Flight Permits Revoked, Reduced for Nine Airlines

Jakarta Globe, Sarah Yuniarni & Thresa Sandra Desfika, May 25, 2016

The Transportation Ministry has revoked several airlines' flight permits and reduced
the number of flights they can offer from January to May this year as a result of the
airlines failing to meet their service obligations. (Antara Photo/ Aloysius Jarot Nugroho)

Jakarta. The Transportation Ministry has revoked several airlines' flight route permits and reduced the number of flights they can offer from January to May this year as a result of the airlines failing to meet their service obligations.

The airlines whose flight route permits have been revoked are Travel Express, Tri-MG Intra Asia Airlines, Sriwijaya Air, Air NAM and Kalstar Aviation—which lost two routes.

The frequency of flights has been reduced on a Trigana Air Service route, on an ASI Pudjiastuti route, on two routes offered by Citilink Indonesia, two routes by Garuda Indonesia and three routes by Sriwijaya Air.

"The airlines have not provided the required standard of services in accordance with the regulations,” Hemi Pamuraharjo, the ministry's Communications and Public Information chief said in a statement on Monday (23/05). The statement also mentioned that the sanctions are only temporary.

Several other airlines have on the other hand filed requests to the ministry to cut back the number of flights they have to offer. Some others were reported to the ministry for delays.

Previously, Lion Air temporarily shut down 217 flights on 93 domestic routes and 10 flights on two international routes, reportedly in protest to the ministry's decision to suspend their ground-handling operators.

Lion Air's self-imposed shutdown will be effective from May 18 to June 18.

Related Article:

Transport Ministry Revokes Supension Against Lion Air and AirAsia, Issues ProbationInstead

Dutch flag carrier KLM to cut management by 25%, boost efficiency

DutchNews, October 1, 2015

Dutch airline KLM is poised to cut a quarter of its managerial jobs and support functions, broadcaster Nos says, after acquiring a copy of the reorganisation plan. 

The document states that KLM is too complex, too slow and too expensive. The company is too hierarchical, has too many managers and ‘has lost sight of its customers’. Slashing costs will involve ‘flipping all the switches’, Nos says. 

According to KLM, this means 25% of managers will lose their jobs and those who remain will have bigger departments to deal with. In addition, support, HR and communications departments, can be streamlined and made more efficient. 

The job cuts should lead to savings of €40m a year, Nos says. 

The plan was sent to the airline’s works council on July 8 and it has reacted positively, Nos says. 

The reorganisation has been on the cards for some time. A spokesman told the broadcaster that the changes would make KLM more future-proof but declined to say how many jobs will actually be lost.

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Fewer managers but more of them are women

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Software developer Valve Corp in Bellevue, WA, has

300 employees and not one manager or boss. (Value Corp)

Who Needs Bosses? Not Game Company Valve

Zappos is going holacratic: no job titles, no managers, no hierarchy


"The New Paradigm of Reality" Part I/II – Feb 12, 2011 (Kryon channelled by Lee Carroll) (Subjects: Egypt Uprising, Iran/Persia Uprising, Peace in Middle East without Israel actively involved, Muhammad, "Conceptual" Youth Revolution, "Conceptual" (without a manager hierarchy) managed Businesses, Internet, Social Media, News Media, Google, Bankers, ..... etc.) (> 28 Min)

Route Expansions, New Planes for Thai Lion Air

Jakarta Globe, Farouk Arnaz, Mar 06, 2015

A Batik Air aircraft at Soekarno-Hatta International Airport’s Terminal 3
in Jakarta on April 25, 2013. (JG Photo/Safir Makki)

Bangkok. Thai Lion Air, the Thailand-based unit of Indonesia’s biggest low-cost carrier, Lion Air, is expanding its routes with an extra 11 new aircraft this year, its director said on Friday.

Capt. Darsito Hendroseputro, director of Thai Lion Air, announced Thai Lion had ordered new aircraft from the Boeing 737-900 extended range.

“With the arrival of 11 new aircraft, Thai Lion Air’s fleet will reach 20 units. There are currently 60 departures to eight destinations which accommodate 10,000 passengers every day to, and outside, Bangkok,” he said.

The aircraft are part of Lion’s purchase placed with the US-based aircraft manufacturer in 2008.

Lion Group’s owner and founder, Rusdi Kirana, placed a $14 billion order for 178 Boeing planes which will be gradually delivered until 2017.

This was followed by a record-setting Boeing order as Lion sealed a $22 billion deal for 230 aircraft to be delivered in stages from 2017 to 2025, as part of the company’s plan to expand in the Southeast Asia region.

Darsito said Thai Lion Air, which launched operations in late 2013, will expand both domestic and international routes.

“In 2015 we will expand our routes to China — Shijiazuang and Chongqing — and Singapore for the international routes,” said the former Indonesian Navy captain.

