Abstract
The study seeks to clarify the development of Indonesia’s aviation policy, primarily in relation to the proposed air transport liberalization in Southeast Asia region, ASEAN Single Aviation Market (ASAM). The study begins by reviewing aviation policy and industry development in Indonesia related to air passenger services. The study also highlights Indonesia’s progress towards ASAM. Challenges and opportunities are then identified. Indonesia is still reluctant toward full implementation of ASAM due to the issue of benefit reciprocity. Ratification of agreements is conducted in stages to give time for airlines and airport sectors to adjust. Infrastructure capacity and quality remain as the biggest challenges for Indonesia.
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