Indonesian Political, Business & Finance News

Ministry of Transportation Confirms Indonesia Airlines Holding Not Yet Cleared to Operate

| Source: GALERT
JAKARTA - The Ministry of Transportation through the Directorate General of Civil Aviation has emphasised that PT Indonesia Airlines Holding is not yet able to run flight services, as its Standard Certificate has not been verified.

Director General of Civil Aviation Lukman F. Laisa stressed that the verification process is a crucial stage in the licensing system. "The status has not been verified, meaning that the process has not been completed. There is no operational certainty until all stages are met according to the provisions," Lukman said in an official statement on Friday, 18 July.

Lukman said the statement also sought to correct public information suggesting that Indonesia Airlines was already operating. "Until now, there has been no application for a valid permit to the Ministry of Transportation regarding the establishment of an air transportation business entity on behalf of Indonesia Airlines Holding, and this is a factual condition — there is no legally verifiable administrative basis by the regulator," he said.

Indonesia Airlines already holds a Business Identification Number (NIB) and a Standard Certificate for Scheduled and Unscheduled Commercial Air Transport. However, its status has not been verified in the Online Single Submission (OSS) system, and the Air Transportation Integrated Permit Information System (SIPTAU) verification remains incomplete. This indicates that outstanding requirements have not been met, meaning the certificate cannot be used as a legal basis for organising air transportation services.

Provisions regarding the establishment of an air transportation business are regulated under Government Regulation Number 5 of 2021, now updated through Government Regulation Number 28 of 2025. Under these regulations, every business entity must hold two main documents: a Business Identification Number (NIB) and a Standard Certificate. Both documents are declared valid only after all requirements are thoroughly verified by the Directorate General of Civil Aviation.

As part of the verification process, business entities are required to submit medium-term business plans for the next five years through SIPTAU, which is integrated with the OSS system. Business plan documents must include planned aircraft ownership or control, area of operation or flight routes, human resource needs, financial capabilities, and other supporting aspects.

For applicants seeking scheduled commercial air transport permits, a minimum of one owned aircraft and control of two additional aircraft is required. If applying for permits covering two types of business, the number of aircraft must be adjusted to the scope of the submitted service.

Once all documents are declared complete, the Standard Certificate status is upgraded to verified, after which the airline may submit an application for the Air Operator Certificate (AOC) certification process, comprising pre-application, formal application, evaluation of technical documents, inspections, and demonstrations.

Upon issuance of the AOC, airlines may apply for flight routes and submit passenger service standards in accordance with Minister of Transportation Regulation Number PM 35 of 2021 concerning Air Transport Implementation and Minister of Transportation Regulation Number PM 30 of 2021 concerning Minimum Service Standards.

The licensing process for air transportation businesses is therefore not merely administrative but forms part of the safety control system and operational readiness framework. The publication of information before all stages have been completed has the potential to create misconceptions among the public.

Lukman emphasised that the Directorate General of Civil Aviation is ready to support and provide space for initiatives to establish new airlines, provided the entire process is carried out transparently, in an orderly manner, and in accordance with regulations. "We are open to the initiative to establish a new airline, but every process must be followed according to the provisions. Information transparency is also important to maintain public trust and a healthy investment climate," Lukman concluded.
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