Manggarai sluice gate on alert for flooding

The Jakarta Post, Thu, 04/09/2009 12:25 PM

JAKARTA: The South Jakarta Manggarai sluice gate was on level III alert, the third highest alert level, on Wednesday, as the water level in the Ciliwung river rose due to spillover from upstream Bogor, West Java.

"The Manggarai waterway water level is currently 825 centimeters," Manggarai sluice gate officer Ibnu told Antara news agency.

The water level was 810 centimeters at 8 a.m., 60 centimeters above the normal limits, he said.

Separately, officials at the Katulampa sluice gate in Bogor said the water level was 60 centimeters, 20 centimeters below the alert threshold, at the dam, which is a vital barrier to flooding in Jakarta.

It generally takes between 10 and 11 hours for water from Katulampa to reach the Manggarai sluice gate, the main barometer for flooding in Jakarta. -JP

Airlines Add Thousands of Seats during Long Weekend

Thursday, 09 April, 2009 | 16:06 WIB

TEMPO Interactive, Jakarta: Eight airlines added 56,468 seats to anticipate increasing passengers during the holidays on voting day and Easter. The additional seats are for 26 domestic flight routes.

“The eight airlines include Garuda Indonesia, Wings Air, Lion Air, Sriwijaya, Batavia Air, Riau Airlines, Kalstar, and Trigana,” Director for air transportation at the Transportation Department, Tri S Sunoko told Tempo, Wednesday (8/4).

The Transportation Department said the routes with more passengers than usual are Surabaya-Balikpapan (6,988 seats), Jakarta-Palembang (5840 seats), Jakarta-Denpasar (4,844 seats), Banjarmasin-Surabaya (4,640 seats), Jakarta-Balikpapan (4,620 seats), Surabaya-Makassar (3,710 seats), and Surabaya-Denpasar (3,300 seats).

The department’s head of Domestic Transportation, Hemi Pamurahardjo, said airlines should maintain good service as problems related to service matters are usually found during long holidays.

WAHYUDIN FAHMI

Vintage bicycles

The Jakarta Post | Wed, 04/08/2009 11:44 AM

Members of Denpasar-based Vintage Bicycles Association (PST) display their beloved bicycles during their weekly gathering. The association now has 35 members. JP/Wasti Atmodjo

Small plane crashes in Papua; 4 killed

The Jakarta Post, The Associated Press, Jayapura | Thu, 04/09/2009 8:08 AM

A small plane crashed into a hillside in Indonesia's easternmost Papua province Thursday, killing all four people on board, police said.

The Avia Star plane was transporting cargo from the provincial capital, Jayapura, to the nearby district of Wamena when it went down, said Maj. Gen. Bagus Ekodanto, the local police chief.

The bodies of the pilot, co-pilot and two other crew members were pulled from the smoldering wreckage, he said.

It's not clear what caused the accident, but a witness told the Antara news agency the plane was seen circling around the hill before tumbling from the sky.

Smoke billowed from the scene.

There are few roads in Papua, which occupies the western half of New Guinea, and air travel is a common form of transport.

It is considered one of the world's most dangerous places to fly. Many areas are mountainous and prone to dangerously low clouds and sudden weather changes.

Boeing customer Lion Air gets financing for 30 jets

Indonesian low-cost carrier Lion Air, which has ordered a whopping 162 of Boeing's newest 737-900ERs, has won approval for more than $1 billion in financing support from the U.S. Export-Import Bank, allaying concerns that it would not find sufficient financing.

Dominic Gates, Seattle Times aerospace reporter

Indonesian low-cost carrier Lion Air, which has a whopping 162 of Boeing's newest 737-900ERs on order, has won approval for more than $1 billion in loan support from the U.S. Export-Import Bank, allaying concerns that it would not find sufficient financing.

Ex-Im Bank's board approved $238 million in financing and made a nonbinding preliminary commitment of a further $841 million if Lion Air formally requests it. The bank said the combined amount will support the deliveries of 30 of the 737-900ERs from Boeing.

Bank spokeswoman Linda Formella said the money could be provided either as a loan guarantee or as a direct loan, depending on Lion Air's requirements.

"Ex-Im Bank welcomes this opportunity to support the export of Boeing aircraft to Lion Air," said Ex-Im vice president of transportation, Robert Morin.

Carol Sexton, Southeast Asia managing director of Boeing Capital, the company's financing unit, said in a statement that the financing would support jobs at Boeing in Washington state, and at engine-maker CFM International in Cincinnati, Ohio, as well as at hundreds of suppliers to both.

Last month at a conference in Phoenix, Ariz., Morin said the Ex-Im Bank sees the global credit crunch creating a big shortfall in airplane financing this year. He said the Bank will accordingly increse its financing in the sector, up from the $4-5 billion typical in recent years to around $8-9 billion in 2009.

The bank's explicit purpose is to support jobs in the U.S. by offering export financing.

"This is game day for the Ex-Im Bank," Morin said in Phoenix.

Lion Air's unfilled Boeing orders are worth more than $13 billion at list prices. Market data from aircraft valuation firm Avitas pegs the true value of those jets, after standard discounts, at more than $8 billion.

Dominic Gates: 206-464-2963 or dgates@seattletimes.com

Exodus

The Jakarta Post | Tue, 04/07/2009 11:16 AM

Would-be travelers line up for train tickets at Gambir Station in Central Jakarta on Monday. Many Jakartans are heading to their hometowns and villages to vote during the legislative elections that fall on Thursday. JP/R. Berto Wedhatama

US provides over $1b for RI airline upgrades

Ika Krismantari, THE JAKARTA POST, JAKARTA | Tue, 04/07/2009 11:01 AM

The United States Export-Import Bank approved more than US$1 billion in financing for Indonesian airlines to improve passenger fleets, generate business and create jobs in Indonesia and throughout the region.

In a press statement in Jakarta on Monday, the US Embassy said the financing was made possible after the ratification and implementation of the Cape Town Treaty, which allows Indonesian airlines to save millions of dollars in financing costs.

“This financing allows Indonesian-registered companies to gain very competitive rates and favorable credit similar to the most advanced countries in the world,” said US Ambassador Cameron R. Hume.

“This action by the US is a vote of confidence for the improvement of aviation regulation and the general business environment in Indonesia,” said Henry Bakti, the Indonesian Transportation Ministry’s director general for air transportation.

The financing will allow Lion Air to access $238 million to purchase new Boeing 737-900ER planes and provide preliminary authorization for another $841 million, for a total of 30 new passenger jets.

