Garuda Indonesia to join SkyTeam

Rangga D.Fadillah, The Jakarta Post, Jakarta | Fri, 11/19/2010 8:58 PM

National flag carrier Garuda Indonesia sets to officially join international airline alliance SkyTeam in a bid to reach its target to become one of the top ten best airlines in the world.

The carrier will meet delegates from SkyTeam partner airlines on Nov. 23 in Jakarta to sign an official agreement and discuss detailed practical matters.

The president director of Garuda Indonesia, Emirsyah Satar, said Thursday that after officially joining the alliance, his carrier could fly passengers from the alliance's partner airlines and vice versa, so the flight frequency of his carrier could be added.

“It means that our passengers can fly anywhere with one ticket only,” he said as quoted by Gatra magazine.

He continued that joining SkyTeam was one of Garuda Indonesia's efforts to provide traveling convenience and more choices for its passengers.

Currently,13 airlines – Aerosoft, Aeromexico, Air Europa, Air France, Alitalia, ChinaSouthern, Czeh Airlines, Delta Airlines, Kenya Airways, KLM, Korean Air, TAROM,and Vietnam Airlines – have joined the alliance. SkyTeam member-airlines travel to 841 destination cities in 162 countries servicing 16,409 flights per day.

Unregistered taxpayers to pay double for exit tax

The Jakarta Post, Aditya Suharmoko, Jakarta  | Fri, 12/26/2008 9:20 AM  

An bilboard on a Jakarta street encourages Indonesians to

 register with the tax office. Under the so-called “Sunset Policy”

 program, which ends on Dec. 31, the tax office said over 10 million

 people have so far registered for a tax file number (NPWP). 

(JP/Ricky Yud histira)

The tax office has officially announced an increase in the much-decried fiskal, or exit tax for travelers going overseas, in part to put to rest widespread speculation over the amount of the increase. 

The exit tax for those aged 21 years and above departing from airports will be raised from Rp 1 million (US$91) to Rp 2.5 million, and for those traveling by sea from Rp 500,000 to Rp 1 million, effective Jan. 1, 2009, to Dec. 31, 2010. 

However, registered taxpayers will not have to pay a single cent; and starting from 2011, the exit tax will be scrapped altogether, according to the Finance Ministry’s directorate general of taxation. 

Director general Darmin Nasution said the increase in exit tax was part of an effort to get more potential taxpayers to register for a tax number (NPWP). 

It is proving a smart ruse, with many middle-to-high-income residents flocking to nearby tax offices to get an NPWP to comply with the office’s Sunset Policy program that ends on Dec. 31. 

The program, under which applicants’ tax obligations in previous years are written off, has seen people rushing to register themselves. 

This month alone, the number of people registering for an NPWP was between 50,000 and 100,000 per day, up from about 7,000 people daily in previous months. 

The exit tax will from now on become an up-front payment for income tax. 

For instance, an employee whose income tax is Rp 20 million per year and who has traveled abroad twice this year — paying Rp 1 million in exit tax each time — will only have to pay Rp 18 million in income tax when filing their tax returns in March 2009.

For those not yet registered, the new exit tax of Rp 2.5 million could prove very daunting. 

Satria Ramadhan, who will go to Bangkok for holidays in early January, said he was glad to have registered for an NPWP. 

“Otherwise, I would have to pay Rp 2.5 million. I would have definitely canceled my trip if I had to pay such a huge amount.” 

Another traveler, Frederick Tobing, praised the move by the directorate general of taxation.

“It’s a smart move. Most people, including myself, will rush to register at the tax office, just to avoid paying the exit tax.” 

The directorate general of taxation estimates up to 10 million new taxpayers have registered this year, Darmin said. 

“I didn’t expect the number to be this huge. No one expected to tap 10 million new taxpayers,” he said.

To get exemption from paying the exit tax, registered taxpayers must submit a copy of their NPWP, passport and boarding pass to tax officials at airports or ports. 