Domestic route expansions include flights to Chiang Rai, Ubon Ratchathani, Trang and Khon Kaen. Thai Lion Air served 1.8 million passengers in 2014, with local travelers making up more than 70 percent.

Darsito said Thai Lion Air’s passenger load factor with the current nine aircraft reached 82 percent and scored 92 percent on time performance.

The airline’s ambitious expansion plans have been dogged by criticism of punctuality and service to customers.

Its Indonesia parent company suffered severe delays during the Chinese New Year period, which lasted for three days and left thousands stranded in several airport across the country.

Investor Daily

With a touch down in Amsterdam, Garuda enters a new era

Primastuti Handayani, The Jakarta Post, Amsterdam | Sun, 06/06/2010 10:04 AM

With a six-year flying ban to Europe finally lifted, national carrier Garuda Indonesia relaunched its Jakarta to Amsterdam direct service this week, inviting government officials, legislators, businesspeople and journalists on the voyage that marked the beginning of a new era for the airline.

For captain pilot Ari Sapari, who flow the GA088 Jakarta to Amsterdam flight on June 1, the event was a proud moment. “It brought back memories of when I flew Garuda before we stopped the operation six years ago,” he said.

When the Airbus A330-200 touched down at Schiphol airport in Amsterdam, the passengers on board applauded the flight deck for a smooth landing. Excitement turned to outright delight when two fire trucks from the local fire brigade began showering the aircraft with water — a ritual at the airport when an airline makes its maiden arrival there.

Ari, an executive vice president for operations at Garuda and a presidential pilot, said he was very proud of having been given the opportunity to pilot the maiden flight marking Garuda’s return to Europe. Garuda stopped flying to Europe in late 2004 to cut costs.

The carrier was then banned three years later from flying to Europe after the European Union imposed a flight ban on Indonesian airlines following a string of air accidents and heightened security measures.

For Wiyati, an Indonesian living in the small town of Schellinkhout and the owner of Waq travel agency, Garuda’s return means she now has more options to offer clients.

“We usually fly our guests to Indonesia using Singapore Airlines and Emirates but now we have Garuda so we can offer them an alternative. The air fare [of Garuda] is cheaper,” Wiyati said.

Garuda prices a Jakarta-Amsterdam round trip ticket at US$1,450. Currently, as part of a promotion for new customers, Garuda is offering a buy-one-get-one free policy.

Garuda president and chief executive officer Emirsyah Satar said he was upbeat the new route would receive a warm welcome in Europe, adding that plans were already in place to add new routes to other cities, including Frankfurt, London, Paris and Rome.

After struggling with a $900 million debt five years ago, Garuda has gradually turned around its finances and returned to profit.

Part of its recent success can be contributed to its recently launched “Quantum Leap” strategy that will increase the number of its aircraft to 116 in 2014, and sets a target of 27.6 million passengers in 2014 from 10.3 million in 2008. The airline expects to increased operating revenue to Rp 57.9 trillion in 2014 from Rp 18.1 trillion in 2008.

Emirsyah promised that passengers would benefit from improved service on flights, thanks to an overhaul of its flight service under the slogan “Garuda Experience”.

“It is an experience that as soon as passengers board the aircraft they can feel that they are in Indonesia through our hospitality and services,” he said.

And Garuda has gone the extra mile to realize a superior service, he said. Upon entering the aircraft, passengers are welcomed by flight attendants wearing a new kebaya-inspired uniform consisting of a blouse and a batik long skirt designed by Josephine “Obin” Komara, brandishing colors orange, turquoise and blue.

However, Garuda has some work to do improve passenger comfort. The newly upholstered seats on the aircraft could not recline fully — a complaint voiced by several passengers. However, a 25-movie individual entertainment system displayed on mini screens embedded in the backs of the seats’ headrests goes some way to distract passengers from the frustratingly restrictive seats.

Luckily, Garuda food paints a favorable impression of Indonesian cuisine. In collaboration with culinary expert William Wongso, Garuda offers nasi kuning (yellow rice with side dishes) for dinner and nasi goreng (fried rice) for breakfast. There is also an international menu on flights leaving the country from Jakarta.

As part of an effort to lure passengers from Europe, the government collaborated with Garuda to allow passengers to receive on-arrival visas while in the air.

However, there are still many t’s to be crossed and i’s to be dotted before Garuda can truly claim to be able to compete with the world’s major carriers.

Since recently receiving a four-star rating from Skytrax, a United Kingdom-based research company that specializes in commercial airlines, Garuda has built a cooperation with KLM and is mulling joining the Skyteam airline alliance.

However, Emirsyah said, improvements should not only come from Garuda’s side. He said it was no less important for Indonesia’s international airports to improve their facilities and services.

Drivers turn to batik to tackle stiff competition

The Jakarta Post, Jakarta | Wed, 05/05/2010 11:39 AM

Taxi operator Blue Bird Group said it would require its taxi drivers to don batik uniforms as part of efforts to strengthen its identity amid tighter competition in the sector.

