Flat Economy Threatens Airline Industry

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  • Pesawat Garuda Indonesia. TEMPO/Abdi Purmono

    Pesawat Garuda Indonesia. TEMPO/Abdi Purmono

    TEMPO.CO, Jakarta – Indonesia's economy, which is predicted to stagnate, is seen as a threat to the national aviation industry, particularly ahead of the ASEAN Open Sky Policy that will take off in 2015. Arif Wibowo, chairman of the Indonesian National Aviation Company Association (INACA), asks all domestic airlines to consolidate.

    "So we can survive once the Open Sky Policy is implemented," Arif said in the ASEAN Open Sky seminar in Jakarta, yesterday.

    According to Arif, Indonesia's economy is currently unstable, as seen in the rupiah's weak position against the US dollar. "We predict the economic growth to remain stagnant until next year, and the rupiah depreciation is still uncertain," he said.

    Arif said INACA has submitted various requests to the government to help the industry prepare for the Open Sky policy. One of the requests is for the government to speed up the program of alleviating Indonesian airports' class—as regulated by the Federal Aviation Administration—from category 2 to category 1.

    Doing so, Arif said, will help reduce the country safety risk, which will in turn lower the costs of aircraft insurance. In addition, Indonesia needs airport management consisting of the main airports, supporting airports as well as pioneering airports.