I INTRODUCTION

The civil aviation industry is one of the most highly regulated industries in Indonesia. The main law governing this sector is Law No. 1 of 2009 on Aviation (Aviation Law). In addition to the Aviation Law, there are a number of implementing regulations, most of which are issued by the Ministry of Transportation.

II LEGAL FRAMEWORK FOR LIABILITY

The Aviation Law stipulates that an air carrier is liable for damages resulting from the death of a passenger and indemnity for the death of a passenger, permanent disability or injury caused by incidents onboard an aircraft or while getting on or off the aircraft. This is further regulated under the Ministry of Transportation Regulation No. 77 of 2011 on Liability of Air Carriers (MOTR No. 77/2011), which states that an air carrier will be liable for damages resulting from, among other things, death, permanent disability or injury (Article 2).

The above-mentioned liability is imposed on an 'air carrier', which is clearly defined under Article 1(26) of the Aviation Law and Article 1(2) of MOTR No. 77/2011 as 'a commercial air transportation company, a non-commercial air transportation a company holding a licence to conduct commercial air transportation operations based on the provisions of this law or any legal entity other than a commercial air transportation company that has entered into an agreement on commercial air transportation'. Thus, theoretically speaking, a non-commercial air carrier is not subject to such liability.

i International carriage

Indonesia has ratified and is therefore bound by the following conventions concerning international carriage of passengers, baggage and cargo by air:

  1. Convention on International Civil Aviation, Chicago 1944 (Chicago Convention), as ratified by Indonesia becoming a state party to the International Civil Aviation Organization (ICAO);
  2. Convention for the Unification of Certain Rules relating to International Carriage by Air, Warsaw 1929, as ratified by the Air Carrier Ordinance No. 100 of 1939;
  3. Convention on Offences and Certain Other Acts Committed on Board Aircraft, Tokyo 1963, as ratified by Law No. 2 of 1976;
  4. Convention for the Suppression of Unlawful Seizure of Aircraft, the Hague 1970, as ratified by Law No. 2 of 1976;
  5. Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, Montreal 1971, as ratified by Law No. 2 of 1976;
  6. Convention on International Interests in Mobile Equipment, Cape Town 2001, as ratified by Government Regulation No. 8 of 2007; and
  7. Convention for the Unification of Certain Rules for International Carriage by Air, Montreal 1999 (Montreal Convention), as ratified by Presidential Decree No. 95 of 2016 on Ratification of Unification Convention of Certain Rules on International Air Transport (2016 Presidential Regulation).

The Aviation Law provides that Indonesian laws only apply to incidents occurring in the airspace above the territory of Indonesia. This is based on Article 5 of the Aviation Law, which provides that Indonesia has full and exclusive sovereignty over the Indonesian airspace. This full and exclusive sovereignty is also recognised in Article 1 of the Chicago Convention, which states that every state has complete and exclusive sovereignty over the airspace above its territory. Singapore, Indonesia and Australia are all contracting parties to the Chicago Convention.

ii Internal and other non-convention carriage

Article 141 of the Aviation Law recognises that a carrier is liable for damages or losses suffered by a passenger, including death, permanent disability or injury. Such liability is further accorded by the Aviation Law to the air transportation company to indemnify any losses suffered by a passenger, a cargo shipper or a third party.

iii General aviation regulation

The Aviation Law is a specific sectoral law that governs civil aviation matters in Indonesia. However, any claim against an air carrier may also be subject to the Indonesian Civil Code, particularly the provision concerning unlawful acts (tort). Nevertheless, the scope of the Aviation Law remains quite extensive and covers the following aspects:

  1. Chapter I: General Provisions;
  2. Chapter II: Goals and Principles;
  3. Chapter III: Scope of the Law;
  4. Chapter IV: Sovereignty over Air Territory;
  5. Chapter V: Development;
  6. Chapter VI: Design and Production of Aircraft;
  7. Chapter VII: Aircraft Registration and Nationality;
  8. Chapter VIII: Aircraft Airworthiness and Operation;
  9. Chapter IX: International Interests in Aircraft;
  10. Chapter X: Air Transport;
  11. Chapter XI: Airport Affairs;
  12. Chapter XII: Air Navigation;
  13. Chapter XIII: Aviation Safety;
  14. Chapter XIV: Aviation Security;
  15. Chapter XV: Search and Rescue in Aircraft Accidents;
  16. Chapter XVI: Investigation and Further Inquiries into Aircraft Accidents;
  17. Chapter XVII: Aviation Industry and Technology Development;
  18. Chapter XVIII: Aviation Information Systems;
  19. Chapter XIX: Human Resources;
  20. Chapter XX: Public Participation;
  21. Chapter XXI: Investigation;
  22. Chapter XXII: Criminal Provisions;
  23. Chapter XXIII: Transitional Provisions; and
  24. Chapter XXIV: Closing Provisions.