Business development vice president Noni Purnomo said Tuesday that drivers could also become tourism ambassadors as their uniforms reflected the richness and character of Indonesian culture.

“This is our contribution to preserving Indonesian culture,” she said after signing an MoU with batik producer PT Batik Danar Hadi.

Blue Bird expects to dress 50,000 taxi drivers in batik by year-end. Drivers of the company’s limousine taxi service, Silver Bird, will transition to batik-themed uniforms in the next two years.

Batik was declared an Intangible Cultural Heritage by UNESCO last year, leading to increased popularity with many people wearing batik at work and at other occasions.

Chossy Latu, who will design the batik uniform, said that despite the increased focus on contemporary batik design, he chose a traditional batik motif for the uniform.

“It is a Javanese batik motif with elements that give meaning to the Blue Bird image,” he said, adding that the uniform’s motif of rice (food) and cotton (cloth) symbolized welfare.

Competition among taxi operators in the city is strong as price-conscious customers are drawn to cheaper taxi rates.

Blue Bird increased its tariff a few years ago, charging Rp 6,000 (US$0.66) at flag fall, while other taxi operators raised their fares two years ago to keep up with fuel price hikes.

To attract passengers, other operators deck out their fleets with additional services such as TV.

Blue Bird operates 11,000 cars in Greater Jakarta. (lnd)

For Executives of Riau Air, Hopes Are in the Toilet

Jakarta Globe, Putri Prameshwari & Antara

Teguh Trianto, chairman of Riau Airlines, shows staff how it’s done as he cleans the toilet on one of the company’s Fokker-50 aircraft shortly after it landed in Pekanbaru on Friday night. (Antara Photo/FB Anggoro)

Struggling low-cost carrier Riau Airlines has come up with a novel way to remind cabin crew that cleanliness is next to godliness — getting the company chairman and other senior executives to clean toilets aboard its planes once a week.

Chairman Teguh Triyanto said that as of this month, senior staff would be required to help keep the lavatories of the company’s aircraft spic and span every Friday.

“We are trying to demonstrate that in addition to safety, passenger comfort is our No. 1 priority,” Teguh said.

He added that he hoped the scheme would motivate the company’s rank-and-file to keep the aircraft clean and thereby keep passengers happy.

Teguh said the toilet was an integral part of the plane, but cabin crew often overlooked its cleanliness. On Friday, Teguh climbed into a Fokker-50 shortly after it landed in Pekanbaru from Tanjung Pinang and started cleaning the lavatory.

Along with 10 other directors and managers, Teguh, recently appointed the company’s chairman, cleaned the toilet as well as other areas on the plane.

Riau Airlines, based in Pekanbaru, serves routes in the western part of Indonesia using a fleet of five Fokker-50s and two British Aerospace 146s. It also offers smaller aircraft for charter.

Riau Airlines discontinued its flight linking Pekanbaru with Jakarta on Wednesday due to ongoing losses. Teguh was quoted by Antara as saying that once the airline had acquired a larger aircraft it would reopen the route. “For now, we are only focusing on short routes in Sumatra,” he said.

The route opened in December 2008 with two Avro RJ-100 aircraft with a capacity of 108 seats each. In the future, the airline would focus on commercial flights from Riau to Sumatra, he said. Riau Airlines also recently opened a new route to Jambi and plans a route to Palembang in the near future.

As air transportation has grown rapidly in the archipelago in the wake of the economic reforms since the late 1990s, carriers have been pressured to compete to get the most passengers by slashing fares. Travelers’ comfort and safety have been often overlooked as a result.

Eko Roesni, secretary general of People for Indonesia Air Transportation, said airline liberalization should have come with much tighter regulations.

“And the regulations must prioritize passengers because without them the industry would not be in business,” he said.

Domestic Airlines Call for Indonesian Airports to Run '24/7' to Help Keep Neighboring Rivals at Bay

Jakarta Globe, Putri Prameshwari

Jakarta’s Soekarno-Hatta International Airport is one of only two in Indonesia operating 24 hours day. The other is Ngurah Rai in Bali. (Bloomberg Photo/Dimas Ardian)

The country’s 27 international airports should operate 24 hours a day, seven days a week, to boost the airline industry ahead of the full implementation of the Asean “open sky” policy in 2015, an airline association official said over the weekend.

Tengku Burhanuddin, secretary general of the Indonesia National Air Carriers Association, said the country’s biggest hubs must be prepared to operate 24 hours a day. “That way we can make the most of our local airlines,” he said.

The Asean open sky agreement took effect in December 2008 and is being implemented gradually until 2015. It will allow airlines from all 10 Asean member countries to fly to any destination within the region.

Currently, Tengku said, Jakarta’s Soekarno-Hatta International Airport and Bali’s Ngurah Rai International Airport were the only ones that operated 24 hours a day. “It’s such a shame because several other airports also have a market if they open for 24 hours,” he said.