If the NPWP is declared valid, the officials will put a “free exit tax” sticker on the boarding pass. If it is not valid, travelers will have to pay the exit tax.

1. Exit tax from airports for people aged 21 years and above raised from Rp 1 million to Rp 2.5 million.
2. Exit tax from ports for people aged 21 years and above raised from Rp 500,000 to Rp 1 million.
3. Those automatically exempt from paying the exit tax include: People aged less than 21 years; foreigners staying in Indonesia no more than 183 days within the last 12 months; diplomats; employees of international organizations; Indonesian citizens with official documents from other countries, including students; Haj pilgrims and Indonesian migrant laborers.
4. Those exempt from paying the exit tax but required to provide documentary proof: Foreign students with letters of recommendation from their universities; foreign researchers; foreign workers in Batam, Bintan and Karimun; disabled or ill people seeking medical treatment abroad paid for by social organizations; people traveling for art, culture, sport and religious missions, and students in a student-exchange program. 

Another EU team to review air safety

The Jakarta Post, Jakarta

Jose Manuel Barroso, the president of the European Commission (EC), currently on an official visit to Indonesia, said Friday that the commission would send another verification team to speed up a review of air safety in Indonesia.

Speaking to reporters Friday following a meeting with President Bambang Susilo Yudhoyono, Barosso said that the flight ban imposed on Indonesian airlines was a "technical matter".

"Let me tell you, the European Union (EU) was also forced to take some measures against European Union airlines, so this is a decision, but it is only on technical grounds," he was quoted as saying by AFP.

In July, the EU banned 51 Indonesian airlines, including national flag carrier Garuda Indonesia, from flying to Europe following a series of air accidents here.

Recent crashes included an Adam Air plane that plunged into the sea off Sulawesi island on New Year's Day, killing all 102 people on board, and, in March, a Garuda jet that burst into flames on landing in Central Java, killing 21 people.

No Indonesian airlines fly regularly to and from the EU, but under European rules, passengers must be informed if an airline is on the list of banned carriers and can demand reimbursement or an alternative carrier for tickets bought in Europe for flights that do not enter EU skies.

An expert team from the European Aviation Safety Agency (EASA) visited Jakarta early this month to verify the fight safety standards of the country's major airlines.

Director General of Air Transportation Budhi M. Suyitno said at that time that the results of the verification should have been reported to the EC's regular meeting in Brussels on Nov. 19 (Monday). However, no decision has been announced so far.

"And I said to President Yudhoyono that myself and the European Commission will do everything to speed up all the procedures, to work in close contact with Indonesian authorities so that the issue can be solved in full respect ... for the technical requirements of safety," Barroso said.

"In fact, I'm pleased to say that very soon there will be another mission here working with (our) Indonesian colleagues to do everything to speed up this process of reviewing all the safety conditions," he added.

Barroso acknowledged the measures taken by the government to improve flight safety standards among the country's airlines, saying that such efforts were necessary to protect passengers and ensure the safety of air travel both here and in Europe.

Meanwhile, President Yudhoyono said that he had asked Barosso during the meeting to help lobby for the lifting of the ban and to normalize aviation relations with the EU.

He said that the Indonesian government was committed to improving flight safety standards and would, for this purpose, cooperate with the EU on technical matters.

"I stressed that we were in the midst of serious efforts to improve our regulations and the safety of our aviation industry, and I'm glad that in recent times there have been efforts to rectify the situation," Yudhoyono said. (amr)

Amsterdam route plan still on: Garuda

Andi Haswidi, The Jakarta Post, Nusa Dua, Bali

Garuda Indonesia plans to revive its Jakarta-Amsterdam route as soon as the European Commission (EC) lifts its ban on Indonesian airlines flying to the continent, hopefully later this year, the company's top executive says.

Garuda president director Emir Syah Satar said Wednesday that the government was hopeful that after the lifting of the ban, the national flag carrier would quickly revive the service, which was discontinued in 2004 for financial reasons.

"We are also planning to add new routes to Japan and India," Emir told the press on the first day of the Pacific Asia Travel Association (PATA) Travel Mart, which was officially opened by Vice President Jusuf Kalla .