iv Passenger rights

The passenger or owner of a cargo being carried on an aircraft has the right to receive compensation for damages resulting from:

  1. death of the passenger on air transportation;
  2. death of the passenger during boarding or disembarking an aircraft at an airport;
  3. any permanent injury owing to an aircraft accident;
  4. any injury and hospitalisation owing to an aircraft accident;
  5. any missing, destroyed or damaged listed luggage; and
  6. any missing or destroyed cargo.

In addition to compensation rights, Article 127 of the Aviation Law also gives a passenger the right to reasonable and fixed airfare, in accordance with the Indonesian Consumer Protection Law. Paragraph 2 of Article 127 of the Aviation Law stipulates that: 'The upper limit rate as provided in paragraph (1) is determined by the Minister by considering the protection of the consumer and the protection of the scheduled commercial air carrier business entity from unhealthy competition practices aspects.'

The elucidation to this provision provides that 'consumer protection aspects' means protecting the consumers from high fares determined by the air carriers, as well as from information of or advertised flight rates that are misleading or even disadvantageous, whereas 'unhealthy competition practices' means preventing air carriers from setting lower fares than their competitors in an attempt to eliminate competition from certain services or routes.

III LICENSING OF OPERATIONS

i Licensed activities

Prior to its operation, a carrier must obtain certain basic licences, including a commercial air transportation operation licence, an air operator certificate, a flight route licence and flight approval. These licences are issued by the relevant authority in the Ministry of Transportation, namely the Directorate General of Air Transportation. According to the recently enacted Ministry of Transportation Regulation,2 the application for the aforementioned licences can be made online by accessing the official Ministry of Transportation's website.3

In addition to the above-mentioned licences, the Aviation Law and its implementing regulations also require a carrier to obtain an approval from the Ministry of Transportation before conducting certain actions. One notable provision is the requirement to obtain the prior approval from the Ministry of Transportation if the carrier intends to charge passengers additional prices on top of their fares for the purchase of an optional product.4

ii Ownership rules

Under the Aviation Law, an air transportation company can be in the form of:

  1. an Indonesian state-owned company;
  2. an Indonesian local government-owned company;
  3. an Indonesian legal entity, such as a limited liability company; or
  4. an Indonesian cooperative company whose entire or majority of the shares are owned by an Indonesian legal entity or Indonesian citizens.

In the event that the shares of an air transportation company are divided among several shareholders, the Aviation Law further stipulates the proportion of the ownership of the company, whereby the national shareholders must continue to have a greater number of shares compared with other shareholders (simple majority).5

Moreover, another requirement that must be satisfied to establish an air transportation company is that such company must own a certain number of serviceable aircraft. The number of aircraft required are:6

  1. for an air transportation company operating scheduled commercial air transportation, the newly established company must own at least five aircraft and control at least five aircraft to support the continuation of the business for the service routes;
  2. for an air transportation company operating non-scheduled commercial air transportation, the newly established company should own at least one aircraft and control at least two aircrafts to support the continuation of the business for the service operating area; and
  3. for an air transportation company operating cargo air transportation, the newly established company should own at least one aircraft and control at least two aircrafts to support the continuation of business for the service routes.

iii Foreign carriers

Essentially, the Aviation Law allows commercial air transportation operations, both scheduled and non-scheduled flights, to be operated by a foreign entity.7 However, a foreign carrier is limited to serving only international flights for both passengers and cargo, and it should be based on a bilateral or multilateral agreement with Indonesia.

Further, there are a number of prohibitions imposed by the Aviation Law on foreign carriers, including:

  1. a non-scheduled flight operated by a foreign carrier is prohibited to carry passengers from the territory of Indonesia, except for in-bound traffic;8 and
  2. a cargo flight operated by a foreign carrier is prohibited to carry cargo from the territory of Indonesia, unless it is permitted by the Ministry of Transportation.

IV SAFETY

The Aviation Law requires every aircraft to comply with airworthiness standards, as evidenced by an airworthiness certificate issued by the Ministry of Transportation. The airworthiness certificate will only be issued to an aircraft that passes an airworthiness inspection and test. Further, the carrier is also obliged to maintain the aircraft, the aircraft engines, propellers and other components of the aircraft to ensure continued reliability and airworthiness. The carrier should implement an aircraft maintenance programme that is approved by the Ministry of Transportation.