Those airports, he said, included Medan’s Polonia, Makassar’s Sultan Hasanuddin, and Surabaya’s Juanda airports. These, along with Jakarta and Bali, made up the country’s main air transport hubs, according to the Transportation Ministry.

Herry Bhakti Singayuda, director general of civil aviation at the ministry, said there was an existing plan to maximize the operation of the country’s major airports. The ministry, he said, was evaluating the five airports in an effort to improve their performance as major hubs.

“Several sea ports are open 24 hours,” Herry said. “Gradually, the ministry will also test-run these airports.”

Dudi Sudibyo, a Jakarta-based aviation expert, said human resources needed to be improved before the government could operate airports 24 hours a day.

“The most important thing is service. So the question is whether we have competent people to work at night and can still give customers the best service or not,” Dudi said.

He added that if Indonesia wanted to prepare for the open-sky policy, the airport workers must improve their English.

“It's a small factor that often gets overlooked,” he said, adding that workers proficient in English were required because most international flights arrive and depart at night.

Eko Roesni, secretary general of aviation watchdog People for Indonesia Air Transportation, said airport facilities also must be improved. “How can airports operate 24 hours a day if blackouts still happen?” he said.

Tulus Pranowo, operational and technical director of state airport operator PT Angkasa Pura II, noted that the private sector was permitted to be involved in the operation of an airport, in accordance with the 2009 aviation law.

“We welcome any private sector organization that wants to be involved in improving our airports,” he said.

In December, Transportation Minister Freddy Numberi asked his Asean counterparts for a delay of at least six months before the country began full participation in the open-sky policy because the domestic industry was not ready.

`Give haj management to private sector'

The Jakarta Post , Jakarta | Mon, 11/23/2009 1:36 PM

Observers said the government should hand over pilgrimage management to the private sector after failing to provide good services to Indonesian pilgrims in Saudi Arabia over many years.

Public administration expert from University of Indonesia, Eko Prasojo, said Sunday the government could still play a supervisory role if haj management was handed over to the private sector to ensure standards.

Eko said the government could hand over transportation, accommodation, or food supplies, which might not have been adequately managed by government officials.

Noted Islamic scholar, Ahmad Syafii Maarif, said this could result in a good solution resulting in optimum services for pilgrims.

The Business Competition Supervisory Commission (KPPU) member, Ahmad Ramadhan Siregar, said the government "should tender the business to ensure the best services were delivered to the pilgrims".

"It may take at least five years for the government to improve its administration system," he said.

The legislative team monitoring the haj in Saudi Arabia said Wednesday its observation showed that Indonesian pilgrims were subject to unnecessary hardships.

The team discovered that pilgrims suffered from bad accommodation, inefficient transport systems and overcrowded dormitories.

Team members cited only one bathroom for 25 pilgrims in each dormitory.

Eko said the government should assess the performance of Religious Affairs Ministry's officials.

"The government should modernize the bureaucracy at the Religious Affairs Ministry," he said.

As of Saturday, 89 Indonesian pilgrims had died ,mostly of cardiac arrest, respiratory and circulation failures. Those who died were between 40 and 59 years old. Meanwhile, 150 pilgrims are being treated at the Indonesian Pilgrims' Health Center.

Public policy and consumer protection observer Agus Pambagyo said many officials did not seem open to transparency and good governance.

"The government should acquire accurate data and information related to the haj in the past five years to identify any shortcomings in service delivery," he said.

Agus said this would help prevent corruption in the ministry.

However, Coordinating Minister for People's Welfare Agung Laksono said Saturday that the haj arrangements were already transparent.

Agung had ordered the Haj Management Committee (PPIH) to facilitate transportation, health and food services during the pilgrimage.

Agus further urged the government to strictly supervise agencies sending pilgrims to Saudi Arabia.

"The government should issue strict regulations and set high standards required to be achieved by the private sector," he said. (nia)

Busway Services Deteriorate

KOMPAS, MONDAY, 23 NOVEMBER 2009 | 12:23 PM

Kompas / Osa Triyatna

JAKARTA, KOMPAS.com - The Transjakarta bus services, or dubbed busway, is bombarded by customers. The worn out air conditioning, dirty and littered shelters, and jammed automatic doors, among which are some of the complaints.

Aside from those complaints, the travel time and headway between busses are often unpredictable.

Security and convenience are also becoming issues, especially regarding the busses being congested with passengers during rush-hours. A customer of Transjakarta corridor III, Kalideres-Harmoni lane, said that the condition of busses and shelters are neglected, some are even littered.

"I realize that the Transjakarta bus services is a cheap means. But cheap doesn't excuse poor services," said Eviani, an employee of a private company on Hayam Wuruk street, Central Jakarta.

Two years ago, she said, the busway facility on corridor III was quite good. She wonders why now the condition has changed dramatically, and she noticed many flaws, among which are jammed shelter doors and gaps on the floor's metal panels.

