Indonesia: Ministry to study Jokowi’s open sky proposal

  • The Transportation Ministry is studying a proposal made by President Joko “Jokowi” Widodo, who suggested inviting foreign airlines to serve domestic routes as an attempt to push down airfares.
  • Budi said foreign airlines had to fulfill tough requirements to operate in the country.
  • First, they must abide by the Cabotage principle of the aviation industry, namely establish a company in Indonesia and ensure 51% of their shares are owned by Indonesian nationals.
  • The foreign company would also need to assure flight safety and security, including by conducting regular airworthy checks by the Transportation Ministry.
  • Budi assured that those requirements were not easily fulfilled by foreign airlines. “Aviation is a tight business with tough requirements. The number of players is also limited,” he added.

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