Every aspect of aviation, including but not limited to the business, operations, ground-handling service, communication, navigation and surveillance (CNS), airport infrastructure, air traffic management and supply chains, relies heavily on computer systems, which means that there is a high chance of a cyberattack. As a result, cybersecurity is a growing concern in this industry. Referring to Annex 17 of ICAO, Indonesia has included articles regarding cybersecurity in the Ministry of Transportation Regulation No. PM 80 of 2017 on National Aviation Security Programme. This regulation requires every airport, airline, AirNav Indonesia and legal entity to establish a cybersecurity unit in order to prevent and mitigate cyberattacks.

On 17 May 2018, the Indonesian Director General of Air Transportation received an honorary award (the Council President Certificate) from the ICAO in Montreal, Canada. The award was a form of acknowledgment from the ICAO for the achievements and developments by Indonesia after resolving a number of safety oversight deficiencies and improving the effective implementation of the ICAO's Standards and Recommended Practices on aviation safety. The award was also given as a result of an on-site audit in October 2017, in which Indonesia reached 80.34 per cent in effective implementation, compared to 45.33 per cent previously. The audit has also placed Indonesia 58th out of 192 ICAO member states for aviation safety. Indonesia previously ranked in 152nd place and was the 10th accredited country in the Asia-Pacific region out of 39 member states accredited by the ICAO regional office in Bangkok. In addition to receiving acknowledgment from the ICAO, Indonesia also received recognition from the European Union Air Safety Committee. On 15 June 2018, the Committee lifted the EU ban on all Indonesian airlines, which previously prohibited a number of airlines from operating within the EU member states. The ban was revoked after a positive assessment of Indonesia's flight safety by the ICAO in October 2017 and the EU aviation audit agency in March 2018, following further improvements to aviation safety in the country.

V INSURANCE

The Aviation Law requires an air carrier to have liability insurance with respect to passengers and cargo owners. Further, such insurance should be provided by a consortium. The minimum amount of insurance coverage must be equivalent to the amount of compensation that would have to be paid to the passengers and cargo owners.

VI COMPETITION

The Indonesian Competition Law (Law No. 5 of 1999 on the Prohibition of Monopolistic and Unfair Business Practices (ICL))9 does not contain any specific provisions regulating the aviation or aviation-related industries. Accordingly, all general competition regulations apply to these industries. Although the ICL features three substantive chapters – prohibited agreements (Chapter III), prohibited conduct (Chapter IV) and abuse of dominance (Chapter V) – best practices are often not complied with.10,11 To overcome this, the Indonesian Competition Commission (KPPU) has issued various guidelines on how to interpret the articles of the ICL, and the approach towards and analysis of the ICL should include a consideration of best practices directed against restricted business practices and abuses of dominant position.

Code-sharing between a national and a foreign operator is a part of normal global aviation practice, for domestic or international routes. The United States, European Union and Australia are some jurisdictions that provide antitrust immunity or authorisation programmes for competing operators wishing to elevate their cooperation as part of the open skies agreements among countries and regions.12 The rationale behind such programmes is that the more operators can integrate their resources, the more likely they are to achieve greater efficiencies and synergies, thus allowing them to provide more routes and better services to consumers. Nevertheless, the ICL and other regulations concerning aviation remain silent on such arrangements.13

The KPPU, as the body charged with enforcing the ICL, has thus far handed down only one decision related to the core aviation industry, namely KPPU Decision No. 25/KPPU-I/2009 on Price-Fixing of Fuel Surcharges for Domestic Flights, which was based on Article 5 of the ICL regarding price-fixing cartels (the Fuel Surcharge case). The KPPU has also investigated seven other cases concerning the aviation-related industries.

Although the Supreme Court ultimately overruled the KPPU's decision in the Fuel Surcharge case, the KPPU defined the relevant product and geographic market as scheduled air-passenger services from point of origin to point of destination in the catchment area of an airport. There are a few crucial issues to note from the Fuel Surcharge case, including the underlying premises for the KPPU's determination of the existence of a cartel, namely:

  1. the continued application of a formally cancelled agreement on fuel surcharge determination; and
  2. the use of economic evidence (fuel surcharge movements, concerted action, correlation and homogeneity of variance tests, and comparison of actual to estimated fuel surcharges in the absence of a cartel).

