Airport Councils International, the only worldwide trade representative of the world's airports, considers Bali's I Gusti Ngurah Rai International Airport the world's third-best airport in the category "airports with an annual passenger capacity of 15-25 million people in 2016". The airport's score improved from 4.74 in the 2015 edition to 4.92 in the latest edition. To continue improving its performance, the airport operator will continue to invest in airport facilities as well as supporting infrastructure.

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Passenger capacity at Soekarno-Hatta International Airport, Indonesia's busiest airport located just outside Jakarta, is targeted to reach 61 million (per year) by the end of 2017, up 84 percent from a passenger capacity of 33 million passengers currently. Passenger capacity at the airport will rise strongly after the full completion of construction of Terminal 3 as well as the renovations at Terminals 1 and 2. Although Terminal 3 opened in August 2016 construction will continue into 2017 when full passenger capacity (25 million per year) is expected to be reached.

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The Indonesia National Air Carriers Association (INACA) expects the number of air passengers in Indonesia to grow 15 percent (y/y) in full-year 2016, roughly the same as growth realization one year earlier. In the first five months of 2016 there were a total of 37.38 million air passengers - both domestic and international flights - in Indonesia, up 16 percent (y/y) from the number of air passengers in the same period last year. INACA added that the Idul Fitri holiday period will not be able to boost total passengers significantly due to limited slot times.

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At the first day of Indonesia's Idul Fitri holiday (4-8 July 2016), the capital city of Jakarta has become relatively quiet as some 6.7 million Jakartans are estimated to have left the city to spend a couple of days with their families in the suburban or rural areas (a tradition called mudik). The peak of the exodus occurred on Saturday-Sunday and choked toll gates in the Greater Jakarta area. Meanwhile, the number of air passengers during this year's Idul Fitri is expected to be the highest ever, supported by higher purchasing power and better airport and flight services.

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State-owned airport services company Angkasa Pura II that operates the Soekarno-Hatta International Airport located just outside Indonesia's capital city of Jakarta, says construction of the airport's third terminal is nearing completion. Angkasa Pura II is optimistic that the IDR 5.7 trillion (approx. USD $432 million) terminal will be ready for operations on 26 May 2016. Budi Karya Sumadi, General Director of Angkasa Pura II, said this terminal - called Terminal 3 Ultimate - will be used for international and domestic flights of Garuda Indonesia (which currently uses Terminal 2).

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Angkasa Pura II, the state-owned airport services company that operates airports in the western part of Indonesia, says the 3rd runway of the Soekarno-Hatta International Airport, located just outside Indonesia's capital city of Jakarta, will be finished in late-2017. This third runway, expected to cost IDR 4 trillion (USD $300 million), is part of a big expansion and renovation plan aimed at raising the airport's passenger capacity and flight frequency. Construction of the runway should start in early 2017 provided the land acquisition process has been completed.

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The Indonesia National Air Carrier Association (INACA) expects domestic and international air passengers in Indonesia to grow by about 8-9 percent year-on-year (y/y) in 2016, flat from the estimated growth pace this year (8 percent y/y). Based on the latest data from Indonesia's Statistics Agency (Badan Pusat Statistik/BPS), air passengers in Indonesia stood at 67.5 million in the first ten months of 2015, up 12.8 percent from the number of air passengers in the same period last year.

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Small Indonesian airlines face difficult times ahead of the implementation of a new law (UU No. 1 2009 on Aviation) which stipulates that per 1 July 2015 all Indonesian airlines have to operate at least ten aircraft. Of this ten airplanes, at least five aircraft have to be owned by the airline, while the remainder can be leased. The Indonesian government emphasized that if domestic airlines fail to comply with the new law per July 2015, then their flight permits will be revoked.

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The Lion Group, parent to Indonesia’s largest privately held airline Lion Mentari Airlines (Lion Air), targets to raise IDR 10 trillion (USD $820 million) by selling a 30 percent stake through an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in 2016. If realized, this would be one of the largest IPOs on the IDX in recent years. Lion Group CEO Rusdi Kirana confirmed the company’s IPO plans earlier this week. Part of the proceeds will be used to develop a new airport in Lebak (Banten, West Java).

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Ahead of implementation of the ASEAN Single Aviation Market (ASAM) in 2015, it is important for Indonesia to improve infrastructure at (and around) airports, particularly the nation’s smaller airports, in order to be able to compete with other airports in the ASEAN region. ASAM will turn ASEAN into a unified and single aviation market by 2015, meaning that air travel between ASEAN member states is fully liberalized. As such, ASAM will supersede existing unilateral, bilateral and multilateral air services agreements between ASEAN members.

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Although initially expected to start in 2015, the government announced that construction of the new Karawang airport (in West Java) may commence in 2014. The administrative process (including a spatial plan review) is near completion, thus clearing the way for the airport's groundbreaking. The Karawang International Airport, which is designed to have a passenger handling capacity of 70 million people per year, will be built on a 900 ha piece of land and is envisaged to relieve passenger and flight congestion at Soekarno-Hatta International Airport.

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The number of air passengers in Indonesia has increased significantly during the last decade, and turned the country in one of the fastest-growing air travel industries worldwide. Blessed with robust macro economic growth and a subsequent burgeoning middle class, Indonesians are increasingly using airplanes as means of transportation. It is estimated that in 2012 about 72.5 million people used air transport in Indonesia, a ten percent year-on-year increase.

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