Navy plane overshoots runway

The Jakarta Post

JAYAPURA, Papua: A Navy aircraft overshot the runway as it landed at Oksibil Airport in Pegunungan Bintang regency, in Papua, on Wednesday morning.

The Cassa 212 pilot, First Lt. Hidayat Marpaung, and co-pilot First Lt. Sahid B. landed the plane at the 300-meter mark of the 900-meter runway and then overshot it by 20 meters.

The plane was carrying one ton of food supplies for soldiers from the 521st Company of the East Java Brawijaya Military Command. Two mechanics were also on the plane.

"There were no casualties but the plane has incurred damage to its front wheel and left wing...repairs are needed before it can fly again," Pegunungan Bintang Transportation Office head J. Duma Roni told The Jakarta Post by phone from Jayapura. - JP

China finds its way to space despite U.S

The nation seeks prestige and profit with a plan to launch satellites and probes.

Jim Yardley, The New York Times

Orlando Sentinel, May 26, 2007

BEIJING -- For years, China has chafed at efforts by the U.S. to exclude it from full membership in the world's elite space club. So, lately, China seems to have hit on a solution: create a new club.

Beijing is trying to position itself as a space benefactor to the developing world -- the same countries, in some cases, whose natural resources China covets here on Earth. The latest, and most prominent, example came last week when China launched a communications satellite for Nigeria in a project that serves as a case study of how space has become another arena where China is trying to exert its soft power.

Not only did China design, build and launch the satellite for oil-rich Nigeria -- it provided a huge loan to help pay the bill. China also has signed a satellite contract with another major oil supplier, Venezuela. It is developing an Earth-observation satellite system with Bangladesh, Indonesia, Iran, Mongolia, Pakistan, Peru and Thailand. And it has organized a satellite association in Asia.

Read More ....

Merpati airlines to focus on serving domestic market

Darwin (ANTARA News)- The focus of Merpati Nusantara Airlines (MNA)`s development continues to be serving the domestic market and therefore it has concluded cooperation agreements with a number of regional governments, a spokesman said.

Husnul Mulia, MNA`s district manager in Darwin, Australia, told Antara here on Saturday evening that this kind of flight services cooperation had been entered into with the Merauke district administration (Papua). Under the cooperation, MNA would open a Merauke-Jakarta vice-versa flight service every day.

"One such agreement that is already being implemented is with the Merauke district government. Reports even said two aircraft will be used to ply the Merauke-Jakarta route due to the increasing number of passengers," Husnul said shortly before boarding a flight to return to the MNA head office in Jakarta.

Husnul who had lived in Darwin for over four years explained about MNA`s policy that decided to temporarily close its office in Darwin since last May 15, 2007.

MNA opened its overseas operation office in Darwin in 1986, he said, adding that although the company`s representative office in Darwin had been closed temporarily, MNA would maintain its Darwin-Kupang flight service.

"We continue operating with our flight licence, although our overseas representative office has been temporarily closed since May 15 pending the arrival of new Boeing 737-300 type and another 737-400 type aircraft because Merpati wants to focus on domestic flight services," he said.

According to him, Merpati-Airnorth (Australia`s) airlines, plying Darwin-Kupang route would continue to operate.

Palapa Ring in Eastern Indonesia to Operate in 2013

Friday, 25 May, 2007 | 13:34 WIB

TEMPO Interactive, Jakarta:The operation of a fiber optic network in eastern Indonesia will begin in 2013. The construction of the backbone will be as long as 10,000 kilometers, crossing Nusa Tenggara, Maluku, Papua through to the Celebes.

The Directorate General of Post and Telecommunication spokesperson, Gatot S. Dewa Broto, said that the fiber optic network in eastern Indonesia has the capacity of 20 gigabyte per second (gbps) with investment totaling Rp3 million.

“Network construction will be done gradually for three years,” said Gatot in Jakarta yesterday (24/5). After the network is operated, the people in these areas will obtain telecommunication services of voice up to broadband access.

The availability of infrastructure will also make telecommunication and internet service tariff more affordable. The application of distant learning, telemedicine, e-government and applications can also be implemented.

Eko Nopiansyah

Airlines Must be in First Category by 2008

Friday, 25 May, 2007 | 15:34 WIB

TEMPO Interactive, Jakarta: All national airlines must be included in the first category of the Transportation Department's standard by next year. This category requires airlines to fulfill all civil aviation safety provisions.

The Director General of Air Transportation at the Transportation Department, Budhi Mulyawan Suyitno, said that the government will take strict action if an airline is still in the second, let alone third category. Airlines in this category will be supervised, but if they don't improve they will be given a warning. However, if after that they do not improve, activities will be frozen.

Airlines categorized as second class mean that they have not yet fulfilled all the civil aviation safety provisions, but are not endangering lives. As for the airlines being in the third category, they only fulfill the minimum safety standard and not some provisions that have the potential to lower the safety level.

“It's time for the national airlines to be in the first category because they must be ready to face the free trade era,” said Budi in Jakarta yesterday (24/5). This means airlines can no longer be in the third category.

Harun Mahbub

City agency says second water taxi is in the works

The Jakarta Post, Jakarta

The city administration is eyeing the Angke River in North Jakarta as its next water taxi route, despite the serious shortcomings of its Ciliwung River pilot project.

"The Angke River is a potential route for waterway transportation," the head of the Jakarta Public Works Agency, Wisnu Subagyo Yusuf, told reporters Friday.

The agency is planning to adjust the height of three bridges along the Angke River at Pesing, Genit and Teluk Gong to allow water taxis to pass beneath.

"The bridges will have to be at least 2.75 meters above the surface of the water," he said. "But the proposal will only be carried out next year."

Separately, the head of the Jakarta Transportation Agency, Nurrachman, told The Jakarta Post that his office had not yet discussed adding new water taxi routes, preferring to concentrate on the existing route first.

The water taxi route running along the Ciliwung River is to open to the public on June 2. Initially it will only operate on Saturdays and Sundays, from 7 to 9 a.m. and from 4 to 6 p.m. The transportation agency has yet to decide on the fare price.