Emir said that as Garuda had recently passed an International Air Transport Association (IATA) safety audit, the EC had no more grounds for barring it.

He said that the EC was expected to lift the ban by not later than November of this year.

"We had a discussion with the transportation minister and the vice president this morning. He said that there will be a decision on the ban in November," Emir said.

The EC imposed the ban in June, barring all Indonesian airlines from flying to the 27-nation bloc after a series of aircraft accidents at home.

At the beginning of this month a special team was dispatched to Brussels, Belgium, to lobby the relevant commission committee. Upon returning, the head of the team, Cheppy Hakim, said that the committee would put the matter to a vote some time this month.

Also present during the discussions with the minister, PATA president and CEO Peter de Jong said that there would be a review of the EC's policy on Indonesian airlines.

"Let it be known by the European authorities that the flight ban is an unfair measure. For those who don't know, the problem arises when tour operators cannot get insurance for their clients," Jong said.

"It has jeopardized tourism, not only in Bali, but also in other travel destinations in the country. The good news is that we expect a new development in the next 8 weeks or so," he concluded.

Earlier, Jong had said that despite the ban on Indonesian carriers, the attendance of European delegates at the PATA Travel Mart 2007 had not been affected.

"PACTO, which organizes pre and post tours, has not received any cancellations. The time for a show in Bali is, in fact, perfect as the destination has been in full recovery since the beginning of the year," he said as quoted by Travel Weekly on Wednesday.

According to Garuda's Emir, after passing the IATA safety audit (IOSA), Garuda needed no other certification.

Aside from improving its safety and maintenance procedures, Emir said Garuda would also continue to invest in new aircraft. He revealed that Garuda was considering buying 25 Boeing 737-800 aircraft next year, and hoped to have 10 Boeing Dreamliners in operation by 2011.

"Airbus has also offered us 20 of their 320 series." Emir said.

After years of suffering losses, Garuda reported a profit of Rp 148 billion (about US$15.9 million) in the first semester of this year, as compared to a net loss of about Rp 361 billion during the same period last year.

Indonesia extends visa facility to 11 countries

The Hindu

Jakarta, June 17 (Xinhua): Indonesia has extended the visa on arrival (VOA) facility to 11 more countries, and is considering giving the facility to another 11 countries in an attempt to woo foreign tourists, local media reported on Saturday.

The 11 countries includes Algeria, the Czech Republic, Fiji, Latvia, Libya, Lithuania, Panama, Romania, Slovakia, Slovenia and Tunisia.

The Directorate General of Immigration announced Friday that based on a Justice and Human Rights Ministry decree, beginning on May 28, 2007, citizens from a total of 63 countries will enjoy visa on arrival.

"The extension of the visa on arrival facility is aimed at raising the frequency of visits by foreign tourists," the immigration office said in a statement.

Indonesian Foreign Ministry spokesman Kristiarto Soeryo Legowo said the government was now studying the possibility of extending the facility to 11 additional countries to allow more tourists and investors to come to Indonesia.

"So, there will be 74 countries that receive the visa on arrival facility soon, pending a decree from the Justice and Human Rights Ministry. We hope more foreigners will come to Indonesia," he was quoted by the Jakarta Post as saying.

He refused to identify the 11 additional countries. The visa on arrival was first introduced on Feb. 21, 2004.

Under the system, tourists from selected countries do not have to apply abroad for a visa but can purchase a visa on arrival at Indonesia's international airports and seaports. A seven-day visa costs 10 U.S. dollars, while a 30-day visa costs 25 U.S. dollars.

Indonesia's tourist arrival numbers dropped by 2.61 percent to 4.87 million in 2006 from 5 million in 2005.

The government said extending the visa on arrival facility was expected to raise tourist numbers to 6 million in 2007.

Amex cardholders to get eyes opened at airport

The Jakarta Post, Jakarta

Holders of American Express goldcards issued by Bank Danamon can now benefit from an eye-scanning facility when passing through immigration at Jakarta's Sukarno Hatta International Airport.

