Indonesia bans indirect cabotage via online travel agents-Xinhua

by Rachel Morgan News Editor

Indonesia is cracking down on a practice known as “indirect cabotage,” reinforcing a ban on foreign airlines offering domestic flights through international connections. The Transportation Ministry announced the renewed enforcement on Wednesday, focusing particularly on bookings made through online travel agents (OTAs).

Indonesia Restricts Foreign Airline Domestic Routes

According to Lukman Laisa, the ministry’s director general of civil aviation, the practice violates the 2009 Aviation Law No. 1. This law specifically prohibits foreign carriers from transporting passengers between two points within Indonesia.

Did You Know? The 2009 Aviation Law No. 1 is the legal basis for Indonesia’s prohibition of indirect cabotage.

Recent examples of this practice involved flights between Soekarno-Hatta International Airport in Banten province and Kualanamu International Airport in North Sumatra province. These flights were operated by foreign airlines, but included layovers in Malaysia or Singapore.

Laisa stated that indirect cabotage “not only violates national sovereignty and harms domestic airlines,” but similarly creates risks for passengers. Travelers may be required to manage international connections independently, without assistance from airline staff.

The Transportation Ministry has begun coordinating with the Ministry of Communication and Digital Affairs and the Ministry of Tourism to impose sanctions on OTAs found to be facilitating these arrangements. Travelers are being advised to carefully review fare details, report any discrepancies, and consider booking directly with airlines.

Expert Insight: By reinforcing this ban, Indonesia is prioritizing the health of its domestic aviation industry and asserting control over its airspace. This action could lead to increased costs for some travelers, but aims to protect both consumers and national interests.

the government may increase monitoring of OTAs to ensure compliance. Further enforcement actions could include fines or restrictions on the operations of non-compliant agencies. Analysts expect that domestic airlines may see increased demand as a result of this enforcement.

Frequently Asked Questions

What is indirect cabotage?

Indirect cabotage is when a passenger flies between two cities within the same country, but the flight is routed through another country, often utilizing a foreign airline.

Why is Indonesia banning this practice?

The practice violates the 2009 Aviation Law No. 1, which prohibits foreign carriers from transporting passengers between two points within Indonesia. It also harms domestic airlines and poses risks to passengers.

What should travelers do to avoid this issue?

Travelers are urged to carefully review fare details, report any discrepancies, and consider purchasing tickets directly from airlines to ensure safety and convenience.

As Indonesia strengthens its regulations around air travel, how might this impact the accessibility and affordability of domestic flights for both residents and tourists?

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