Last month, national flag carrier Garuda Indonesia announced the bank’s authorized joint financing of $346 million for increasing its’ fleet.

“We are delighted to offer Lion Air the reduced exposure fee available under this treaty, which reduces the legal risks associated with cross-border, asset-backed aircraft financing and leases,” said Robert Morin, Export-Import Bank vice president of transportation.

The loan facility is expected to boost not only aviation safety but also the country’s image, which has been marred by several air transportation accidents.

Since 2007, the European Commission has banned all Indonesian airliners from flying to EC territory in response to the country’s poor safety record. The government has since tried to improve the airline regulatory system and safety in the hope the EC will revoke the ban. EC representatives have promised to lift the ban, acknowledging the progress Indonesia has made. However, Indonesia will still need to comply with the remaining 10 of 60 flight safety requirements set out by the EC before the ban can be lifted.

At least six incidents of aircrafts skidding off the runaway occurred during the first quarter of this year.

While there were no fatalities, these accidents could signal the government’s sluggish effort to revise safety standards despite EC inspections to ensure the ban could be lifted.

Bad weather likely cause of crash

Yuli Tri Suwarni, THE JAKARTA POST, BANDUNG | Tue, 04/07/2009 8:40 AM

Litany of accidents: An aircraft hangar at Bandung’s Husein Sastranegara Air Force Base is seen with damage to its roof, after being hit Monday by a Fokker airplane that went on to crash into the tarmac amid heavy rain, killing all 24 Air Force personnel on board. JP/Yuli Tri Suwarni

The Air Force has blamed bad weather as the likely cause of Monday's deadly plane crash into a hangar when trying to land at an air base in Bandung during heavy rain.

The Fokker F-27 medium transport plane with tail number A-2703 had just returned from parachuting training session when the accident took place at about 1 p.m. at Husein Sastranegara Air Force Base.

The plane's six crew and 18 soldiers from the Air Force's Special Forces (Paskhas) were killed in the accident.

Monday's crash occurred just days before the Air Force celebrates its 63rd anniversary on Thursday.

Air Force Chief of Staff Marshal Subandrio said bad weather was the likely cause of the accident, with weather conditions at the time recorded as “TS RA”, or thunder, storm and rain.

Twenty-knot crosswinds were also recorded blowing from north to south when the airplane was trying to land coming from east to west.

Horizontal visibility from the tower was only 2 kilometers, with cumulus nimbus cloud formations hanging at an elevation of 1,500 meters.

“Complying with procedures, as the pilot could not see the runway, he was requesting a go-round,” Subandrio said at a press conference at the Air Force base.

“Tower officials did not see the airplane either when suddenly they saw smoke in the hangar.

“So the preliminary conclusion is [the accident occurred] because of bad weather.”

The plane, from the 2nd squadron based at Halim Perdanakusumah Air Force Base in Jakarta, crashed into the aircraft service hangar of state-owned aircraft maker PT Dirgantara Indonesia (PT DI).

The base compound is shared with PT DI and a civilian airport.

The plane exploded into a giant fireball upon impact, leaving rescue workers with the difficult task of identifying the victims. One rescue worker said they could only find body parts scattered around the accident site.

There were five planes being serviced at the time in the hangar. A Deraya Air Service NC-212-200 suffered a smashed wing, while a Batavia Air Boeing 737-300 suffered minor damage.

Three other aircraft — an Adam Air Boeing 737-300, a CN-235 to be delivered to France and a Robinson light helicopter — were not damaged.

The Air Force has set up an internal investigation team without the involvement of the National Transportation Safety Committee (KNKT).

Subandrio stressed that the F-27, built in 1976, had been certified airworthy and in good condition.

“The crew would not have flown the plane had it been not airworthy,” he said.

Prior to the accident, the Air Force operated seven F-27s.

President Susilo Bambang Yudhoyono has ordered Indonesian Military (TNI) chief Gen. Djoko Santoso to conduct a “thorough investigation” into the incident.

Presidential spokesman Andi Mallarangeng said Yudhoyono had also ordered the military chief to check the airworthiness of all the Air Force’s aircraft.

“The military chief reported the incident to the President shortly after it occurred” Andi said in a press statement.

“An interim report says it was caused by the weather factor.

“President Yudhoyono expresses his deepest condolences to the families of Air Force officers and members who died in the accident,” he added.

The plane was manned by pilot Capt. I Gede Agustirta Santosa and co-pilot First Lt. Yudo Pramono. Subandrio confirmed Yudo was the son of Iskandar Muda Military Commander Maj. Gen. Soenarko.

Related Article

Military chief says Fokker 27 was cleared to fly

Pilot sentenced to 2 years for crash

The Jakarta Post, The Associated Press, Yogyakarta | Mon, 04/06/2009 3:42 PM

Yogyakarta's Sleman District Court has sentenced pilot Capt. Marwoto Komar to two years in prison for crasing a jetliner in 2007, killing 21 people.

Komar was approaching the Yogyakarta runway at almost double the normal speed when his Garuda Boeing 737-400 careered into a rice paddy and burst into flames.

He is accused of disregarding repeated alerts indicating it was not safe to land - including at least one by his co-pilot urging him to circle around again.

"His negligence caused loss of life," presiding judge Sri Andini told the packed Sleman District Court as he handed down his verdict.

Komar - who together with the co-pilot and 117 others survived the crash - blamed mechanical problems and said he would appeal.

Among the dead and injured were Australian diplomats, police, military personnel and journalists who were following a visit by Australian Foreign Minister Alexander Downer to the central Javan city.

Indonesia has had a string of deadly plane crashes since 2005. Experts say poor maintenance, rule-bending and a shortage of properly trained pilots may contribute to the country's poor aviation safety.

24 dead in Bandung military plane crash

The Jakarta Post, The Associated Press, Bandung | Mon, 04/06/2009 6:48 PM

Air Force soldiers and families pay respect during the funeral of a number of victims of a military plane crash at Kalibata Heroes’ Cemetery in South Jakarta on Tuesday. The Air Force are investigating the cause of the incident which killed six crew and 18 Special Forces soldiers after the Fokker F-27 crashed into a hangar when trying to land at Husein Sastranegara Air Base on Monday. JP/J. Adiguna

During heavy rains on Monday a military plane carrying 24 people crashed into an airport hangar and burst into flames, killing everyone on board, an air force spokesman said.

Fire trucks and ambulances rushed to the scene, pulling bodies from the debris. Emergency workers carried charred parts of the downed Fokker 27 from the smoking hangar.