"Jakartans can only construct but can't maintain. As far as I know, the operational cost for the busway is also taken from the Jakarta regional budget aside from bus fees. So the condition shouldn't remain like this," she said.

Ayunda (31), a loyal customer of busway's corridor VII (Kampung Rambutan - Kampung Melayu) and corridor V (Kampung Melayu-Ancol), said that the convenience and security aren't improving, but deteriorating instead.

"The buss' AC is not cold enough anymore. But the Lorena busses (the new armada) is still good," said the citizen from Tanjung Barat, Jagakarsa, South Jakarta, Sunday. She said that if the passengers were many, the AC didn't seem to work, so they had to fan themselves.

Aside from that, she said, sometimes the busses broke down on the way. "If the bus broke down then we get moved to another bus and must stop at the next shelter," said the employee of a private company in Senen, Central Jakarta.

According to Ayunda, in a month, the average for the bus she's on to break down is more than twice. Furthermore, the poor shelters are also inconvenient for waiting passengers.

As for security, she said, the Transjakarta is relatively safe compared to other city busses because there is an officer on-board. She claimed she has never been pick-pocketed on the busway, though she often heard stories of other passengers having had the experience.

Romi (25) concurs. As a regular on the Corridor VII, he said that the old busses should get better maintenance so they could be as good as the new ones.

"The AC isn't cold anymore. The sound system that gives information about the stops is rarely on. It's unfortunate for those who seldom take the busway," said the citizen of Pasar Rebo, East Jakarta, Sunday.

The poor shelters along that corridor are the one near Bogor mainstreet's fly-over and the one near Kramatjati central market. The automatic doors on the shelters along that lane are always open. While the shelters' glass panes and aluminum body are dirty, as if they're never cleaned.

Another busway facility that has been damaged is the street separator, as can be seen on the Harmoni-Lebak Bulus lane. The separator along that lane is heavily damaged, leaving nuts and bolts on the street that would endanger other vehicles. The nuts and bolts can be 7 cms tall. The damage is due to cars that run over the separator to move between the regular lane and the busway lane.

The Transjakarta shelter on Gatot Subroto street has been vandalized with spray paint on the glass panes and walls. The doodles have been there since several weeks ago and so far haven't been cleaned.

The Al-Azhar shelter is also suffering. The floor panels of the bridge are loose. And also, several lights on the bridge are off.

On the Cengkareng Drain shelter, Daan Mogot street, West Jakarta, the busway bridge has been used by motor-bikes, including bike-cabs, to cross the street. Not to mention a lot of beggars and peddlers on the bridge make the condition even worse. Some zinc panels on the bridge are peeling off too.

According to a Transjakarta officer, the major cleaning is only done once a week, but it doesn't include the shelters' external. "Usually just the inside is cleaned, such as the floors and window panes," said the officer who was reluctant to give his name.

Coordinator of the Joint Committee for Leaded Gasoline Phaseout (KPBB), Ahmad Safrudin, some time ago stated that many facilities and infrastructure of the busway are deteriorating because there are two corridors that aren't operational yet, Corridor IX (Pinangranti-Pluit) and Corridor X (Cililitan-Tanjung Priod).

"For almost three years the busway infrastructures on those corridors are idle," he said.

The gas fuel supply for the Transjakarta bus armada till now is still unsufficient, causing a disturbance in the bus operations. The consequence is that the passengers' waiting time, especially during rush-hours, is over 30 minutes longer than it should be.

But the head of Transjakarta's Public Service Institution (BLU), Daryati A. Fini, denies the deterioration of Transjakarta's service. She said that the service has improved since the number of passengers has increased by 10-15 percent, or from around 230,000 to 250,000 passengers increased to 270,000 everyday.

"Currently the complaints against services are lessening. This shows improving service," she said. (hertanto/C17-09)

Editor: jimbon

Garuda to spend $100m on expansion, new aircraft

Nani Afrida, The Jakarta Post, Jakarta | Tue, 11/10/2009 12:38 PM

Garuda Indonesia will spend US$100 million next year as part of its five-year expansion plan, which aims to increase the national flag carrier's fleet from 67 to 116 aircraft by 2014, to serve 27 million passengers.

"We plan to spend $100 million in capital expenditure in 2010 to buy more planes as well as to fulfill Garuda's other operational expenditure," Garuda finance director Eddy Purwanto told reporters on Monday.

He said Garuda still requires yet more capital to improve its infrastructure to provide its passengers with wider and better services.

If it manages to achieve this expenditure target , then it will be the third time the airline spent has $100 million in capital expenditure or more in one year,. It also spent over $100 million on capital expenditure in 2008.

The 2009 capital expenditure (so far) used in part to purchase new Airbus aircraft from Toulouse in south western France and from Boeing in Seattle in the United States.

