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Ada Pertanyaan? Hubungi Kami Ari Pramuditya, Kartini L Makmur
Illustration. Photo by: SGP
In the wake of Law No. 1 of 2009 on Aviation being issued, a number of implementing regulations were also established. To date, there have been 160 ministerial regulations and more than 150 directorate-general aviation-affairs regulations.
These regulations govern operations, security, aircraft registration, and aircraft-age limitations aceoss Indonesia. However, the Chairman of Indonesian Air Law, Andre Rahadian, believes that the government should listen the aspirations of the people most affected by these technical regulations.
Mr. Rahadian asserts that the airline industry and users of aviation services are affected by the government-issued regulations which, he believes, should be able to protect consumers as well as opening up a space for the industry to develop.
In this regard, Mr. Rahadian has criticized the new provision pertaining to the capital that should be deposited by players in the aviation industry. According to Rahadian, the provision, as set out in Minister of Transportation Regulation No. 45 of 2015, stipulates an amount of capital that is far too large. For example, commercial airline companies are currently required to deposit a minimum of Rp. 500 billion. Meanwhile, newly established airline companies and flight academies must deposit at least Rp. 300 billion and Rp. 70 billion rupiah respectively.
“We have asked the Ministry of Transportation whether these figures are based on financial statements or on the articles of association. Their answer was that capital should be deposited with regard to the articles of association,” explained Mr. Rahadian during a seminar held in Jakarta on Thursday, 19 November, 2015.
In fact, according to Mr. Rahadian’s observations, currently only two local airlines have deposited the required Rp. 500 billion. The rest have yet to meet their capital obligations as regards the minimum amount mandated by the Ministry of Transportation, a situation that Mr. Rahadian regrets. According to Rahadian, such regulation pertaining to capital deposits could result in spiraling fares, as the costs are passed onto the consumer.
Mr. Rahadian also believes that the aircraft age limit needs to be reviewed. Currently, aircraft of a maximum age of 10 years can be registered by an airline here, however planes are often used for up to thirty years across the global aviation industry.
“This regulation is a positive thing from the consumer perspective, as the planes that they fly and will be younger. However, this stipulation definitely poses a challenge to the country’s airlines,” Rahadian explained.
These regulations, according to Mr. Rahadian, will lead to consolidation within the aviation sector. Indeed, one regional airline is about to merge two of its subsidiary units and the reality of the industry is that many companies are facing fundamental problems.
“It was understandable that the government issued these policies, as at the time there were a number of plane crashes which were ultimately caused by poor maintenance. Limited amounts of capital were undoubtedly at the heart of these tragedies,” theorized Mr. Rahadian.
In terms of consumer protection however, Mr. Rahadian asserted that the government had been up to speed with its regulations and pointed out that current rules relating to flight delays were very strict. Rahadian also sought to remind the government that these regulations must be balanced by firm implementation in the field.
Ferry Djemi Francis, Chairman of Commission V of the House of Representatives, stated that new aviation-sector rules had recently been approved. Therefore, Francis believes, the best option now is to implement them thoroughly. At the same time though, according to Mr. Francis, it also should also be noted which articles in the Aviation Law need to be revised.
Mr. Francis is ultimately in agreement with Mr. Rahadian though that regulation across the aviation sector must be strong, not only to protect consumers, but also to offer incentives to the industry.
“As passenger numbers continue to grow, airlines are still only making small profits. We should not close our eyes to facts like this,” explained Mr. Francis.
Mr. Francis stated that the DPR fully supported the government as it strove to implement strict rules relating to security and safety. According to Francis, these two areas cannot be open to any kind of negotiation. However, Francis also stated that other matters relating to the business side of the industry still required further discussion among its various players.
“In addition, the government must also improve facilities and services across the sector,” Mr. Francis concluded.
Indonesia as ICAO Board Member
2016 represents an important moment for the aviation industry, as the Board of the International Civil Aviation Organization (“ICAO”) undergoes an election process. The government and stakeholders in the national aviation sector are hoping that Indonesia will be able to garner enough support to become a board member.
Suprasetyo, acting as Director General of Air Affairs at the Ministry of Transportation, stated that during this 2013-2016 period, Indonesia has been listed as a geographical representative on Panel III of the board-member electoral roll. Unfortunately, Indonesia lost out to Malaysia this time around.
