This news was published on the same day that Batavia Air, one of Indonesia's low-cost private airlines, ceased operations after a Jakarta Commercial Court rule as it has been plagued by debt woes.

In recent years, demand for domestic air travel in Indonesia has grown significantly due to economic growth and a rising middle class. However, lack of quality and quantity in infrastructure (for example size of airports, roads and railways towards airports), and a lack of quality pilots, engineers, and technicians have hampered developments in the country's aviation sector.

Shares of Garuda Indonesia, Indonesia's sole publicly listed airline, climbed 1.56 percent on today's trading day.