In trials earlier this month, the water taxis were often forced to stop by garbage clogging their motors.

During the trial runs, two boats with a capacity of 25 people each covered the 2 kilometer route, stopping at landings in Halimun, Dukuh Atas and Karet.

The city administration has allocated around Rp 17 billion (US$1.8 million) for the operational costs of the water taxis.

The Ciliwung River is the biggest of 13 rivers passing through the capital. It is severely polluted with household and industrial waste. Both the city administration and the central government have attempted numerous times to clean the river, but to no avail.

Wisnu said he would order a double net be installed in front of the Manggarai sluice gate in order to prevent garbage reaching the water taxi route.

"We hope people can learn to take care of the river and not throw garbage in it anymore," he said.

He added that the administration had allocated Rp 33 billion per annum to remove 240,000 cubic meters of trash from the city's rivers.

Water taxi to launch despite problems

The Jakarta Post, Jakarta

The Jakarta administration has continued to shrug off criticism of its water taxi project, saying it is confident about launching the project in the near future despite incomplete infrastructure and rivers full of debris.

Governor Sutiyoso said recently the city administration still wanted to launch the service soon, regardless of its problems, in order to promote the use of rivers for transportation.

"It's not just a matter of (raising awareness for) commercial purposes," he said.

"We also want people to begin a new habit of not throwing garbage in the river because it could interfere with the water taxis."

The water taxi launch was initially slated for the end of this month. The planned service will ply a 4.2-kilometer route from Karet in Central Jakarta to Manggarai in South Jakarta.

The city administration has already provided two speedboats, named Kerapu III and Kerapu VI, for the route. The boats previously serviced routes in Kepulauan Seribu regency, better known as the Thousand Islands.

The administration has also built water taxi stops in Karet Belakang, Halimun and Dukuh Atas.

Khairul, the captain of one of the vessels, said that the biggest problem for him was garbage along the river.

He said that several kinds of garbage, such as thick plastic and fabric, got stuck in boat's motor.

"Unlike with passengers on a bus, where they can easily move to another bus if it breaks down, I still have no idea how to manage it if that happens to a water taxi," he said.

Khairul added that there was no alternative but for the city administration to improve the condition of the Ciliwung River to allow water taxis to operate smoothly.

Jakarta Transportation Agency head Nurrachman said he had coordinated with other agencies to clean up the water taxi route.

"It's a matter of people's awareness because they're always throwing their household garbage in the river. So people have to play an important role in the program," he said.

The water taxi service is part of the city's integrated Mass Rapid Transport project, which also involves the busway, subway and monorail projects.

The busway was launched two years ago. It now comprises seven corridors linking a number of areas of the city.

The two most ambitious projects, the subway and monorail system, are estimated to cost the city a combined total of US$1,450 billion.

Honda in the fast lane with 13 percent Q1 increase in sales

The Jakarta Post, Jakarta

PT Honda Prospect Motor (HPM), the local unit of Japanese automotive giant Honda, sold 12,500 vehicles in Indonesia during the first semester of this year, a 13 percent increase from the same period last year.

Monthly sales in April showed a 21 percent increase to 3,754 vehicles from 3,084 in March, Jonfis Fandy, Honda director of marketing and after-sales service, said Thursday in Jakarta.

The All New CRV and Honda Jazz are the two mainstays of the automotive company. The All New CRV, since it was first launched in January this year and the end of the first quarter, has sold 5,608 units, and controls 49 percent of the SUV market.

The Jazz, which was launched in early 2004 and is aimed at the youth market, sold 4,821 units during the same period, giving it an 11 percent share of the small MPV class.

Besides these two mainstays, the Honda City and Honda Civic also put in good performances during the first quarter, holding 61 percent and 71 percent market shares in their respective classes.

As for the rest of 2007, Jonfis said that Honda would continue to focus on the Jazz and CRV.

"We will also concentrate on increasing customer satisfaction this year. We believe that this is the key to increasing sales," he told The Jakarta Post during a ceremony to mark the handover to Honda's new president director in Indonesia, Yukihiro Aoshima.

Yukihiro, who previously served as president and CEO of Honda Motorcycle and Scooter India, replaces Kenji Otaka, who is taking up the post of president director of Honda Automobile Thailand after heading up HPM in Indonesia for five years.

With the current low lending rates, Honda is predicting that national automotive sales will increase to between 380,000 and 400,000 this year from 330,000 last year

Separately, Mitsubishi launched its Strada Triton, a 4x4 pickup, here on Thursday, to join the three existing Mitsubishi Strada versions.

Designed for off-road use, the 4-wheel-drive Strada Triton, which is capable of a maximum speed of 167 kmh, has a 2,477 cc engine and a 75 liter gas tank.

Rizwan Alamsjah, marketing director of PT Krama Yudha Tiga Berlian Motors, the sole distributor of Mitsubishi vehicles in Indonesia, said that although the Strada Triton was built for off-road driving, it was also suitable for city conditions, with stylish exteriors and interior designs.

The Strada Triton is the first Mitsubishi pickup to be fitted with the "low-pressure common rail" system, which produces more power and less pollution.

"This car is environmentally friendly and energy saving, and gives between 13 and 17 km per liter," said Rizwan.

PT Krama is hoping to sell between 50 and 100 Strada Tritons per month at an off-road price of Rp 236 million (US$27,110) each.

"The Mitsubishi Strada line had a market share of 56.5 percent in 2006 for 4x4 pickups. We expect that its share will increase this year with the addition of the Strada Triton," Rizwan said.

Mitsubishi, which has been the market leader for 4x4 pickups in Indonesia since 2004, sold 4,000 Mitsubishi Stradas last year and expects to sell 6,000 this year.

Blue Bird to purchase 740 Mercedes Benz cars

The Jakarta Post, Jakarta

Taxi firm Blue Bird Group will invest Rp 320 billion (US$36.7 million) over the coming five years to procure 740 Mercedes Benz C-Class cars to replace its existing Silver Bird luxury taxis.