Air force spokesman Bambang Sulistyo said none of the 24 aboard the aging turboprop -- which was filled with trainees returning from a parachuting exercise -- survived. There were no casualties on the ground, he added.

It was not clear what caused the crash, which occurred as the pilot was trying to land during a heavy storm just outside the city of Bandung. Witnesses told Antara state news agency that the plane appeared to be shaking before diving to the ground.

"There was a thundering sound," said Budi Wuraskito, director of operations at the airport.

"The plane blew apart inside the hangar, which had several airplanes and helicopters inside."

Six crew, an instructor and 17 special forces trainees had been onboard the 32-year-old aircraft, Sulistyo said.

The country's air force has long complained of being underfunded and handicapped by a recently lifted US ban on weapons sales. It has suffered a series of accidents, including a Casa 212 plane that crashed during an aerial surveillance mission last year, killing 18 people.

A series of commercial airlines crashes in recent years has killed more than 120 people in Indonesia.

Cheap car, anyone?

The Jakarta Post | Sat, 04/04/2009 12:45 PM

A prototype of a microcar developed by teachers at Diponegoro University is seen in Semarang, Central Java, on Friday. The lecturers have been trying to create cars fitted with Chinese-made motorcycle engines. With engine capacities of 150 cc and 200 cc, the four-passenger car is projected to cost about Rp 30 million (US$2,700). JP/SUHERDJOKO

EU Ban Cost Garuda About $9m Annually

The Jakarta Globe, Putri Prameshwari & Janeman Latul, April 3, 2009

State-owned carrier PT Garuda Indonesia has lost potential sales of about $9 million annually as a result of the European Union’s blanket ban on Indonesian airlines since July 2007, a senior company official said on Friday.

“We lost about 50 percent of our sales [to European passengers], worth between $750,000 and $1.5 million a month since July 2007,” Emirsyah Satar, Garuda president director, said late on Friday. “However, this potential loss in sales is actually smaller compared to our total sales of around $1.8 billion in 2008 alone. The main problem for us is the bad image about our airline.”

Emir also said that Garuda currently has no code-share agreement with European-based airlines. But even if there was one, the ban would have forced the airlines to terminate their cooperation with flag carrier Garuda Indonesia.

In July 2007, EU imposed a blanket ban on all Indonesian airlines from flying to Europe. The ban, a source of embarrassment to the government, was based on 69 recommendations — including the improvement of oversight — from the International Civil Aviation Organization’s audit of local airlines in 2004-07.

Garuda has repeatedly asked the EU audit team what it needed to do to improve its safety performance, including attending the hearing with the EU aviation council in Brussel last year, along with Mandala Airlines and Airfast, to ask for an exemption. The council, however, refused to grant the request.

“We have already asked EU auditors what else can be done to lift the ban, but they say that it is a regulatory problem,” Emirsyah said.

However, Transportation Minister Jusman Syafii Djamal blamed differing standards of safety regulation as the main reason why the EU decided to delay reviewing Garuda’s security measures until June, despite the fact that it has repeatedly passed international safety audits by the International Air Transport Association. EU was expected to review Garuda Indonesia’s security measures in April.

“There is no guarantee that the European Union would lift its blanket ban on Indonesian airlines. The EU has its own standard in assessing our aircraft,” Jusman said.

He added that there should be a single international safety standard for air transportation to avoid overlapping of regulations between international aviation organizations.

A statement released by IATA on Wednesday said that Garuda Indonesia, the only IATA member from Indonesia, was listed on the IATA Operational Safety Audit registry. Some 230 airlines from around the world are members of IATA, which conducts a safety audit for all of its members once every two years.

Herry Bhakti, director general of civil aviation at the Transportation Ministry, said that as of March, Indonesia had fulfilled 90 percent of ICAO’s 69 recommendations. However, in their last meeting, the EU had not decided to lift the ban, and delayed it for another three months instead.

One of a kind

The Jakarta Post | Thu, 04/02/2009 11:04 AM

A man rides a modified motorcycle Wednesday near the Hotel Indonesia traffic circle in Central Jakarta. The bike has been customized to accomodate a wheelchair at the back. (JP/J. Adiguna)

City, police discipline motorcyclists, public buses

Triwik Kurniasari, The Jakarta Post, JAKARTA | Thu, 04/02/2009 10:57 AM

The city police have ruled all motorcycles and public transportation vehicles must use the left lane or the slow lane of the capital’s main roads, in a bid to reduce traffic accidents and ease the abysmal congestion.

Traffic signs and road markers have been installed along several of the city’s busier roads, including Jl. Sudirman and Jl. Thamrin in Central Jakarta, Jl. Matraman, Jl. Perintis Kemerdekaan and Jl. D.I. Panjaitan in East Jakarta, Jl. S. Parman in West Jakarta, Jl. Yos Sudarso in North Jakarta and Jl. Ciputat Raya in South Jakarta.

“We decided to put traffic signs on the roads because traffic jams in these areas are really bad,” city traffic police chief Sr. Comr. Chondro Kirono told reporters Wednesday.

“We want to improve road users’ discipline in abiding by traffic regulations to ease the congestion.”

Chaotic traffic has long been a problem in the capital, with more than 6.7 million motorcycles packing the capital’s streets everyday.

Traffic police will also require motorcyclists to use standard helmets that fully protect their heads. Many riders currently use substandard helmets.

Police said motorcyclists were less disciplined than car drivers. In 2008, police recorded 5,898 accidents involving motorcycles, with 1,169 fatalities, 2,597 severe injuries and 4,317 minor injuries.

Jakarta Police chief Insp. Gen. Wahyono said that last year police ticketed 272,495 motorcyclists.

Wahyono also blamed public transportation drivers for the majority of traffic accidents.

“Last year, we issued 111,396 tickets to public transportation drivers.”

Police also recorded 2,076 accidents involving these drivers.

Fathoni, a resident of Plumpang in North Jakarta, welcomed the discipline campaign.

“For me, it’s not a big deal if I have to ride in the slow lane,” he said.

“I’ve been trying to do that all along, after I was stopped and ticketed a few months ago by traffic police for riding in the fast lane.”

He added he would swap his substandard helmet for a proper one.

“I do have a standard helmet at home, but I prefer to use this smaller one for practical reasons,” he said.

Another motorcyclist, Mursid, objected.

“Why should they put us in the same lane as buses? [Public transportation drivers] often drive carelessly. They drop and pick passengers anywhere they please. It’s very annoying.”

