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Australia has entered into an updated bilateral air service agreement with Indonesia.
Building on the existing agreements from 2011, the new deal expands available seats by 5,000 per week for each country’s airlines, and adds new Indonesian destinations including Lake Toba, Borobudur, Mandalika, Komodo and Likupang.
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“The updated arrangements also allow airlines of both countries to operate services to and from Australia’s newest international airport, Western Sydney International,” the Australian government said in a press release.
“Increased passenger services to and from Indonesia will be welcome news for Australia’s international airlines, airports and holidaymakers.
“The Australian Government is supporting travellers, importers and exporters alike through a strong and diverse aviation sector which can meet their needs now, and into the future.”
Transport Minister Catherine King has welcomed the updated bilateral arrangement, the first with Indonesia in 15 years.
“Jakarta and Denpasar are already popular holiday destinations for Australians, so being able to increase that capacity and opening up new destinations across Indonesia will be welcome news for everyone,” she said.
As of July this year, Bali was the number one international travel destination for Australians according to DFAT, with more than 1.6 million Australians visiting the island in 2025.
Indonesia as a whole saw 1,754,791 Australian tourists last year, making Australia its second largest source market, according to Statistics Indonesia; in the six months to June, it recorded 864,750 Australian tourist visits, up 6.29 per cent.
The country is targeting 2.23 million Australian tourist visits in 2026, and is looking to expand the market across additional destinations beyond the traditional hotspots of Bali and Jakarta.
“We want to offer more diverse and high-quality travel experiences so Australian tourists explore more destinations in Indonesia,” Tourism Ministry Deputy for Marketing Ni Made Ayu Marthini told Indonesian news outlets.
In its latest Australian Aviation Network Overview report for August 2026, Airservices Australia highlighted South East Asia as a growing international market, up three per cent year-on-year.
“International growth remains strongest in neighbouring Asia Pacific markets in terms of daily average flights, which continue to benefit from resilient leisure demand and traffic to Europe via alternative hubs,” the report read.
The updated Indonesian agreement comes after the government in May signed updated air service deals with the Maldives, El Salvador, Qatar, and the United Arab Emirates.
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