Qantas and Jetstar Airways are planning to increase their service capacity to Indonesia following an expanded bilateral air services agreement between Australia and Indonesia. The airlines have submitted applications for over 4,500 seats per week in each direction over the next five years, aiming to launch new routes and frequencies.
Qantas intends to start a daily flight between Perth and Jakarta in December using a Boeing 737-800. Subsequently, Jetstar plans to commence daily flights from Western Sydney to Bali's Denpasar in March 2027, utilizing Airbus A321LR aircraft. The carrier also aims to increase the Melbourne-Jakarta schedule to four weekly flights from March 2027 and then daily from October 2027 using A330-200 and A321XLR aircraft, respectively. Additionally, Brisbane to Denpasar flights are proposed to start in August 2027.
The new capacity is part of Australia's efforts to boost its aviation ties with Indonesia, with the bilateral agreement allowing services to additional destinations beyond Jakarta and Denpasar, including tourist gateways such as Lake Toba and Borobudur. Data from Sabre Market Intelligence indicated that approximately 4.31 million passengers traveled between Australia and Indonesia in 2025, with Denpasar and Jakarta being the primary destinations.
Qantas already holds a significant market share, with scheduled capacity during the 2026-27 northern winter season accounting for over half of the capacity between the two countries. The existing market is expected to decline slightly in the upcoming season, with most traffic concentrated on Denpasar. The updated arrangements aim to facilitate further market growth and route expansion, reflecting a strategic move by Australian airlines to strengthen their presence in Indonesia.