The slow lane for motorcycles is not a new concept, having long been in force on main thoroughfares like Jl. Sudirman. But in practice, many motorcyclists still ride in the fast lane and go unpunished.

City official Sutanto Soehodho said the ruling would be effective only if passengers also took part in the drive.

“Most buses pick up and drop off passengers in the middle of the street because the passengers want them to,” he said.

“The [passengers] should also be more disciplined by getting on and off at bus stops. It’s for their own safety and comfort.”

AirAsia to add new routes to Singapore network

Peanuts Online, Wednesday, 1 April 2009

Banking on the success of its 4 new routes between Indonesia and Singapore, AirAsia is now looking at adding more routes to the island-city in 2009, said its Group CEO Tony Fernandes.

Inaugural flights between Singapore and Indonesian cities of Jakarta, Bandung, Yogyakarta and Bali took off on 24-Mar-09, recording forward bookings of 80,000 so far. AirAsia is the only airline flying the Singapore-Bandung route and is the first low-fare airline to service the Singapore-Yogyakarta sector.

AirAsia’s first route between Indonesia and Singapore was from Pekanbaru, which commenced in August last year.

Apart from Indonesia, AirAsia currently flies between Singapore and the Malaysian cities of Kuala Lumpur (7 daily flights), Kuching (1) and Kota Kinabalu (1), as well as Bangkok (4) and Phuket (1) in Thailand. These bring AirAsia’s total number of weekly flights to and from Singapore to 140.

Fernandes said, “Singapore is very special to AirAsia and we consider it a virtual hub. AirAsia’s latest Indonesia-Singapore link forms the final piece of our network jigsaw puzzle as it resembles the importance of the AirAsia network, making it the most powerful in Asia. Currently, we have a combined total of 10 routes connecting Singapore and we are looking at introducing at least 3 more new routes this year. Based on our projections, we will carry a total of 2 million guests to and from Singapore in 2009.”

AirAsia is considering a number of cities to be linked to Singapore and among the destinations in the pipeline are Penang and Langkawi in Malaysia, as well as Medan and Surabaya in Indonesia. AirAsia will also increase the frequencies of some of the existing routes to Singapore this year.

Fernandes said, “Given the current economic climate, this positive link between these new services is indeed such an encouraging response. Greater connection to both countries would not only boost economic growth by providing better access to markets but also enhance links within travel, trade and tourism. It is also a perfect match as both hubs, Singapore and Indonesia are able to feed traffic to the cities, connect to other points serviced by AirAsia’s extensive routes and international destinations serviced by AirAsia’s long-haul affiliate, AirAsia X via the Kuala Lumpur hub. This initiative will also help the pace of integration between Indonesia and Singapore in particular, and bridge ASEAN closer by enabling intra-Asean travel with AirAsia’s connectivity and route network via our strategic hubs in Indonesia, Malaysia and Thailand.”

Meanwhile, CEO of Indonesia AirAsia, Mr. Dharmadi commented: “These new routes signify our effort in realizing the open skies policy. Despite the economic uncertainties, Indonesia still recorded the largest number of tourist arrivals to Singapore among Asean countries. This good indication of strong growth will definitely instill integration between Indonesia and Singapore, and to enable intra-Asean travel with AirAsia’s connectivity and route network via our strategic hubs in Indonesia, Malaysia and Thailand.”

KLM upbeat on Indonesian market, brings in new aircraft

Novan Iman Santosa, The Jakarta Post, Jakarta | Wed, 04/01/2009 2:56 PM

KLM, the Royal Dutch Airline is upbeat about the Indonesian passenger market, describing it as a strong one, despite the current global economic downturn.

"Indonesia is withstanding the global crisis quite well while Singapore, Australia and New Zealand are hit much harder," Air France KLM general manager for the region (comprising Singapore, Indonesia, Australia and New Zealand), Paul Rombeek, told reporters Monday.

"However, we do see worldwide that all economies are in trouble."

Rombeek, appointed in February, quoted IATA suggesting airlines worldwide might suffer losses of up to US$4.6 billion this year.

Meanwhile, Air France KLM country manager Axel Theo Colen said the airline was experiencing a fall of 10 to 20 percent in bookings.

Colen emphasized however that Indonesia reached its budgeted target for the year ending March 31.

"This means that there was growth in Indonesia compared to the 2007/2009 fiscal year," he said.

"Indonesia has big potential despite negative trends in bookings."

Colen, however, declined to reveal any load factor figures from Jakarta saying this was confidential.

KLM serves daily the Jakarta-Amsterdam route via Kuala Lumpur.

Both Rombeek and Colen were speaking before a ceremony to welcome the new Boeing 777 at the Soekarno-Hatta International Airport in Cengkareng, Banten.

Previously the route was served by the 428-seat Boeing 747-400 aircraft which flew the route four times a week. The 280-seat 747-400 Combi (combined with freight) flew the other three times a week.

KLM currently has 15 Boeing 777-200s in its fleet, with two more expected later this year.

The airline also has two Boeing 777-300s with two more expected to arrive in May and August.

The 200 series has 327 seats while the 300 series has 425 seats. Both series have 35 business class seats while the rest are economy seats.

The 300 series will fly every Monday, Wednesday, Thursday and Saturday with the 200 series flying on Tuesday, Friday and Sunday.

The use of the Boeing 777 provides an additional 150 seats per week or an increase of 6 percent.

"Not only is the new airplane a reward for the route for good performance but it also offers a better product to passengers," Colen said.

With better technological advances Colen said the Boeing 777 burned less fuel than the 747.

A round trip with a 747 needs 300 tons of fuel while the 777 only needs some 230 tons," he said.

Whirlwind hits Central Jakarta, tower collapses

The Jakarta Post, Jakarta | Tue, 03/31/2009 7:21 PM

A tornado had reportedly hit several areas in Central Jakarta Tuesday evening, kompas.com reported.

Petojo and Cideng were among the areas hit by the whirlwind that occurred within a ten minute time frame.

According to residents, house rooftops, tree branches, a billboard and a tower belonging to the City Transportation Agency were blown away.

Central Jakarta mayor Sylviana Murni is said to have inspected the damages.

"I've just toured the area to observe the situation at hand," Murni said. (amr)

Indonesia offers US$6.14 bln high-speed rail project

Jakarta (ANTARA News/Asia Pulse) -- Indonesia's Transport Ministry has invited investors to build a US$6.14 billion high-speed train and track project covering a distance of 683 kilometers between Jakarta and Surabaya in East Java.

