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cting on behalf of the families of the victims of the Sukhoi Superjet 100 tragedy, the Indonesian government demanded that the producer of the airplane, Russia-based Komsomolsk-on-Amur Aircraft Production Association, pay Rp 1.25 billion (US$136,250) in compensation to each beneficiary.

“Since the accident took place in Indonesia, the compensation for the families of the victims should follow the Ministerial Decree No. 77/2011 that demands Rp 1.25 billion for every air transportation fatality,” said the transportation minister last week.

The company, through its local representation, PT Trimarga Rekatama, said that they were prepared to pay $50,000 for each of the victims, in line with standards implemented in Russia. However, Trimarga spokesperson Sunaryo said the company was willing to negotiate with the authorities.

“We will continue trying to raise the insurance in accordance with the ministerial decree. We will resolve this matter as soon as possible. I will conduct more discussions tomorrow with all related parties and hopefully we will reach a decision,” Sunaryo said in a phone interview with The Jakarta Post on Sunday.

In line with Sunaryo, the Russian Embassy press attaché Dmitry Solodov on Sunday assured that Russia is as concerned as Indonesia in resolving the insurance settlement.

“We have discussed it with Indonesian colleagues, but no results came out yet. Investigation, evacuation and insurance are our top priorities that we try to resolve as soon as possible,” said Solodov, citing that representatives of the Russian Industry Ministry and the United Aircraft Corporation (JCS) were among the Russian representatives who actively discussed the matters.

Aviation industry expert Hana Simatupang said that the compensation amount offered by the company was in par with standards applied in many countries, including Indonesia prior to the issuance of the decree.

“In the domestic flight accident cases, only pilots receive more than Rp 1 billion,” she said, referring to what had been done by Garuda Indonesia Airways and Lion Air.

Given no Indonesian regulation on demo flight compensations, Hana suggested both the Indonesian government and Sukhoi’s representatives met half way.

“According to the International Civil Aviation Organization [ICAO] and the US Federal Aviation Regulation, all costs resulting from the demo flight should be addressed to the manufacturer.”

“The Federal Aviation Regulation No. 91.501 stipulates that the aircraft’s seller should give a sum of money which the buyer [passengers] perceived as appropriate compensation. It means that there is some agreement which satisfies both parties,” she explained.

In contrast with the transportation minister’s statement, ministry spokesman Bambang Ervan gave a little more flexibility.

“We will not force the Russians to compensate as much as Rp 1.25 billion because the Sukhoi Super Jet 100 is yet to operate in Indonesia. We will let the Russians pay the compensation based on international law. But, if they ratified the Montreal Convention of 1999, they would have to pay more than Rp 1.25 billion,” he said. (nfo/yps)