What is the story about?
What's Happening?
Indonesia is shifting its aviation growth strategy to develop international airports beyond its primary hubs of Jakarta and Bali. The initiative, led by state-owned holding company InJourney Airport, aims to increase annual visitor numbers from 154 million to 162 million by 2025. InJourney, formed from the merger of airport operators Angkasa Pura I and II, is focusing on emerging destinations like Yogyakarta. The company is in discussions with Australian carriers to market Yogyakarta International Airport as a destination and transit hub. Infrastructure upgrades are also underway in eastern Indonesia, including a new terminal at Sultan Hasanuddin International Airport and a runway extension at Syamsudin Noor Airport.
Why It's Important?
This development is significant for Indonesia's tourism and aviation sectors. By expanding airport infrastructure beyond traditional hubs, Indonesia aims to distribute tourist traffic more evenly across the country, potentially boosting local economies in less developed regions. The strategy could also enhance Indonesia's connectivity with international markets, attracting more foreign tourists and investment. The reliance on foreign carriers to bring in tourists highlights a strategic shift in Indonesia's aviation policy, which could impact the national carrier, Garuda Indonesia, and its future operations.
What's Next?
InJourney's ongoing discussions with foreign carriers and authorities suggest that further international partnerships may be established to enhance Indonesia's aviation network. The success of these initiatives will depend on the ability to attract and sustain international flights to new destinations. Additionally, the completion of infrastructure projects in eastern Indonesia will be crucial in meeting the increased passenger capacity goals.
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