Railway Director General Wendy Aritenang Yazid said the government will facilitate the process of securing the license and guarantee legal certainty for investors agreeing to build and operate the project.

Prospective investors may build and operate the project without involving the state-owned railway company PT Kereta Api, Yazid said.

Lombok Int'l Airport should complete this year : VP Kalla

The Jakarta Post, Jakarta | Sun, 03/29/2009 4:30 PM

The construction of the Lombok International Airport in Tana Awu village, Central Lombok, West Nusa Tenggara is targetted to complete by October this year, state officials said Sunday.

In a coordinating meeting between Vice President Jusuf Kalla, Transportation Minister Jusman Syafeii Djamal and State Enterprises Minister Sofyan Djalil in Mataram,

Kalla emphasized the importance of the rapid completion of the airport project in order to support the Dubai Emaar Properties investment project on the island.

It is expected that the completion of the airport would go in hand with the completion of the planned tourist resort, he said.

The construction of the airport, which so far has costed Rp 802 billion, is expected to complete by the end of 2009 for operation in 2010.

Kompas.com reported that up to 69.91 percent of the airport runway infrastructure were done, while 64.77 percent of the passenger terminal and parking area construction needed to be completed. (amr)

More Air Safety Inspectors on Runway

The Jakarta Globe, Putri Prameshwari, March 27, 2009

In the latest effort to improve the country’s aviation safety, the government is adding more inspectors to monitor aircraft maintenance, the country’s most senior aviation official said on Friday.

An additional 10 inspectors would start their work on April 1 to monitor aircraft maintenance by all Indonesian airlines, said Herry Bhakti, director general of civil aviation at the Transportation Ministry.

The inspectors are currently working as pilots who will take a leave of absence for one year from their airlines to augment the existing 146 aviation inspectors on the ministry’s staff.

“This is part of our effort to meet European Union recommendations,” Herry said, referring to the ban imposed on all Indonesian aircraft from flying in European airspace, a restriction that has been in effect since July 2007.

The ban was based on recommendations issued by the International Civil Aviation Organization, citing safety as the reason.

The 10 inspectors, Herry said, comprise senior pilots from several airlines including state-owned Garuda Indonesia and Merpati Nusantara Airlines. “There will be a cross-checking system,” he said, “so pilots from Garuda will not monitor their own airline.”

The government has been increasing its efforts to improve national aviation. However, the country has been hit by a string of accidents and incidents in the past month.

The latest occurred on Monday when a Boeing 737-200 operated by Sriwijaya Air was forced to divert to Batam en route from Tanjung Pinang to Jakarta after an engine failure 20 minutes into its flight.

Transportation Minister Jusman Syafii Djamal said the ministry would frequently conduct surprise inspections on aircraft maintenance facilities, starting with PT Aero Nusantara Indonesia, a maintenance hangar used by Sriwijaya Air, Express Air and Kartika Airlines. He said only hangars with approved certificates can service aircraft in the country.

“I recommend airlines rejuvenate their aging aircraft, including Boeing 737-200s,” he said, adding that the ministry would impose tighter regulations on aircraft age and maintenance by sanctioning airlines with jets that accumulate prolonged flight hours.

He said that after 70,000 hours of flight, an aircraft should be “phased out,” or unauthorized to fly again, adding that an airline must change the aircraft with a newer model.

The country relies heavily on air and sea transportation to link people among its archipelago of 17,000 islands. However, poor infrastructure and inadequate safety measures often lead to overcrowding, accidents, damage to property and even casualties.

Loose screws not enough to make planes grounded

The Jakarta Post, Jakarta | Sat, 03/28/2009 1:34 PM

The Transportation Ministry has dismissed as "insignificant" loose screws, broken lights and other technical flaws found in several of the 21 passenger planes it checked on Thursday.

"The flaws found were insignificant," Yurlis Hasibuan, airworthy certification director at the Transportation Ministry's air transportation directorate general, told The Jakarta Post on Friday.

"According to our standards, those planes are airworthy."

The country has experienced a slew of aircraft accidents in the past few years. In 2007, 10 such incidents occurred, prompting the European Commission to ban all Indonesian airlines from EU airspace.

The deadliest accident involved a Boeing 737-400 belonging to the now defunct Adam Air, which went missing on its way to Manado, North Sulawesi, from Surabaya, East Java on Jan. 1 last year.

Yurlis said his office on Thursday checked 21 planes belonging to low-cost airlines such as Mandala, Sriwijaya Air, Lion Air and Batavia Air at Soekarno-Hatta International Airport, Jakarta.

The inspection team found several technical faults such as loose screws on a Lion Air plane's underbelly.

"The screws were immediately screwed back into place, to prevent metal slabs from coming off the plane's underside," he said.

Last year, six metal slabs from a Batavia Air plane fell and damaged roofs in Tangerang, Banten province, during its flight.

Thursday's inspection also revealed broken emergency lights meant to guide passengers to the plane's exits.

The team also found several planes with malfunctioning auxiliary power units.

"Any malfunction of this unit will force the plane to use ground power for takeoff.

"This will need to be fixed within 10 days or the plane will have to be grounded," Yurlis explained.

He added some of the planes that were checked Thursday had been used for more than 20 years, especially the Boeing 737-200 types.

Boeing 737 planes feature prominently in the litany of Indonesian aircraft accidents.

Besides the 2007 Adam Air case, a Boeing 737 belonging to the country's flag carrier Garuda Indonesia crash-landed in Yogyakarta in March that same year, killing 21 passengers.

The latest Boeing 737 case was the emergency landing of a Sriwijaya Air plane at Hang Nadim Airport in Batam, its journey cut short by engine failure.

Transportation Minister Jusman Syafii Djamal commented earlier this week that the ministry had advised Sriwijaya to replace its outdated Boeing 737-200 planes with newer models before the accident occurred.

The minister also called for higher taxes to be imposed on old planes, in an attempt to shorten the average working period of the country's aircraft to 15 years from the current 35 years. (dis)

'It Sounded Like Thunder, Then All Hell Broke Loose'

The Jakarta Globe, Nivell Rayda & Muningar Sri Saraswati, March 28, 2009

See Also: The Situ Gintung Disaster: Special Coverage from the Jakarta Globe

“It sounded like thunder, and moments later all hell broke loose,” said Rachman, whose home is near the Situ Gintung reservoir, recounting the moment in the dark early hours of Friday when part of the high mound of earthen embankment at the northeastern end of the reservoir suddenly crumbled, sending water gushing down into the natural valley below.

