Objective - This study addresses the escalating challenges in aircraft component procurement within Indonesia's aviation industry.

Methodology/Technique - To achieve this objective, an in-depth literature review was conducted, exploring diverse facets such as geographical challenges, parts availability intricacies, supplier preferences, quality assurance, time and pricing dynamics, customs clearance challenges, and cost management strategies within the realm of Indonesian Aviation Maintenance, Repair, and Overhaul (MRO). The research methodologically involved 30 participants from various MRO companies affiliated with the Indonesia Aircraft Maintenance Services Association (IAMSA). Subsequently, PLS-SEM analysis was employed to establish the robust reliability and validity of the study, revealing significant relationships that underscored the crucial impact of lead time on Preferred Suppliers and Procurement Process Performance.

Finding - The Analysis revealed significant relationships, emphasizing the crucial impact of lead time on Preferred Suppliers and Procurement Process Performance within the Indonesian Aviation MRO sector.

Novelty - This study provides nuanced insights for refining procurement strategies and enhancing operational efficiency within the dynamic Indonesian Aviation MRO sector, contributing to the ongoing discourse and offering a holistic understanding of key factors influencing the procurement landscape.

Type of Paper - Empirical

Keywords: Aircraft Maintenance, Repair, and Overhaul (MRO), Indonesia, Procurement

JEL Classification: L11, L16, L42

URI: http://gatrenterprise.com/GATRJournals/GJBSSR/vol12.1_4.html

DOI: https://doi.org/10.35609/gjbssr.2024.12.1(4)

Pages 34–43