THE IMPORTANCE OF AIR

TRANSPORT TO INDONESIA
The air transport sector makes a major
contribution to the Indonesian economy

2.6 M DIRECT SUPPLY EMPLOYEE TOURISM

JOBS
CHAIN SPENDING

SUPPORTED BY THE
AIR TRANSPORT
SECTOR

$24
BILLION
GROSS VALUE ADDED
CONTRIBUTION
TO INDONESIAS
GDP IN 2014 190,000 530,000 140,000 1.7 M
JOBS JOBS JOBS JOBS

2.7%
GDP
SUPPORTED BY AIR
TRANSPORT & FOREIGN
TOURISTS ARRIVING
BY AIR
US $4.3 US $4 US $1 US $14
BILLION GROSS VALUE ADDED

It creates jobs... or all of which are subsequently foreign tourists supported a

Airlines, airport operators,
airport on-site enterprises
(restaurants and retail),
aircraft manufacturers, and air
navigation service providers
employed 190,000 people in
Indonesia in 2014. In addition,
by buying goods and services
from local suppliers the sector
supported another 530,000
jobs. On top of this, the sector is
estimated to have supported a
further 140,000 jobs by paying
wages to its employees, some
spent on consumer goods further $14 billion gross value
and services. Foreign tourists added contribution to the
arriving by air to Indonesia, countrys GDP. This means that
who spend their money in the 2.7 percent of the countrys
local economy, are estimated to GDP is supported by the air
have supported an additional 1.7 transport sector and foreign
million jobs in 2014. tourists arriving by air.
...and generates wealth
The air transport industry is
estimated to have supported
a $9.4 billion gross value
added contribution to GDP in
Indonesia in 2014. Spending by
 The importance of air transport to Indonesia

Air transportation facilitates exports,

foreign direct investment, and tourism
The ten most popular direct flight links: 1. Malaysia
2. Singapore
3. Australia
4. Hong Kong
5. Thailand
6. Japan
7. China
8. South Korea
9. United Arab Emirates
10. Chinese Taipei

8 6
7
4 10
9
5

2 1

US $230
BILLION
US $210 FDI
BILLION
US $9.8 EXPORTS
BILLION
FOREIGN
TOURIST The scale of investment, spent US $9.8 billion in Indonesia,
EXPENDITURE
exports, and inbound supporting restaurants, hotels,
spending in Indonesia transport providers, and others
who cater to tourists. In addition,
Air transport brings tourists and Indonesia exported US $210 billion
investment into Indonesia, and worth of goods and services in
helps businesses trade their 2014. Over time, the country has
goods and services around the accumulated US $230 billion in
world. In 2014, foreign tourists foreign direct investment.
The importance of air transport to Indonesia

The air transport sector connects

people around the world
Number of direct flight destinations in the ten The air transport sectors
fastest growing countries ability to connect Indonesia to

108
emerging countries and fast
India growing cities can help drive
Bangladesh economic growth. There are 108
DIRECT FLIGHT
Vietnam DESTINATIONS IN direct flight destinations among
Pakistan THE 10 FASTEST the ten fastest growing countries
GROWING
China 10 COUNTRIES in the world as measured by
Indonesia 96 GDP growth and 119 direct flight
Philippines destinations among the 20
Kazakhstan fastest growing countries.
Angola There are 7 direct weekly flights
Nigeria among the ten fastest growing
cities in the world as measured
Number of direct flights to the top ten fastest by GDP growth and over 5,500
growing cities direct weekly flights among the

Surat 7
DIRECT WEEKLY
FLIGHTS TO THE
100 fastest growing cities. 1

Ahmedabad TOP 10 FASTEST Arrivals by continent

GROWING
Ho Chi Minh City CITIES
H Noi the Middle East and Europe are
Delhi the largest sources of arrivals to
Bengaluru Indonesia after Asia-Pacific.
Hyderabad (India) In 2014, 2 million passengers
Kinshasa arrived to Indonesia from the
Dhaka Middle East (2.3 percent of the
Lagos total) and 1.7 million passengers
arrived from Europe (2 percent).
Arrivals by continent, number of passengers (000s)

1,700

360
2,000
82,000
99

19

1
Fastest growing countries are Ranked by Oxford Economics forecasted real GDP growth 2015-2030, with a threshold of >US $100 million GDP. Fastest growing
cities are ranked by Oxford Economics forecasted real GDP growth 2015-2030, with a minimum city size of 5 million.
 The importance of air transport to Indonesia

Ease of travel, cost competitiveness, and

infrastructure are vitally important
Survey evidence of Key infrastructure facts about
infrastructure and ease of travel Indonesian air transport
1
Executives surveyed by the Around 1.5 million aircraft land
106
AIRPORT
AMONG
World Economic Forum or take off from Indonesia THE TOP 100
suggest that Indonesias air every year. The country has 1 AIRPORTS
IN THE
transport infrastructure quality airport that is in the top 100 in WORLD
ranks 11th out of 25 countries the world (ranked by passenger
included in the survey in Asia- numbers). Soekarno-Hatta
Pacific and 50th globally. Intl airport carried the most

1.5 M
NUMBER OF
Indonesia ranks 10th out of passengers - 53.3 million - in OPERATING
25 in Asia-Pacific for visa 2014. AIRLINES

64
LANDINGS AND
openness and 1st for cost TAKEOFFS
competitiveness.

Number of passengers travelling annually through the five

busiest airports in the country (000s)
Infrastructure quality

1
score: 4/7
53,300
SOEKARNO-HATTA INTL

Visa openness score :

2 16,100
2

5/10 NGURAH RAI

5

3 15,600
JUANDA

4
4
Cost competitiveness
score : 9/10 3
9,100
SULTAN HASANUDDIN
1
3
2

5 7,400
KUALA NAMU

2
Entry visa requirements for a tourism visit from worldwide source markets (10 = no visa required for visitors from all source markets, 0 = traditional visa required
for visitors from every source market).
3
Based on ticket taxes, airport charges, and VAT (10=low cost, 0=high cost).

December 2016 For further information contact:

Oxford Economics prepared
this report with IATAs support. Ian Saxon
isaxon@oxfordeconomics.com
This report is one of several Tel: +44 (0)20 7803 1418
that examine the air transport
sectors importance around London
the world. Access them all Broadwall House, 21 Broadwall,
from IATAs website. London, SE1 9PL, UK

www.oxfordeconomics.com
Sources: IATA, Oxford Economics, International Monetary Fund, and national statistics.