Next year's proposed spending will be part of the airline's ambitious five-year expansion program to make it not only the largest airline in the country, but also one that can compete with its regional rivals.

On Monday, Garuda received one new Airbus 330-200 and one new Boeing 737-800.

Garuda has ordered 10 new Boeing 777-300ERs and 50 Boeing 737-800s. Previously, the company has received three Airbus 330-200s and one Boeing 737-800.

"Until today, we have about 67 aircraft. So, by 2014 we will be targeting to have at least 116 aircraft," Garuda president director Emirsyah Satar said, adding that the expansion program called for the modernization and revitalization of the Garuda aircraft fleet.

With this larger fleet, Garuda will be able to strengthen and expand it regional presence, flying more routes and with greater flight frequency.

"We will increase our routes and our increase the number of flights from 1,700 times per week in 2009 to 3,000 times per week in 2014," Emisyah said.

He said that the company was targeting to serve 27 million passengers by 2014, up from 10.1 million passengers recorded in 2008.

Emirsyah is confident the company would be able to achieve its operational targets and make Rp 3.75 trillion ($397.5 million) in profits by 2014.

In 2008, the airline booked Rp 669 billion in profits, out of total revenue of Rp 19.4 trillion.

For this year, Garuda has set a minimum 10 percent growth target for net profits compared to a year earlier. In the first half of this year, net profits stood at Rp 612 billion.

The company is now preparing to sell 40 percent of its stake though an initial public offering (IPO) next year (in 2010), in a process Garuda expects to bring in $300 million to $400 million in proceeds.

"Our target is still on these figures," he said.

The planned IPO is part of a debt restructuring agreement between the company and its creditor Bank Mandiri to settle a previously unpaid debt of about $100 million.

DPD questions idle monorail, poor Transjakarta service

Triwik Kurniasari, THE JAKARTA POST, JAKARTA | Thu, 03/19/2009 3:03 PM

Councilors from the Regional Representatives Council (DPD) and members of the House of Representatives are urging the city administration to deal with the abandoned monorail project, as well as improve the Transjakarta bus service.

"It's *the monorail* been abandoned for years. What has happened to it? Is it still going to be a monorail or what?" said Marwan Batubara from DPD Jakarta Wednesday.

Wati Amir, a member of the House's Commission VII for energy, mineral resources and the environment, complained about monorail pillars disrupting traffic.

"I think the administration should do something about them. They are really annoying," said Wati.

Deputy Governor Prijanto said the administration was still trying to solve the problem with monorail developer PT Jakarta Monorel (JM).

"The State Development Finance Comptroller *BPKP* is still calculating the amount of money that has been put aside for this project," said Prijanto.

He said the administration could solve all the problems once it took over the monorail project.

"*If we can take over the project* we might remove the monorail pillars for the sake of drivers.

"We might also build another public transportation system to replace the monorail. It doesn't have to be a monorail," he said.

The future of the city's first ever monorail project is still unclear, as no agreement has yet been reached between the city administration and JM.

JM's contractor PT Adhi Karya has been pressing JM for compensation for the losses incurred when JM canceled monorail pillars along Jl. Rasuna Said and Senayan in South and Central Jakarta.

Governor Fauzi Bowo said the administration might take the case to court to settle the dispute.

Some councilors also queried the poor quality of the Transjakarta bus service and asked why corridors 9 and 10 remained unused.

"I often see a queue of Transjakarta bus passengers at some bus shelters during rush hour. They complained they were waiting too long because there were not enough buses," said Husein Abdul Aziz from the Democratic Party.- JP

Govt to link Garuda, Merpati operations

The Jakarta Post,  Jakarta, 14 March 2009 

The Office of State Enterprise Ministry has formed a special team that will synergize operations of state airlines Garuda Indonesia, Merpati Nusantara and Pelita Air Service in a bid to boost efficiency, Secretary to the State Enterprises Minister Said Didu says. 

He said aircraft maker PT Dirgantara Indonesia will also join the airline synergy to help provide aircraft, spare parts, and maintenance. 

"The team will focus on synchronizing the service and operation of state airlines and their supporting companies. This will include ticketing, flight routes, and maintenance," said Said, adding the new system would be applied this year. 

Under the program, Garuda and Merpati could share routes and function as feeders to each others under one ticketing system. 

Said said with the new system, passengers who wanted to use Garuda and Merpati services could use just one ticket for routes mostly serving cities in the central and eastern part of Indonesia. 

"Garuda serves international and some local routes, while Merpati serves mostly eastern Indonesian routes which Garuda does not serves," said Said. 

"After Garuda has landed, Merpati will be ready to take-off and carry the passengers to the next destination." 

Said said that this new system would also boost the airlines efficiency and increase their profits. 

"Certainly this will increase services and profit, but the efficiency figures will have to wait until the system is operational," he said. 

