COST-BENEFIT ANALYSIS OF TAKING SINGAPORE FLIGHT INFORMATION REGION AS AN ESTABLISHMENT OF NATIONAL SOVEREIGNTY

• Main Author: Noor Aziz, Alifia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/73554
• Institution: Institut Teknologi Bandung

Flight Information Region (FIR) is an airspace that provides in-flight information and warning services. The FIR area above the Riau archipelago is controlled by Singapore, established by ICAO in Dublin, Ireland, in 1946. As part of the Singapore FIR, the Riau Islands has a strategic position in both commercial and defense terms. With the high tourism traffic around Indonesia, Singapore, and Malaysia, as well as the presence of Singapore Changi Airport as one of the busiest airports in the world, the airspace of the Riau Islands is very prospective for increasing the country's foreign exchange. This study aims to determine Indonesia's potential income from the takeover of FIRin the Riau archipelago, the necessary supporting infrastructure, and a cost and benefits analysis. Based on flight data from Google Travel for 26 weeks with four routes, Indonesia can earn IDR 24,875,066,138 for 26 weeks or IDR 49,750,132,276 per year. However, the takeover of FIR Jakarta, which covers the Riau Islands area, requiressupporting infrastructure which requires a construction cost of Rp.41,000,000,000. Taking into account the total variable cost for ten years of Rp. 145,248,000,000, an ROI analysis value of 39.4% is obtained with a payback period of 2.53 years and a total benefit of IDR 163,000,000,000. Indonesia's non-monetary advantage is getting international recognition that Singapore's FIR will become Jakarta's FIR over the Riau and Natuna Islands, as well as being independent in managing commercial air traffic. In addition, Indonesia is also able to place members of the Aviation Navigation Services Authority/civil and military air traffic control in Singapore air traffic. Meanwhile, the non-monetary losses that Indonesia must bear are the need to increase capacity in managing the airspace, both in terms of human resources and supporting infrastructure, and the need to develop a regulatory framework that supports this, both domestically and in international aviation.