Unlike in many other jurisdictions, a cartel is not considered to be criminal matter under the ICL, and responsibility cannot be assigned to individuals (i.e., the ICL only applies to undertakings). The initiation of a criminal proceeding stemming from the application of the ICL can only take place if an undertaking or individual obstructs an investigation conducted by the KPPU, or a defendant ignores and does not comply with a final and conclusive decision.

VII WRONGFUL DEATH

Based on the general provisions under the Indonesian Civil Code, there is legal ground for a beneficiary to file a legal claim over an unlawful or negligent death based on the status and financial condition of the beneficiary and other pertinent circumstances.14 Further, MOTR No. 77/2011 has set a specific compensation amount of 1.25 billion rupiah per person for the death of a passenger as a result of an incident on board an aircraft or while getting on or off an aircraft.15 With the ratification of the Montreal Convention in 2016 in 2016 (see Section X), a person may receive compensation of up to 2.030 billion rupiah for the death of a passenger.

Regardless of the stipulated fixed amount of compensation for the death of a passenger related to air transportation, the Aviation Law also allows the carrier and the passenger or the beneficiary to enter into a specific agreement to determine a higher amount of compensation.16 The passenger or the beneficiary may also claim a higher compensation amount if he or she can prove that the accident happened out of negligence or fault of the carrier.17

Based on precedent, Indonesian courts would basically accept claims seeking compensation for wrongful deaths. However, there is no hard-and-fast rule. In the Munir case,18 the widow of Munir, an Indonesian civil rights activist who died in a Garuda Indonesia flight from Jakarta to Amsterdam, sued Garuda Indonesia for non-material damages of 9.7 billion rupiah and for material damages of 4 billion rupiah. The material damages were calculated based on the estimated future income of Munir, the costs of education, medical care and therapy of Munir's children, Munir's own graduate student tuition and fee, and Munir's funeral costs. In the end, the court awarded Munir's widow 3.4 billion rupiah, representing the future economic loss in the form of the income that Munir could be expected to have earned by retirement age.

VIII ESTABLISHING LIABILITY AND SETTLEMENT

i Procedure

Essentially, a carrier is subject to strict liability under the Aviation Law. However, the liability of a carrier is limited to the amounts stipulated in MOTR No. 77/2011 (see Section VII.iii).

Further, Article 176 of the Aviation Law governs the legal options available to passengers and cargo owners if they wish to seek additional compensation other than the amounts stipulated in Article 3 of MOTR No. 77/2011. The heirs of a deceased passenger can also bring an action in the civil courts to:

  1. seek additional compensation: Article 141(3) of the Aviation Law states that the heirs of a deceased passenger may seek additional compensation for the death of a family member in an aircraft accident; and
  2. bring legal action: under Article 176 of the Aviation Law, the heirs of a deceased passenger who suffer losses may bring legal action against the air carrier in the civil courts using Indonesian law as the governing law. Such action may only be brought by the heirs of the deceased passenger based on the following evidence: (1) documents evidencing inheritance rights; and (2) an official statement from the authorities setting out losses owing to aircraft operations (Article 21, Paragraph 1 of MOTR No. 77/2011).

However, the law imposes a time bar for bringing such action. Article 177 of the Aviation Law provides that the maximum time limit for the initiation of such action is two years from the date on which the baggage is supposed to have arrived at the destination. Consequently, the time limit for filing a claim under Article 177 of the Aviation Law would appear at first sight to apply only to a passenger or cargo owner whose property is lost or damaged. However, this is greatly expanded by the elucidation of Article 177, which states that losses suffered by a passenger or cargo owner are not confined to their baggage, but also include losses in the form of death or injury.

ii Product liability

The Aviation Law is silent on the liability of the manufacturer or owner of an aircraft towards passengers, as the Aviation Law only recognises the liability of a carrier towards its passengers. Nevertheless, that does not guarantee that the manufacturer or the owner will be released from aviation claims. Indonesian law enables anyone to file a tort claim in the court for an unlawful act committed by another party.

The elements of tort (or unlawful acts) under Article 1365 of the Indonesian Civil Code are as follows:

  1. an unlawful act, which according to judicial precedent is not confined solely to a breach of a statutory provision, but also extends to:
    • an act that violates the subjective rights of others;
    • an act that violates the legal obligations of the perpetrator;
    • an act that violates moral norms; or
    • an act that violates the appropriateness, diligence and due care that should be demonstrated as part of one's role in society or in respect of the property of others;
  2. existence of loss;
  3. existence of fault, by commission or omission; and
  4. existence of causal relationship between the act and the loss.