The replacement program will be carried out in stages, starting with the initial purchase of 300 taxis worth Rp 130 billion, chief commissioner Chandra Suharto said Friday during a ceremony marking the handover of the first Mercedes cars from PT Daimler Chrysler Indonesia, the local unit of Germany automaker Daimler Chrysler.

"As we prioritize the safety and comfort of our customers, we have selected Mercedes C Class cars to replace all of our existing Silver Bird taxis as we know that Mercedes vehicles are durable and reliable. In addition, Mercedes has a well-established brand image," he said, adding that Blue Bird currently operated a 740-vehicle Silver Bird fleet in Jakarta.

The company, the only taxi operator providing a luxury service, currently uses Nissan Cedrics and primarily serves serve star-rated hotels around the city.

Blue Bird president director Purnomo Prawiro said that the new Mercedes taxis were expected to hit the road by the end of next month after being equipped with taximeters.

He said that although the new cabs would use more gasoline than the existing ones, the company did not intend to increase fares.

"We are not going to increase fares at the moment, but we might do so in the future," he said.

Silver Bird taxis currently have a flag-fall of Rp 6,000 for the first kilometer, and Rp 3,200 for each subsequent kilometer.

Besides Silver Bird taxis, the company also operates about 10,000 Blue Bird taxis with a flag-fall of Rp 5,000 and a per-kilometer charge of Rp 2,500.

For Daimler Chrysler, this marks its first foray into the Indonesian taxi market.

President director Rudi Borgenheimer said that his firm was proud to supply its Mercedes C Class taxis to serve discerning taxi customers in Indonesia.

'Bottlenecked' Jakarta seen losing new economic race

Anissa S. Febrina, The Jakarta Post, Jakarta

As cities around the world compete to become economic hubs, Jakarta risks losing access to global supply chains unless it can solve its bottleneck problem, an economist says.

Speaking here Thursday at a seminar on leadership and megacities, Melbourne University economist Howard Dick said Jakarta was Indonesia's main interface with the global economy but it failed to work efficiently.

"Congestion, lack of infrastructure, a burdensome bureaucracy and environmental problems are among the factors causing Jakarta's inefficiency," Dick said.

Being Indonesia's main gateway, Jakarta should provide low-cost, on-time and reliable logistics services, but instead its port and the city are strangling each other, he said.

Leaving these problems untackled could mean increasing unemployment in the capital, as Jakarta drops off the radar of the global supply chain of goods and services, Dick said.

In line with the increasingly borderless global economy, Asian cities are emerging as important points for the flow of people, as well as economic and financial activities.

According to a United Nations' Habitat report, by 2015 some 15 of the world's 23 megacities, or cities with more than 10 million people, will be in Asia.

China's Shanghai, as well as India's Mumbai and Bangalore, are among the new global cities set to replace old economic hubs like London, New York and Tokyo, according to Dick.

With these new city-scale hubs, people have to shift from thinking in terms of nations to realizing that the current global network consists of cities which compete against each other, he said.

Those cities failing to provide a conducive and efficient environment will fall out of the race, a reality Jakarta is already facing as it lags behind neighboring global cities, Dick said.

Unlike Singapore and Hong Kong, Jakarta faces the typical problems associated with sprawl, both physically and economically.

Dick said Jakarta needs to adjust its urban boundaries, matching taxing and borrowing power with expenditure needs, as well as creating accountability in order to provide more effective management.

Furthermore, it needs to work on its infrastructure to allow better movement of people and goods.

Also speaking at the seminar, Shanghai municipal people's congress vice chairman Zhou Muyao said the key component of Shanghai's urban management is prioritizing public transportation.

That effort seems to have paid off, as Shanghai is currently attracting twice as much annual global investment as the whole of India.

A 2006 BBC report said more than 500 multinational companies, ranging from General Motors to Volkswagen, have regional corporate headquarters in Shanghai.

The city, which accounts for about 5 percent of China's national gross domestic product, is growing at a pace exceeding that of the national economy and is expected to grow larger than New York by 2020.

By comparison, Jakarta on average accounts for 17.1 percent of Indonesia's GDP.

VW may join Japanese rivals in Indonesia

nzherald.co.nz

5:00AM Saturday May 26, 2007

The world's fourth-largest carmaker, Volkswagen, is considering setting up a production base in Indonesia, a senior government official has said.

Budi Dharmadi, a director general at the trade ministry, said the company had expressed interest during a recent meeting with Trade Minister Fahmi Idris.

"They are interested in entering the Indonesian market. It might be in the form of investment in an assembling plant. Right now, they are still conducting a study for the possible investment,'' Dharmadi said.

No financial details were available.

The Indonesian automotive market is dominated by Japanese firms, with Toyota holding the number one spot in sales. Toyota, Honda, Nissan, Daihatsu, Mercedes-Benz and BMW have production bases in the country.

Vehicle sales in the world's fourth most-populous nation plunged by around 40 per cent last year after the government more than doubled domestic fuel prices in October 2005.

Sales reached a record high 533,910 units in 2005 before dropping to 318,883 units last year. Analysts predict volume may reach 350,000-400,000 units this year.

Old locomotive gets new life

Anissa S. Febrina, The Jakarta Post, Jakarta

Thursday was no typical working day for the dozen or so workers at state train operator PT Kereta Api's (PT KA) garage, Balai Yasa, in South Jakarta's Manggarai.

"Ready.. slowly, OK!" shouted a worker to the crane operator, his eyes remaining glued to a rusty locomotive pinned by a pair of giant metal hands.

Lifting up locomotive frames might be business as usual for the workers but Thursday they were lifting the old frame of Jakarta's long-abandoned first electric locomotive. And that was surely a once-in-a-lifetime experience.

Lok Bon Bon -- the name given to the old locomotive because of its resemblance to a candy box -- got a new lease on life after it was lifted into the air for the restoration of its lower frame.

