- The House of Representatives (Dewan Perwakilan Rakyat – "DPR") and the government recently approved the ratification of the IX, X and XI Air Transport Service Protocols under the ASEAN Framework Agreement on Services (AFAS), which is expected to open up opportunities for the development of the national aviation industry, particularly as it strives to compete with other ASEAN countries.
- Prior to the ratification, Indonesia found itself unable to fully exploit investment and job opportunities within the field of air transportation support services. The AFAS protocols themselves require the country to make commitments in relation to the following areas: 1) Aircraft repairs and maintenance; 2) Sales and marketing of air transportation services; 3) Computer reservation system services; 4) Leasing of aircraft without crews; 5) Airfreight forwarding services; and 6) Aircraft catering services.
- Generally speaking, four matters specifically relate to the services that will now be open to ASEAN countries: 1) Cross-border supplies, whereby services may now be provided by service providers without the need for them to be physically present; 2) Consumption abroad, whereby service providers may now provide consumer services after they have physically moved to a service provider’s country; 3) Commercial presence, which includes a joint venture between maintenance, repair and overhaul (MRO) Singapore and MRO Indonesia that meets the maximum foreign equity participation threshold of 49%; and 4) Movement of natural persons, whereby foreign workers with certain levels of expertise may be employed by service providers.
- For more on this story, see Hukumonline.com: “Ratifikasi Protokol Jasa Angkatan Udara untuk ASEAN Disetujui DPR”.
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