Garuda is estimating a 30 percent increase in net profits this year from Rp 683.6 billion (US$57.4 million), last year. The airline will boost its services by renting eight new airplanes from Dubai Aerospace Enterprise (DAE) and introducing new cargo services as well as new domestic and international routes. 

Merpati, on the other hand, is still caught in a contract row involving the purchase of 15 turbo propeller aircraft from China's Xi'an Aircraft Industry after recording a loss of more than Rp 5 billion ($416,000). 

The ailing company aims to record only Rp 70 billion ($5.88 million) in net profits this year by cutting its capital expenditure to practically zero. 

Merpati is now under a restructuring program of the Asset Management Company (PPA) - the state-sanctioned company tasked to restructure ailing state firms. 

Said also said Dirgantara would cooperate with the Garuda maintenance facilities to help support efficiency in the operation of Garuda and Merpati. 

As for Pelita Air, a unit of state oil and gas company PT Pertamina, the ministry plans to boost its business as a chartered airline for the private sector, especially for energy and mining businesses. 

Indonesia's airline industry is fairly immune to the worsening global economic crisis as it mostly relies on a thriving and expanding market for domestic travellers rather than on international passengers. 

According to the Transportation Ministry, domestic passenger numbers last year reach 46.34 million, up by 18.3 percent from 39.2 million last year. Overseas passenger numbers reached 3.37 million, up by 5.64 percent from 3.19 million in 2007. 

The ministry forecast a 20 percent growth in passengers this year. 

Indonesian airlines have been able to maintain their load factor by an average of 80 percent last year despite rising ticket prices. 

This year's load factor is forecast to work out the same as last year.

Last year, indonesia had 14 airlines operating 739 airplanes, a 36.3 percent increase on the 542 planes available for service in 2007. The airlines serve 167 domestic routes connecting 87 cities. (fmb) 

City appoints four deputies to assist governor

The Jakarta Post,  Sat, 03/07/2009 2:19 PM  |  City 

JAKARTA: Governor Fauzi Bowo appointed Friday four new deputies to help advise him on certain affairs and communicate with the central government. 

A 2007 law on Jakarta as the nation's capital stipulates the Jakarta governor must have deputies other than the deputy governor, a city secretary and assistants to the city secretary. 

The new deputies are Margani Mustar, who will oversee population and housing; Aurora Tambunan, in charge of tourism and culture; Ahmad Haryadi, for spatial planning and environmental affairs; and Sutanto Soehodho, for trade, industry and transportation affairs. 

The deputies will supervise related city agencies, and each will have two assistants. 

"I hope the presence of the deputies to monitor the performance of the city's agencies will help improve public services," Fauzi said. 

Sutanto said he would advise Fauzi on the development of a suitable mass transportation system for the city.- JP

Palyja launches program to net new customers

The Jakarta Post, Wed, 03/04/2009 4:05 PM   

JAKARTA: City water operator Palyja will start a new program in March to improve its services in the western part of Jakarta. 

The Census Project 2009, which will run until December, includes investigations, surveys and new connection installments. 

"Besides investigating illegal consumption and connections, we will also install 25,000 new connections," Palyja vice president director Herawati Prasetyo said in a statement sent to The Jakarta Post on Tuesday. 

At least 166 officials will be involved in the project. Last year, Palyja had 398,557 customers in the western part of Jakarta.

Everything is broken

Michael Quin, CONTRIBUTOR The Jakarta Post,  JAKARTA | Tue, 03/03/2009 12:58 PM  

 

High wire: A pedestrian steps over a hole in a footbridge over Jl. Jenderal Sudirman, South Jakarta (file photo). JP/P.J. Leo 

Along a street like any other in central Jakarta runs a fence, elegant and topped with golden paint. 

On one side of this fence sits Indonesia’s central bank with its lavish towers, lawns manicured by scores of busy hands and perfect well-swept paths. On the other side of the divide lies a cracked sidewalk with four holes, each large enough to swallow a man. 

On this, the public side of the fence, there is no careful maintenance. 

Dodging the holes is Sunoko, a 50-year-old hotelier walking home from work. He says the holes have been there for a long time and can’t understand how people are just expected to navigate them every day. 

“These holes are very dangerous,” he says. “At night if people are walking and they aren’t aware of them they might drop in. And it’s not only Jakartan people, many foreigners also walk here, looking up while they’re sightseeing.” 

Many of Jakarta’s streets are like this. Some are much, much worse. 

For those not familiar with the streets, for the tired, the drunk, those walking during floods, the vision impaired, the elderly or disabled, the danger of falling in these holes is very real. 

Kevin Radityama, a 19-year-old student in central Jakarta, once made the mistake of using a sidewalk after heavy rain. 

“I was walking in Sarinah [central Jakarta] and there was a very deep hole filled with water because of the rain. I didn’t know there was a hole so I just walked, stepped in it and I twisted my ankle. I told the police about it but they just said: what can we do?” he says. 