Rachman, whose home was spared by the flash flood, said that he and other residents had been worriedly watching the bank of the reservoir as the water level was nearing the brim following recent rains in the area and in upstream regions.

“At about midnight [Friday], water levels almost reached the edge of the dike,” Rachman said.

“Residents saw that water was already leaking [from the bank] and it gradually got worse.”

A roughly 20-meter pan of the embankment finally crumbled under the pressure of the water at about 4 a.m.

The Situ Gintung dike, built by the Dutch more than 76 years ago, retained some two million cubic meters of water in the 21-hectare reservoir. Cracks had already become noticeable in the embankment there about a year ago, the local urban ward leader said.

Water gushing through the breach left the reservoir almost empty in just about 10 minutes. Rachman said he watched helplessly, and in horror, from a height as a torrent swept everything clear from its path.

The raging water swept through houses, most of them semi-permanent, and residential areas along its path before its force found a channel into the Pesanggrahan River about a kilometer away.

It destroyed hundreds of houses in three densely packed neighborhoods in Cireundeu, an urban ward in Banten Province with a population of around 30,000.

Most of the victims were caught in their sleep. An 8-year-old boy, Ferry, miraculously survived the flood and was found in his wet pajamas atop his neighbor’s roof. His mother and younger sister were found dead later, while his father and an elder brother remained missing .

Early risers were not spared. Many women had left long before dawn broke to shop at the main traditional market in Ciputat, about 2.5 kilometers away.

At about 7 a.m., one of the women returning from the market screamed hysterically as she discovered that her house was gone and her two sleeping little children missing.

“It should have been me, it should have been me,” she wailed.

Rescue teams rushing to the area were hindered by the thick sludge deposited by the water after the floods subsided, as well as piles of debris.

Dead bodies were still being found well into the afternoon, some inside houses still inundated. By late Friday at least 58 people had been found dead. Rescue and evacuation efforts were also hampered by the small and winding alleys in the slums surrounding the affected areas.

The water, flushing into the Pesanggrahan River, caused flooding as far away as the Rempoa area of South Jakarta, about four kilometers away from Situ Gintung, and cut off traffic on the Ciputat main road, inundating an important bridge there.

Temporary shelters and operational centers were set up at two private universities in the area, and most of the dead found were sent there for identification and for their families to claim. Others were sent to the Fatmawati General Hospital about 30 minutes away.

The three venues were packed with people looking for their missing relatives, checking bodies laid on the floor and covered by thin blankets or batik cloths.

Top government officials, including President Susilo Bambang Yudhoyono, Vice President Jusuf Kalla, Coordinating Minister for People’s Welfare Aburizal Bakrie, Public Works Minister Djoko Kirmanto and others, all converged on the site in order to be briefed on the disaster and to issue directives.

The officials pledged to help the survivors rebuild their homes and to construct a stronger embankment. Situ Gintung acts as one of the main fresh water reservoirs for the city.

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Govt mulls higher taxation on aging planes

The Jakarta Post | Fri, 03/27/2009 8:10 PM

Transportation Minister Jusman Syafii Djamal said his ministry was considering proposing a higher tax on aging airplanes than on newer ones.

"Ideally, aging planes should be subject to higher taxes. This is expected to indirectly discourage the use of aging fleets and make airline companies aware of the fact that using old planes is inefficient," the minister said in Jakarta as quoted by Antara newswire on Friday.

The minister made the statement in connection with the frequent occurrence of accidents involving old planes of late.

Last Wednesday, a B737-200 passenger plane of Batavia Air developed a leak in one of its engines forcing it to cancel its take off from Soekartno-Hatta airport.

On March 23, a plane of the same type of Sriwijaya Air made an emergency landing at Hang Nadim Aiport, Batam, after one of its engines failed.

But the minister did not say when the progressive tax on old airplanes would be imposed. "This is an option. We want planes operated in Indonesia to have a maximal age of 21 years," the minister said.

He said it would be better if Indonesia could follow the example of Singapore where every plane which had been in operation for five years was 'put to rest'.

Djamal said that his ministry was encouraging airline companies to merge in an effort to avoid stiff competition among them.

"Ideally, Indonesia should only have seven airline firms with a fleet of 400 airplanes," the minister said.

JICA Loan For MRT On Track

The Jakarta Globe, Muhamad Al Azhari, March 26, 2009

The development of Jakarta’s long-delayed mass rapid transportation system, or MRT, appears to be gathering steam, with a Finance Ministry document revealing that Indonesia and the Japan International Cooperation Agency are set to sign a deal on Tuesday that would set aside 48.15 billion yen ($491 million) in low-interest loans for the project.

The deal represents part of JICA’s 120-billion-yen commitment to finance 85 percent of the transportation system, which the municipal government hopes would help solve the capital’s traffic problems.

The funds from JICA are being provided under the Special Terms for Economic Partnership, a soft loan scheme, and will be divided into four disbursements.

The first tranche, agreed to in June, amounts to 1.86 billion yen. On Wednesday, the central government gave 758 million yen as part of this tranche to the Jakarta administration to pay for consulting services and an equity stake in PT Mass Rapid Transport Jakarta, which will develop and operate the project.

“This grant shows the commitment of the central and local governments to develop infrastructure amid the global [financial] crisis,” Jakarta Governor Fauzi Bowo said at a ceremony to mark the release of the grant to the Jakarta administration at the Finance Ministry’s headquarters.

“We expect this project will progress smoothly and that people will reap the benefits,” Fauzi added. “Having [the MRT] in our city is not just a dream. This is real and it should be available as soon as possible.”

The first part of the MRT is expected to link Lebak Bulus in South Jakarta to Dukuh Atas in Central Jakarta with a 14.5 kilometer rail network built both underneath and above the ground.

The second part will connect Dukuh Atas to Kota, also in Central Jakarta, and the third will link East and West Jakarta. Both the second and third phases are still undergoing feasibility studies.

Unlike Kuala Lumpur, Singapore, Bangkok and other regional capitals, Jakarta has no subway or light-rail system, resulting in the city’s trademark traffic jams.

The idea of building an MRT system in Jakarta was first put forth in the 1980s. Former President Suharto’s government also pushed unsuccessfully for the project in 1995. The proposal was revived by former Jakarta Governor Sutiyoso in 2002, but it was not until 2006 that JICA and the government finally agreed on funding and logistics.

Another mass transport project, the Jakarta monorail, has been in limbo since financing fell through in late 2007.

