Indonesia Airlines CEO Iskandar has criticized the Indonesian government's policy of opening numerous international airports as inappropriate. He believes Indonesia should have just three international airports. Implementing this policy would actually boost domestic aviation growth.

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Indonesia currently has 22 international airports. Previously, several airports had their status downgraded, bringing the total to 17. However, after an evaluation, the number has increased again.

Iskandar likened international airports to gateways. He believes that for a country as large as Indonesia, three main gateways are sufficient for international flights: Jakarta (Soekarno-Hatta), Medan (Kualanamu), and Surabaya or Bali (Juanda/Ngurah Rai). "If this were implemented, 10 airlines alone would not be enough to distribute passengers from those international airports throughout Indonesia," he said.

From Iskandar's business perspective, the policy of having many international airports would result in less added value for the Indonesian aviation industry than if the number of international airports were limited. With fewer gateways, the need for domestic flights would increase. Another impact would be greater employment. "If we only landed at those three airports, those airports would absorb a large number of workers. The need for workers in the aviation sector is very large," he explained.

Indonesia Airlines will soon be flying. Currently, all preparations for the inaugural flight are still being finalized. Iskandar shared many reasons for his entry into aviation, beyond his previous work in the renewable energy and agriculture sectors.

He is optimistic, even though many airlines already exist and dominate the Indonesian aviation market. "Why be afraid of the incumbents? The market is there, and that potential is what we will explore. There are many wealthy people, but there are not many business-class seats available. Ultimately, they seek international flights. This is what we will capture," he told Edy Suherli, Bambang Eros, and Irfan Meidianto during a visit to the VOI office in the Tanah Abang area, Central Jakarta, on July 24, 2025.

What prompted you to enter the aviation industry, even though you were previously known for your active role in the new and renewable energy sector?

It all started with the COVID-19 pandemic in 2020. At that time, my partner in Singapore and I conducted a study with the assistance of a consultant from the UK. The study revealed that the most viable and potential sectors for development were new and renewable energy, aviation, and agriculture.

So, are you focusing on those three areas?

Yes. Indonesia is a vast country with enormous energy needs. The Ministry of Energy and Mineral Resources and the State Electricity Company (PLN) may claim that electrification has reached more than 90%, but the reality is that many areas, especially remote ones, still lack 24-hour electricity.

Regarding agriculture, many of our rice fields and plantations are underdeveloped. We still cultivate crops traditionally, dependent on the climate and weather. However, with agricultural science and technology, this dependence on climate can be overcome. The president's commitment to food self-sufficiency is good, and should have been realized long ago.

In the aviation sector, this is highly relevant to Indonesia's situation as the world's largest archipelagic nation. Aviation is the answer to fast inter-island transportation, both for passengers and logistics. Indonesia's strategic position between two continents and two oceans should make us a major intermediary for international flights. However, that hasn't happened yet. The potential and opportunities in the aviation sector are enormous, which is why we are here with Indonesia Airlines. We hope our presence can stimulate enthusiasm and enliven the aviation world in Indonesia.

If many people enter aviation, will competition become fiercer?

This is the era of collaboration, not competition. We must synergize and collaborate to develop Indonesia's aviation industry.

Do you have previous professional or academic experience in aviation that gives you the courage to take the plunge?

In my opinion, this is an inaccurate mindset. Many assume that to enter the agricultural sector you need an agricultural background, to enter the energy sector you need an energy background, and to enter aviation you need an aviation background. This kind of thinking often leaves us lagging behind other countries.

Business is different from technical fields. When it comes to technical matters, a certain level of competency is required for technical personnel. However, the overall leader must have a forward-looking business vision—how to build a program from scratch to success.

So, you're not afraid of that situation?

Compare airlines led by people with aviation backgrounds to those without. On average, airlines that thrive are led by people without aviation technical backgrounds.

When was the moment that convinced you to enter the aviation world?

The moment came in August 2022, while the pandemic was still ongoing. At the time, we saw that the aviation industry hadn't recovered yet, but our predictions were that this sector would rebound and grow many times higher than before the pandemic. And sure enough, people's travel habits have changed. Currently, globally, the aviation industry is growing at twice its pre-pandemic rate.

