Indonesian market snapshot: capacity growth has lagged, but visitor numbers have recovered well

Indonesia's system capacity growth has flattened off in recent years, although there is certainly much more potential for expansion in this market.

This update provides a snapshot of the Indonesian market - which contains the largest population in the Southeast Asian subregion.

Indonesian airlines have more than 500 aircraft on order, mainly due to the Lion Air Group, which is a major player in Southeast Asia.

As with some other Asia Pacific markets, such as India, Malaysia and the Philippines, Indonesia's largest airline (in terms of system seats) is an LCC.

However, despite the dominance of Lion Group, there is still plenty of competition in Indonesia's international market, thanks to Garuda Indonesia, AirAsia, and numerous other overseas airlines.

Tourism growth has rebuilt to 2019 levels, and has potential to soar further, despite the slow return of the key Chinese visitor market.

The sheer size of Indonesia's population makes internal tourism an important factor as well.