Omnibus Law, Centralization Risk, and Flights Easing

Summary

The government will annul several articles in Law No. 1/2009 on Aviation through the Omnibus Bill on Job Creation under discussion by the House of Representatives. Chamber of Commerce and Industry (Kadin) Deputy Chairman for Transportation, Carmelita Hartoto, said the new regulation creates opportunities for local investors to enter the aviation business. Kadin is one of the compilers of the Omnibus Law.

Carmita refers to the relaxation clause of aircraft ownership limit in the omnibus law, citing an exemption of aircraft minimum limit requirements. In existing Aviation Law, airlines are required to have a certain number of aircraft according to their business segments. The regulation also transfers some transportation minister’s authorities to the president.

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