“Other Issues Following the Passing of Implementing Regulation of Omnibus Law on Aviation Sector”
Indonesian Government has finally issued 49 implementing regulations to the Law Number 11 of 2020 on Job Creation (the “Omnibus Law”) on 2 February 2021. These implementing regulations consist of 45 Government Regulations and 4 Presidential Regulations. One of the implementing regulations of Omnibus Law is Government Regulation No. 32 of 2021 concerning implementing of aviation sector (“GR No. 32/2021”). Omnibus Law has amended and/or removed several provisions under Law Number 1 of 2009 (“Aviation Law”) and GR No. 32/2021 provides more detailed regulation.
This time, this client alert will elaborate further on substantive changes under GR No. 32/2021 in relation to drones, airline low-cost-service, air transport supporting business, and airport.
FURTHER IMPORTANT NOTES ON GR NO. 32/2021
Unmanned Aircraft Operation
Another worth noting issue is the operation of unmanned aircraft, or commonly referred as drones, in Indonesian airspace. Prior to the enactment of GR 32 of 2021, unmanned Aircraft operations are regulated under Ministry of Transportation Regulation No. PM 37 of 2020 concerning Unmanned Aircraft Operation in Indonesian Controlled Airspace (“PM 37/2020”). However, the provision concerning commercial operation of unmanned aircraft is nowhere found in the PM 37/2020.
In relation to the operations of drones, GR 32/2021 specifies the requirements depending on the air space concerned by such operation. GR 32/2021 further regulates that any individual operating the unmanned Aircraft for commercial or non-commercial purpose shall possess the Certificate of Operation of Unmanned Aircraft. The regulation further specifies that such Certificate of Operation shall be attached to the Air Operator Certificate or Operating Certificate. Furthermore, such Certificate of Operation shall be provided only to aircraft that fulfilled the requirements set out by the Minister of Transportation. GR 32/2021 further breaks down the requirements to file for Certificate of Operation for unmanned Aircraft. Nevertheless, GR 32/2021 says that more specific rules would be governed by the implementing regulations of GR 32/2021.
Low Cost Carriers
Omnibus Law also provides a relaxation for low-cost-carriers. Previously under Aviation Law, any airlines wish to offer low-cost service shall apply for a specific license to the Minister of Transportation. As the enactment of Omnibus Law, such requirement has been removed from the Aviation Law. However, we are currently anticipating the implemetating regulation of GR 32/2021 to make sure that whether or not such requirement is stipulated further in the implementing regulation.
Air Transport Supporting Business
Another issue worth noting is that Omnibus Law removed the provisions governing air transport supporting business activities under Article 131 Aviation Law. The deletion of this provision will result businesses related to air transport support such as catering, baggage handling, ground handling, ramp service, ticketing, etc. will no longer fall under Aviation Law regime and therefore no longer need any license from Ministry of Transportation. We view that this is a form of a simplification of licensing from the government to the players in air transport supporting business by taking out the licensing from the authority of Ministry of Transportation to issue such license.
Another relaxation provided by this GR No. 32/2021 and Omnibus Law is regarding license to build an airport. Under Omnibus Law, the government has removed the requirements to obtain the license to construct an airport. Previously under Aviation law, such license shall be issued by the government after coordinating with local authority and specifies the requirements to obtain such license.
It is stated under GR No. 32/2021 that drones will be further regulated under Minister of Transportation Regulation. Therefore, even though the implementing regulation of Omnibus Law has come into effect and has regulated more detailed requirements for drones in Indonesia, we shall wait for the Minister of Transportation Regulation to be issued as there will be more detailed and specific regulation under Minister of Transportation Regulation which need to be observed. We have received the news that the government currently is preparing the specific implementation regulation for drones to be passed around this year.
We hope the above explanation is sufficient.
Please note that the information contained in this alert should be only used as a general guideline with respect to the subject hereof and may not contain legal advice for your specific cases. The information herein should not be used or relied upon in regard to any particular facts or circumstances without seeking legal advice from us. We will not be liable nor be responsible for any consequences, damages or other similar forms which may be suffered by any party who had used or relied upon this alert.
If you require further information on the new regulation, please do not hesitate to contact:
Nurjadin Sumono Mulyadi & Partners
Vera Noviani Harwanto
Annysa Ayu Putri
Andika Immanuel Simatupang