Indonesia is the second-fastest-growing aviation market in the world after China based on its aircraft purchases and trade value. Being the world’s biggest archipelago with 17,000 islands extending 5,150 kilometers (3,200 miles) from east to west, air transportation is the fastest way to travel around the nation. International Air Transport Association (IATA) stated that Indonesia is expected to be the world’s sixth-largest market for air transport in 2034.
Indonesia’s air traffic
Indonesia has at least 683 airports, and 35 of them are commercial airports, which are managed by state-run airport operators: PT Angkasa Pura I (AP I) and PT Angkasa Pura II (AP II). In 2022, there were over 69 million
air passengers from all across the country. Most international flights to Indonesia come through the Soekarno-Hatta International Airport (CGK), which is located about 25 km west of Jakarta, the capital city.
In 2022, the number of flight routes in Indonesia stood at 228 and is expected to increase further in the coming years. Despite the initial setbacks caused by the COVID-19 pandemic, which led to a global slowdown in air transport, the Indonesian aviation industry has shown resilience and recovered. Since mid-2023,
Jakarta's Soekarno-Hatta Airport and
Bali's Ngurah Rai Airport have returned to pre-pandemic international passenger levels. Although challenges remain, such as ensuring security standards and operational efficiency, Indonesia has made significant progress in adapting to the changing international travel landscape.
Challenges facing the Indonesian aviation industry
Prior to the pandemic, the Indonesian aviation sector faced challenges ranging from maintenance and safety to infrastructure limitations. Over the past decade, the country has experienced numerous
aviation incidents, with over a hundred serious air incidents, prompting calls for increased regulatory oversight and industry standards. Despite these challenges, Indonesia's aviation sector has shown signs of resurgence, thanks to strategic investment and a gradual return of passenger confidence. Garuda Indonesia, the country's flagship carrier, has made significant progress in overcoming financial obstacles and adapting to changing market dynamics. In 2022, the airline reported a record
net profit of approximately 3.74 billion U.S. dollars, indicating a positive trajectory towards sustainable growth. Looking ahead, Indonesia remains committed to addressing the systemic challenges of its aviation industry while capitalizing on emerging opportunities for innovation and expansion.
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