T HE F UTURE OF A VIATION C HARTER B USINESS IN I NDONESIA I - PowerPoint PPT Presentation

T HE F UTURE OF A VIATION C HARTER B USINESS IN I NDONESIA I DENTIFYING O PPORTUNITIES IN A C OMPETITIVE M ARKET by Kabul Riswanto 1

B RIEF I NTRODUCTION My name is Kabul Riswanto I am running of two small service provider companies, PT Pegasus Air Services/ An Air Charter Company and PT Karisma Bahana Aviasi/ Flight Provider and Ground Handling Company at Halim PK Airport Jakarta Indonesia My Email: kabul.riswanto@pegasusair.co.id kabul.riswanto@gmail.com

THE ACTIVITIES OF THE COMPANIES PT Pegasus Air Services is an Air Charter Operator providing heavy Sling-Load supports to logistic and infrastructure development mainly in Papua as well as Forest Fire Fighting and Aerial Survey in many areas of the country. Pegasus operates Cessna Grand Caravan aircrafts and Kamov 32A-11BC, MI-171 and Bell 206-L3 Helicopters. PT Karisma Bahana Aviasi is a Flight Support, Ground handling and Medivac Services Company based at Halim Airport, providing holistic supports to various Indonesia as well as Foreign registered Aircraft Owners such as Mayapada Group, Sinar Mas Group, Lippo Group, PT ELI and many other Aircraft Operators in Indonesia.

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PT KARISMA BAHANA AVIASI A S FLIGHT SUPPORT COMPANY OUR STANDARD ACTIVITIES : � Based in Halim Perdanakusuma Airport Jakarta Indonesia. � Third Party handling and customs clearance � Full aircraft ground handling � 3 rd Party Over flight and landing clearance � Aircraft movement control and flight following � Fuel uplift support � Customs & Immigration Clearances � Catering support � Aircraft cleaning and servicing � Hotel accommodation � Crews administration � Supporting Spare parts logistic when required by the client 9/4/2016 5

MOUNTENOUS FLYING IN PAPUA INDONESIA 9/4/2016 6

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P EGASUS H EAVY S LING -L OAD O PERATIONS F OR PT PEGASUS AIR SERVICES

P EGASUS F IRE B OMBING O PERATIONS FOR BNPB IN SUMATERTA AND KALIMANTAN

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A IR C HARTER B USINESS IN I NDONESIA

A IR C HARTER C OMPANIES IN I NDONESIA � PT Airfast Indonesia � PT Pegasus Air Services � PT Susi Air � PT Pelita Air Services � PT Aviastar Mandiri � Deraya Air Taxi � PT Derazona Air Service � PT Penerbangan Angkasa � PT Express Transportasi Semesta � PT Survei Udara Penas Antar Benua � PT Enggang Air � PT Surya Air � PT Gatari Air Service � PT Transwisata Prima � PT Hevilift Aviation Aviation � PT Travira Air Indonesia � PT Jayawijaya Dirgantara � PT White Sky Aviation � PT National Utility � PT Westar Indonesia � PT Amurr Indonesia Helicopter � PT AMA � PT Asian One Air

C LASSIC A IR C HARTER M ARKET IN I NDONESIA � Oil Companies � Large Business Corporations � Coal & Gold Mining Companies � Large Scale Plantation Companies � Industrial Corporations � Pulp and Paper Companies � Telecommunication Companies � Aerial Survey � Medivac � Wealthy Individuals � Logistic and Heavy Equipment Sling-Load Operations � Adhoc Charter during political campaign � Tourism Activities � City Hopper by Helicopters

I NDONESIA A RCHIPELAGO PARADISE ON THE EQUATOR

I NDONESIA G EOGRAPHICAL F ACTS (1 OF 2) Indonesia is a vast equatorial archipelago of more than 17,000 islands extending 5,150 kilometers (3,200 miles) east to west, between the Indian and Pacific Oceans in Southeast Asia. The largest islands are Sumatra, Java, Kalimantan (Indonesian Borneo), Sulawesi, and the Indonesian part of New Guinea (known as Papua or Irian Jaya). Islands are mountainous with dense rain forests, plenty of them are active volcanoes. Most of the smaller islands belong to larger groups, like the Moluccas (Spice Islands).