"We're putting on beautiful make up before displaying it to the public," said Warsidi, a technician at the train garage.

"It will take two days to wash the lower body with chemical spray and within a month it should be ready for a new coat of paint," he explained.

Several months ago, Bon Bon almost ended up being sold off for scrap metal -- for a mere Rp 1,500 per kilogram.

But the train aficionados of the Indonesian Railway Preservation Society (IRPS) found Bon Bon hidden among other unused locomotives and trains at the garage.

There is of course something special about Bon Bon that has made IRPS members willing to do almost anything to rescue the locomotive, which was manufactured in 1928.

Officially known as Werkspoor-Heemaf, Bon Bon was a silent witness to the paramount role played by railways in the development of Batavia, as colonial era Jakarta was known.

Since 1925, the Dutch colonists provided railway services along the outer periphery of Batavia and imported electronic locomotives to serve commuters.

At first, the trains carried commuters from Menteng and Weltevreden to their workplaces in what is now Jakarta's old town. Later on the service was expanded to reach Bogor, which was then known as Buitenzorg.

Last year, after getting the nod from PT KA to restore Bon Bon, IRPS members spent weekends cleaning dried leaves and dust from the locomotive.

The rest of the restoration effort needed professional hands.

"We have been welding new metal sheets onto badly rusted parts of the locomotive," PT KA's Greater Jakarta spokesman Akhmad Sujadi said.

After being strengthened, the upper body was lifted to allow workers to work on Bon Bon's lower frame, the most amazing part of the locomotive.

With the upper body lifted, one can see closely the huge and solid construction of the locomotive's lower frame.

Despite being covered in thick reddish brown rust and gray dust, the locomotives inner parts look as strong as ever.

PT KA plans to finish the restoration process in the next couple of months, before dragging Bon Bon to West Jakarta's Kota train station and make it part of its electric railway museum.

Spokesman Sujadi said funding of up to Rp 200 million would be needed to display the locomotive as well as set up a small historical railway library in Kota station.

"We hope to be able to mark Bon Bon's return to the public with a festival scheduled for early September and immediately collect funding to continue the restoration process," IRPS member Ni Komang Ariyanti said.

The festival is planned to feature family entertainment, ranging from drawing competitions for children to culinary tours for adults, to be held on board electric trains.

Govt may provide cash for deep tunnel project

The Jakarta Post, Jakarta

The central government has agreed to help finance the multi purpose deep tunnel project (MPDT), pending a feasibility study, a state official said.

"The project is a good idea because it will overcome many problems in the city such as traffic congestion, water shortages, and poor sanitation," Public Works Minister Djoko Kirmanto told a press conference here Thursday after opening a seminar on the project.

He said the central government would not mind helping finance the project but it would first look at the result of a feasibility planned by the city administration this year. He suggested the feasibility study be paid for by the city administration.

"We will see whether the project is financially and technically feasible," he said.

The head of the Jakarta Water Regulatory Body, Achmad Lanti, said the body would need around US$2 million to conduct a feasibility study and to make the grand design for the project.

"It will take two years to finish the feasibility study and the design,"

"And if the project is not feasible, we will not make it happen," he said.

The 22-kilometer tunnel will be constructed 15 meters below the West Flood Canal project with entrances in Balekambang, East Jakarta, and Manggarai, South Jakarta, and exits in Tanah Abang and Roxy in Central Jakarta and at the airport in Cengkareng, Tangerang.

There will be two levels of roadway and waste water reservoirs in the tunnel with diameters of 12 meters. Above the roadways, the tunnel will be used as a utility duct.

It is estimated that the tunnel will generate around Rp 2.2 trillion ($241 million) each year from the operation of the roadway as well as waste water treatment.

Meanwhile, Governor Sutiyoso said that the multi purpose deep tunnel would be the answer to all the crucial problems faced by the capital.

"I hope this concept will attract domestic investors as well as foreign investors because this is a big project which cannot be financed by the city administration or the central government alone," he said.

The project was first proposed by the Jakarta Water Regulatory Body in February after severe flooding inundated much of the capital. In its initial proposal, it was estimated that the project would need Rp 4.37 trillion. However, more recent projections put the cost at four times that amount.

Govt to resume searching black-box of Adam Air plane

JAKARTA (Antara): The government will resume searching black-box of Adam Air plane, which likely sank in Makassar Straits during its flight from East Java's capital of Surabaya to North Sumatra's capital of Manado early this year.

"The searching will continue. It may resume in July," Transportation Ministry's Air Director General Budhi M. Suyotno was quoted as saying Thursday.

He said the U.S.' National Transportation Safety Board had expressed its wish to help search the black-box, which sank together with the plane and all of its passengers.

Budhi said Adam Air and the Indonesia's National Committee for Transportation Safety (KNKT) to seek international institutions to fund the searching program. He said his office also approachedthe World Bank and Boeing plane maker.

He said the searching need some US$5 million to $6 million.

Big fire destroys 700 houses in Jakarta

JAKARTA (JP): Big fire destroyed Tuesday evening some 700 houses in Duri Selatan, South Jakarta, leaving about 2,000 residents homeless, but no report yet on human casualties.

Elshinta radio station quoted an official in the firedepartment that the fire was triggered by an electric shortcut in one house in the area.

"We have prepared temporary shelters as well free food for those affected by the fire," the official said.

Duri Selatan is deemed among the most densely populated area in Jakarta.

MRT team prepares transport roadmap

Alvin Darlanika Soedarjo, The Jakarta Post, Jakarta

The secretary of the Directorate General for Railway Transport, Nugroho Indrio, said that the special assignment for project implementation was ready to help the government oversee the development of Jakarta's mass rapid transit system.

The project implementation team, which consists of both local and Japanese experts, was established by the Japan Bank for International Cooperation, the main financier of the project.

"The MRT subcommittee and the special assistant for project implementation (SAPI) team are preparing an agenda to consolidate the project," Nugroho told reporters after a sub-committee meeting.

