Indonesia Warns Against Indirect Cabotage Ticket Sales

traveler on airport
traveler on airport
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A flight that looks cheaper or more flexible online can come with risks you do not immediately see. That is exactly what Indonesian authorities are warning about right now. The Directorate General of Civil Aviation under the Ministry of Transportation has stepped in to reinforce a strict rule. Foreign airlines are not allowed to operate domestic routes within Indonesia (indirect cabotage ticket sales), even if those routes are packaged through international connections and sold by online travel agents.

This is not a new rule. It is already clearly stated in Article 84 of Law No. 1 of 2009. Still, the practice continues to appear in the market under what is known as indirect cabotage.

Director General of Civil Aviation Lukman F. Laisa explained that the government has firmly prohibited foreign airlines from transporting passengers between two points داخل Indonesia. The rule is absolute.

“This practice not only violates national sovereignty and harms domestic airline companies, but also poses risks to consumers who may not understand that they must handle international connecting flights on their own without assistance from airline staff [self-made connections],” said the Minister of Transportation in an official statement on Wednesday, March 18, 2026.

So how does this actually happen?

Read also: Indonesia Weighs Work From Home to Cut Fuel Use

In simple terms, indirect cabotage occurs when a passenger flies between two cities in the same country but is routed through another country. A recent example involves routes from Jakarta (CGK) to Kualanamu in North Sumatra (KNO). Instead of flying directly, passengers are offered flights operated by foreign airlines with transit stops in Malaysia or Singapore.

At first glance, it may seem like just another travel option. But according to Lukman, this kind of ticketing setup mainly benefits foreign airlines.

The consequences stretch further than that. It can harm passengers, weaken the government’s efforts to keep ticket prices affordable, reduce competitiveness for national airlines, and even touch on issues of national sovereignty.

For travelers, the risks are very real. One of the biggest concerns is split ticketing. Even though passengers make a single payment through an OTA, the trip is actually made up of two or more separate tickets. The airlines involved often do not recognize the full journey. If the first flight is delayed and the second one is missed, there is no legal obligation for the airline to help.

Then there is the issue of protection. In some countries, OTAs are required to provide transfer guarantees. This means they must ensure passengers reach their final destination. If something goes wrong, they are responsible for rebooking or issuing refunds based on their terms. In Indonesia, this kind of guarantee is not yet available.

Baggage handling adds another layer of complication. In most self-arranged connections, luggage is not automatically transferred to the final destination. Passengers must collect their bags, leave the secure area, and check in again for the next flight.

Timing is another weak point. Some tickets are sold with very short transit windows. These may not meet the official minimum connection time set by airports. The result is simple. A higher chance of missing the next flight.

All of this comes back to one thing. What looks convenient on the surface can quickly turn into a complicated journey with little support along the way.