Cambodia: Indonesia set to start low-cost direct flights

• Mar 28, 2018

Indonesian low-cost carrier Lion Air will soon commence direct flights to Cambodia in order to boost business, trade and investment between the two Asean member states.

During a meeting with the between both countries, Indonesia’s Coordinating Minister for Maritime Affairs, Luhut Binsar Pandjaitan told Prime Minister Hun Sen that Cambodia has been developing stronger economic growth.

According to Mr Luhut, Cambodia is the sixth-fastest growing economy in the world and direct flights were needed to bond economic ties.

Mr Luhut invited Mr Hun Sen to a bilateral sideline meeting during the IMF-World Bank Annual Meeting in Bali, Indonesia in October.

According to Eang Sophallet, personal assistant to Prime Minister Hun Sen, Mr Luhut said Cambodia is now ready to increase the rate of economic development.

“Mr Luhut said 30 years ago, Cambodia’s economy was underdeveloped but now Cambodia has increased its economic rate of more than seven percent since 1994.” he said.

“So, both countries need to further strengthen economic, agricultural and tourism sectors. We will discuss with Indonesia’s Lion Air to encourage them to start direct flights from Indonesia to Cambodia in the near future.”

Mr Hun Sen said cooperation between both countries had to be enhanced by pushing for direct flights in order to forge closer ties between the two Asean nations, a move expected to encourage economic cooperation, people-to-people networking and trade.

“We do encourage direct flights between Indonesia and Cambodia. It’s really good if it can be done quickly. When we have direct flights, it can promote cooperation of the two countries by connected people to people,” he said.

“And at the same time, Indonesia should look at other potential opportunities in Cambodia, especially in the areas of trade, investment, tourism and agriculture.

“[Especially] in the agricultural sector, since Indonesia buys a lot of rice from other countries every year, they should look at investment opportunities in Cambodia.

“This will help keep the price of exported rice down in Indonesia.”

Ho Vandy, secretary-general of the Cambodia National Tourism Alliance agreed, a direct link between airports could prove to be beneficial to both nations. However, there are many challenges ahead.

“There has been plenty of talk on the issue, but airlines are still hesitant because they believe there won’t be enough passengers for this route,” Mr Vandy said.

“We need new tourism-related products, particularly for shopping – in order to make Cambodia more attractive as a destination for Indonesian tourists.”

Lion Air is not the only airline to unveil its interest in starting direct flights from Indonesia. Indonesian national carrier, Garuda Indonesia Airlines recently revealed plans to launch a route connecting the tourst-island of Bali to Phnom Penh. Last year, Cambodia welcome 50,000 Indonesian tourists, a 2.3 percent increase from 2016.

Mr Hun Sen accepted Mr Luhut’s invitation to a series of meetings during the IMF-World Bank Annual Meeting, which will run from October 8 to 14 this year.

Source: http://www.khmertimeskh.com/50116358/indonesia-set-to-start-low-cost-direct-flights/