The Indonesia National Air Carriers Association (INACA), during its General Meeting of Members (RUA), highlighted several severe challenges shadowing the domestic aviation sector. The dynamics of international geopolitical crises, such as the conflicts in the Middle East and Russia-Ukraine, are considered the primary drivers of uncertainty hitting airlines' operational efficiency.
INACA Chairman Denon Prawiraatmadja explained that the impact of the global situation directly resulted in a surge in aviation fuel prices and the strengthening of the US dollar exchange rate against the Rupiah. Economic pressure has even forced several airlines to close international routes, automatically disrupting the stability of the national aviation business.
Facing this situation, INACA emphasized the need for sustained, more responsive, and adaptive government policies. Denon stressed that appropriate intervention serves not only to maintain the financial health of airlines—both scheduled passenger and cargo flights—but also to maximize the multiplier effect for other economic sectors.
On that occasion, INACA expressed appreciation to the Ministry of Transportation for the support provided so far. Several strategic policies deemed successful in helping the industry include fuel surcharge adjustments, ticket VAT exemption policies, as well as airport service fee adjustments and import duty incentives for aircraft spare parts.
Furthermore, Denon hopes that cross-sectoral collaboration can continue to be enhanced. Synergy among airlines, airport operators, aviation fuel suppliers, and government authorities such as the Ministry of Transportation, KPPU, and Bank Indonesia is key to turning challenges into sustainable growth opportunities for Indonesian aviation.
