In civil aviation—a sector defined by its rigorous regulation and critical safety requirements—the notion of welcoming new entrants into airport operations and supporting services may appear paradoxical. However, the imperatives of safety, security, and service excellence—often cited as reasons for maintaining high barriers to entry—can be reframed as enablers of inclusive and competitive engagement when interpreted through a progressive, systems-based lens. Indonesia, with its archipelagic vastness and intensifying connectivity demands, must strategically open its aviation ecosystem to a broader spectrum of entrepreneurial actors—provided such inclusion is designed with regulatory coherence and operational integrity.
A Sector at the Crossroads of Transformation
Indonesia’s aviation sector is navigating a period of structural evolution. Amid post-pandemic recovery, increased passenger volumes, rising cargo demand, and the shift toward sustainability and digitalization have reshaped how airports and ancillary businesses operate. This is especially true for non-aeronautical services—ground handling, terminal logistics, passenger assistance, aviation catering, aircraft cleaning, fuelling, and IT systems—which are vital yet often monopolized by a handful of legacy operators.
Opening the gates to new businesses in these fields is not merely economic liberalization; it is a strategic imperative to build redundancy, enhance service variety, and inject localized innovation. But how can such participation be fostered without compromising the framework of international and domestic aviation regulations?
Regulatory Anchoring with Entrepreneurial Elasticity
The International Civil Aviation Organization (ICAO) lays down global safety, security, and operational standards, while Indonesia’s national regulations—from Aviation Law No. 1/2009 to derivative ministerial decrees—add local compliance layers. Democratizing access to airport-related business must begin with strengthening regulatory literacy among prospective entrants.
A national program translating the aviation legal framework into actionable guidance is urgently needed. This could be led by a collaboration between the Ministry of Transportation, the Indonesian Aviation Authority, and airport operators such as Angkasa Pura I and II. Simplified licensing pathways, modular training programs, and tiered certification models can help small and medium enterprises (SMEs) understand how to operate safely within the regulated environment.
This regulatory anchoring must be paired with entrepreneurial elasticity—adaptive mechanisms enabling businesses of various scales and origins, from rural cooperatives to tech startups, to plug into the airport economy with clarity and institutional support.
Towards a Healthy Ecosystem of Collaboration, Not Cannibalization
Liberalizing access to airport services without coordination risks uncontrolled fragmentation. A proliferation of poorly trained or under-resourced operators can lead to service inconsistencies and operational hazards.
Indonesia can learn from countries like Singapore and the Netherlands, where multi-operator systems are governed through structured competition and performance metrics. Incubator-style arrangements within airport zones, shared facilities, and mentorship from established players can help new entrants thrive.
Existing operators should be incentivized to support new players through tax breaks, concession extensions, or partnership credits. For example, a ground handling company could host a training centre for SME subcontractors, or an airport authority could allocate commercial space to local cooperatives—provided they pass strict onboarding protocols.
These initiatives would localize economic benefits and enable regional participation without compromising safety or service quality.
From Concept to Execution: A Strategic-Tactical Bridge
While policy discourse often gets lost in abstraction, inclusive airport business development demands strategic foresight and tactical clarity. Execution must follow a roadmap that integrates national policy with operational-level readiness.
Strategically, these initiatives must be embedded in Indonesia’s National Long-Term Development Plan (RPJPN) and the Ministry of Transportation’s Strategic Plan, ensuring continuity and budget alignment.
Tactically, implementation should follow structured program management—covering situational analysis, stakeholder mapping, pilot deployment, and iterative monitoring.
Each initiative must yield:
- Outputs — tangible deliverables such as SMEs trained or services piloted.
- Outcomes — improved SME participation, service speed, and user satisfaction.
- Impacts — job creation, regional growth, and improved aviation competitiveness.
KPIs must include onboarding rates, SLA compliance, audit scores, CSAT indices, and public-private funding leverage ratios.
Key Initiatives:
- Airport Business Sandbox: Dedicated zones at Kertajati, Banyuwangi, and Yogyakarta for piloting automated kiosks, electric vehicles, eco-cleaning services, or drone-assisted inspections—under monitored protocols.
- Public-Private Capacity Acceleration Fund: A joint fund from Angkasa Pura I & II, private equity, and infrastructure financiers, tied to performance-based grants for sectors like cybersecurity, cargo logistics, and biometric boarding.
- Aviation Micro credential Program for SMEs: Short-cycle, ICAO-aligned learning programs delivered by aviation training centres and universities to onboard and upskill founders, staff, and gig workers.
These are grounded propositions that support the strategic imperative of inclusive aviation growth. They require inter-agency coordination, legal facilitation, and a shared national narrative that safety and innovation are not contradictory, but mutually reinforcing.
Strategic Application at Soekarno-Hatta International Airport
As Indonesia’s busiest and most strategic hub, Soekarno-Hatta can serve as a launchpad for high-impact transformation through localized pilots:
- Digital Transformation Lab: A living lab for smart airport technology, from biometric gates and AI maintenance to real-time passenger flow analytics.
- SME Integration Corridor: A curated zone for SMEs in logistics, retail, catering, and landside services, monitored through KPIs like punctuality and compliance.
- Advanced Apprenticeship Hub: A skills pipeline for youth in Greater Jakarta and Banten offering technical immersion in ground handling, cargo IT, and aerodrome operations.
Case Study – Incheon International Airport, South Korea:
Incheon’s “Airport Value Creation Project” allocated over 25% of its non-aeronautical services to certified SMEs. Its Smart Airport Lab co-developed predictive analytics tools with startups.
Expert Insight:
“The airports of the future will be innovation ecosystems. To stay resilient, they must blend commercial inclusivity with digital intelligence, not choose between them.” — Angela Gittens, Former Director General, Airports Council International (ACI)
Supporting Data: According to a 2023 McKinsey report (Smart Airports: Designing Resilience and Growth Beyond Recovery, McKinsey.com), airports integrating SMEs and digital startups achieved 15–30% higher service efficiency and recovered 40% faster post-COVID.
Closing: From Gatekeepers to Ground breakers
As Indonesia aspires to become a regional aviation hub, enabling and empowering new entrants is no longer optional—it is essential. A diversified, well-regulated, and innovation-friendly ecosystem bolsters both resilience and safety through adaptability and redundancy.
The future of aviation will not be shaped solely by giants who build runways, but by agile actors who bring those runways closer to people—with precision, compliance, and care. Now is the time for Indonesia to invest in its broadest possible talent base.
