Erick Thohir Worried There Will Be A Monopoly, Observer Alvin Lie Says It Doesn't Matter If The Aviation Industry Is Only Filled With Privates

Minister of SOEs, Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Aviation observer Alvin Lie explained that there is no problem if the country's aviation industry is only filled by private companies. He also emphasized that there is no need for airlines from the state to be involved in the aviation industry ecosystem.

According to him, there are several countries in the world where the aviation industry is only filled by the private sector. One of them, South Korea.

"There is no obligation to have state-owned airlines. Many countries, including the United States and South Korea do not have state-owned airlines. There is no problem with all of them being filled by the private sector," he said when contacted by VOI, Thursday, January 27.

According to Alvin, as long as there is a balance and healthy competition, the logging industry in a country can still run even though there are no state-owned airlines.

"There is an aviation authority or the Ministry of Transportation as a regulator that makes policies regarding the provision of air transportation services to meet needs. What is important is that there is a balance of power and healthy competition," he explained.

As previously reported, Minister of State-Owned Enterprises (BUMN) Erick Thohir warned of a national aviation monopoly by the domestic aviation industry, if Garuda Indonesia's problems were not resolved.

According to Erick, the ongoing process of Postponing Debt Payment Obligations (PKPU) is the key to preventing monopolies in the aviation industry.

As is known, currently, the process of restructuring and negotiating the debt of state-owned issuers of Rp. 189 trillion through the PKPU scheme is still ongoing.

"Well, the Garuda case is an old case too, but the problem is we are willing or not if Garuda is not resolved, finally there is a national aviation monopoly," said Erick when met at the Atma Jaya University area, Jakarta, Wednesday, January 26.

According to Erick, a monopoly by one of the national airlines will have an impact on a number of business sectors. Where, no, the tourism sector cannot develop until there is no new place for micro, small and medium enterprises (MSMEs).

"(Airline monopoly) which eventually became expensive tickets. If the tickets become expensive, it means the tourism industry is not developing, if the tourism industry is not developing, MSMEs also have no place for new income," he said.