Cardholders will only need to insert iris-data cards and have theirs eyes scanned by a scanning device, which will match the data on the card and with the person's iris.

"This facility is very efficient as passengers no longer have to fill out embarkation forms, or get their passports stamped. They only need to have their irises scanned," said director of Angkasa Pura Schiphol Djoko Santoso during the signing of the collaboration agreement for the facility with Bank Danamon on Thursday.

The eye scanning process, called automatic border passage, will replace manual passport checking, which can take an average of around 20 minutes.

Automatic border passage is part of the Saphire program designed by PT Angkasa Pura Schiphol, a joint venture between PT Angkasa Pura II, the operator of Soekarno Hatta, and the Netherlands-based Schiphol Group.

The holders of Amex gold cards can use the Saphire program for free during the first year, but will have to pay US$180 annually in subsequent years. They can also enjoy other Saphire program perks, including special parking facilities, and exclusive security gates and check-in counters for Saphire customers.

Bank Danamon vice president Subba Vaidyanathan said that the Saphire program was a commercial initiative designed to provide more benefits for Amex gold cardholders, who were often frequent fliers.

"Most of our Amex cardholders are businesspeople that need efficiency when traveling. We believe that the Saphire program will satisfy them as it offers not only time savings, but also an exclusive services," said Subba.

Djoko said that the installation of eye-scanning machines was part of its commitment to making Sukarno Hatta a world-class international airport.

Angkasa Pura Schiphol has invested around Rp 2 billion ($222,200) on installing automatic border passage equipment. The necessary technology was developed by the Schiphol Group, which has been working together with Angkasa Pura II since 1996.

Automatic border passage has been functioning since December last year and has so far facilitated around 1,500 regular travelers. Those interested in availing of the Saphire program should apply at the Saphire service center located in Soekarno-Hatta's terminal 2-F. The service costs $200 per year, and the registration process takes around 20 minutes, including iris data recording and verification of travel documents.

Garuda mulling reopening routes to Amsterdam and Nagoya

The Jakarta Post, Jakarta

National flag carrier Garuda Indonesia is considering reopening routes to Amsterdam and Nagoya, and starting a new service to India next year so as to jack up revenue from international flights, which contributed 45 percent of its income in 2006.

Garuda spokesman Pujobroto said the carrier was now studying what needed to be done to improve its services, including the use of newer aircraft and expanding promotion to business passengers.

"We terminated our service to Amsterdam at the end of 2004 because it wasn't competitive and was losing money. Now, we are considering reopening it with improved efficiency and profitability," said Pujobroto on Wednesday.

"Amsterdam is actually a highly prospective market in Europe."

Besides Amsterdam, Garuda also closed its routes to London and Paris in 2004.

It closed its service to Nagoya after the second Bali bombing in 2004 caused a collapse in the number of Japanese passengers, leaving it with only two destinations in Japan -- Tokyo and Osaka.

"As the Japanese market has been showing an improvement, we're studying the possibility of also reopening the route to Nagoya."

Regarding a service to India, he said that Garuda had yet to select a destination in that country.

Besides reopening old routes and establishing new ones, Garuda will also increase the frequency of its flights to a number of existing destinations.

Agus Priyanto, Garuda executive vice president for sales and marketing, said the new and reopened routes would boost the contribution of international services to Garuda's earnings to 50 percent in 2008.

Garuda currently serves 27 domestic and 24 international routes. According to Pujobroto, routes to the Middle East, Japan and Australia are the most profitable of all of the airline's international routes.

Pujobroto said Garuda was targeting a profit of Rp 45 billion (US$5 million) in 2007 after suffering losses for the past three years -- it lost Rp 800 billion in 2004, Rp 688 billion in 2005 and Rp 197 billion in 2006.

During the first four months of this year alone, the flag carrier had made a Rp 121 billion profit, as compared to a loss of Rp 279 billion during the same period last year.

