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Australia And Indonesia Want More Flights. The Test Is What Happens Beyond Bali

Aviation Desk|Thursday 8 October 2026|5 min read
Australia And Indonesia Want More Flights. The Test Is What Happens Beyond Bali

Qantas & Jetstar

The new Australia Indonesia air services deal adds 5000 seats a week. That sounds like an aviation story. It is really a test of whether Indonesia’s secondary destinations can receive more visitors without inheriting Bali’s strain on water, waste, roads, housing and local culture.

Qantas and Jetstar have applied for 4539 of those seats in each direction, almost 91 percent of the new capacity. Their early plans are commercially obvious, daily Perth to Jakarta, daily Western Sydney to Denpasar, daily Brisbane to Denpasar, and more Melbourne to Jakarta flights. The rights are not yet approved.

Bali will be the first beneficiary because it is the easiest market to sell. Australian travellers know the beaches, the resorts, the villas and the price points. Airlines know the demand is there. A daily Jetstar service from Western Sydney can open Bali to a large catchment that has traditionally faced a longer journey to Sydney Kingsford Smith. Qantas’s Brisbane route makes the same bet from Queensland.

But Bali is also the warning light on the flight deck. It shows what happens when visitor growth gets ahead of public infrastructure. More passengers mean more hotel beds, water use, sewage, traffic, rubbish, construction labour and pressure on housing. The airport can process another aircraft before the island can necessarily process another thousand people.

The revised bilateral was supposed to create a wider opportunity. It allows additional services not only to Jakarta and Denpasar, but to gateways serving Lake Toba, Borobudur, Mandalika, Komodo and Likupang.

Each is marketable. None should be treated as an empty runway waiting for a full aircraft. Lake Toba offers landscape and culture in North Sumatra. Borobudur has one of Southeast Asia’s great heritage sites. Mandalika combines Lombok’s south coast with resort development and motorsport. Komodo carries a global name but a fragile marine environment. Likupang offers beaches and reefs in North Sulawesi, with far less of Bali’s established tourism machinery.

The policy temptation is simple. Spread arrivals away from Bali and call it diversification. But aviation can move demand faster than a destination can build capacity. A direct international service can deliver hundreds of visitors in one bank. Hotels can rise quickly. Wastewater systems, water supply, trained staff, public transport, health services and local planning rarely move at the same speed.

A runway is only the first mile of tourism infrastructure. For an Australian service to work, the airport needs immigration staff, security, baggage systems, fuel, ground handling and reliable turnaround capability. Beyond the terminal, visitors need safe roads, transport, accommodation, mobile coverage, emergency services and places to eat. Communities need to know where the water will come from, where the sewage will go and who will pay when the roads begin to fail.

That is the difference between connectivity and readiness. Jakarta changes the picture. The proposed Perth and Melbourne services are not simply leisure routes. Indonesia’s capital carries business, government, trade, education, diaspora and domestic connecting traffic. It gives Qantas a more balanced demand base than a purely holiday route and creates a possible bridge to secondary cities if domestic connections and through ticketing work well.

But the bilateral’s greatest promise will be lost if Jakarta and Bali absorb almost all of the new rights. A direct route to a secondary destination does not need to begin with a daily narrowbody. A weekly seasonal flight, a charter, a limited trial or a through ticket via Jakarta may be the more sensible first step.

Airlines like frequency because it improves convenience and helps build a market. Fragile destinations need a different measure. The question is not how quickly they can fill an aircraft. It is whether they can absorb the people who arrive after it lands.

The economics matter too. Direct flights can bring money to hotels, restaurants, guides, drivers, farmers, fishers and craftspeople. They can also channel spending towards international hotel groups, online booking platforms, imported supply chains and outside developers.

The destination should ask a basic question. How much of each visitor dollar stays local?

If the airline, booking site, resort owner, food supplier and excursion intermediary sit elsewhere, a community can inherit the waste, congestion and higher rents while seeing only a fraction of the income. Tourism then resembles an aircraft flying overhead, visible and noisy, but not landing enough value where it passes.

The Australian and Indonesian governments can shape the answer. Incentives for new routes could be tied to waste and water plans, local hiring, heritage protection, small business participation and limits on development in environmentally sensitive areas. Tourism authorities can promote longer stays, shoulder season travel and multi destination itineraries rather than concentrating every visitor in one beach district or one heritage site.

Airlines can help by selling secondary destinations as journeys rather than extraction points. They can work with local operators, market responsible itineraries and avoid creating demand for experiences that overwhelm a reef, village, monument or harbour.

But an airline cannot do a government’s job. Its purpose is to fill seats. The government’s purpose is to make sure a full aircraft does not become a burden on the place that receives it. The extra seats are an opportunity. Bali will use them easily. The harder challenge is whether Lake Toba, Borobudur, Mandalika, Komodo and Likupang can choose their own pace of growth before the bilateral turns them into the next version of the problem it was meant to solve.

Source: iasc.gov

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