The new approach to the Indonesia Air Transportation Policy, introduced in 1974, raises a number of issues which are of vital importance to the development of the country's air transportation system and the tourist sector. These issues concern the effectiveness of the alternative measures which were introduced as strategy in the new air transportation policy to achieve rational economic resource utilization as well as the influence of these measures on other national policy objectives, such as culture, security, foreign relations, and related national goals.Indonesia's potential and resources for domestic and international tourism development are among the world's greatest. Yet the lack of an effective air transportation policy and system, which are the lifeblood of international tourism, has apparently prevented the country from further capitalizing on these generous natural capital endowments.The study is an attempt to analyze whether the new policy approach has been effective in attaining the desired multi-objectives, and to advance some policy decision-making approaches towards solving the complex air transportation policy problems within the overall national setting .The ultimate goals of the new policy in air transportation are the formulation and implementation of a policy which will be both conducive to the development of the national air transport industry and tourism, and at the same time give due protection against possible future pitfalls in other related sectors of the economy .however because of social, cultural, political, and other considerations or constraints, a certain trade-off among the objectives is inevitable. The policy-maker, striving towards an efficient management of air transport, tourist, and other related national resources has tried to devise a "policy-mix approach" to attain those multiple goals, some conflicting, some complementary, and a few irreconcilable or in-compatible.In order to be able to more objectively evaluate how far the new policy has been able to achieve those policy goals, in other words, how far the policy has been formulated effectively so as to provide the best compromise between the conflicting policy objectives and accommodate most of the supplementary interests which are reconcilable, the dual trade-off analysis has been presented and developed in this study . This is further complemented with other policy decision-making approaches, including games theory, adapted in a participatory air access policy- options display. |