The improved performance, according to Pujobroto, is due to various programs instituted by Garuda, including strengthening its subsidiaries, and improved productivity and efficiency.

Garuda currently operates 49 aircraft, consisting of three Boeing 747-400s, six Airbus 330s, 19 B737-400s, 14 B737-300s, five B737-500s and two B737NGs. It also has 25 B737NGs and 10 B787 Dreamliners on order, which are expected to start flying in 2009.

Indonesia to issue longer visas to draw more tourists

Jakarta (ANTARA News) - Indonesia is to grant foreign visitors visas for up to 120 days compared to the current 30 days in a bid to boost tourism, Vice President Jusuf Kalla said Thursday.

"It is now being processed, that tourists get four months," Kalla told AFP during an interview here.

He said the longer visa was part of the government's drive to attract more foreign visitors.

At present, tourists from 54 countries can obtain a 30-day visa on arrival at a cost of 25 dollars, or free for most Southeast Asian nations.

Kalla said the 54 countries -- which include most of Europe, China, India, the US, Canada, Australia and New Zealand -- accounted for about 90 percent of Indonesia's foreign tourists.

Visitors have complained that 30 days is far too short a time to take in the vast archipelago, which stretches for thousands of kilometres (miles).

Indonesia's drive to boost tourist numbers has also suffered due to a lack of money to promote the country abroad because of more pressing budget priorities.

"But I said that tourism is also a priority and therefore this year the budget will be increased on top of what is in the state budget," Kalla said, without giving figures.

Indonesia recorded a 2.38-percent drop in foreign tourist arrivals to 3.98 million in 2006.

Tourism has been hurt by a number of terrorist attacks in recent years, including on the popular resort island of Bali, as well as bird flu and a series of man-made and natural disasters.

Quick Processing For Apec Cardholders Available At US Airports

By Mohd Arshi Daud & Nor Baizura Basri

KUALA LUMPUR, Feb 5 (Bernama) -- Holders of the Apec Business Travel Card (ABTC) can now enjoy expeditious processing at international airports in the United States, US Senior Official to Apec, Michael W. Michalak, said.

"It is (effective now). You still have to have a visa to enter the US but if you have an Apec Business Travel Card, you will be able to go through the crew lane at international airports in the US

"Believe me, if you haven't been to the Chicago Airport, going through the crew lane is going to save you a whole lot of time," he told Bernama in a recent interview.

Chicago's O'Hare International Airport, among the world's busiest airports, is also among the largest airports with no less than 162 aircraft gates covering an area of 3,080 hectares.

During the Apec Summit in Hanoi, Vietnam in November 2006, the US announced plans to implement the ABTC at some of its international airports, embassies and consulates.

In other ABTC participating countries, Apec businessmen could travel without separately applying for a visa. The carholders enjoy a three-year re-entry permit to these countries.

Apec members which have signed up to ABTC are Australia, Brunei, Chile, Hong Kong, Indonesia, Japan, Korea, New Zealand, Papua New Guinea, China, the Philippines, Malaysia, Peru, Singapore, Taiwan, Thailand and Vietnam.

The ABTC system was established in 1996 and is designed to complement Apec's agenda of fostering regional trade.

"I think right now, US businessmen are applying for the cards. We are working with Apec to make sure that in the US, we can issue the cards to our own business people," said Michalak, who was here last for Apec's Senior Economic Officials meeting.

Michalak said that other Apec members are joining the ABTC system.

"Once we instituted our system, Canada, which has begun a pilot programme, would follow something rather similar to what we are doing and I heard that Russia and Mexico are now considering how they may also join ABTC.

"I'm hopeful that we will be able to have the entire Apec family using the travel cards in the near future."

On another note, Michalak said the US looks forward for a robust agenda in this year's meetings of the Asia Pacific Economic Cooperation (Apec), which Australia is hosting.

"We certainly look forward to a very robust agenda, particularly in the field of trade and economic liberalisation," he said.

"We recognise that you can't have prosperity without security and there will be some trade related security issues such as airport security and container which we continue to look on.

