As the world’s largest archipelagic country, Indonesia’s aviation sector plays a crucial role as part of the nation’s connectivity infrastructure. However, the industry faces a complex range of issues, from security risks in conflict zones and the burden of strict liability to challenges in complying with international contractual obligations. This article examines strategic issues and legal aspects within Indonesia’s aviation industry and formulates the role of law firms as Strategic Risk Partners in mitigating risks, ensuring operational sustainability, and protecting assets amid global geopolitical uncertainty.

The extreme topography of Papua has placed the aviation sector in an irreplaceable position. In areas such as Pegunungan Bintang or Yahukimo, aircraft are the only means by which logistics distribution, access to medical services, and human mobility can be maintained. However, this vital role comes at the cost of security risks that exceed the ordinary operational standards of civil aviation. The escalation of armed conflict in recent years has transformed the risk landscape faced by airlines from merely weather-related and technical challenges into exposure to politically motivated kinetic attacks.

When the Nature of Loss Changes: From Accident to Hostile Acts

From a legal perspective, once a bullet penetrates an aircraft in a conflict zone, the nature of the loss suffered by the airline shifts from an “operational accident” to a “hostile act.” This shift carries significant legal consequences: on the one hand, it triggers exclusion clauses under standard aviation hull insurance policies, while on the other hand, it does not eliminate the airline’s obligation to compensate passengers under domestic law. This is because Article 21 of the Montreal Convention 1999 — which Indonesia ratified through Presidential Regulation No. 95 of 2016 — imposes strict liability on carriers for the first tier of compensation without any exception whatsoever for war or hostile acts. This situation is what aviation law practitioners refer to as the industry’s “legal paradox” in conflict areas.

Gaps in Standard Insurance Policies

Many airlines assume that their Aviation Hull All Risks policies provide comprehensive protection against aircraft damage. In fact, such standard policies generally contain AVN 48B Exclusion Clause — a standard clause in the global aviation insurance industry that automatically excludes an insurer’s obligation to indemnify losses caused by politically motivated acts, sabotage, terrorism, or the discharge of firearms. Some of these exclusions may in fact be reinstated through an AVN 52 endorsement under the same policy, but the scope of reinstatement is limited and does not cover acts of war between states or armed attacks in an open conflict — for such risks, airlines must purchase a separate War Risk Insurance policy, rather than merely adding an endorsement to an existing policy. Without additional insurance specifically reinstating such coverage, airlines risk losing assets worth tens to hundreds of billions of rupiah without compensation.

The Dual Burden of Strict Liability

At the domestic level, airlines remain bound by the principle of strict liability as regulated under Minister of Transportation Regulation No. PM 77 of 2011 concerning the Liability of Air Carriers. Pursuant to Article 3 of the regulation, airlines are required to pay compensation in the amount of Rp1.25 billion per passenger who dies as a result of an event related to air transportation, without the need to prove fault before a court. As a result, an airline that is itself the victim of a third-party attack must nevertheless bear the full financial obligation toward its passengers — a significant cash-flow burden, particularly for operators serving pioneer routes with thin margins.

Risk of Default Toward Aircraft Owners

The issue also extends into the realm of international law. Because the majority of aircraft fleets in Indonesia are operated under leasing arrangements, each airline is bound by contractual obligations requiring continuous maintenance of comprehensive insurance coverage. If an insurance claim is denied due to a failure to activate war risk coverage, the airline may be deemed to have committed a default against the lessor. Under such circumstances, the Cape Town Convention 2001 — which Indonesia ratified through Presidential Regulation No. 8 of 2007 — grants the lessor legal authority to deregister and repossess the aircraft through the IDERA (Irrevocable De-registration and Export Request Authorisation) instrument.

Law Firms as Strategic Risk Mitigation Partners

In light of the complexity of these risks, aviation law practitioners consider that the role of law firms needs to transform from merely acting as legal counsel once a dispute arises into that of a preventive Strategic Risk Partner. Such measures include conducting a legal audit to ensure that there are no coverage gaps between actual risks in the field and the scope of insurance coverage — including alignment between the AVN 48B Clause and reinstatement clauses such as AVN 52 — as well as providing assistance with risk disclosure compliance (disclosure compliance) in accordance with the principle of good faith set out in Article 251 of the Indonesian Commercial Code (KUHD). This role has become increasingly important since the Constitutional Court, through Decision No. 83/PUU-XXII/2024, declared the provision conditionally unconstitutional — cancellation of an insurance policy may no longer be carried out unilaterally by the insurer, but must instead be based on the agreement of both parties or a court decision. This development creates greater scope for law firms to actively defend airlines’ interests where insurers seek to deny claims on the basis of disclosure failures, which had previously often been relied upon as grounds for unilateral cancellation, even though the duty of good faith itself remains applicable and was not automatically abolished by the decision.

During the post-incident crisis management phase, law firms play a role in tracing and establishing the primary cause of loss under the proximate cause doctrine so that insurers can respond to claims more promptly. Law firms are also responsible for assisting in negotiations concerning aircraft lease structures so that they comply with international asset protection standards under the Cape Town Convention without burdening airlines with excessive insurance premiums.

