INACA Calls for Responsive Government Policies to Support Indonesian Aviation Business Growth

The Indonesia National Air Carriers Association (INACA) has held a General Members Meeting, discussing the various pressures currently facing the aviation industry. INACA Chairman Denon Prawiraatmadja explained that these pressures include global geopolitical crises, such as those in the Middle East and the Russia-Ukraine conflict. He acknowledged that these crises have caused jet fuel prices to soar and led to a spike in the US Dollar exchange rate against the Rupiah, which resulted in the temporary closure of several international routes and disrupted airline businesses. “Therefore, relaxation and responsive policies are needed so that the national aviation industry can continue to grow and develop, while still providing a large multiplier effect for other sectors,” Denon said in a statement on Thursday, 9 July 2026. Denon expressed gratitude to the government, particularly the Ministry of Transportation, for assisting the industry by issuing various responsive regulations and policies. “We need these policies not only to ensure that the industry, whether scheduled, non-scheduled, or cargo airlines, can continue to operate healthily and develop, but also to improve consumer services and increase the multiplier effect on other sectors,” he stated. According to Denon, the government has already issued responsive policies, such as the fuel surcharge policy adjusted to jet fuel price fluctuations by the Ministry of Transportation. Other measures include lowering ticket prices through VAT exemption on tickets, PJP4U, and PJP2U (Airport Service Charge), as well as a special scheme for the elimination of import duties on aircraft spare parts from the Ministry of Industry. “With these responsive policies, the challenges faced by the aviation industry can be turned into opportunities. Likewise, existing opportunities can be realised for the common good,” Denon said. INACA hopes that these responsive policies will lead to better cooperation and collaboration among all national aviation stakeholders. “Not just between airlines, but also with airport operators, jet fuel suppliers, ground handling services, MROs, and aviation authorities such as the Ministry of Transportation and other institutions like the Business Competition Supervisory Commission (KPPU) and Bank Indonesia,” he concluded.