The MRT subcommittee consists of officials from the Transportation Ministry, the Finance Ministry, the National Development Planning Board and the Jakarta administration.

Both the MRT subcommittee and the SAPI team will monitor several important tasks for accelerating construction of the MRT.

The Transportation Ministry's role in the project, which is planned to cost around Rp 8.2 trillion, is to give special advice on spatial planning, the development schedule and the number of passengers to be carried by the system.

"Besides that, the government will only monitor whether the (relevant government) regulation has been followed by the operator," Nugroho said.

The Directorate General for Railway Transport will supervise amendments to the regulation while the Finance Ministry will administer the fund channeling scheme.

The city's assistant for the economy will oversee involvement procedures while the head of the organizational management bureau will oversee organizational design.

The head of Jakarta's economic bureau will guide financial planning, business strategy and process planning while the head of the Jakarta Environmental Management Agency will look over environmental and social considerations.

The city administration's chief spokesman will supervise publicity management and the head of the Organizational Management Bureau will take care of human resources planning.

"We will have to form the operating company, the MRT Operating Company (MRTC), by at least April next year," Nugroho added. Construction is slated to begin by June 2010 and finish by August 2014.

Transportation Ministry spokesman Bambang Ervan told The Jakarta Post that Minister Jusman Syafii Djamal was currently visiting Japan to get more "possible technical and funding assistance".

The special railway transport will have 14.5 kilometers of tracks from Lebak Bulus in South Jakarta to Kota in West Jakarta, 4.5 kilometers of which will be underground. Eight stations will be above ground and four will be underground.

Turnpike toll hike in August to raise Jasa Marga`s earning

Jakarta (ANTARA News) - The planned increase in turnpike tolls in Indonesia as of August 2007, is believed to raise the earnings of the national toll road operator PT Jasa Marga.

"The toll hike will have a positive impact on Jasa Marga as well as on potential investors," president of PT Jasa Marga Frans S. Sunito said here on Wednesday.

He said that while having a positive impact, actually the company had already been considering a toll hike once in every two years.

The increase in Jasa Marga`s earnings has always been proportional to a toll hike.

In the meantime, with regard to the progress of the planned relinquishment of toll road assets, Frans refused to give the details.

"Basically, we will take action which will produce the most favorable value to the company and investors. We also do not wish to harm the interest of investors," he said.

He also disclosed that one of the biggest sources of income for the company has been the operation of new turnpikes.

"Tomorrow we are scheduled to open the Cikunir-Cilincing Jakarta Outer Ring Road (JORR 3), which is also expected to raise the income of Jasa Marga," Frans said.

Until the first quarter of 2007, Jasa Marga`s income had reached Rp100 billion of the projected Rp300 billion this year.

Air Force to move air base from Medan to Kuala Namu

Apriadi Gunawan, The Jakarta Post, Medan

The Indonesian Air Force intends to move its Polonia air base in Medan, North Sumatra, to Kuala Namu in Deli Serdang regency following the planned relocation of Medan's Polonia airport to Kuala Namu in September 2009.

"The Air Force has decided to move to Kuala Namu together with the Polonia airport. It is no longer feasible to remain in Polonia as it is less efficient," Indonesian Air Force (TNI AU) Operations Commander Vice Marshal Gandjar Wiranegara told reporters Tuesday after officiating a transfer of duty of air base commanders at the Medan air base.

Gandjar said the air base in Kuala Namu will be built adjacent to the international airport, similar to the current setup in Polonia. He said it would be more efficient and cut costs associated with building a separate air base.

"We will share the runway in Kuala Namu. The airport will be built in the southern or western section, while the air base will be in the northern section," said Gandjar, adding that the air base in Kuala Namu will span around 1,000 hectares.

Gandjar said TNI AU would trade its assets in Polonia, to fund the construction of new facilities in Kuala Namu.

Former Polonia air base commander Col. Supriyadi said the total value of TNI AU's assets in Polonia, including land and infrastructure, is estimated at Rp 5 trillion (US$555 million).

Newly-appointed Polonia air base commander Col. Agus Dwi Putranto said he could not confirm when the airport would be moved because the relocation process was under the authority of TNI AU headquarters in Jakarta.

The central government, during a visit by State Minister for State Enterprises Sofyan Djalil and Transportation Minister Jusman Syafi'i Djamal to the planned site May 18, assured that the Kuala Namu airport would be in operation by September 2009 at the latest.

"We hope the Kuala Namu airport will be more promising than Polonia. We can no longer retain Polonia due to a number of reasons, such as the damaged runway and the deteriorating function of radars. Polonia can no longer cope with the increased number of passengers and airline traffic," Jusman said.

Sofyan said the new airport would be equipped with several support facilities, including a three-kilometer railway line and turnpike to facilitate transportation to the airport.

Head of the North Sumatra Development Planning Agency, R.E. Nainggolan, who visited Kuala Namu with the ministers, said the provincial administration had set aside Rp 40 billion for the requisition of residential land to build the turnpike.

The Kuala Namu airport, which was designed as an international airport, spans 86,000 square meters and is equipped with a 2,750-meter runway. It was also designed to serve eight million passengers per year. The Polonia airport is only capable of serving 4 million passengers annually.

Deeper pockets needed to finance Deep Tunnel: Guv

The Jakarta Post, Jakarta

The project to build a 22-kilometer tunnel to solve Jakarta's chronic water and transportation problems will likely cost some Rp 16.3 trillion (US$1.8 billion), four times the budget proposed in February.

Governor Sutiyoso said Monday that 30 percent of investment for the project would come from the central government and the city's budget.

"I'm inviting the private sector to fund the project," he said.

Sutiyoso expressed optimism that the private sector would invest in the Jakarta Multi Purpose Deep Tunnel project, since they would stand to reap a large amount of revenue from the electricity, water and fertilizers produced in the tunnel.

It is estimated that the tunnel will generate around Rp 2.2 trillion each year from the operation of two levels of roadway and a waste water reservoir.

