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NEWS Last modified on March 12, 2015

IATA chief calls for new master plan for Indonesia's aviation industry

IATA has called on Indonesia’s stakeholders to partner in the development of an aviation master plan based on global standards to ensure that the country is served by an aviation industry performing at its best.

IATA identified three potential elements to be addressed in the master plan: improving safety, ensuring capacity and a smart regulation framework.

“Indonesia’s aviation potential is huge. By 2034, it is expected to be the sixth largest market for air travel. By then some 270 million passengers are expected to fly to, from and within the country,” said Tony Tyler, IATA’s director general and CEO, in his keynote address to the IATA Aviation Day in Jakarta.

“That’s three times the size of today’s market. There is a big role for collective leadership among industry partners – including the government – to make the aviation sector flourish.

“Indonesia needs an aviation masterplan based on global standards and developed in partnership by aviation stakeholders including the government.

Garuda

“Such a plan should set a common vision for addressing top priorities such as safety, capacity and regulation. And of course it must be followed by real actions.”

He noted that safety is aviation’s top priority and warned that it is the biggest concern for the successful development of aviation in Indonesia

“Turning around a safety record is not easy. The best laid ‘plans’ need to be followed-up with concrete actions,” said Tyler.

“Where this has been done – in Latin America, China, and Nigeria for example – we have seen significant and sustainable improvements.”

He added that Indonesia’s traffic growth needs to be supported by the aviation infrastructure, both on the ground and in the air.

For Indonesia, he said, this means building a world-class hub, managing scarce capacity to global standards and modernising air traffic management.

Building a world-class hub

Indonesia’s airports are in urgent need of additional capacity, he stressed, noting that by 2034, Indonesia’s airports are expected to handle an additional 183 million passengers compared to today.

Tyler commended the government for its plans to expand infrastructure –building another 62 airports over the next five years, and terminal expansions at Jakarta’s Soekarno-Hatta International Airport.

“But the capacity problem in Jakarta is nowhere near being solved even with the terminal upgrades. Indonesia needs a hub. The most efficient solution is to maximise the potential of one airport – Soekarno Hatta – where significant investment has already been made,” suggested Tyler.

According to the IATA chief, Soekarno-Hatta has the possibility to grow. There is plenty of land and the basic runway structure is relatively efficient. But he believes that the terminal areas will need a major re-development.

“The vision would be something like the super-terminals that we see in Beijing, Hong Kong or Incheon,” he said.

“By starting from scratch and working in close consultation with the airlines I am confident that we would achieve a world-class facility designed around key new technological innovations such as those in the IATA Fast Travel program or the new risk-based process innovations that Smart Security is developing,” said Tyler.

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