SBY signs regulation on
air traffic corporation

State-owned airport operators will no longer manage air traffic controllers after President Susilo Bambang Yudhoyono signed a regulation needed to serve as the legal means for the establishment of a corporation in charge of Indonesia’s air traffic services, a government statement has said.

Government Regulation (PP) No. 77/2012 on Indonesia’s flight navigation service organizing agencies stipulates that the corporation will be in the form of a semi-private firm (Perum), according to a statement by the Cabinet Secretariat made available on Tuesday.

“The regulation was signed by the President on Sept. 13,” the statement says.

The regulation is a stipulation of the 2009 Aviation Law, which authorizes the government to transfer air navigation management from airport operators to a non-profit institution in order to improve the country’s air traffic services.

According to the regulation, in the initial phase, the firm will be manned by officials from state-owned operators Angkasa Pura I (AP I) and Angkasa Pura II (AP II) as well as the Transportation Ministry’s technical operation units (UPT).

The separation of air traffic navigation organizers from airport controllers is believed to be aimed at making air navigation services more effective and efficient and eventually improve flight safety.

The regulation also stipulates that the transfer will be carried out in gradual steps.

There are currently some 200 airports nationwide controlled by PT AP I, AP II and the ministry’s UPTs.

“The transition for the western [Indonesia] area, which is centered in Jakarta, and the eastern area [Makassar], will be carried out at the latest within one year after the Perum is established,” the regulation stipulates.

The transition for the organizers of navigation services currently handled by the ministry’s UPTs will be completed by the end of the second year after the Perum’s establishment, according to the regulation.

The company will be based in Jakarta but be allowed to open branches if necessary.

It covers basic flight navigation services, including air traffic service, aeronautical telecommunication services, aeronautical information services, aeronautical meteorological services and information services for search and rescue.

The regulation requires the transfer of Transportation Ministry assets worth Rp 100 billion US$10.42 million to serve as the Perum’s initial capital.

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