You're targeting the middle to upper-class market. What were your considerations?

The 1960s and 1970s were the golden age of premium airlines. Now, the market is dominated by low-cost carriers (LCCs). In my opinion, LCCs don't fully meet the needs of the public. It's not that they can't afford business class tickets, but that business class isn't available. Our investigation revealed that many Indonesians—especially those traveling long distances—prefer business class. This means there's a market for premium service.

So, aren't you afraid to compete with established players?

Why should you be afraid? The market is there, and that's the potential we're going to tap into. Indonesia has a large number of wealthy people, but business class seats are scarce. As a result, they seek international flights. This is the opportunity we're going to seize.

What advantages will you offer prospective passengers?

We offer an end-to-end service concept, a long-forgotten concept of Indonesian hospitality. Starting from the ticket purchase process, we provide the best service. Therefore, we're recruiting experienced personnel from foreign airlines.

We want to build a strong foundation at Indonesia Airlines, from operations, safety, to hospitality. This is the key to an airline's growth and sustainability.

Looking at Soekarno-Hatta International Airport today, how does it compare to neighboring countries?

After numerous discussions with foreigners, they agreed that Soekarno-Hatta Airport should be the largest in the Asia Pacific. However, that hasn't happened yet. This is a big dream that we hope to realize in the future. Currently, it lags far behind Changi Airport and Kuala Lumpur Airport. In terms of passenger numbers, Soekarno-Hatta does indeed have more passengers than those two airports. However, in terms of revenue, we are far behind.

How are our airports managed?

It's very possible that Soekarno-Hatta Airport, Ngurah Rai International Airport, and North Bali Airport (which has already been approved for construction) will become the largest in the region. We've conducted studies, and the figures are significant: up to 77 million passengers per year will transit through our airports.

At a minimum, if each transit passenger bought a cup of coffee and a snack for Rp 100,000, then multiply that by 77 million people, how much would that amount to? Not to mention the 11% tax that will generate state revenue. This is the potential we want to seize to make Indonesia a leader.

Are you optimistic?

We must be optimistic. In 1979, when Lee Kuan Yew wanted to develop Changi Airport, he was ridiculed by the world. But only after July 1, 1981, when Singapore Airlines first landed at Changi, did the world recognize him. This was all because they had a plan and worked wholeheartedly. We can do the same, even bigger, because we have everything here.

One of our airlines has a code-share agreement with Singapore Airlines. What do you think?

This is something I regret. We should be the largest in the Asia Pacific, but instead we've become a feeder for others. Changi Terminal 5 completed its studies at the end of last year, but it wasn't made public until the code-share agreement was finalized. Why? Because they need passengers from Indonesia. How long are we willing to be the ones who only enrich others?

What should the Indonesian government or airport operators do to allow the hub to move to us?

I once told the previous government that Indonesia was opening too many international airports, and this was inappropriate. Too many gates disintegrate our strength. There should be only a few main gates, the rest should be doors and windows.

In my opinion, Indonesia would be sufficient with three international airports: Soekarno-Hatta, Medan, and Surabaya or Bali. The rest would be domestic airports. If this were implemented, even 10 airlines wouldn't be enough to distribute passengers from those three international airports throughout Indonesia.

As a result, currently, it's other countries' airlines that are reaping the most benefits. For example, Emirates flies its Airbus A-380 directly to Ngurah Rai—its flights are always full. Compare that to us, who are merely a landing point. If only three international airports were operational, the employment absorption in the aviation sector would be enormous.

Which routes are projected to be Indonesia Airlines' flagship routes?

We do have several destination cities abroad, and these are not domestic routes for us. We will be creating indirect routes to international destinations. For example, for the Hong Kong route, we will have direct flights from Jakarta, and some indirect flights from other cities. The same applies to Australia and Europe. We will announce the destination cities and the services they will offer during the soft launch soon.

With so many established airlines in Indonesia and the region, what is your strategy for facing competition?

Many businesses fail because they are too afraid of competitors. As newcomers, we must present something unique, attractive, and specific. Next, we must build our own, new, base market.