Apec 2007 involves a series of meetings, at the senior officials and ministerial level, culminating in the Apec Economic Leaders' Meeting in Sydney in September 2007.

Apec is the premimier forum for facilitating economic growth, cooperation, trade and investment in the Asia Pacific region.

Apec groups Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russsia, Singapore, Taiwan, Thailand, United States and Vietnam.

Michalak said Apec 2007 would also deliberate on strengthening the Apec secretariat including giving it more analytical power and to increase its resources so that the secretariat could deepen some of its work on capacity building.

The US, he said, wants to tighten the agenda within Apec so that the Apec secretariat could be strengthened to better serve the senior officials and the rest of Apec process.

"We have some 44 or 47 different working groups within Apec and we are looking to see (whether) we really need that many, can we slim it down, can we combine certain working groups, how can we make it more efficient?"

The secretariat would also make better use of information technology and would be receiving funds to enhance its operations from a few Apec member countries, said Michalak.

"The (US) president said that we will put in our budget request for fiscal year 2007 and 2008, (i.e.) US$5 million each year to work on capacity building within Apec.

"China has recently committed US$2 million a year for three years while Japan has offered to fund some extra research capability for the secretariat.

"I think there are lot of things going on to try and put more resources into the organisation to make it more efficient and improve our ability in capacity building," he said.

Elite APEC card saves time for travellers

Sick of waiting in line for a visa at the airports of the Asia Pacific?

Salvation could be quite simple - so long as you're deemed worthy of entry into an elite business club.

The APEC Business Travel Card is a little-known system that gives holders a host of benefits.

Cardholders are saved the hassle of applying for individual visas or entry permits in 17 Asia-Pacific nations.

The system amounts to a three-year re-entry permit to all member economies.

And at most airports, they're processed through the airline-crew lane seriously cutting waiting time.

And for Australians the best thing is, it only costs $155.

The system was established in 1996 and is designed to complement APEC's agenda of fostering regional trade.

The convenor of APEC's business mobility group, (who also heads the immigration department's border security division) Vince McMahon said there was anecdotal evidence the system was working.

"You have to look behind the purpose of it, it's about regional business facilitation and the idea of being able to move business executives cleanly and efficiently," he said.

"If you've done a lot of international travel and you know you've got two hours' waiting at the entry port, you might decide you're just not going

Nations signed up to the scheme include Australia, Brunei Darussalam, Chile, Hong Kong, Indonesia, Japan, Republic of Korea, New Zealand,Papua New Guinea, People's Republic of China, The Philippines, Malaysia, Peru, Singapore, Chinese Taipei, Thailand and Vietnam.

The special APEC business lanes apply at all Australian airports and many in the region.

In November, the United States decided to recognise the card.

In a briefing with journalists this week, the US APEC ambassador, Michael Michalak said the US hoped to fully participate in the scheme.

"When you go through an international airport in the US with an APEC business travel card you'll be allowed to go through the crew lanes, which, if you've ever been through Chicago or Los Angeles, is going to dave you a heck of a lot of time," Mr Michalak said.

"This year we're trying to work with APEC to make sure we can issue the card to American businessmen."

Full US involvement in the scheme was an exciting prospect for the APEC business mobility group, said Mr McMahon.

Russia, Mexico and Canada were also in the preliminary stages of full participation , he said, and if they could be enticed, it would mean all 21 APEC members were involved.

Mr McMahon said the system improved border security because all holders were checked against the criminal databases of their home countries.

And it meant airports could operate more efficiently.

"In general the crew lanes are underutilised, so in effect you're saying let's using something that's already there and take some pressure off the other lanes," he said.

The cards have proved particularly popular with Australians - of the 17,000 issued, Australians have snapped up 7,000.

Mr McMahon said those with aspirations of joining the club needed to prove their business credentials.

"It's not a rigid set of guidelines but you have to establish that you're a senior business person or involved in business activity.

"There would have to be some demonstration... in that context investing in other countries may be one component."

In other words, get back in line.