Conclusion

Indonesia’s aviation industry, particularly operators serving conflict-prone areas such as the interior of Papua, faces multiple layers of risk: security threats in the field, the burden of strict liability under domestic law, and gaps in international insurance coverage that are often overlooked by operators. Without proper alignment between regulatory compliance, adequate insurance structures, and contractual risk management with aircraft owners, airlines face the risk of double losses — loss of assets while simultaneously facing legal claims. Ultimately, the sustainability of pioneer aviation operations in conflict-prone areas depends on the ability of all stakeholders, including regulators, airlines, insurers, and law firms, to formulate adaptive and comprehensive risk mitigation strategies.

Legal Basis

1. Undang-Undang Nomor 1 Tahun 2009 tentang Penerbangan — lex specialis yang mengatur kedaulatan wilayah udara, keselamatan penerbangan, serta kewajiban asuransi pesawat, personel, dan tanggung jawab kerugian pengangkut.
2. Pasal 251 Kitab Undang-Undang Hukum Dagang (KUHD) — mengatur prinsip uberrimae fidei (iktikad baik yang paling utama) dalam perjanjian asuransi; kelalaian mengungkapkan profil risiko kepada penanggung dapat mengakibatkan asuransi batal demi hukum.
3. Peraturan Presiden Nomor 95 Tahun 2016 tentang Pengesahan Convention For The Unification Of Certain Rules For International Carriage By Air (Konvensi Unifikasi Aturan-Aturan Tertentu Tentang Angkutan Udara International) — mengatur pengesahan dan pemberlakuan Konvensi Montreal 1999 ke dalam sistem hukum nasional Indonesia, termasuk rezim tanggung jawab pengangkut udara atas kematian, cedera penumpang, kerusakan bagasi, dan kargo.
4. Peraturan Presiden Nomor 8 Tahun 2007 tentang Pengesahan Convention on International Interests in Mobile Equipment beserta Aircraft Protocol (Konvensi Cape Town 2001) — menjadi dasar hukum berlakunya perlindungan bagi kreditur/lessor pesawat di Indonesia, termasuk instrumen IDERA untuk deregistrasi dan penarikan aset.
5. Peraturan Menteri Perhubungan Nomor PM 77 Tahun 2011 tentang Tanggung Jawab Pengangkut Angkutan Udara (sebagaimana diubah dengan PM 92 Tahun 2011) — mengatur prinsip tanggung jawab mutlak (strict liability) dan menetapkan besaran ganti rugi bagi penumpang yang meninggal dunia sebesar Rp1.250.000.000,00 per penumpang berdasarkan Pasal 3.
6. Klausula Standar Internasional Industri Asuransi Penerbangan (AVN 48B, LSW 555D, AVN 52) — klausula pasar asuransi global yang mengatur eksklusi risiko perang dan tindakan bermotif politik (AVN 48B), mekanisme penjaminan kembali (write-back) atas risiko tersebut khusus untuk kerusakan rangka pesawat (LSW 555D), serta  penjaminan kembali atas sisi tanggung jawab hukum terhadap penumpang dan pihak ketiga (AVN 52).

Sumber Referensi

• Direktorat Jenderal Perhubungan Udara, Kementerian Perhubungan RI, “Insiden Penembakan Pesawat PK-LTF di Distrik Beoga Papua, Ditjen Hubud Pastikan Pilot dan Penumpang Selamat”, 16 Februari 2024 (hubud.kemenhub.go.id).
• Kompas.id, “Rentetan Teror Penembakan di Bandara di Tanah Papua, Warga dan Pilot Jadi Korban”, 2026.
• Kompas.id, “Kelompok Kriminal Bersenjata di Papua, Apa Saja Kekerasan yang Dilakukan”, 2024.
• Tribunnews.com, “Komnas HAM Sebut Pilot Kerap Jadi Sasaran Kelompok Bersenjata di Papua Sejak 2023”, 2026.
• ABC News Indonesia, “Penembakan Pilot AS di Papua Jadi ‘Pesan’ untuk AS dan Indonesia”, 3 Juli 2026.
• Peraturan Menteri Perhubungan Nomor PM 77 Tahun 2011 tentang Tanggung Jawab Pengangkut Angkutan Udara (jdih.dephub.go.id / peraturan.bpk.go.id).
• Peraturan Presiden Nomor 8 Tahun 2007 tentang Pengesahan Convention on International Interests in Mobile Equipment (bphn.go.id).
• Undang-Undang Republik Indonesia Nomor 1 Tahun 2009 tentang Penerbangan.
• Kitab Undang-Undang Hukum Dagang (KUHD) Indonesia, Pasal 251.
• Abeyratne, R. I. R. (2012). Strategic Issues in Air Transport. Springer.
• Margo, R. (2000). Aviation Insurance: The Law and Practice of Aviation Insurance. Butterworths.

Contributor : Salsabila Safira, M Althafariq R