Waste water from the tunnel will be processed to become clean water in North Jakarta's Pluit dam to help meet the water requirements of up to 1.5 million residents.

The tunnel will also produce hydroelectricity and fertilizer from the wastewater process.

For around two weeks of high rainfall each year, the entire tunnel, including roadways, will turn into a massive duct for channeling rainwater.

According to the Jakarta Water Supply Regulatory Body, which initiated the project, the area above the roadways will be used as a utility tunnel.

The entire tunnel will be constructed 15 meters below the West Flood Canal project with entrances in Balekambang, East Jakarta and Manggarai, South Jakarta and exits in Tanah Abang, Roxy and the airport in Cengkareng, Tangerang.

"The project is a good alternative for Jakarta since land acquisition won't be necessary to bring the tunnel about," said Achmad Lanti, the head of the regulatory body.

Achmad said he hoped the tunnel would be finished by 2014, although he admitted such a projection was based on the smooth running of the project.

The city administration will hold an international seminar on the deep tunnel on May 24 to attract investors to fund the project.

The seminar will be attended by representatives from the Islamic Development Bank (IDB) and other international financial institutions.

Green science: Biofuels and the Future of the environment

Arnawa Widagda, Contributor The Jakarta Post , Jakarta

The rising prices of petroleum fuel have pushed alternative fuels such as biodiesel and bioethanol into the spotlight. Despite their rising popularity, many seem to misunderstood what biofuel is.

Unlike traditional fossil-based fuels such as diesel and gasoline, biofuels are environmentally friendly, renewable fuel. As the name implies, biofuels are extracted from plants -- biodiesel is typically made from new or used vegetable oils and animal fats, while ethanol is made from any plant life rich in sugar, like corn and sugar cane.

Currently available biofuel offerings on the market use a blend of biodiesel or ethanol with traditional petroleum fuel. For example, biodiesel is typically made up of 20 percent biofuel and 80 percent petroleum, called B20 fuel. Bioethanol blends are made with 5 to 10 percent ethanol.

For its Bio Pertamax, Pertamina uses 5 percent of ethanol. In this sense, biofuels can be regarded as additives rather than replacements for fossil-based fuels such as petroleum.

However, much higher blends of biofuel exist that can be considered "real" alternatives for petroleum.

Neat biodiesel, or B100, is made entirely from biodiesel, while ethanol-based biofuels such as E85 and E95 use 85 percent and 95 percent ethanol, respectively.

Such high-level blends will certainly reduce significantly the world's dependence on fossil-based fuels; however, they are not without drawbacks.

Ethanol is much more corrosive and burns at lower combustion temperatures than traditional gasoline. The corrosive nature of ethanol and biodiesel means cars -- or engines in general -- must use additional protection to prevent damage to fuel-related systems if they use high biofuel blends.

With lower blends (10 percent for ethanol and 20 percent for biodiesel), engines and fuel systems do not need the additional protection. Due to its lower combustion temperature, gasoline engines still need a 15 percent blend of gasoline; otherwise, the engines will fail on a cold start.

However, diesel engines are much better suited for low-burn temperature fuel, making E95 a better choice for diesel engines.

It is also true that biofuel generally produces less energy than petroleum, meaning slightly lower mileage for users. This is because traditional gasoline and diesel engines are built without biofuels in mind.

Biodiesels have more oxygen content than traditional diesel, while ethanol-based biofuels have more octane but a lower combustion temperature. Biofuel-aware engines such as flexible fuel vehicle (FFV) engines in newer cars should have no problems with E85 for gasoline engines or in the case of biodiesel, neat biodiesel for diesel engines.

These two characteristics of biofuels actually have a positive effect -- a more efficient combustion, which means less pollution. So the use of biofuels should help the current energy crisis and even protect the environment.

Various studies show that neat biodiesel reduces carbon dioxide emissions by more than 75 percent compared to petroleum diesel. Using B20 biodiesel reduces carbon dioxide emissions by 15 percent.

Tests at the National Center for Vehicle Emissions Control and Safety at Colorado State University document a 25 to 30 percent reduction in carbon monoxide emissions when automobiles burn a 10 percent blend of ethanol.

Let's not forget the economic impact on farms and the national workforce.

The different characteristics of biofuels do present new challenges for distribution and storage.

Such facilities must be vigilant about water produced either from condensation due to cold weather or seepage. Rust, microbes and other deposits sticking to the insides of a fuel tank or container detach more easily with biofuel.

A high enough buildup will lead to blockage in fuel systems and failed starts in engines. Of course, this doesn't just affect cars and engines -- it also means fuel pumps and gas stations must invest in new pumps, storage tanks and other equipment.

In fact, Indonesia's entire fuel distribution pipeline will likely require an upgrade to be biofuel-ready.

Biofuel certainly has the potential to replace traditional petroleum -- a clean, renewable energy upon which we can all depend.

At this time, biofuel contribution to the country's energy consumption is still very small.

For biofuel to gain widespread use, the necessary infrastructure -- more FFVs on the market, upgraded biofuel-ready supply and distribution channels, including a quality standard on biofuels -- must be in place.

A paper written by Soni Solistia Wirawan and Armansyah H. Tambunan of the Agency for the Assessment and Application of Technology (BPPT) titled The Current Status and Prospects of Biodiesel Development also cites other necessary steps. These concern "how to accelerate the construction of new biodiesel plants, plantations as a key driver in the continuity of raw material, which is supported by committed government policy and regulation. This implies all biodiesel stakeholders should work harder for the success of the biodiesel program in Indonesia".

Such a project will likely be costly, but the rewards would be well worth the effort. Biofuels are not just a solution to our energy problem, but also a long-term environmental solution.

Mandatory biofuel use necessary, says association

Ika Krismantari, The Jakarta Post, Jakarta

Biofuel producers are urging the government to make the use of biofuel compulsory in order for the eco-friendly fuel business to become more economically viable.

