Minister of Transportation Budi Karya Sumadi says Indonesia is determined to ratify the 12th Protocol on Air Transport Services Commitments within the ASEAN Framework Agreement on Services, having so far ratified up to the 8th protocol.
The 12th protocol opens up investment and job opportunities in 13 sub-sectors of the aviation industry. Indonesia has been committed to cooperation in six of these sub-sectors − aircraft maintenance and repair, air transport sales and marketing, computer reservation system services, aircraft leasing without crew, air cargo services, and in-flight catering services.
“The urgency of ratifying the 12th protocol is to strengthen the legal basis for Indonesia’s commitment in the air transport services sector,” Budi told a hearing with Commission V of the House of Representatives (DPR), which oversees infrastructure and transportation affairs, on Wednesday, June 19, 2024.
Investment opportunities in these aviation sub-sectors will become available once seven out of the 10 ASEAN member countries ratify the 12th protocol. So far, Laos, Malaysia, Singapore, and Vietnam have ratified it, while Indonesia remains one of the six countries yet to do so.
Budi cited that Indonesia has agreed to the 12th protocol, but has only ratified up to the 8th protocol through Presidential Regulation No. 107/2018. The 9th to 11th protocols are pending President Joko Widodo’s signature.
Director-General of Air Transport at the Ministry of Transportation, Maria Kristi Endah Murni, highlighted that currently, investment opportunities are available in five aviation sub-sectors within ASEAN countries. Indonesia included in-flight catering services in the 10th protocol.
Maria noted that the six selected sub-sectors were chosen based on the maturity of these industries domestically.
“These six sectors were chosen because they are well-established within the country,” she said.
Despite the push for ratification, Ministry of Transportation spokesperson Adita Irawati admitted that the potential investment and job creation from ratifying the 12th protocol has yet to be quantified.
“We have not yet discussed the calculation of investment opportunities as we are still seeking approval to ratify the 12th protocol,” Adita said.
As Indonesia moves towards ratification, the aviation sector anticipates increased investment and enhanced cooperation within the ASEAN region, paving the way for significant economic benefits.
