Option to Loosen Licenses of Foreign Airlines Discussed Next Week

The government will calm down licensing of overseas airways to function on home routes, as one technique to nourish the aviation enterprise by means of competition. The Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, mentioned this was one technique to scale back home flight fares which later soared.

"Responding to the issue, there's a consideration to revise the unfavorable investment list, considered one of which applies to overseas airlines," he instructed Tempo yesterday.

In Presidential Regulation Number 44 of 2016 relating to List of Closed and Open Business Fields, overseas airways intending to function home flights ought to identify a native enterprise entity, with a optimum overseas possession of 49 percent. Foreign airways also should function 10 plane for scheduled commercial shipping with a composition of at the least five in their very own and the relaxation are leasing or leasing from third parties.

Foreign airways ought to also comply with Minister of Transportation Regulation Number 45 of 2017 about the Implementation of Air Transport. In that rule, the requirements for filing route requests, route addition, and route adjustments are included.

Susiwijono mentioned the relaxation of the guidelines was an possibility to scale back the fee of plane tickets. The access of overseas airlines, he said, might inspire pageant within the nationwide aviation industry. Currently, home routes are ruled by NULL fundamental players, specifically Garuda Indonesia and Lion Air. "The relief in higher restrict charges (TBA) appears to be much less effective, so we desire to suppose of different solutions," he said.

According to Susiwijono, subsequent week a assembly can be held to talk this possibility with the Ministry of Transportation, the Ministry of Tourism, the Ministry of State-Owned Enterprises, the Ministry of Industry, the Investment Coordinating Board and airways and airport operators. "If the revised flight allow is to be issued, it'll be issued alongside with the revised unfavorable investment checklist for different sectors," he said.

Earlier, President Joko Widodo mentioned that the access of airways flying home routes alien to be one technique to decrease the ticket. Because, he said, in that method the airline would compete. Moreover, earlier than the govt. had decreased TBA by 16 percentage and implemented a coupon on avtur prices, however the fee of airline tickets didn't move down. "We multiply the pageant so that they can be extra efficient," Jokowi said.

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