SOUTHEAST ASIA AND THE PACIFIC ISLANDS
Indonesia
The world's largest archipelago market, with major low-cost groups, many regional airports and a national MRO champion in GMF AeroAsia.
Market overview
Indonesia's island geography needs air travel, but the market has not recovered from the pandemic. Air passengers fell to 59.8 million in 2025, down 6.2% and still 17 million below 2019. Fares have climbed sharply: per kilometre, Jakarta–Surabaya costs 31% more than in early 2024. The main reason is a shortage of flyable aircraft. The fleet has not returned to pre-pandemic size, and Garuda Indonesia had nearly 40% of its fleet grounded for maintenance because it could not pay for the work. Garuda's 2025 net loss widened to US$323 million, although a US$1.4 billion injection from Danantara, the sovereign wealth fund, gave it positive equity for the first time in six years. Policy is also turning to fuel: a 1% sustainable fuel blend becomes compulsory in 2027 on international flights from Jakarta and Bali. For suppliers, the most urgent need is getting grounded aircraft flying again: heavy maintenance, engines, parts and leasing finance.
At a glance
- Main hubs
- Jakarta Soekarno-Hatta; Bali I Gusti Ngurah Rai; Surabaya Juanda
- Flag carrier
- Garuda Indonesia
- Airport operator
- InJourney Airports (formerly Angkasa Pura) ↗
- Training body
- Indonesian Civil Aviation Polytechnic (PPI Curug)
Archipelago air networkaircraft maker (PTDI)large MRO (GMF AeroAsia)sustainable fuel
Key facts
- 59.8 million air passengers in 2025, down 6.2% and 17 million below 2019's 76.7 million (May 2026).
- Jakarta–Surabaya fares rose 31% per kilometre between early 2024 and May 2026.
- Garuda Indonesia: 2025 net loss of US$323 million, revenue down 5.9% to US$3.22 billion, and nearly 40% of the fleet grounded for maintenance (Mar 2026).
- Danantara put US$1.4 billion of capital into Garuda (reported Mar 2026).
- A compulsory 1% sustainable fuel blend from 2027 on international flights from Soekarno-Hatta (Jakarta) and Bali (July 2026).
Key figures
Passengers carried (2023)
97,045,785
2023 · rank 4 of 52
2019–2023
Air freight, million tonne-km (2023)
871
2023 · rank 19 of 52
2019–2023
Source: World Bank, World Development Indicators (CC BY 4.0).
Did you know
Indonesia's air network links more than 250 airports across its islands.
Latest news
Typical bottlenecks in Indonesia
- Improving safety and reliability on a regional network — Quality, safety & compliance · Flight operations & licensing
- Growing MRO for regional and narrow-body fleets — Airworthiness & CAMO · Fleet & asset management
- Planning a new route, base or airport investment — Airline strategy & business plans · Airports & ground operations
Sources
- https://www.thejakartapost.com/business/2026/05/12/airlines-passenger-demand-risks-stalling-once-again
- https://www.thestar.com.my/aseanplus/aseanplus-news/2026/03/18/garuda-indonesia039s-loss-widens-as-scheduled-airline-sales-slip-due-to-chaos-in-the-middle-east
- https://www.petromindo.com/news/article/indonesia-to-launch-1-saf-blend-on-international-flights-in-2027
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