supply and recreation. But also, this also has negative sides. As we know, to increase and improve transportation system, it needs lots of resources and cost. Since this project is supported by the goverment, it surely cost a lot of money


Anggia Maharani Prasanti


Answered Oct 11, 2017

The positive impacts if Indonesia can produce its aircraft such as R80 &N250 are we can decrease the outcome of Indonesia. And the people that have no job but have high potensial in that case will be hired, because it will need a lot of people to operate and maintain. Our country can get more income and the income can be used to pay our debt to other countries, even the outcomes will happen in a long term. And our country will have a role in this world if other countries need our aircraft.

But usually, every decision has a negative impact no matter how good it is. In this case the negative impact that caused by that project is the high cost that will be required. Because it is a big project that need high quality materials and professionals being involved,  from the operation system until the maintainance, because as we all know in these past years there were many  plane accident. So by operating that aircraft there's a possibility to risk people's life. 








Answered Oct 11, 2017