And despite the recent progress on the MRT system, Jakarta residents may still have to wait a while.

Tenders for the project may not begin until the end of 2010, with construction not scheduled to start until early 2011. The system itself is expected to be operational by early 2016.

Related Article:

Finance Minister: People still waiting for MRT

Minister Reveals Price Probe over Merpati Deal

The Jakarta Globe, Janeman Latul, March 26, 2009

The Merpati-Xi’an fiasco appears to have soured trade ties between Indonesia and China. (Courtesy of Xi’an Aircraft Industry Co.)

The central government will investigate possible corruption involving markups on 15 aircraft bought in a deal worth $231 million between state-owned carrier PT Merpati Nusantara Airlines and Chinese Xi’an Aircraft Industry Co., Sofyan Djalil, the state-owned enterprises minister, said on Wednesday.

Sofyan said the government’s probe would be part of the process of resolving the stalled deal with the Chinese company.

“I think we will seek further details about the prices of the planes before we come to a conclusion,” he said. “I don’t know the details yet [on the prices] but it must be explained.”

“But let’s not come to a hasty conclusion,” he said, adding that the Merpati-Xian deal also included options for spare parts supplies during the next three years, including flight simulators, which could mean the price would be higher than normal.

Merpati agreed to purchase 15 MA-60s in 2006 using a soft loan facility provided by the Chinese government. However, Merpati, saddled with serious financial problems, never followed through on its purchasing commitments.

Xi’an has already threatened to take Merpati to international arbitration in Singapore to recover $90 million in damages from the now-frozen deal, souring bilateral relations between China and Indonesia. The deal has also been blamed for postponing loans of about $5 billion from Chinese banks for the government’s fast-track electricity program.

The 56-seater aircraft has been exported to various countries. And according to Kathmandu-based Nepalitimes, Royal Nepal Airlines paid only $11 million per plane for two aircraft in mid-2005 and got another for free.

Recently, Drajad H. Wibowo, a senior member of the House of Representatives’ Commission XI, which oversees the state budget, called for a corruption investigation into the stalled purchases.

“This issue needs to be investigated by many parties, including the Corruption Eradication Commission,” he said. “I have asked the government to fully scrutinize all foreign loans because most of them involved [illegal] markups.”

Meanwhile, a source within the State-Owned Enterprises Ministry said he suspected that officials at the Finance Ministry, Merpati, the National Development Planning Board, or Bappenas, and Xi’an had colluded to mark up the price of the aircraft.

He based his suspicions on the deal’s high cost.

“The normal price for an MA-60 is about $11 million, but we accepted $15 million [per plane],” he said. “That’s outrageous.”

Hotasi Nababan, the former president director of Merpati who signed the deal back in 2006, told the Jakarta Globe recently that he did not wish to comment on the issue and would leave the matter to the team in charge of restructuring the purchase.

Meanwhile, Sahala Lumban Gaol, head of the negotiating team for Merpati who traveled to Beijing last week with Finance Minister Sri Mulyani Indrawati and Trade Minister Mari Pangestu, said the talks to settle the deal were in an “advanced phase” where both parties had to prepare the options for a settlement.

“However, I cannot reveal the options now, as we are still in negotiations,” he said, adding that his team would find a win-win solution for Merpati and Xi’an.

IBM Jumps on the High-Speed Rail to China

Fastcompany, BY Ariel Schwartz, Wed Mar 25, 2009 at 1:50 PM

Oil prices may not be rising quite as dramatically as they were a year ago, but mass transportation--and more specifically, high-speed rail--is still growing in scope and importance. According to the International Monetary Fund (IMF), three quarters of G-20 countries (including France, China, Germany, Indonesia, and Italy) plan to increase funding for transportation infrastructure. And since the cornerstone of any successful transportation network is reliable computer technology, it's not surprising to hear that IBM is jumping on the high-speed rail train.

The computer giant announced plans today for high-speed rail projects in China, Taiwan, and the Netherlands. IBM will be responsible for managing maintenance, logistics, and IT needs in the China and Taiwan projects, while the Netherlands will rely on the company for resource utilization. It's not a small job.

In the Netherlands, IBM will oversee nearly 5,000 trains passing through a network of 279 stations. The Guangzhou Metro Corporation (GZ Metro) transports 2 million passengers per day across 60 stations, and is investing $1.76 billion this year to expand the network.

All of this is great news for denizens of these three countries, but what about those of us in the United States? When do we get our fancy high-speed rail lines? Relatively soon, if the U.S. government's $8 billion in rail-line stimulus funds goes ahead as planned. And when we do get our high-speed rail, IBM is likely to be a part of it. The company, which manages Amtrak's reservation system, is already angling for a chunk of the stimulus money. In the end, IBM might be known more for its ubiquitous transportation software than its consumer technology.

Finance Minister: People still waiting for MRT

Jakarta (ANTARA News) - Acting Minister Coordinating the Economy/Finance Minister Sri Mulyani Indrawati said the Jakarta mass rapid transport (MRT) is being awaited by the people, so that the Jakarta City Administration needs to seriously realize the infrastructure project.

"It is no use to have a governor as an engineer if he is incapable of solving the transportation problems in the capital city," Sri Mulyani said during a ceremony of signing an agreement on a government grant for the Jakarta city administration at her office on Wednesday afternoon.

The agreement was signed by Financial Balance Director General at the Finance Ministry Mardiasmo and Jakarta Governor Fauzi Bowo.

Sri Mulyani said actually Indonesia has joined the groups of countries with a middle per capita income in the world, but still without a reliable mass transport facility.

World's cheapest car is launched

BBC News, 23 March 2009

The Tata Nano, the world's cheapest car, is being launched in India.

Costing just 100,000 rupees ($1,979; £1,366), the Nano is due to go on sale across India over the next 10 days.

Tata hopes the 10 feet (3 metre) long, five-seater car will be cheap enough to encourage millions of Indians to trade up from their motorcycles.

Tata owner Ratan Tata has described the launch as a "milestone". Analysts say it will take the firm up to six years to make a profit from the Nano.

Factory row

The four-door Nano has a 33bhp, 624cc engine at the rear.

The basic model has no airbags, air conditioning, radio, or power steering. However, more luxurious versions will be available.

A slightly bigger European version, the Nano Europa is due to follow in 2011, and is expected to cost nearer to £4,000.

Analysts said that if the car proves an immediate hit in its home market, Tata may struggle to meet demand.

This is because the main Nano factory in the western state of Gujarat, which will be able to build 250,000 cars a year, is not due to open until next year.

