- The Secretary of the Directorate-General of Civil Aviation at the Ministry of Transportation, Sigit Hani ("Secretary"), has affirmed that the government is soliciting input from the general public in relation to Draft Regulation of the Minister of Transportation ("Minister") on the Liabilities of Air Transportation Carriers ("Draft Regulation"), which is set to amend Regulation of the Minister No. PM 77 of 2011, which bears the same title as the Draft Regulation, as amended by Regulation of the Minister No. PM 92 of 2011 (collectively referred to as "Regulation 77/2011").
- As the existing framework of Regulation 77/2011 has been in force for longer than 10 years, the Secretary has now stated that based on the results of evaluations of various factors (e.g. criteria for adequate living standards, the sustainability of air transportation business entities [Badan Usaha Angkutan Udara – "BUAU"] and the cumulative inflation rate), the amount of compensation that may be provided by BUAU requires urgent revision. Ultimately, this compensation rate revision will be aimed at improving the overall quality of air transportation services.
- The Secretary has expressed the hope that the forthcoming revisions to Regulation 77/2011 that will soon be introduced under the Draft Regulation will be able to provide improved legal certainty for both BUAU and passengers that sustain losses as a result of aviation activities. In this regard, the Secretary has stated that the Draft Regulation aims to revise or clarify provisions that specifically relate to the following matters: 1) Procedures for compensation claims as part of BUAU liabilities; and 2) Settlement of BUAU responsibilities. (ANT)
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