A Comparative Analysis of Aviation Policy Reform In Australia and Indonesia and What Indonesia Can Learn from Australia’s Approach to Enhancing Passenger Rights

white and blue airplane under white clouds during daytime

In the wake of increased air travel post Covid-19, flight frequency has returned to normal whilst the passenger experience has not. This article offers a comparative analysis of recent law reform enacted by Australia and Indonesia in response to the issue of passenger rights. Australia’s Aviation White Paper: Towards 2050, introduces long term protections to passengers through the introduction of a new independent ombuds scheme and passenger rights charter. In contrast, Indonesia’s Regulation No. PM 2 of 2025 focuses on airline accountability through increased government monitoring. Whilst both state’s reform efforts are a positive step towards enhancing passenger rights, Indonesia has the opportunity to learn from Australia’s policy which attempts to address underlying issues in it’s aviation sector to ensure sustainable, long term protection to all passengers. 

Introduction

As the aviation sector continues to grow and evolve, passengers need to be recognised as more than just customers, but stakeholders. Without passengers, all investment in airlines, infrastructure and transportation would be worthless, thus enhancement of passenger rights should be a prioritised in policy globally. This notion has been reflected in Australia’s ‘Aviation White Paper: Towards 2050’; a policy update seeking to improve passenger experiences through recognising previous shortcomings in the sector. Similarly, Indonesia has adopted reform aiming to improve airline accountability to passengers by implementing regular government monitoring of airline activity and reinforcing passengers’ rights to compensation. However, whilst Australia adopts a forward-thinking approach, Indonesia’s reforms are reactive, raising doubts around long term effectiveness, enforcement and clarity. This piece explores what Indonesia can learn from Australia’s recent policy update, comparing each state’s approach to the enhancement of passenger rights.

Australia’s Initiatives 

Following changes to the aviation sector post Covid-19, Australia has responded with an updated aviation policy seeking to prioritise and enhance passenger rights through updated dispute resolution mechanisms and consumer protections. The ‘Aviation White Paper: Towards 2050’, released in August of 2024recognises that whilst “passenger numbers have largely recovered” following the Covid-19 pandemic, the passenger experience has “deteriorated”, necessitating the implementation of an Aviation Industry Ombuds Scheme and Customer Rights Charter (Department of Infrastructure, Transport, Regional Development, Communications and the Arts [DITRDCA] 2024, p.1)

In drafting the policy, the Australian government undertook community consultation, calling for public submissions of people’s air travel experiences. This process highlighted that mistreatment of passengers with disabilities was a key issue requiring a stronger policy response (DITRDCA 2024, p.57)

A notable case study reflecting this issue involves a woman with a muscular dystrophy who was compelled to book a business class seat due to Qantas Airways inability to accommodate her accessibility needs as a wheelchair user (Campanella 2024). Anwen Handwer was booking a flight from Perth to Canberra for a work trip when she was informed that she would either need to purchase four economy seats or two business class seats in order to allow enough space and time for her support worker to assist her to her seat via slide board (Campanella 2024). This case reflects a range of negative experiences voiced in submissions made by people with disabilities regarding air travel in Australia (DITRDCA 2024, p.57)

Australia’s response involves establishing an Aviation Industry Ombuds Scheme to enhance consumer protection. This independent body aims to address the barriers faced by people with disabilities when travelling by establishing “new aviation-specific disability standards” and investigating airport and airline non-compliance with such standards in the future (DITRDCA 2024, p.8, 12). Additionally, the scheme aims to improve external dispute resolution mechanisms and increase airline accountability by requiring airlines to ‘show cause’ for delays and cancellations (DITRDCA 2024, p.55).

Similarly, the new Aviation Customer Rights Charter centres passenger needs as a priority within the Australian aviation sector by establishing clear legal obligations of the industry to its customers as informed by Australian Consumer Law (ACL) (DITRDCA 2024, p.55).

The introduction of such legal mechanisms recognises areas of policy requiring reform as activity returns to normal post Covid-19. By repositioning passenger needs and rights as a top priority, Australia has taken a proactive approach to better protect passengers in the long term.

Reform in Indonesia

Similarly, Indonesia has recently undergone regulatory reform, issued by the Ministry of Transportation, seeking to address issues such as flight delays and passenger compensation. Regulation No. PM 2 of 2025 amends previous provisions regarding the ‘Organisation of Air Transportation’ (Ong and Nastiti 2025). Passenger rights form a key part of the reform, as stricter consequences are placed upon airlines to avoid delays and fulfill customers’ rights to compensation where appropriate. For example, article 34(e) stipulates that airlines are required to provide compensation and redress to users affected by a “reduction of flight frequency or withdrawal of flight routes as per article 34(c)” (Regulation PM No.2 of 2025 article 34(e)).

Additionally, Regulation No. PM 2/2025 implements a new government monitoring system, which allows the Directorate General of Civil Aviation (“DGCA”) to oversee airline activity. This system will ensure airlines meet their obligations to passengers as per legislation through monthly reporting to the regulator (Regulation PM No.2 of 2025 article 74(D)).