The claimant will need to establish to the court that all of the above elements have been fulfilled.

iii Compensation

The amount of compensation that should be paid by an air carrier operating domestic carriage in the event of a loss is governed by MOTR No. 77/2011 and is outlined below:

Legal basis Damage Compensation
Article 3 of MOTR No. 77/2011 Death of passenger on air transportation 1.25 billion rupiah per passenger
Death of passenger boarding or disembarking an aircraft at an airport 500 million rupiah per passenger
Total permanent injuries 1.25 billion rupiah per passenger
Injuries and hospitalisation 200 million rupiah per passenger
Article 5 of MOTR No. 77/2011 Missing, destroyed, or damaged luggage (that is listed) From 200,000 rupiah h per kilogram per passenger up to 4 million rupiah
Article 7 of MOTR No. 77/2011 Missing or destroyed cargo 100,000 rupiah per kilogram
Partly destroyed cargo or cargo contents 50,000 rupiah per kilogram

Liability of an air carrier operating international carriage is provided under the recently ratified Montreal Convention, namely:

  1. the compensation for passenger casualty is up to 113,100 SDR,19 which is approximately 2.03 billion rupiah. If the passenger wishes to file a claim that exceeds such limit, he or she may do so on a liability based on the fault principle;
  2. the compensation for delay is a maximum of 4,694 SDR, or approximately 84.2 million rupiah;
  3. the compensation for loss and damage of baggage is a maximum of 1,131 SDR, or approximately 20.3 million rupiah; and
  4. the compensation for loss, damage or delay of cargo shipments is 19 SDR, or approximately 341,000 rupiah per kilogram.

IX VOLUNTARY REPORTING

There are two types of reports: a mandatory occurrence report, and a voluntary occurrence report/information.20 The mandatory occurrence report applies to the operator, whether Indonesian or foreign, which must report an accident or a serious incident involving an aircraft immediately, with minimum delay and by the most suitable and quickest means available, to the National Transportation Safety Committee (NTSC) and the Directorate General of Civil Aviation (DGCA). Meanwhile, the voluntary occurrence report/information is open for submission by any person who has knowledge of any hazard that may be a precursor to an accident or serious incident; such voluntary report should go to the NTSC and DGCA, or the nearest transportation authority office, or any government office as soon as is reasonably practicable.

For the implementation of the aforesaid provision, the DGCA has established the State Safety Programme (SSP) to identify obstacles in the aviation system that need to be handled.21 The voluntary report can be submitted online through the SSP's official website (www.ssp.hubud.go.id) by completing a form with details of the incident. The reporter's identity will be treated as confidential and may only be used if the DGCA considers it necessary to contact the reporter for further information in the interest of conducting a safety analysis. The DGCA may also conduct an investigation whether the reporter may have contributed to an incident. In the event that the reporter has in any way contributed to the incident, the voluntary reporting may become a discretionary consideration in easing any administrative sanctions by the DGCA.

X THE YEAR IN REVIEW

Since the enactment of the Aviation Law, there have been a number of major cases concerning the aviation sector in Indonesia, most of which have been in relation to the liability of the carrier. These cases contribute to further development of Indonesian aviation law. First, in May 2012, there was an aircraft accident involving a foreign aircraft that was operated by the aircraft manufacturer. The accident, which killed all passengers, happened during a demonstration flight. From a regulatory viewpoint, it could be interpreted that the operator of the aircraft (the aircraft manufacturer itself) was not an air carrier or an air transportation company, thus rendering the Aviation Law inapplicable.

Another interesting case involved an action brought by a passenger against an Indonesian carrier for the loss of baggage during a domestic flight in November 2011. Despite the fact that the amount of compensation for loss of baggage is set out in the Aviation Law and in MOTR No. 77/2011, the Supreme Court ruled in October 2014 that it would be unjust if the actual amount of loss suffered by the plaintiff was higher than the amount of compensation stipulated by the legislation. Consequently, the Court held that the plaintiff should receive more compensation than the statutory amount.

An additional development after the adoption of the Aviation Law was the ratification of the Montreal Convention. The Montreal Convention was implemented into Indonesian national law through the 2016 Presidential Regulation. The 2016 Presidential Regulation came into force on 23 November 2016. This is regarded as the most significant recent change to aviation law as it ensures that Indonesia applies international standards for liability of air carriers and provides legal certainty for passengers, goods, baggage and cargo of international flights, as well as protection for airlines in the form of limits to their liability for compensation.