I NDONESIA G EOGRAPHICAL F ACTS (2 OF 2) Population are separated by seas and clustered on islands. The largest cluster is on Java, with some 130 million inhabitants (60 percent of the country's population) on an island the size of New York State. Sumatra, much larger than Java, has less than a third of its people. Ethnically the country is highly diverse, with over 580 languages and dialects—but only 13 have more than one million speakers. Those facts reflect how vital Air Transportation in the Archipelago of Indonesia.

C URRENT T REND OF A IR C HARTER M ARKET � Business Jet Charter is exceptionally slow during the last 18 months, with average revenue of only 15 hours per aircraft per month on any business jet operators. � Forest Fire Fighting was very active last year due to the existence of El Nino. This year is the opposite due to the present of El Nina, causing wet summer. � Oil and Gas Industry is going down deeply, forcing Oil and Gas Companies to terminate their Air Charter contracts. This in turn brings many Air Operators to plunge into an unavoidable financial disaster.

C URRENT B USINESS T HREATS � Business climate is not in support of Air Charter business at the moment. Government is concentrating in Infrastructure Development and remarkably reducing consumption. � Charter Price in Indonesia is some 25 % higher than in neighboring countries. As the cost in Indonesia is higher � Domestic and International flights are charged with 10% Value Added Tax, encumbering the already high charter price. � No Long-range aircrafts is available in the country. � Many Indonesian Operators are still in the EU Ban. � Low Indonesian Rupiah value causes high operating costs, since most costs are based on US Dollar.

� Most of the charterer used to be the client now most of them own their aircraft to be used among the company users. � The Oil Company has restricted using the Charter Company even their upper level Senior Manager is using E Class iso of Buss class. � They stop the contract for crews changing using the pass boat iso of Helicopter � Improving infrastructure for short distance changing the habit of passengers from Aircraft to Train . For sample of Jakarta Bandung and Jakarta Cirebon. 9/4/2016 22

What is the optimism for the Air Charters and the target � Indonesian Government is working so hard to get most of the investment to Indonesia by relaxing some regulation. � The new Tax Amnesty issued by the government is designed to speed up the growth of Indonesia � Distribution of development for most of Indonesian area in Eastern part specially in Papua is in a challenge for Indonesian Air Charter to grow faster. � opening of new regulation non Visa requirements or VOA/ Visa on Arrival is targeting to get any level of tourist from common tourist to medium tourist and Premium tourist � The Answer is concentrating for Tourism for our fight versus all the threat of Indonesian Air Charter 9/4/2016 23

T OURISM IN I NDONESIA Indonesia is a huge country, in both population and land area, with significant cultural and geological diversity. With more than 17,000 islands, 6,000 of them inhabited, it is the largest archipelago in the world. The population of around 240 million people is derived from 300 ethnic groups who speak over 250 different languages. While Bali is usually the destination most familiar to foreign visitors, there are hundreds of other top tourist destinations and attractions in Indonesia to discover in this vast and varied country.

T OP -10 T OURIST D ESTINATIONS IN I NDONESIA � Bali Island � Gili Islands, Lombok � Raja Ampat Islands, West Papua � Borobudur Temple, Central Java � Komodo National Park, Komodo Island � Tana Toraja, South Sulawesi � Bunaken, North Sulawesi � Mount Bromo, East Java � Lake Toba, North Sumatera � Tanjung Puting National Park, Central Kalimantan

R AJA A MPAT I SLANDS , W EST P APUA

L AKE T OBA , N ORTH S UMATERA

M IRROR L AKE , E AST KALIMANTAN

Thank you for your kind attention Kabul Riswanto