However, it is to be questioned whether such reforms and existing legislation are comprehensive enough to adequately protect passenger rights and interests in Indonesia when measured against the rest of the world. Does Australia’s recent White Paper set a new standard in which Indonesia can learn from?

Comparative Analysis

Australia’s Aviation White Paper illustrates a proactive approach to aviation policy centred around passenger rights. It is clear, robust and attempts to infuse long term change in Australia’s aviation policy through the establishment of an independent Aviation Ombudsman and Passenger Rights Charter.

By contrast, while Indonesia’s recent regulation No. PM 2/2025 marks a positive shift forward in holding airlines accountable to their passengers, it is ultimately reactive and fails to address root issues in the sector such as enforcement, airport overcapacity, vague compensation amounts and inconsistency with compensation standards of international law (Nugraha and Kovudhikulrungsri 2017).

One criticism of Indonesia’s aviation policy is enforcement. The DGCA is a government agency operating under the Ministry of Transportation in Indonesia. This lack of independence leaves Indonesia’s aviation regulator susceptible to conflicts of interest and corruption. Indonesia’s neighbouring countries, Singapore, Malaysia, Thailand and Vietnam all have independent aviation authorities with Australia’s recent establishment of an Aviation ombudsman signalling an additional push for Indonesia to keep up with the rest of the international community and separate powers.

Furthermore, Indonesia relies on several acts to protect its passengers on international and domestic flights such as the Montreal Convention 1999, Indonesian Aviation Act 2009 and the Ministry of Transportation Regulation 77/2011. The creation of a Passenger Rights Charter could aid in simplifying and clarifying the obligations of the Indonesian aviation industry to its passengers based on these pieces of legislation. Providing public access to the charter would further enable Indonesia to maintain transparency, ensuring citizens are adequately informed of their rights without having to locate complex legislation that may require legal knowledge to understand.

Conclusion

As global air travel recovers post Covid-19, it is important the quality of the passenger experience improves alongside it. Australia’s recent White Paper highlights a forward-thinking approach that enhances accessibility for people with disabilities, consumer protection and dispute resolution mechanisms through an independent Aviation Industry Ombuds Scheme and Aviation Customer Rights Charter. By contrast, it is unclear whether Indonesia’s reform efforts will be effective long term due to their limited scope and lack of regulatory independence. Indonesia thus has the opportunity to learn from Australia’s recent aviation policy update to elevate passenger rights and experiences, encouraging ethical evolution in its aviation sector.

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Bridget Gatt is a third year Bachelor of Laws/Arts student and Vice Chancellor Scholar studying at Deakin University. Currently undertaking a Law Semester Exchange program at UNAIR, her academic interests include international law and human rights which she hopes to pursue once she finishes her degree. (Email: s223346352@deakin.edu.au)

References 

Budidjaja T and Sihombing A (7 March 2025) ‘Regulatory Overhaul in Indonesia’s Air Transport: Key Compliance Obligations Under Minister of Transportation Regulation No. 2 of 2025’ Budidjaja International Lawyers, accessed 12 April 2025.

Campanella N and Young E (4 April 2024) ‘Qantas criticised over disability policies after ‘appalling’ treatment of artist’ ABC News, accessed 13 April 2025.

DITRDCA (Department of Infrastructure, Transport, Regional Development, Communications and the Arts) (2023) Aviation Green Paper: Towards 2050DITRDCA, Australian Government, accessed 9th April 2025.

DITRDCA (Department of Infrastructure, Transport, Regional Development, Communications and the Arts) (2024) Aviation White Paper: Towards 2050DITRDCA, Australian Government, accessed 9th April 2025.

DITRDCA (Department of Infrastructure, Transport, Regional Development, Communications and the Arts) (2024) The Aviation Industry Ombuds Scheme—Consultation paperDITRDCA, Australian Government, accessed 9th April 2025.

Indo Aviation Plus (19 November 2019) ‘When Will Indonesia Have an Independent Civil Aviation Authority?’ Indo Aviation Plus, accessed 12 April 2025.

Nugraha R and Kovudhikulrungsri L (30 April 2017) ‘Aviation Legal Issues In Indonesia and Thailand: Towards Better Passengers’  Rights In Asean’Indonesia Law Review, accessed 12 April 2025.

Ong H and Nastiti K (7 February 2025) ‘Enactment of the Minister of Transportation Regulation No. PM 2 of 2025: Government Efforts to Address Flight Delays’ Dentons HPRP, accessed 12 April 2025.

Regulation of the Minister of Transportation of the Republic of Indonesia, 2025. Regulation PM No. 2 of 2025 on the Organisation of Air Transportation. Jakarta: Ministry of Transportation. Available at: [https://peraturan.bpk.go.id/Details/313632/permenhub-no-2-tahun-2025]  accessed 12 April 2025.