“We received around 90 votes, a considerable increase over previous elections, however Malaysia received around 130. Previously, we received only around 70 votes. So we will have to work harder for next year,” explained Mr. Suprasetyo at an aviation seminar held on Thursday 19 November 2015.
Suprasetyo stated during the seminar that the government had been making preparations ready for the upcoming ICAO board-member elections. Indeed, the Ministry of Transportation has appointed a special ICAO delegation.
According to Suprasetyo, the delegation will have to aggressively lobby the various countries participating in the ICAO board-member elections, however Suprasetyo is ultimately optimistic that Indonesia will be able to garner more support than Malaysia during the next election cycle, as the Malaysian aviation sector is currently experiencing a number of difficulties in the wake of two recent crashes.
“The recent accidents involving Malaysian aircraft will definitely influence ICAO members when as they seek to select new board members. Moreover, the country’s domestic aviation industry is currently having problems,” Suprasetyo explained.
Mr. Francis also expressed his support for Indonesia as it attempts to become an ICAO board member and expressed his satisfaction that recent audits of the Indonesian aviation industry had produced improved results. Mr. Francis warned though that security and safety were paramount if Indonesian was to make it onto the ICAO board.
According to Mr Francis, “As has been widely disseminated, the recent audit conducted by the Universal Security Audit Program [USAP] posted some positive results, and this is very satisfying for Indonesia. Indonesian aviation security scored 94.9. Consequently, Indonesian aviation safety standards are currently considered good.
Overall however, Indonesian aviation safety standards are still below par. Currently, Indonesia languishes in the second ICAO standards category and domestic aviation safety standards are still below the pass grade demanded by the world’s civil aviation organizations.
The ICAO aviation safety standard is 74, however Indonesia’s aviation safety score, based on the results of the recent ICAO assessment, is only 62. So the country still needs to boost its score by another 12 points in order to meet ICAO standards.
“The score of 62 is much better than the previous year's score of only 45.09 though. And this achievement is the result of improvements which have been made to various aviation regulations. We must not rest on our laurels though and if we wish to sit as an ICAO board member, then we should work hard to meet its standards,” concluded Mr. Francis.
Ari Pramuditya, Kartini L Makmur
Illustration. Photo by: SGP
In the wake of Law No. 1 of 2009 on Aviation being issued, a number of implementing regulations were also established. To date, there have been 160 ministerial regulations and more than 150 directorate-general aviation-affairs regulations.
These regulations govern operations, security, aircraft registration, and aircraft-age limitations aceoss Indonesia. However, the Chairman of Indonesian Air Law, Andre Rahadian, believes that the government should listen the aspirations of the people most affected by these technical regulations.
Mr. Rahadian asserts that the airline industry and users of aviation services are affected by the government-issued regulations which, he believes, should be able to protect consumers as well as opening up a space for the industry to develop.
In this regard, Mr. Rahadian has criticized the new provision pertaining to the capital that should be deposited by players in the aviation industry. According to Rahadian, the provision, as set out in Minister of Transportation Regulation No. 45 of 2015, stipulates an amount of capital that is far too large. For example, commercial airline companies are currently required to deposit a minimum of Rp. 500 billion. Meanwhile, newly established airline companies and flight academies must deposit at least Rp. 300 billion and Rp. 70 billion rupiah respectively.
“We have asked the Ministry of Transportation whether these figures are based on financial statements or on the articles of association. Their answer was that capital should be deposited with regard to the articles of association,” explained Mr. Rahadian during a seminar held in Jakarta on Thursday, 19 November, 2015.
In fact, according to Mr. Rahadian’s observations, currently only two local airlines have deposited the required Rp. 500 billion. The rest have yet to meet their capital obligations as regards the minimum amount mandated by the Ministry of Transportation, a situation that Mr. Rahadian regrets. According to Rahadian, such regulation pertaining to capital deposits could result in spiraling fares, as the costs are passed onto the consumer.
Mr. Rahadian also believes that the aircraft age limit needs to be reviewed. Currently, aircraft of a maximum age of 10 years can be registered by an airline here, however planes are often used for up to thirty years across the global aviation industry.
“This regulation is a positive thing from the consumer perspective, as the planes that they fly and will be younger. However, this stipulation definitely poses a challenge to the country’s airlines,” Rahadian explained.
