Jakarta. Singapore-based Indonesia Airlines remains committed to launching its operations despite a senior government official calling the venture a "hoax," with its CEO asserting that preparations are well underway and backed by strong international investor interest.

CEO Iskandar expressed disappointment over remarks by the Transportation Ministry’s Director General of Civil Aviation, Lukman F. Laisa, who dismissed Indonesia Airlines’ operational plans as baseless. “There’s no follow-up, nothing. It’s a hoax!” Lukman told reporters after a parliamentary hearing on May 22, adding that the ministry had not received any formal license applications from the airline.

Iskandar called the statement "deeply regrettable" and "counterproductive" to Indonesia’s investment climate. “It’s laughable to say we’ve had no coordination with the ministry. For the past two years, we’ve held regular discussions, including weekly visits from ministry staff,” he said at the Energy Mineral Forum on May 26.

He also revealed that many local pilots had shown interest in joining Indonesia Airlines and highlighted international support. “Our partners in Singapore and Thailand are even encouraging us to base operations there. But our commitment is to grow Indonesia’s aviation industry massively, not just operate an airline,” he said.

Iskandar disclosed that on March 14, Singapore-based Calypte Holding Pte Ltd --Indonesia Airlines' parent company-- signed an acquisition deal with a German firm to take a majority stake in PT Indonesia Airline Holding worth €46.2 million, backed by a €12.8 billion funding commitment. He said additional investment interest from Australia, China, and Thailand, including from a prominent Australian investor.

“The Australian investor has already informed the president directly of his strong interest,” Iskandar said, adding that contract finalization is underway.

Despite the regulatory friction, Iskandar confirmed the airline’s soft launch is being planned in Jakarta this July. While the company has yet to officially submit its licensing documents to the Transportation Ministry, he said 80 percent of the necessary paperwork is complete and will be filed in the coming months.

Regarding operations, Indonesia Airlines has secured commitments for three aircraft from a Japanese lessor and is negotiating for four more. 

Initially, the airline targeted its inaugural flight for November 2024. However, delays in aircraft interior fit-outs have pushed the timeline. “After final discussions with our interior consultants, they informed us they couldn’t meet the initial deadline,” Iskandar said. “We are still working on this with them, but we remain committed to launching by the end of this year. If needed, we’re prepared to shift the inaugural flight to early next year.”

“There are no internal problems. The only obstacle is the negative statement from the Director General, which has triggered legal reviews by our teams in Indonesia and Singapore,” Iskandar said, hinting at possible legal action over defamation.

He ended by reaffirming his plan: “We will not back down. What we are doing has huge benefits for Indonesia: job creation, national revenue, and industry transformation.”

Calypte Holding, which operates across renewable energy, agriculture, and aviation, is banking on INA’s international-only model to challenge established players. The airline plans to deploy 20 modern aircraft, including 10 narrow-body Airbus A321neo or A321LR planes for medium-haul routes and 10 wide-body Airbus A350-900 and Boeing 787-9 jets for long-haul flights.

Iskandar Ismail, an entrepreneur from Aceh born in 1983, began his career at Indonesia's post-tsunami reconstruction agency and later joined state-owned utility PLN, where he gained experience in electricity and renewable energy. He then moved into banking and insurance before leaving the corporate world in 2015 to start his own business. In 2017, he launched a company focused on electricity, but the pandemic hit it hard. Looking for new opportunities, Iskandar turned to Singapore and eventually founded Calypte Holding in 2022.