The Indonesian National Air Carriers Association (INACA) has emphasized the urgent need for regulatory relaxation and more adaptive government policies to ensure the sustainability of the national aviation industry. This was a crucial topic discussed during the INACA General Meeting of Members (RUA) in Jakarta on Thursday (9/7/2026).
INACA Chairman Denon Prawiraatmadja stated that the aviation sector plays a strategic role as an economic driver with a significant multiplier effect on other sectors, ranging from tourism and trade to other service industries. Nevertheless, the industry is currently facing severe pressure due to the global geopolitical crisis, which has directly impacted high jet fuel prices and the fluctuation of the Rupiah exchange rate against foreign currencies.
To mitigate these risks, INACA proposed several strategic measures, including adjustments to fuel surcharge regulations, incentives such as VAT exemption on flight tickets, and airport cost efficiencies (PJP4U and PJP2U). Furthermore, there is a need for relaxation of import duties on aircraft components and easier USD-based transactions for charter airline operations to maintain company cash flow stability.
Denon is optimistic that through strong synergy among airline operators, airport managers, MRO service providers, and relevant government authorities, existing challenges can be converted into business opportunities. The hope is that these responsive policies will not only strengthen the domestic aviation industry's structure but also boost Indonesia's attractiveness to global investors, enabling local airlines to compete more effectively in regional and international arenas.