A member of the Indonesian Biofuel Producers Association Paulus Tjakrawan told The Jakarta Post over the weekend that such a regulation, in which industry players and vehicle owners were required to use a certain amount of biofuel, was needed for the development of the biofuel industry.

Paulus said the Philippines government had been courageous last year when they decided to adopt a similar policy.

"In the first year the biofuel legislation was introduced, every factory and vehicle in the Philippines was required to use at least one percent of biofuel in its fuel usage, and in the second year, that percentage when up to two percent.

"The country has already established a very clear road map, even though they only started the program last year," Paulus said.

Such a move in Indonesia would not harm businesses across the board, Paulus said, as fuel costs would still be quite acceptable.

"In fact, it would bring benefits to companies in that they could create an image of being an environmentally friendly business, which has become quite a selling point these days amid the increasing awareness of environmental and climate issues," he said.

The association also hopes the government will offer incentives in the form of tax relief to biofuel producers.

The president director of biofuel producer PT Eterindo, Immanuel Sutarto, has questioned the feasibility of the biofuel business in the long run, as producers will have to cope with the increasing prices of crude palm oil (CPO) and ethanol, which are two major raw materials used to produce biofuel.

State-owned oil and gas company Pertamina declared last week that the company planned to scrap its biofuel business by the end of this year as its biofuel products -- BioSolar and BioPremium -- caused the company to lose Rp 16.9 billion (approximately US$1.8 million) last year due to increasing ethanol and CPO prices.

Pertamina marketing and trading director Achmad Faisal urged the government to provide financial incentives for producers of ethanol and CPO.

Evita H. Legowo, the first secretary of the National Biofuel Development Committee, said the government was considering halving the tax rate on biofuel used in cars, trucks and motorbikes to 2.5 percent from the current five percent.

Evita also said the government would consider adopting the methods employed by developed countries to promote biofuel usage, such as imposing additional taxes on conventional fuels.

Indonesia is expected to produce 600,000 tons of biofuel this year. Among the major producers are PT Wilmar with a production rate of 350,000 tons per year, Eterindo with 120,000 tons per year and PT Sugar Group with 70,000 tons per year.

Garuda plane makes emergency landing

SURABAYA (Antara): A Garuda Indonesia jetliner, carrying 114 passengers, made a successful emergency landing at Juanda airport in East Java capital of Surabaya Saturday, after a pilot saw a trouble in one of its engines.

Head of Juanda Airport Authority Imam Soelvan said the emergency landing was made after the pilot saw red sign for oil temperature for the first engine of the plane, serving Denpasar-Yogyakarta.

"It was an anticipation by pilot to avoid any expected incident," Imam was quoted by Antara news agency as saying.

China's Geely motors to make debut in Indonesia

englisheastday.com, 18/5/2007 15:33

Aiming at grabbing a slice of Indonesia's reviving automotive market, Chinese automaker Geely International Corp is to make presence in Jakarta with its Geely CK sedan, the local press said today.

The new car, to be launched in July, will be assembled here by Malaysian-based firm PT IGC International and PT Gaya Motor, a subsidiary of the country's largest auto firm PT Astra International, reported English daily The Jakarta Post.

With three engine variants, the sedan will sell for between 80 million rupiah (US$9,095) and 95 million (US$10,800) .

"Our idea is to supply the market with a quality product at an affordable price," Geely International president director George Zhao was quoted as saying.

The Geely CK sedan first hit the Chinese markets in 2005, and has been exported to 60 countries and sold more than 80,000 units worldwide.

"We selected Indonesia as our first market in Southeast Asia as we are aware that the automotive industry here has been making very promising progress," Zhao said.

Geely International will become the second Chinese automaker to assemble its products in Indonesia after Chery Automobile entered the market last year in collaboration with the country's second- largest auto producer and distributor, PT Indomobil Sukses International.

Geely expects to produce 2,000 cars per year and intends to introduce at least five new models over the next two years.

IGC International chief commissioner Suhaelly Kalla said that Indonesia would become the center of production of the Geely CK for the Southeast Asian market. The cars would be exported to East and Southeast Asian countries, he said.

In addition to establishing an assembling facility at a cost of about US$6 million, IGC International will also set up spare- parts and after-sales service centers.

First phase of Kuala Namu airport project to be complete in 2009

Medan, N Sumatra (ANTARA News) - State Entreprises Minister Sofyan Djalil said the first phase of the Kuala Namu airport project in Medan, North Sumatra, costing Rp1.3 trillion, will be ready for operation in September 2009.

"The construction of Kuala Namu airport will be completed according to schedule. We even hope the schedule can be sped up," he said after a working visit together with Transportation Minister Jusman Syafii Djamal to Tanjung Morawa, Deli Serdang District, North Sumatra, on Friday.

State entreprises adhered to the principle of always doing the best for the nation and the state, he said. Therefore, land belonging to state plantation company PT Perkebunan Nusantra II might be used for construction of access roads to the airport.

The Kuala Namu airport complex would stand on 2,365 hectares of land but implementation of part of the project was still being hampered by a land clearance problem as some 63 families were still living on land needed for the project.

Hopefully, Deli Serdang district administration can solve this problem to let the construction of the airport run unhampered, he said.

In the meantime, the district development planning agency`s chief, Irman DJ Oemar, said his office had already paid compensation money to the 63 families.

"If they continue to stay there and do not want to move to other location, we have to use a legal mechanism," he said.

Accidental airport shooting injures four

Apriadi Gunawan, The Jakarta Post, Medan

Four airline passengers were injured Friday by bullet fragments after a soldier's firearm accidentally discharged at Polonia airport in Medan, North Sumatra.

According to police, the soldier was checking in his firearm at the Garuda Indonesia counter when the accident occurred.

A bullet was discharged into the ground during a routine inspection of the weapon by an airport staff member. The bullet fragmented, injuring four nearby Batavia Air passengers who were checking in for a flight to Jakarta.

The four -- identified as Alman, Bayu Prayitno, Hasanuddin and Usman, all Deli Serdang regency residents -- suffered injuries to their necks, hands and legs.

