Indonesia is one of the largest island nations which cater to the high number of tourist from all across the world. Like every country this island nation is also under the recovery process after the severe impact of the pandemic.Vishal Kashyap, Managing Editor, Aviation World at the CASEA 2023 summit in Bangkok interacted with Mr. Denon Prawiraatmadja, Chairman, Indonesia National Air Carriers Association ( INACA) and Vice Chairman, Chamber of Commerce for Transportation in Indonesia. He discussed in detail about how Indonesia is enhancing its aviation sector economy, government’s ‘National Strategic Program’ ,SAF and holistic growth in the nation. Excerpts…

Tell us about INACA and its vision? Also your views on the aviation sector in Indonesia?
INACA is the only airlines association in Indonesia which consists of 11 commercial airlines and 21 air charters. My opinion about the aviation Industry in Indonesia as you perhaps knows that the Indonesia is a country that consists of 17000 islands. So airlines are a necessity for a country like Indonesia for the purpose of logistics, passengers. It is a necessity for Indonesia people to their economy.In this matter first thing is we as an association has to become a strategic partner to the governments of Indonesia. We have to collaborate with the governments of Indonesia in giving the opinion and advice on how Indonesia’s aviation futures. We have to make the aviation industry healthier .

Well perhaps you understand if I may share little bit more without this cost structure 30 per cent of cost of operation are actually came from leasing which is that has the impact from Indonesia Rupiah against other foreign currency. This is beyond the Aviation industries pan of control. So the remaining 70 per cent has to be strategized for the future. We are not talking about the next few years ahead, we have to plan this precisely for the next few decades. Because if we are talking about transportation system my opinion we need to talk about the holistic concept, not only aircraft in particular, we need to plan how we manage our sustainable aviation fuel in the future. We have to strategies how we make concept of hub and spoke for domestic airlines for international airline getting into the Indonesia to support the domestic airline and to support the local economy.

That’s what I am going to emphasize, what should be improved is to make Aviation Industry and all the families of Aviation, for a country like Indonesia that as archipelago country that we need to make this industry healthier. Otherwise, the impact of healthy industry of transportation is also impacted to other sector of business. By making an aviation industry In Indonesia strategically become healthier, this will become the role of the association as a strategic partner to the governments.

How do you see the transformation in Air Traffic in your country which is primarily dependent on tourism?

I think not only in Indonesia but so far other countries during the Covid time, we all faced challenges. Because, yes it’s true that post Covid not only airlines but airport also tried to recover their activity by stages. But what we think we need to resolve this. In that period of time the members of the association has to negotiate with the lesser and I think this is part of the challenge that member of the association is facing today. Since Indonesia become a country that is known also as tourism destination I think this will speed up the recovery process and as easy as the governments of Indonesia , the authorities has more flexibility on post Covid regulations . So I am confident , based on the White paper that is released by INACA , by the association, by 2025 all the activities are going to back with what we have before Covid time.

As you mentioned, now the focus is shifting to promote other destinations apart from Bali? What are the steps being planned and which are those cities?

I agree that airlines business and tourism business is like siblings. Other than Bali the governments of Indonesia plan to ‘National Strategic Program ‘to have the tourism industry grow like Labuan Bajo. Perhaps the next other tourism destinations like West Sumatra, which is known as province that had tradition of good culinary. So these support from government as NSP for next tourism destination in Indonesia will directly increase numbers of passengers from other countries to Indonesia.I think the NSP in enhancing the tourism business will become the strengthening the economy of Indonesia despite Indonesia also known as downstream export product like nickel mining but for accelerating the air transportation I think tourism business there has been a program from the government and will become the most impactful policy to the airlines industry.

What are the key steps that according you still need to be addressed by Indonesian government to make Civil Aviation sector more viable?

When I mention about the holistic concept about the Aviation Industry, it’s not basically addressed to ministry of transportation. When we are talking about the level of safety standards, Indonesia is not quite bad now. We are number 53 in safety standards if I am not mistaken. But when we are talking about the holistic concept of making the aviation industry healthier,it is inbox the ministry of tax to give an incentive, ministry of state owned enterprise, ministry of trade. So the government should involve to support how the airlines business that connect people among all these islands can be supportive. Our DGCA is quite communicative with us in terms of regulations, providing Upset Prevention and Recovery Training (UPRT) is not that mandatory in Indonesia but DGCA accept that as a additional problem for a pilot to do a UPRT training . So we as an association provide these training for airlines to do the UPRT. One of those things that I address a concern is the fuel . We just had the presentation about SAF. We recommend to the government of Indonesia to provide alternative of fuel provided where currently is Pertamina. We appreciate when Pertamina also consider to provide blended aviation fuel using Used Cooking Oil (UCO) instead of Palm Oil. I think Pertamina is in process to provide us this blended aviation fuel so INACA is part of the task force. How Pertamina can provide SAF in the next decade. So hopefully all the stakeholders in the ecosystem of aviation can get focused how to make this aviation business are able to support and not become a burden on the economy.

What’s your take on the growing business aviation in Indonesia and steps to boost it at larger scale?

Number of passengers before Covid 19 were 190 million per annum who traveled by the business jets into Indonesia. Number of aircraft before Covid 19 were 541 fleet but after Covid all the airlines activity reduced by 70 per cent. Now we start to recover by 86 per cent. So I am quite optimistic based on White paper that we compiled with the university in Indonesia we will achieve back to before Covid by 2025. Usually the growth of airlines business is double than the economic growth in Indonesia. I hope that by 2025, airlines fleet will increase by 10 per cent.

Anything specific on behalf of INACA that you would like to focus upon?
The basic philosophy of all these airlines and aviation system is how we as a business entity are able to support the economy. So first thing first is about how we can create all this with the efficient manner instead of look sorry manner because that is actually the main purpose of making the infrastructure and super structure.My ambition is how we are able to provide all these transportation system become more efficient and time to time that will help the people to grow their economy.