In the meantime, Tata will only be able to build about 50,000 Nanos at its existing plants.

The delay happened when Tata had to abandon plans to build the Nano in a new plant in the eastern state of West Bengal due to a row over land acquired from farmers.

This caused the launch of the Nano to be put back by six months.

'Milestone'

Tata's managing director Ravi Kant said that bookings for the car will start on 9 April, and that a ballot will then select the first 100,000 people to get their Nano.

Deliveries will then begin from July.

"I think we are at the gates of offering a new form of transport to the people of India and later, I hope, other markets elsewhere in the world," Mr Rata told reporters gathered for the launch.

Even if Tata can sell 250,000 models a year, it will add only 3% to the firm's revenues, says Vaishali Jajoo, auto analyst at Mumbai's Angel Broking.

"That doesn't make a significant difference to the top line," he said.

"And for the bottom line, it will take five to six years to break even."

Yet with seven million motorcycles sold last year in India, Tata is eying a huge marketplace for the Nano.

Like almost all global carmakers, Tata has seen sales fall as the global economic downturn has continued.

The firm made a 2.63bn rupees loss for three months between October and December.

In addition, Tata is struggling to refinance the remaining £2bn of its £3bn loan it took out to buy the Jaguar and Land Rover brands from Ford in June of last year.

Minister says RI, China may settle Merpati contract soon

Mustaqim Adamrah, THE JAKARTA POST, JAKARTA | Mon, 03/23/2009 1:22 PM

The government is expecting the protracted contract dispute between ailing state airline company PT Merpati Nusantara Airlines and China's Xi'an Aircraft Industry can be settled this week, State Minister for State Enterprises Sofyan Djalil says.

"We still need more discussions; between Merpati and Xi'an; and between the Indonesian government and the Chinese government," Sofyan told The Jakarta Post recently.

"We're settling this problem. We hope to resolve this by next week (this week) and hope no more talks are required. We'll announce the result next week (this week)," he said.

Acting Coordinating Minister for the Economy Sri Mulyani Indrawati flew to China Wednesday to resolve several problems hampering China's pledge to finance the country's 10,000 megawatt power projects.

These problems include the contract disputes with China and Xi'an.

The dispute started in 2008 when Merpati failed to honor its commitment to pay up US$230 million for the purchase of 15 Xinzhou-60 aircraft, at a price of around $15 million each.

The commitment was stipulated in a contract Merpati signed in 2006 with Xi'an. Merpati used a soft-loan facility from the China Export Import Bank to finance the purchase.

Partly due to its financial problems, Merpati is now placed under a financial restructuring program run by the Asset Management Company (PPA).

Xi'an has said it might take the dispute to international arbitration.

With Merpati's "huge" debts, the dispute apparently widened to the extent that there was growing speculation that the row between Merpati and Xi'an may have played a part in holding back loan disbursements for the 10,000 MW projects led by state power company PT Perusahaan Listrik Negara (PLN).

Chinese lenders would be likely to stick to their positions until the Merpati debts are settled.

Since there were no other options open, Merpati and PLN finally passed on the dispute to the government for settlement.

"Merpati already has had business-to-business negotiations with Xi'an four times (to settle the dispute). But there were no agreements on some points (in our negotiations)," Merpati president director Bambang Bhakti said, after a meeting with Vice President Jusuf Kalla at the vice president's office Friday.

"So, this will go back to government-to-government (talks)," he said, adding the company would only be able to pay for eight aircraft.

"We start making an operating profit but we're still on our way to recover. How are we going to repay our debts?" he said refusing to elaborate.

A presidential palace source said the government would now cover half of the Merpati debts to Xi'an.

PLN president director Fahmi Mochtar has now ensured that Chinese financiers would stick to their commitment to help fund the power projects. The crash energy program needs $8 billion to be completed. PLN has so far secured $6.4 billion.

International airline passengers may dip

Mustaqim Adamrah, THE JAKARTA POST, JAKARTA | Mon, 03/23/2009 1:23 PM

Indonesian airline companies may carry fewer international passengers during the first quarter of the year as people travel less due to a combination of the normal low season cycle and the deepening global economic crisis, an association says.

Chairman of the Indonesia National Air Carriers Association (INACA) Emirsyah Satar told The Jakarta Post recently that people are tending to travel to nearby areas and regions as they have less money.

Because of changed preferences, Emirsyah forecast that less than 1 million international passengers would be recorded between January and March, or a slight decline compared to the same period of last year when there were also around 1 million passengers.

Based on passengers carried by the state airline company Garuda Indonesia, Emirsyah said there was a decrease in the number of passengers from Europe and the United States to Indonesia because of the crisis.

However, there was an increase in the number of travelers from China and South Korea, he added.

"These passengers, we can say, used to fly to Europe and the United States," he said.

Around 5 million to 6 million international travelers enter Indonesia every year, according to Emirsyah.

Of that number, 250,000 passengers are from China, 500,000 from Japan, and 300,000 to 350,000 passengers from Korea, he said, adding there had not yet been any projection for the expected increase in the number of passengers from China, Japan and South Korea into Indonesia, nor of the anticipated decrease in passengers from Europe and the United States.

According to the Central Statistics Agency (BPS), 473,165 foreign tourists were recorded in January this year, a 8.04 percent jump from 437,966 in January last year. The January figure is a 22.49 percent drop from the 610,452 booked in December last year.

The BPS also recorded 6.23 million foreign tourists arrivals last year, up by 13.24 percent from 5.51 million in 2007.

Despite a projected slight decline in international passengers, Emirsyah, however, believed that the country would see a new expanding market in passengers from China.

"There's a big opportunity from China, which records around 48 million international trips every year," he said.

"China's economy, even though it is also declining, is still relatively good compared to other countries. It will be nice if we can have a slice of that (market opportunity),"

Emirsyah earlier said local airlines could be severely affected by the crisis, with their revenues likely to grow not more than 10 percent this year, contrasted to more normal 15 to 20 percent achieved during the past four years.

These local airlines, he said, would now have to rely on domestic flights to maintain their businesses.

Indonesian airlines have been able to maintain their load factor by an average of 80 percent last year. This year's load factor is forecast to work out the same as for last year.

Last year, Indonesia had 14 airlines operating 739 airplanes, a 36 percent increase on the 542 planes available for services in 2007. These airlines serve 167 domestic routes connecting 87 cities.

According to the Transportation Ministry, domestic passenger numbers last year reached 46 million, up by 18 percent from 39 million in the previous year (2007).