All four were taken to Elisabeth hospital in Medan. There was no information on their status as of Friday night.

Batavia Air official Erwanto said the airline would not cover the hospital costs of the four, because it was not at fault in the accident.

"It is not our responsibility, since the mistake was not ours," Erwanto said.

Garuda Indonesia's general manager in Medan, Yona Mardiona, said Friday the company had yet to receive details of the accident and could not comment.

A Batavia Air staff member, Agus Lubis, said this was the third such incident at the airport of a firearm accidentally discharging while being checked in.

No injuries were reported in the first two incidents, he added, without offering details on when these earlier incidents occurred.

Medan Police chief Adj. Sr. Comr. Bambang Sukamto said the firearm that accidentally discharged was issued to Sgt. Kodek.

He said the magazine was removed from the weapon before it was checked in, but a bullet was mistakenly left in the chamber.

"The case is still being investigated by the police and military police. We are still trying to determine whether the soldier was negligent or not," Bambang told The Jakarta Post on Friday.

He said the airport staff member who inspected the firearm had been taken to Medan Police Headquarters for questioning.

Sergeant Kodek, he said, had been taken to the Bukit Barisan military command.

E-ticketing finally takes off in Indonesia, IATA figures show

The Jakarta Post, Jakarta

After long lagging behind in the e-ticketing stakes, 82 percent of airline passengers in Indonesia now access websites or telephone carriers to have their tickets issued electronically, according to the International Air Transport Association (IATA).

This percentage, the second highest among IATA members in Asia-Pacific, is higher than the global and regional averages of 79 percent and 67 percent respectively, IATA said Friday in a statement.

IATA said that Middle Eastern and North African airlines topped the global increase in e-ticketing during the first three months, rising 16 percent to 39 percent over the same period last year "as airlines embark on a more aggressive e-ticket rollout."

During the same period, Africa-based airlines increased the volume of e-tickets issued by 12 percent to 58 percent, America-based airlines by 5 percent to 78 percent, and Asia Pacific-based airlines by 8 percent to 67 percent.

Meanwhile, the figure for Europe-based airlines rose by 4 percent to 82 percent, Commonwealth of Independent States-based airlines by 3 percent to 10 percent, North Asia-based airlines by 1 percent to 91 percent and United States-based airlines by 1 percent to 93 percent.

Since 2005, IATA has been requiring some 250 of its members serving 94 percent of international scheduled air traffic to adopt e-ticketing by the end of this year.

National flag carrier Garuda Indonesia, which is a member of IATA, said it issued some 750,000 e-tickets and around 240,000 paper tickets in the first three months.

"Garuda is in third place among Asia Pacific airlines this year for e-ticket issuance," Garuda spokesman Pudjo Broto told The Jakarta Post on Friday.

Garuda, which introduced e-ticketing last March in compliance with the IATA regulations, offers e-ticketing on all domestic routes and 24 overseas ones. The destinations not covered so far are Jeddah in Saudi Arabia, Saigon in Vietnam, Beijing in China and Seoul in South Korea.

"We will have fully implemented e-ticketing for the four remaining overseas destinations by October," said Pudjo.

According to IATA, e-ticketing will result in savings of US$3 billion annually for the airline industry as processing a paper ticket costs $10, while an e-ticket costs only $1.

In addition, IATA says, passengers also benefit from e-ticketing as the inconvenience arising from lost tickets is eliminated and last minute changes are made easier.

Traffic cameras too soon for RI roads: Expert

Alvin Darlanika Soedarjo, The Jakarta Post, Jakarta

The idea of the Directorate General for Land Transportation to install electronic monitoring equipment to improve traffic obedience will receive cool response from the public unless the government can match-up vehicle owner identification, observers said.

Indonesian Transport Society (MTI) chairman Bambang Susantono said Friday the suggested electronic enforcement (e-enforcement) is expected to improve driver obedience and decrease accidents -- but it would not be effective by itself.

"The electronic enforcement equipment will capture the registration numbers of vehicles," Bambang said.

"But the vehicle registration (system) in Indonesia is in a mess -- so this must be first improved."

The Directorate General for Land Transportation wants to adopt e-enforcement into the new traffic bill.

But the Directorate aims to book the owner of the vehicle caught violating a traffic rule, regardless of who was driving at the time.

Bambang said using e-enforcement to catch traffic offenders before sending a ticket to the vehicle owner's home has only worked well in other countries because the vehicle administration systems in those countries is effective.

"But it's hard for local officials to trace the real owner of vehicles here," he said.

"Many people trade-in their cars or motorcycles and neglect to update the status of ownership."

"Enforcing an immediate update on a vehicle's ownership status should come before the imposition of the electronic monitoring.

"However, this project is expected to decrease accidents on the road because people feel that they are being monitored," he said.

Bambang also said the cost for electronic enforcement should be embedded in vehicle administration costs, so owners did not have to pay more.

MTI said traffic obedience in Indonesia has been better in the past.

"Vehicle drivers should be more ethical.

"People become less ethical because the roads become more congested and there is a pressurized environment for traffic violation."

Bambang said the term "pressurized environment" is used by sociologists to describe road conditions that encourage drivers to "follow a sinner" -- especially if that driver is successfully breaking traffic laws and getting away.

"The follow-the-sinner condition means someone feels they will suffer a loss if they don't follow a violator," Bambang said.

Transportation observer and former member of the Indonesian Consumers Foundation (YLKI) Agus Pambagyo said sophisticated tools used for e-enforcement would be useless without immediate follow-up and a well organized booking system.

Many people get their driver's license illegally and this can create even more accidents on the road, Agus said.

"The issuer of the license, in this case the police, should also be examined to help create better traffic order," he said.

YLKI senior member Sudaryatmo said electronic enforcement would help reduce road accidents -- but basic administration issues needed to be tackled first.

"Indonesia still has a problem with compulsory vehicle safety inspection," Sudaryatmo said.

"The government must look also at the safety of public transportation in Indonesia," he said.