[Wahjoe et. al., Vol.7 (Iss.9): September 2019] ISSN- 2350-0530(O), ISSN- 2394-3629(P) DOI: 10.5281/zenodo.3483704 Http://www.granthaalayah.com ©International Journal of Research - GRANTHAALAYAH [332] Social THE IMPACT OF LIBERALIZATION OF ASEAN AIR TRANSPORTATION ON INDONESIAN AIRLINES Oentoeng Wahjoe *1 , Dini Dewi Heniarti 2 , Anita Puspawati 3 *1, 2, 3 Faculty of Law, Universitas Islam Bandung, Indonesia Abstract Liberalisation of air transportation practically is known as open sky policy. In the practice, the liberalisation of air transportation is divided into two group of services, i.e.: air transportation services, for passengers and goods (air service) which is categorized as hard rights and supporting services of the air transportation services (ancillary services) which is categorized as soft rights. The research in this paper focused in air transportation services for passengers and goods, consists of nine freedom of the air. The impact of the policy such as the Agreement regarding ASEAN open sky policy, is the readiness of Indonesian air transportation companies to compete with foreign air transportation companies. The government of Indonesia has to regulate the implementation of ASEAN Open Sky Policy to be projected in order to comply with national development, i.e. the function of air law in national development. The policy has been implemented by enact or amend the existing law as air law that regulate flight lines, the following provisions: To regulate flight line for foreign airlines to open flight lines in Indonesia region which may not or have not land and sea transportation. The regulation is intended to support mobility of humans, goods and services that may fulfil the needs of the people of Indonesia, which materially and spiritually and the development of the region. The regulation of flight lines of foreign air transportation for region of tourism, industrial and trade center. The regulation is intended to support the national economic development of Indonesia. Keywords: Air Transport; Liberalization; Indonesian Airlines. Cite This Article: Oentoeng Wahjoe, Dini Dewi Heniarti, and Anita Puspawati. (2019). “THE IMPACT OF LIBERALIZATION OF ASEAN AIR TRANSPORTATION ON INDONESIAN AIRLINES.” International Journal of Research - Granthaalayah, 7(9), 332-341. https://doi.org/10.5281/zenodo.3483704. 1. Introduction The efforts of world community in the fight for world trade to build international institutions, that is embodied World Trade Organization (WTO ) on the January, 1st, 1995. The World Trade Organization (WTO) to take charge of the role of GATT in maintaining the system of international free trade. It is taken as treas on Uruguay Round. In these negotiations, yields 28 agreements which regulates trading in goods, services and the protection of intellectual property. The agreement on