INDONESIA Trends and Developments Contributed by: Enny Purnomo Widhya, Nugrahani Astiyanti and I Gusti Ngurah Oka Anantajaya, Mochtar Karuwin Komar
• Financing Lease; • Sale-Lease Back (SLB); • Sale of the Aircraft subject to a Lease; and • Asset-Backed Securities Transactions. Development in Doing Business Licensing Regulations for Airlines Recently Indonesia has enacted GR 28/2025 which revokes Government Regulation No 5 of 2021 con - cerning Implementation of Risk-Based Licensing (the “GR 5/2021”) enacted as part of the Omnibus Law regulatory reform of 2021 related to the Indonesian doing business licensing regime. Prior to the enactment of GR 5/2021, Indonesian air - lines were required to hold doing business licences including a Commercial Scheduled Air Transport Licence and Commercial Non-Scheduled Air Trans - port Licence. However, following enactment of GR 5/2021, airlines will only need to hold a Business Identification Number (NIB) and Standard Certificate issued by the Online Single Submission (OSS) Sys - tem (instead of a doing business licence), which shall cover the relevant business activities of the airline, ie commercial scheduled air transport, commercial non- scheduled air transport business activities and any other type of aviation business activities (as applica - ble). However, for doing business licences obtained by the airline prior to the introduction of the risk-based approach licensing system in 2021, as long as such licence is still valid and the airline is still conducting its business activities, the licence shall remain valid. Nevertheless, in practice, standard certificates will be needed to apply for technical permits if certain gov - ernment agencies require. It has been observed that several Indonesian airlines have already transitioned to standard certificates. GR 28/2025 also implies that for business licences issued prior to the promulgation of GR 28/2025, those licences shall remain valid. Recent Developments in the Market and Trends in Transactions Recent developments in the market As readers may be aware, Garuda Indonesia went through a court-sanction debt restructuring in 2022, making it the largest debt restructuring involving
an Indonesian airline. Within three years of its debt restructuring, and based on recent media reports, during an Extraordinary General Meeting of Share - holders (EGMS) of Garuda Indonesia held on 30 June 2025, shareholders representing 74.29% of Garuda Indonesia’s shares voted in favour of continuing the restructuring programme, which will prioritise improv - ing equity while restoring the airline’s fleet, expand - ing its route network and boosting passenger traffic. As reported, the airline plans to gradually increase its fleet to around 120 aircraft, up from the approximate current number of 100, including its budget carrier subsidiary PT Citilink Indonesia (Citilink), and to add at least 100 new routes by 2029. Also, prior to the EGMS and according to media reports, Indonesia’s new sovereign wealth manage - ment agency that also manages Indonesian state- owned companies, Daya Anagata Nusantara Invest - ment Management Agency (Danantara), has provided a loan to Garuda Indonesia in the amount of IDR6.6 trillion (approximately equivalent to USD407 million) through Danantara Aset Management (DAM), sub - stantially to be granted to Garuda Indonesia’s sub - sidiary, Citilink. The funding is in response to Garuda’s request for restructuring to the Ministry of State- Owned Enterprises, which was approved. From the total loan amount of IDR6.6 trillion provided by DAM, IDR4.8 trillion (approximately USD296 million) is to be provided to Citilink, with the balance of IDR1.8 trillion (approximately USD111 million) to Garuda Indonesia. Recent trends in transactions Following the end of the COVID-19 pandemic era and resumption of air travel, there was an increase in new aircraft delivery deals between 2022 and 2023. However, the numbers were below those during the pre-COVID-19 era except for new airlines like Super Air Jet. Since 2024, there has been an increase in the number of aircraft traded and sold on lease to Indo - nesian airlines. The most common structure adopted is novation of existing leases: it has been observed that, in novation transactions, airlines prefer to have the same terms and conditions as outgoing lessors or owners, whilst the outgoing lessors or owners tend to prefer to accommodate the airlines’ interests as much as possible in order to smoothen the sale of the aircraft to the new lessor or owner.
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