RI TO PROPOSE MANAGED LIBERALIZATION OF AIR TRANSPORTATION IN ASEAN

Jakarta, March 22 (ANTARA) - Indonesia will raise the need for a managed liberalization of aviation in the face of the onslaught of foreign airlines in Southeast Asia at the Asean Summit in Hanoi next month, a minister said.

"There is a desire to implement an open sky policy but Indonesia has asked for a deferment because our air territory is so vast," Coordinating Minister for Economic Affairs Hatta Radjasa said after a coordination meeting to discuss the Asean summit here on Monday.

He said several Asean member countries had been strongly trying to persuade Indonesia to open its sky to foreign airlines.

"These Asean countries wish to liberalize aviation but we will only open several regions. It is an issue the transportation minister is now still working on," he said.

He said Indonesia actually needs to improve the competence and services of its airports but the government is still discussing limits for flights whose frequency is not limited.

"Our flight system will later be liberalized on routes to a limited number of cities," he said.

Hatta said the government had already taken anticipatory steps so that the liberalization would not lead to an open sky policy, a move which was justifiable as each country had the right to protect its shipping or flights in its own territory.

He said liberalization would be applied at only several airports such as Medan, Jakarta and Makassar.

He said the Asean meeting would also discuss efforts to improve regional economic growth and regional competitiveness at a global level.

"We will discuss again a blueprint for the Asean Economic Community Summit in 2015 as well as our preparations. We must not be unprepared. If we are not ready we must withdraw, and say we are not yet ready," he said.