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Tourism is a vital part of the Indonesian economy. We can illustrate this by taking a look at Indonesia’s biggest foreign exchange earners (referring to those sectors that attract most foreign currency).
On Tuesday (6.04.21) Indonesia Investments released the March 2021 edition of its monthly report. In the report we track important developments - from the perspective of politics, the economy and social matters - that were influential last month.
As we have mentioned on various occasions in our updates and reports before, the year 2020 was a very tough one for airlines. The social and business restrictions that governments imposed across the world in an effort to curb the spread of the COVID-19 virus took a huge toll.
Unfortunately Indonesia is no stranger to fatal aircraft accidents. And unfortunately, disaster struck again on Saturday 9 January 2021 when Sriwijaya Air Flight 182, a scheduled domestic passenger flight flying from Indonesia’s capital city of Jakarta to Pontianak (West Kalimantan), crashed in the Java Sea some four minutes after take-off from Soekarno-Hatta International Airport.
Air travel – in this article we restrict ourselves to air travel in the form of travel in commercial airplanes – is vital. In fact, air travel has become increasingly important over the past decades, especially in Southeast Asia where the combination of rapidly growing middle classes and lower airline ticket prices (caused by fierce competition between the region’s low-cost carriers) has allowed an increasing number of people to opt for air travel when making a domestic or international trip.
Boeing, the American multinational corporation that designs, manufactures and sells airplanes, has been experiencing severe turbulence in Indonesia ever since Lion Air flight JT-610 dove into the sea on 29 October 2018 shortly after take-off from Soekarno-Hatta International Airport outside Indonesia’s capital city of Jakarta, killing all 189 people on board (including crew).
On Monday (08/04) Indonesia Investments released the March 2019 edition of its monthly research report. The report aims to inform the reader of the key political, economic and social developments that occurred in Indonesia in the month of March 2019 and also touches upon key international developments that impacted on the Indonesian economy.
After the fatal crash of an Ethiopian Airlines commercial airplane on Sunday (10/03/2019), concern about the reliability of Boeing's 737 MAX 8 plane - Boeing's most popular jet - has increased around the globe. The crash of Ethiopian Airlines Flight 302, which was en route to Nairobi, killed 157 people.
After plenty of public outcry over the past month, the Garuda Indonesia Group decided to cut prices of air tickets by 20 percent for all domestic flight routes. Starting per Thursday (14.02.2019), air passengers can enjoy lower ticket prices when flying Garuda Indonesia, Citilink Indonesia, Sriwijaya Air, and NAM Air.
On Wednesday (28.11.2018) preliminary findings related to the investigation into the fatal crash of Lion Air flight JT610 were reported by investigators to Indonesian parliament. The crash, which killed all 189 people on board (including crew), occurred 13 minutes after the Boeing 737 Max took off from Soekarno-Hatta International Airport in the early morning of 29 October 2018.
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Governments’ social and business restrictions (imposed in the context of preventing the further spread of COVID-19 in society) and people’s concern over the virus have damaged both the tourism and transportation industry in an unprecedented way.
The other day, I had a conversation with my neighbors – a married couple who run a bakery and café in the city center of Yogyakarta. From previous conversations I knew that their business is heavily affected by the ongoing COVID-19 crisis. Even up to the point that they had to find a cheaper school for their oldest daughter.
On 28 August 2020 Indonesian President Joko Widodo officially opened Yogyakarta International Airport (YIA), a brand new airport that is located in Kulon Progo in the Special Region of Yogyakarta; a region known as one of Indonesia’s main tourism centers. Many in fact call Yogyakarta the ‘heart and soul of Indonesia’.
Across the world, concern over the COVID-19 pandemic grew in September 2020 as the number of new COVID-19 cases continued to rise rapidly. Worldwide, at the end of September 2020, some 34 million people have been infected with the virus, while more than one million people have died after contracting the virus.
Investigators reported their preliminary findings in the investigation into the causes of the fatal crash of Lion Air flight JT-610 to Indonesian parliament on Wednesday 28 November 2018. These preliminary findings should not be confused with conclusions. Therefore, it is too early to pinpoint a definitive cause (or causes) of the accident that occurred in the early morning of 29 October 2018 and killed all 189 people on board (including crew).
Indonesia's air transport industry is about to see a big change as the nation's national flag carrier Garuda Indonesia said it will take over operational control of the rival Sriwijaya Group. This move seriously boosts the Garuda Group's share of the fast-growing domestic aviation market.
When 189 people – consisting of passengers and flight crew - boarded Lion Air flight 610 in the early morning of Monday 29 October 2018, no-one expected that it would be their last flight. After all, the Lion Air plane - a Boeing 737 MAX 8 powered by two CFM International LEAP engines - was a brand new airplane that had been delivered to Lion Air on 13 August 2018 and had only been operated by the Indonesian low-cost airline since 15 August 2018. In the two and-a-half months it had been in service the aircraft had flown about 800 hours.
The tourism industry of Indonesia is one of the most important industries in terms of the nation's foreign exchange earnings. However, compared to its neighboring countries - specifically Singapore, Malaysia and Thailand - Indonesia lags behind in terms of foreign visitor arrivals. This "failure" is partly attributed to the weak state of Indonesia's infrastructure. This includes the lack of enough airports or the lack of enough aircraft and passenger handling capacity at existing airports.
In 2017 Indonesia's Transportation Ministry allowed the opening of 83 new flight routes (commercial civil flights), consisting of 58 domestic routes and 25 international routes. There are two reasons why the government encourages the opening of new routes: (1) to make the remote areas of Indonesia less isolated, and (2) to strengthen inter & intra regional transportation.
Indonesia's flag carrier Garuda Indonesia, a state-controlled five-star airline that is listed on the Indonesia Stock Exchange, requested to postpone the arrival of new airplanes in an attempt to improve the company's corporate earnings. Pahala M. Mansury, General Director of Garuda Indonesia, said the order (the number of airplanes) has not been revised, neither has the company's fleet plan (that runs to 2020) been changed. Only the timing of arrival of five planes has been altered.
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