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Indonesia to Become Top 10 Aviation Destination by 2014

Regional News

The International Air Transport Association forecasts Indonesia will be among the top 10 markets for air travel due to the country’s robust economic growth, tourism, and thriving industries.

Tony Tyler, chief executive officer of IATA, said on Thursday that between 2010 and 2014, Indonesia is expected to be the sixth-fastest growing market for travel by international passengers. In 2014, Indonesia will rank as the ninth-largest domestic market and among the top 10 for international freight.

“The potential for aviation in Indonesia is enormous. Alongside its significant domestic traffic, its location at the heart of Southeast Asia gives this market tremendous potential,” Tyler said.

By 2014, international traffic to Indonesia is expected to be about 22.7 million passengers, with the compound annual growth rate at 9.3 percent from 2010 to 2014.

The size of Indonesia’s domestic market is expected to be 38.9 million passengers in 2014, growing annually by 8.7 percent from 2010 to 2014. In three years, the United States will have the largest domestic market at 670 million.

Freight in Indonesia is forecast to be 300 million metric tons by 2014, after a compound annual growth rate of 9.4 percent from 2010.

“Only aviation can connect efficiently Indonesia’s nearly 240 million inhabitants domestically and to the world. So it is important that the government has coordinated policy measures, including the critical issues of ensuring safety and adequate infrastructure for development,” Tyler said.

Still, growth in Indonesia may be limited by the capacity at Jakata’s Soekarno-Hatta International Airport. Indonesia needs to improve its infrastructure and safety standards to fulfill its potential, he said.

“[Arriving at SHIA], it’s a disappointing experience. Airlines are trying to be efficient, but the airport is overloaded. It’s a stark comparison compared to other airports in the region,” Tyler said.

The airport, which was originally designed to handle 20 million to 25 million passengers, is already running beyond capacity. When its third terminal is completed by 2013, SHIA officials expected it would allow the airport to handle 44 million passengers. But in 2010, SHIA handled more than 43 million passengers.

Tyler also called for the government to conduct a mandatory IATA Operational Safety Audit (IOSA) for local carriers and IATA Safety Audit for Ground Operations (ISAGO) for Indonesian airports.

“The biggest concern for Indonesia is safety. Mandating IOSA will send a strong signal to the world that Indonesia is serious about solving its safety issues,” he said.
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By: Faisal Maliki Baskoro
Source: The Jakarta Post, Sept. 22, 2011
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