Socio Today
The aviation industry in Indonesia is currently navigating the complex operational aftermath of a significant volcanic eruption from Mount Anak Krakatau, which necessitated a prolonged closure of Soekarno-Hatta International Airport. In a move aimed at stabilizing passenger confidence and mitigating the financial strain on travelers, the government has mandated a full 100 percent refund policy for all tickets affected by the disruption. This directive, while welcomed as a gesture of corporate goodwill, has highlighted systemic friction between direct airline booking channels and Online Travel Agencies (OTAs), prompting an urgent call for regulatory synchronization.
Chronology of the Operational Disruption
The crisis began when seismic activity at Mount Anak Krakatau intensified, leading to a massive ash plume that posed a severe threat to aviation safety. By the early hours of September 7, 2026, the Volcanology and Geological Disaster Mitigation Center (PVMBG) issued a high-level warning, prompting the Ministry of Transportation to order the immediate closure of Soekarno-Hatta International Airport.
The shutdown, which lasted for over 24 hours, effectively halted all incoming and outgoing flights, grounding hundreds of aircraft and displacing tens of thousands of passengers. The decision was rooted in the danger posed by volcanic ash, which can cause catastrophic engine failure if ingested by turbine blades. As the ash cloud drifted across the Greater Jakarta area, the airport authority declared a state of emergency, leading to the establishment of a crisis command center at Terminal 1B. It was here that Minister of Transportation, Dudy Purwaghandi, coordinated the government’s response, emphasizing that passenger safety remained the top priority while acknowledging the necessity of a streamlined refund process.
The Legal Framework of Force Majeure
The current conflict centers on the interpretation of "force majeure"—a common clause in contracts that frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties occurs. Under the Indonesian Ministry of Transportation Regulation (PM) 89 of 2015 regarding delay management, airlines are generally exempt from providing standard compensation—such as meals, refreshments, or accommodation—when delays are caused by uncontrollable external factors like natural disasters or airport closures.
Alvin Lie, Chairman of the Indonesian Aviation Service Users Association (APJAPI), clarified that while airlines are legally shielded from mandatory compensation in these scenarios, the industry has opted for a more proactive stance. "When we refer to PM 89/2015, the obligation for compensation is waived during force majeure events. Services like meals or rebooking are essentially at the discretion of the airline. However, the decision to offer a 100 percent refund is a commendable act of corporate goodwill, even if it is not strictly mandated by the existing regulatory framework," Lie explained during a press conference on September 9.
The Digital Bottleneck: Direct Sales vs. OTAs
While the government and airlines have reached an agreement on the necessity of full refunds, a significant segment of the traveling public remains trapped in a bureaucratic cycle. Passengers who purchased their tickets through third-party platforms—Online Travel Agencies (OTAs)—have reported substantial hurdles in securing their money back.
The issue arises from the difference in financial processing and booking management. When a passenger books directly with an airline, the funds are held by the carrier, allowing for a straightforward reversal. In contrast, transactions conducted through OTAs involve a middleman who often deducts service fees, commissions, or administrative costs. In many instances, these platforms have proven hesitant to pass on the full 100 percent refund, citing their own internal terms and conditions or the need for a secondary approval from the carrier.
Minister Dudy Purwaghandi has publicly acknowledged this friction, noting that the Ministry is actively intervening to force synchronization between OTA policies and airline directives. "We are coordinating closely with the airport authorities and OTA operators to ensure that the government’s policy of a 100 percent refund is mirrored across all sales channels. There can be no discrepancy in treatment between those who bought direct and those who bought through intermediaries," the Minister stated at the emergency response post.
Economic and Operational Implications
The ripple effect of the airport closure extends far beyond the immediate refund crisis. The aviation sector is a vital component of the Indonesian economy, and a 24-hour cessation of operations at the country’s primary hub results in losses estimated in the billions of rupiah, covering fuel costs, crew logistics, and grounded aircraft maintenance.
For passengers, the lack of certainty regarding refunds creates a ripple of financial instability, especially for those traveling for business or urgent personal reasons. The move toward a universal refund policy is seen by industry analysts as a strategic effort to maintain public trust. If passengers fear they will lose their investment during future climate or volcanic events, they may hesitate to book air travel in the future, potentially stagnating the recovery of the tourism and aviation sectors.
Furthermore, the event has reignited debates regarding the digital transformation of the travel industry. As more consumers shift to OTA platforms for the convenience of price comparison and bundle deals, the lack of standardized consumer protection protocols for these digital intermediaries has become a clear regulatory gap. Analysts suggest that the Ministry of Transportation may need to revise PM 89/2015 to explicitly include OTA obligations during force majeure events to ensure that "goodwill" becomes a baseline standard.
Moving Forward: Standardizing the Refund Protocol
As of September 10, the situation at Soekarno-Hatta has begun to normalize, with flights gradually returning to their regular schedules. However, the logistical challenge of clearing the backlog of delayed passengers remains immense. The government’s insistence on a staged, systematic refund process is intended to prevent the collapse of airline cash flows while ensuring that individual passengers are not left holding the bill for an event they could not have predicted.
The incident serves as a critical stress test for Indonesia’s aviation infrastructure. The effectiveness of the 100 percent refund initiative will likely serve as a benchmark for how the nation handles future climate-related or geological disruptions. As APJAPI continues to monitor the situation, the association has called for increased transparency from OTAs. "The burden should not fall on the consumer," Lie concluded. "If the airline provides a full refund, the OTA must process the full amount back to the passenger without exception. Transparency in the transaction chain is the only way to restore full confidence in the market."
Conclusion
The eruption of Mount Anak Krakatau and the subsequent closure of Soekarno-Hatta International Airport have highlighted both the resilience of the Indonesian aviation industry and the lingering weaknesses in its digital booking ecosystem. While the government’s intervention regarding 100 percent refunds has provided a necessary safety net for travelers, the ongoing struggle with OTA compliance underscores the need for more robust regulatory oversight.
Moving forward, stakeholders in the aviation industry—including the Ministry of Transportation, airline operators, and digital service providers—must collaborate to establish a unified protocol for force majeure events. Ensuring that consumer rights are protected, regardless of the booking channel, is essential to maintaining a competitive and reliable aviation sector. As the recovery continues, the focus will remain on the speed and efficiency with which these refunds are processed, serving as a defining moment for customer service standards in the Indonesian travel industry.
