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Indonesia encourages new entrants
June 7th 2019
Initiative would add competition after recent fare changes. Read More »
Indonesian president, Joko Widodo, said he is open to more foreign airlines establishing local Indonesian carriers, according to Kumparan. Malaysia’s AirAsia has a local Indonesian unit, Indonesia AirAsia. Kumparan identified TransNusa also as being foreign-linked, although the ownership of the airline is unclear. It has six aircraft and flies mostly from Indonesian Timor.
Any new Indonesian affiliates would need local majority ownership and fly regional routes in addition to trunk routes. Specifics are unclear but are reminiscent of India’s policy for airlines to serve regional cities.
Kumparan doubted the effectiveness of the policy, opining “all airlines in the world are also in disarray”. Limited infrastructure is a challenge for more flights, current or future. Kumparan suggested the government look inward, reducing taxes while levying the rupiah. Currency fluctuations have significantly impacted Indonesian carriers.
