13 Indonesian carriers risk losing licences

Indonesia’s Ministry of Transport
Indonesia’s Ministry of Transport has given thirteen of the country’s carriers until the end of July to improve their financial positions, or risk losing of their Air Operator Certificates, according to a report in the Jakarta Post. The 13 carriers affected include: Indonesia AirAsia, Batik Air (part of the Lion Group), Cardigair, Transwisata Air, EastIndo, Survai Udara Penas, Air Pacific (Indonesia), Jhonlin Air Transport, Asialink Cargo Express, Ersa Eastern Aviation, Tri-M.G. Intra Asia Airlines, Nusantara Buena Air, and Manunggal Air.

Tri MG Airlines is one of the only three independent cargo carriers operating in Indonesia. The airline operates daily flights Singapore – Jakarta – Balikpapan five times a week carrying 15.5 tonnes of cargo per-flight. Tri M-G has a fleet of 11 freighters.
Minister of Transport Ignasius Jonan told the Post that the affected airlines were found to be in a state of negative equity (a situation where the value of an asset used to secure a loan is less than the outstanding balance on the loan) ranging from IDR 10 billion (US$748,000) up to “trillions of Rupiah” with Jonan saying the poor financial position of these carriers leads to concerns over safety oversight.


New legislation recently enacted in Indonesia requires a minimum prescribed capital that airlines operating with various capacities must have. Cargo operators are required to be capitalised to at least IDR100 billion (US$7.48 million) while scheduled passenger airlines operating aircraft with a capacity of 70 seats or more are required to have a paid-up capital of at least IDR500 billion while those with aircraft with 30 seats or less must have a paid-up capital of at least IDR300 billion.

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