Furthermore, in October 2018, there was an accident involving a scheduled domestic flight operated by an Indonesian airline from Jakarta to Pangkal Pinang. At the time of writing, this case is still being investigated by the NTSC.

Most recently, in 2019, the Ministry of Transportation issued two new regulations: Ministry of Transportation Regulation No. 20 of 2019 on Procedure and Formulation of Calculation of Airfare Ceilings for Passengers of Economy Class Services for Domestic Commercial Airlines and Decree of the Minister of Transportation No. 72 of 2019 on Airline Ceilings for Passengers of Economy Class Services for Domestic Commercial Airlines. These two regulations provide the authority for the DGCA to regularly evaluate airfare tariffs.

XI OUTLOOK

Given that the number of disputes related to the liability of carriers has been growing in recent years, the Ministry of Transportation is currently considering the possibility of permitting dispute resolution through alternative dispute resolution mechanisms, such as mediation and arbitration.


Footnotes

1 Eri Hertiawan is a senior partner and Jesconiah Siahaan and Alvin Ambardy are senior associates at Assegaf Hamzah & Partners.

2 Ministry of Transportation Regulation No. PM 12 of 2015 on Online Licences of Air Transportation.

3 Application for air transport licences can be made via http://aol.dephub.go.id.

4 Ministry of Transportation Regulation No. 51 of 2014 on Mechanism of Calculation Formulation and Determination of Upper Limit on Fares of Economy Class Passengers of Domestic Scheduled Air Carriers, as amended by Ministry of Transportation Regulation No. 59 of 2014 and Ministry of Transportation Regulation No. 91 of 2014.

5 Article 106(3) of the Aviation Law.

6 Article 118(2) of the Aviation Law and Article 2 of Ministry of Transportation Regulation No. 97 of 2015 on Technical Guidance on the Ownership and Control of Aircraft.

7 Articles 83(3) and 86 of the Aviation Law.

8 Passengers who have disembarked a previous flight.

9 The ICL is currently being amended, although there is still no specific date for the effectiveness of the amendment.

10 Chapter III on prohibited agreements stipulates the restriction on oligopoly, price-fixing, price discrimination, below-market pricing, minimum resale price maintenance, market or territorial allocation, (group) boycott, cartel, trust, oligopsony, vertical integration, exclusive dealing, agreement with foreign party. Chapter IV on prohibited conduct stipulates the restriction on monopoly, monopsony, market control, predatory pricing, unfair pricing, bid-rigging, misappropriation of trade or company secrets, group boycott through conspiracy, abuse of dominant position, interlocking directorate, cross-ownership and merger and acquisition.

11 The exemptions of the ICL are stipulated in several articles, namely: (1) Article 5, Paragraph 2: price-fixing in a joint venture or based on existing laws or regulations, (2) Article 50: actions or agreements that:

a implement an applicable law and regulation;

b are related to IPR and franchise;

c implement standardisation;

d relate to an agency agreement;

e relate to a research cooperation agreement to improve the living standards of society at large;

f apply a ratified international agreement;

g relate to an export-oriented agreement;

h arise from a small-scale business; and

i relate to a cooperative activity to serve their members; and

(3) Article 51: monopoly by a state-owned company mandated by law and concerning the well-being of society at large.

12 Indonesia entered into the open skies agreement in January 2015 following the Aceh tsunami so that social and humanitarian assistance could be more efficiently directed. The ASEAN Open Skies Policy was implemented in 2015.

13 Law No. 1 of 2009 on Aviation, Regulation of the Ministry of Transportation No. KM 25 of 2008 on Air Transportation.

14 Article 1370 of the Indonesian Civil Code.

15 Article 3 of the Ministry of Transportation Regulation No. 77 of 2011 on the Liability of Air Carriers.

16 Article 166 of the Aviation Law.

17 Elucidation of Article 180 of the Aviation Law.

18 Supreme Court Decision No. 2586 K/PDT/2008 dated 28 January 2010.

19 Amount after the Inflation Adjustments to Liability Limits Governed by the Montreal Convention, effective 30 December 2009.

20 Ministry of Transportation Regulation No. 14 of 2015 on Civil Aviation Safety Regulation Part 830 on the Notification and Reporting of Aircraft Accidents or Serious Incidents and Accident or Serious Incident Investigation Procedures.

21 Ministry of Transportation Decree No. 8 of 2010 on the State Aviation Safety Programme.