What I've learned is that if airlines currently focus solely on ticket sales, they will struggle to sell. At Indonesia Airlines, we will make a breakthrough, which will be clearly explained during the soft launch.

What is your ticket sales target?

With this breakthrough, we are confident from the start that occupancy will be at least 80% from the inaugural flight.

Where did you get that figure?

It's based on our market studies and analysis. We believe there's sufficient purchasing power in the Indonesian, Australian, Asian, and European markets, which will be our primary targets.

To summarize, what are your airline's selling points?

We have the tagline: The World Festive Icon. We will become a global festival icon from Indonesia.

To achieve this, will you form alliances with global partners and partners in Indonesia?

Regarding alliances, we are exploring collaboration with global airlines from Australia, Europe, and Asia. They have studied our program and, thank God, are interested. They offer a strategic partnership concept and also code-sharing with Indonesia Airlines.

The big question is: why are foreigners so quickly interested? Not because Indonesia Airlines is attractive, but because the aviation business in Indonesia and globally is so attractive—and this potential has not been maximized before.

To establish this aviation company, how much initial capital was prepared?

From the beginning, we have not only developed an airline, but the aviation industry. This includes aviation, manufacturing, supply chain, and human resource development. This is what this holding company will be working on. The total agreed funding is 12 billion Euros for the development of the aviation industry.

If everything goes according to plan, when is the estimated break-even point (BEP)?

For airlines, the feasibility study estimates it will take 4.8 years to reach BEP.

What about licensing in Indonesia? Is everything in place, or are some things still in process?

I need to clarify this regarding licensing. As we know, Indonesia has a tiered licensing system. When we develop the energy sector, several permits must be issued by several agencies: the Ministry of Investment, the Ministry of Environment, the National Land Agency (BPN), and the Ministry of Energy and Mineral Resources. Similarly, in aviation, the Air Operator Certificate (AOC) is the final grade in a series of licensing levels.

Alhamdulillah, we have obtained scheduled and non-scheduled flight permits, both domestic and international. The existing permits now need to be verified by the Ministry of Transportation. Hopefully, this will be completed by the end of July, and the AOC is expected to be finalized by mid-August.

How are we preparing for the maiden flight?

For the initial phase, we're preparing a fleet of seven aircraft. I've already explored options with Boeing and Airbus. We remain committed to the established steps, even though some say three aircraft would be sufficient for operations. However, we don't want to rush.

Is there a reciprocal tariff from Donald Trump? Does this disrupt your plans?

We're leaning towards Airbus, but we haven't ruled out Boeing. We could even source some wide-body aircraft from Boeing.

Your holding company is established in Singapore, what about Indonesia Airlines?

Indonesia Airlines is an Indonesian-registered company, owned by Calypte Holding Pte. Ltd., which is registered in Singapore. Why is it established in Singapore? Because the investment, technology, and trade center in the region is currently located there. However, all projects and programs in renewable energy, agriculture, and aviation are developed in Indonesia. Investment is sought in Singapore, but executed in Indonesia.

You use the name Indonesia Airlines. How will the company ensure its commitment to nationalism and contribution to the national aviation industry?

I'm often asked this. The Acehnese are the ones who have the greatest right to use the name Indonesia Airlines. Our aviation history began with RI 001 Seulawah, donated by the Acehnese people—the forerunner of Indonesian commercial aviation—not the Garuda Indonesia we have today. During its operation, RI 001 generated profits. These profits allowed it to purchase RI 007 and RI 009 aircraft and produce many pilots. So, its history is different from that of Garuda Indonesia.

The name Indonesia Airlines sounds similar to Indonesian Airlines, which existed from 1999 to 2003. How do you address this potential name dispute?

Our legal teams in Singapore and Indonesia are currently processing this matter. There is also the option of using a name other than Indonesia Airlines. We will announce the answer during the soft launch.

As for the other name, can you share it?

We will continue to use Indonesian elements and heritage, in line with our goal of elevating Indonesia's potential on the global stage. My big dream through this aviation company is to make Indonesia's brand more resonant globally, as we are currently lagging behind Singapore and Malaysia. Yet, we have many advantages that can be promoted.

