Indonesia Opens Doors for Foreign Airlines to Operate Domestic Routes

In preparation for the 2025 Eid al-Fitr travel season, state-owned airlines are planning to expand their fleets. The government estimates that Indonesia needs approximately 750 aircraft to meet demand, but currently, only around 420 are operational. State-owned carriers such as Garuda Indonesia, Citilink, and Pelita Air Service are set to add 26 new aircraft and repair 19 existing ones, increasing the total operational fleet by 45 units. This expansion aims to accommodate the expected surge in passenger numbers during the holiday

To support the aviation industry, the Ministry of Transportation is collaborating with other government agencies, including the Ministry of Trade, Ministry of Industry, and Ministry of Finance. These discussions aim to reduce operational costs for airlines by addressing issues such as high aviation fuel prices and import duties on aircraft parts. While the government acknowledges that some factors, like global fuel prices, are beyond its control, it remains committed to creating a more favorable environment for the aviation sector.

The decision to allow foreign airlines to operate domestically is seen as a temporary measure to address the current aircraft shortage. By leveraging the capacity of international carriers, the government hopes to ensure that domestic routes remain well-served, particularly during peak travel periods. This approach also provides an opportunity for foreign airlines to tap into Indonesia’s growing aviation market, which is one of the largest in Southeast Asia.

As Indonesia navigates the challenges of a global aircraft supply crunch, the government’s decision to open domestic routes to foreign airlines marks a significant shift in its aviation policy. By prioritizing local job creation and addressing operational costs, the government aims to strengthen the industry while meeting the needs of travelers. With state-owned airlines also expanding their fleets, the country is taking proactive steps to ensure a robust and resilient aviation sector for the future.