These regulations, according to Mr. Rahadian, will lead to consolidation within the aviation sector. Indeed, one regional airline is about to merge two of its subsidiary units and the reality of the industry is that many companies are facing fundamental problems.
“It was understandable that the government issued these policies, as at the time there were a number of plane crashes which were ultimately caused by poor maintenance. Limited amounts of capital were undoubtedly at the heart of these tragedies,” theorized Mr. Rahadian.
In terms of consumer protection however, Mr. Rahadian asserted that the government had been up to speed with its regulations and pointed out that current rules relating to flight delays were very strict. Rahadian also sought to remind the government that these regulations must be balanced by firm implementation in the field.
Ferry Djemi Francis, Chairman of Commission V of the House of Representatives, stated that new aviation-sector rules had recently been approved. Therefore, Francis believes, the best option now is to implement them thoroughly. At the same time though, according to Mr. Francis, it also should also be noted which articles in the Aviation Law need to be revised.
Mr. Francis is ultimately in agreement with Mr. Rahadian though that regulation across the aviation sector must be strong, not only to protect consumers, but also to offer incentives to the industry.
“As passenger numbers continue to grow, airlines are still only making small profits. We should not close our eyes to facts like this,” explained Mr. Francis.
Mr. Francis stated that the DPR fully supported the government as it strove to implement strict rules relating to security and safety. According to Francis, these two areas cannot be open to any kind of negotiation. However, Francis also stated that other matters relating to the business side of the industry still required further discussion among its various players.
“In addition, the government must also improve facilities and services across the sector,” Mr. Francis concluded.
Indonesia as ICAO Board Member
2016 represents an important moment for the aviation industry, as the Board of the International Civil Aviation Organization (“ICAO”) undergoes an election process. The government and stakeholders in the national aviation sector are hoping that Indonesia will be able to garner enough support to become a board member.
Suprasetyo, acting as Director General of Air Affairs at the Ministry of Transportation, stated that during this 2013-2016 period, Indonesia has been listed as a geographical representative on Panel III of the board-member electoral roll. Unfortunately, Indonesia lost out to Malaysia this time around.
“We received around 90 votes, a considerable increase over previous elections, however Malaysia received around 130. Previously, we received only around 70 votes. So we will have to work harder for next year,” explained Mr. Suprasetyo at an aviation seminar held on Thursday 19 November 2015.
Suprasetyo stated during the seminar that the government had been making preparations ready for the upcoming ICAO board-member elections. Indeed, the Ministry of Transportation has appointed a special ICAO delegation.
According to Suprasetyo, the delegation will have to aggressively lobby the various countries participating in the ICAO board-member elections, however Suprasetyo is ultimately optimistic that Indonesia will be able to garner more support than Malaysia during the next election cycle, as the Malaysian aviation sector is currently experiencing a number of difficulties in the wake of two recent crashes.
“The recent accidents involving Malaysian aircraft will definitely influence ICAO members when as they seek to select new board members. Moreover, the country’s domestic aviation industry is currently having problems,” Suprasetyo explained.
Mr. Francis also expressed his support for Indonesia as it attempts to become an ICAO board member and expressed his satisfaction that recent audits of the Indonesian aviation industry had produced improved results. Mr. Francis warned though that security and safety were paramount if Indonesian was to make it onto the ICAO board.
According to Mr Francis, “As has been widely disseminated, the recent audit conducted by the Universal Security Audit Program [USAP] posted some positive results, and this is very satisfying for Indonesia. Indonesian aviation security scored 94.9. Consequently, Indonesian aviation safety standards are currently considered good.
Overall however, Indonesian aviation safety standards are still below par. Currently, Indonesia languishes in the second ICAO standards category and domestic aviation safety standards are still below the pass grade demanded by the world’s civil aviation organizations.
The ICAO aviation safety standard is 74, however Indonesia’s aviation safety score, based on the results of the recent ICAO assessment, is only 62. So the country still needs to boost its score by another 12 points in order to meet ICAO standards.
“The score of 62 is much better than the previous year's score of only 45.09 though. And this achievement is the result of improvements which have been made to various aviation regulations. We must not rest on our laurels though and if we wish to sit as an ICAO board member, then we should work hard to meet its standards,” concluded Mr. Francis.