You mentioned a 4.8-year Break Even Point (BEP) target. So what are the targets or milestones for Indonesia Airlines' first five years?

Our focus isn't just on ticket sales and flights. We're addressing the aviation industry as a whole. We'll integrate this with several other programs, such as tourism, showbiz, entertainment, trade, and human resource development. Because if we only focus on aviation, we won't necessarily reach BEP even in 10 years.

The world isn't doing well right now. What's the strategy for dealing with fluctuating aviation fuel prices and international geopolitical risks?

The question is, has the world ever been doing well? Never; there's always turmoil in various regions. We must carefully identify opportunities and take action. If we wait for the world to be doing well, it never will be. We must analyze the situation, create opportunities, and turn them into results. The important thing is to be consistent with our plans. God willing, we will succeed.

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The Story of Alexander's Journey, Which Was Once Mocked

For Iskandar, who is also the CEO of Indonesia Airlines, each region in Indonesia has its own unique natural beauty. When he has the opportunity to visit an area for work, he always makes time to visit the tourist attractions there. He shares stories from his trips on social media.

While doing his work, he also visits tourist attractions. "I explore the tourist attractions—beaches, mountains, savannahs, culinary delights, and so on. Then I post about them on social media. It turns out not everyone gives me a thumbs up; some people sneer when they see my posts: 'Working or traveling?'" he said, echoing netizens' sneers.

From his travels, Iskandar concluded that Indonesia's tourism potential is enormous, but it hasn't been fully developed. "If managed properly, this will be a source of endless income," said the man born in Bireuen, Aceh, on April 7, 1983.

"We still don't have the funding, we don't have the proper management to manage it, and our technology is still limited. So, our natural beauty hasn't been maximized; it hasn't become a reliable tourist attraction," he added.

The Tourism Villages currently being promoted by the government, according to Iskandar, are a good example of maximizing existing potential. "Thankfully, we have the Tourism Village program. If this can be further explored and developed, the potential is extraordinary. From Sabang to Merauke, there's so much," he said.

Very Impressive

Iskandar enjoys observing the culture and customs of the people in the tourist areas he visits.

"I've always enjoyed observing customs, interaction patterns, and how they adapt to new things," he said.

When visiting developed countries, it's a different story. He's amazed by the highly disciplined people.

"How can they live so disciplined and orderly? Can Indonesians be like that?" he asked.

He continued, however, that the majority of Indonesians are Muslim.

"Islam teaches discipline, order, ethics, and morals. It turns out we often neglect these fundamental things," Iskandar lamented.

Dare to Hijra

Before entering the business world, Iskandar was an employee. After completing his studies at Syiah Kuala University (USK) in Banda Aceh, he worked at the Aceh-Nias Rehabilitation and Reconstruction Agency (BRR) after the tsunami. He then moved to PLN (State Electricity Company) until 2009, and then moved into banking and insurance until 2015.

He admits that it wasn't easy to finally leave his job and fully dive into the renewable energy business.

"This migration wasn't easy. I had to start from scratch as an entrepreneur," he said.

He was deeply impressed by an inspiring Batak proverb:

"No matter how big our efforts are in our own village, they will still be considered small. But if we migrate and create something—no matter how small—it will be considered big. So don't be afraid to start," he advised.

What about the thought of failure? "Failure is normal, there's no need to be afraid. The important thing is to have a thorough plan, be consistent, and have confidence. If we stick to that, we'll definitely get results," said Iskandar, whose principle is not to plan much—just a little, as long as it's realized.

Iskandar learns from every place he visits. "I was born in Aceh, then grew up and developed in Jakarta. Then I moved to Singapore. Now I go back and forth between Jakarta and Singapore. I meet a lot of people, and that's where I learn and continue to learn," said Iskandar, who has enjoyed corresponding as pen pals since he was a teenager.

Now his business is expanding, from renewable energy to agriculture and aviation. The road ahead is long, but Iskandar is confident in his goals. He wants to succeed in the business he's founded.

"Why be afraid of the incumbents? The market is there, and that potential is what we're going to explore. There are plenty of wealthy people, but there aren't many business-class seats available. As a result, people are looking for international flights. This is what we're going to capture."