BACKGROUND
From “Sabang ‘till Merauke” is the name of a song dedicated to Indonesia’s many islands and its diversity. Its numerous chain of islands contained in the thirty-two thousand miles dividing two oceans, the Pacific Ocean and the Indian Ocean. Despite this diversity, Indonesia today has a common bond that united them all into one nation, one language, and one people. However, the people of Indonesia have been able to overcome their differences.
Due to poor land infrastructure, aviation is vital to Indonesia’s economic growth and they are the largest aviation market in the ASEAN group of nations.
Aviation Key Facts
Passengers carried in Indonesia have risen from 48.8 mil in 2009, 58.3 mil in 2010, 68.3 mil in 2011 and 77.2 mil in 2012.
Traffic and planned expansion in several airports
| Passengers (Millions) | Jakarta | Surabaya | Denpasar | Makassar | Medan | Balikpapan | Yogyakarta |
| Traffic in 2012 | 52.5 | 13.8 | 12.8 | 7.5 | 7.2 | 5.6 | 4.3 |
| Capacity | 22 | 7.4 | 9.4 | 7.3 | 1 | 1.4 | 1 |
| Planned Expansion | 62 | 12 | 25 | – | 9 | 11 | – |
Source: Easts.info (Eastern Asia Society for Transportation Society)
Indonesia replaced India as the third largest domestic market in 2012 with 233 public airports in total – 29 international and 20 domestic. Government owns 164 airports, with 28 new airports to be built with 10 relocation and upgrades of many existing airports.
101 heli-decks and 51 heliports
447 airdromes for light aircraft operations
International & Domestic Passengers
| Year | Domestic | International |
| 2003 | 42.85 | 8.69 |
| 2004 | 59.75 | 10.95 |
| 2005 | 55.79 | 11.86 |
| 2006 | 69.36 | 11.7 |
| 2007 | 73.1 | 13.37 |
| 2008 | 75.27 | 14.74 |
| 2009 | 89.07 | 16.31 |
| 2010 | 105.07 | 19.24 |
| 2011 | 126.53 | 21.74 |
| 2012 | 157.21 | 25.32 |
Part 121 airlines – 22
Part 135 operators – 31
1319 registered aircraft of which 993 are operational
Every month, Part 121 operators take delivery of 5 new aircraft Garuda Indonesia = 2 and Lion Air = 2. Airlines, despite adding capacity monthly, are achieving loading of around 80%.
As the expansion plan is working in Soekarno- Hatta International Airport to increase capacity, there is a possibility of an alternative airport in Jakarta just for the ASEAN flights.
Major Scheduled Airlines in Indonesia
| Major Scheduled Airlines | Market Share (Domestic) | Market Share (International) | First Hub | Second Hub | Ownership/Status |
| Garuda Indonesia | 22.82% | 37.03% | Jakarta | Denpasar | State- listed (Government 69.14%, Listed 27.98% owned) |
| Lion Air | 41.59% | 10.80% | Jakarta | Surabaya | Private Owned |
| Indonesia Air Asia | 2.20% | 40.58% | Jakarta | Denpasar | Private Owned (Air Asia 49%) |
| Sriwijaya Air | 12.20% | 2.25% | Jakarta | Surabaya | Private- Owned |
| Baatavia Air | 10.25% | 3.59% | Jakarta | Surabaya | Private- Owned |
| Merpati Air | 2.64% | 1.10% | Makansar | Surabaya | State owned |
| Wings Air | 3.37% | 1.43% | Makansar | Surabaya | Subsidiary of Lion Air |
| Citilink | 2.12% | 0% | Surabaya | Jakarta | Subsidiary of Garuda |
| Tiger Mandala | 1.81% | 3.22% | Jakarta | Medan | Private Owned (Tiger Air) |
Lion Air, Number #1 Domestic Airlines (Year 2013)
Following the end of Batavia Air on 2013, Indonesia’s domestic market is served by 11 airlines. Though capacity is fairly concentrated among all these airlines but three largest airlines account for around 65% of weekly frequencies and 70% of seats. Lion Air, which has grown aggressively in recent years (domestic capacity +38% in April 2014 vs. April 2013), and has over 300 Boeing narrow-bodies on order, commands 45% of Indonesia’s weekly domestic seats.
| Airlines | Frequency Share | Capacity Share |
| Lion Air | 34% | 44.40% |
| Garuda Indonesia | 21.70% | 20.50% |
| Sriwijaya Airlines | 12.20% | 10.40% |
| Citilink | 6.60% | 6.80% |
| Wings Abadi Airlines | 11.30% | 6.60% |
| AirAsia Indonesia | 3.90% | 4.30% |
| Merpati Nusantara Airlines | 4.30% | 3.40% |
| Trigana Air Service | 3.60% | 2.10% |
| Mandala Airlines | 0.80% | 0.90% |
Top international destinations from Indonesia
Among the top 10 international destinations 7 of them are within ASEAN. Singapore leads the ranks while a total of 463 weekly flights are offered on the route by 16 airlines from just as many Indonesian airports, 54% of capacity is allocated to Jakarta.
| Cities/ Airports | Capacity |
| Singapore (SIN) | 92578 |
| Kuala Lumpur KUL) | 74285 |
| Hong Kong (HKG) | 22551 |
| Bangkok (BKK) | 12400 |
| Jeddah (JED) | 12380 |
| Perth (PER) | 110556 |
| Penang (PEN) | 9665 |
| Taipei (TPE) | 8771 |
| Dubai (DXB) | 8771 |
| Seoul Incheon (ICN) | 79396 |
There are:
- 7825 pilots growing at 5.21% pa
- 3607 Flight Officers growing at 7.75%
- 6602 engineers growing at 3.78%
- 65,000 licensed aviation personnel
(as at August 2012)
At present Indonesia produces:
- 320 – 650 pilots per year
- 100 -180 engineers per year
- 200 ATC per year
(Figures vary depending on sources)
By the end of 2015, Indonesia will require an additional:
- 4,000 new pilots
- 7500 new engineers
- 1000 new ATC
Challenges
- increase capacity
- increase capability of instructors
- increase quantities of trained staff produced domestically
In conclusion the insufficient air traffic management is also a potential setback to growth of Indonesian Aviation market and the government is seeking split ATC function into a separate agency
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