14 December 2019 (closed)
USD/IDR (13,982) -60.00 -0.43%
EUR/IDR (15,630) -13.72 -0.09%
Jakarta Composite Index (6,197.32) +57.92 +0.94%
On Tuesday (30/06), an Indonesian military airplane (C-130 Hercules) crashed into a densely populated residential area in the city of Medan in North Sumatra. The aircraft, en route from the military airport in Medan to Tanjung Pinang (capital of Indonesia's Riau Islands), crashed shortly after take-off and probably carried 122 people. A government spokesman said that at least 141 people have died. This figure is likely to rise. According to local media, the pilot of the military aircraft requested to return to base due to engine trouble.
Only Four Indonesian Airlines Allowed to Fly to the European Union
Only four Indonesian airlines are allowed to fly to the European Union (EU). All other Indonesian airlines are banned from flying to the EU due to safety concerns. The four airlines that passed the Universal Safety Oversight Audit Program, administered by the International Civil Aviation Organization (ICAO), are national flag carrier Garuda Indonesia, budget airline Indonesia AirAsia, and air charter services providers Airfast Indonesia and Ekspres Transportasi Antarbenua (Premiair).
European Union authorities’ decision to ban airlines from entering EU territory is usually based on the audit conducted by the ICAO. The latest audit of Indonesian airlines took place in May 2014 and nearly resulted in a complete ban for Indonesian airlines to enter the EU as the ICAO found various matters related to safety. However, after sending corrective action plans to Canada-based ICAO, the four above-mentioned airlines passed the audit. It was announced in late June 2015 that Indonesia’s airline industry complied with 81.5 percent of the requirements needed to fulfill the ICAO’s corrective action plans.
A total of 65 airlines exist in Indonesia, nearly all banned from flying to the EU and the USA (based on the assessment of the Federal Aviation Administration, or FAA) due to safety concerns. The Indonesian Transportation Ministry announced to appeal in order to lift the ban on Citilink Indonesia (subsidiary of Garuda Indonesia), Lion Air, and Indonesia AirAsia X. Although these airlines not plan to schedule flights to the EU, the lifting of the ban will have a positive impact on the companies’ image.