Gov't: No Foreign Airline Wants to Enter Indonesia

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Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - Air Transportation Director-General Polana B Pramesti ensured there was no foreign airline planning to operate in Indonesia. Polana made the statement in response to issues about the operation of international airlines such as Jetstar and Scoot.

    “There is none because of strict requirements,” said Polana during an interview with Tempo in Balikpapan, East Kalimantan, Saturday, June 8.

    Polana explained the requirement was noted in Law No. 1/2009 on aviation and Presidential Decree No. 44/2016 on the list of business fields that are closed or open to investment requirement. In addition, it was also ruled in the Chicago Convention in 1944.

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    Polana outlined airlines willing to operate in the country should open a domestic business entity and so its role would be similar to a foreign investor. The majority shareholder should also be Indonesia with a minimum of 51 percent of shares.

    Moreover, foreign airlines must operate 10 units of aircraft for scheduled transportation. “They should possess five aircraft and the rest five must be aircraft leases,” he added.

    After meeting the qualification, foreign airlines must abide by the Transportation Ministerial Regulation including No. 45/2017 on air transportation establishment in which noting requirements about flight routes.

    “As long as the law is not revoked yet and Presidential Decree is not amended yet, we still uphold it,” he remarked.

    Previously, President Joko "Jokowi" Widodo allowed foreign airlines to operate in Indonesia as an effort to reduce flight ticket prices because by that airlines would then have better competition.

    FRANCISCA CHRISTY ROSANA