Indonesia and the Aircraft Lease Implementation in Its Airlines Amid Covid-19 Pandemic: A Perspective from Investment Law

Abstract

As a country where the majority of its airline fleets are obtained through the practice of aircraft lease with foreign companies, Indonesia acts as the host state for lessors who provide leases for its national airlines. The unstable condition of airlines during the Covid-19 pandemic has resulted in the inability of airlines to pay the aircraft lease costs, thus causing problems with lessors as the foreign parties who entrust their assets to airlines as the operators of leased aircraft. Based on the investment law, it is the obligation of Indonesia as the host state to ensure that the lessor as the investor gets the protection and fulfilment of their rights. This research is intended to see the extent of the Indonesian Government's role in the aircraft lease activities during the Covid-19 pandemic situation. This study uses the normative juridical research method, by linking it to the phenomenon in the implementation of aircraft leases during the pandemic. The results of the study indicate that there is not any specific rule or policy issued by the Government which is intended for the implementation of aircraft lease by Indonesian airlines during this pandemic situation, yet. Keywords: aircraft lease, pandemic, investment, and airlines. DOI: 10.7176/JLPG/112-14 Publication date: August 31 st 2021