“When we tell the government there is a hole, or something like that, they say OK we’ll fix it. But they don’t do it, they just talk and talk. I don’t think they really care about things like this.”

The frustration of Jakartans such as Sunoko and Raditayama is clear. But for those with disabilities whose lives are severely limited by poor infrastructure, the apparent lack of interest from local government is beyond frustrating. 

Chairwoman of the Indonesian Disabled Women’s Assemblage, Ariani, says the poorly maintained streets are just part of a long list of reasons why Jakarta is a disabled person’s nightmare: 10-inch curbs, uneven footpaths, ramps too steep to use and a lack of wheelchair access on public transport all add to their worries.
 

 Paving the way: Workers pave a section of sidewalk outside the Attorney General’s Office building in South Jakarta (file photo). JP/Arief Suhardiman

“The fact that Jakarta’s roads and sidewalks are badly damaged makes even more obstacles for disabled people,” she says. 

Her organization is making recommendations to the government concerning this, but is yet to hear back or see any change. 

“The government is taking a very long time to follow up on its commitment to build facilities for the disabled,” she says. 

Other Jakartans trying to make their complaints heard have been calling community radio stations to report dangers such as potholes, fallen trees or power outages. 

Nita Roshita, from Jakarta’s 89.2 FM Green Radio, often hears from listeners concerned with the condition of the streets. Her station follows up complaints with the relevant authority. 

While the utility companies respond well and repair problems quickly, she says, public works officials can be hard to reach, often handballing inquiries from the national Public Works Ministry to the Jakarta Public Works Department and back again. 

“People are frustrated. Every three to six months the local government sends press releases saying that Jakarta has been fixed: There are no holes in the streets anymore, or there are fewer holes. But people say that is impossible because they still find holes in the street and people still have accidents because of them,” she says. 

After hearing from so many disgruntled listeners, Nita can’t understand why the authorities won’t move to resolve such a straightforward and uncontroversial issue. 

“This problem’s been going on for years and if they want to claim it in the budget and fix it then they should do it. It would be very popular,” she says. 

At the center of all this is the Jakarta Public Works Department, headed by Budi Widiantoro.

In an interview, Budi admits there are problems with Jakarta’s streets. 

“The conditions of our sidewalks aren’t good in many places, and they are dangerous, but along the main roads they are in good shape,” he says. 

Budi says his department’s priority this year is planting gardens in the city and is unable to provide any data on how many dangerous holes there might be in Jakarta, nor when they will be fixed. 

But apparently work is underway, with Rp 3 billion (US$250,000) earmarked for sidewalk maintenance this year. 

“As soon as we know about a hole, we fix it. We have our own monitoring team and sometimes we also have the information from the people who use the street,” he says. 

The monitoring team consists of one person in each of Jakarta’s 43 subdistricts. Between them all, this year, they’ve found seven holes to fix. 

The hole in the sidewalk across the street from the Jakarta Public Works office was not one of them. 

Budi explains the crumbling streets and missing cement slabs aren’t the result of poor maintenance by his department, but rather the fault of street stalls, scooters, and even thieves.

In the end, responsibility for providing safe streets rests with the Jakarta Public Works Department. 

But for all the stories of injuries resulting from holes in the sidewalks that Jakartans will tell you, the department has not once been held accountable. 

When asked why this is, Budi replies with a wide smile. 

“No one has ever made a claim against us. They could make a claim against us if they fell in a hole and injured themselves but so far no one has. I don’t know why.” 

One reason may be that most Jakartans aren’t sure they can. 

Along one particularly potholed sidewalk, passersby were asked if they’d make a claim against the local government after falling into a hole and injuring themselves. Almost 80 percent said they would not, with most of those saying they didn’t believe they could. 

Which leaves pedestrians – and government accountability – on a rocky road.

Airport gets ambassadors in rollerblades

The Jakarta Post, Jakarta | Thu, 02/26/2009 1:58 PM  

Soekarno-Hatta International Airport operator PT Angkasa Pura II launched Wednesday an "Airport Ambassador" program to promote a clean airport environment and provide mobile information services for travelers. 

The program will see company officials patrolling the terminals on rollerblades, doing quick clean actions like picking up stray litter and tidying up mats, and helping airport users in need of information. 

The officials will be able to speak English and Indonesian, and will be recognizable by their orange shirts. 

Angkasa Pura spokesman Trisno Heryadi said the program was aimed at educating the public on the importance of a clean airport, as well as providing a value-added service. 

"The airport is the country's gateway, so it's important to ask for public participation to keep it clean," he said. "Also, it will give airline passengers an additional service by providing them with unique assistance while at the airport," 

The ambassadors will start full duties Friday at Terminal 1A and will move to another terminal after a week. 

"We'll evaluate the program over the next three months and may add more ambassadors for more terminals if we find it a success," Trisno added. 

Soekarno-Hatta, the busiest airport in the country, currently serves 34 million passengers a year. (hwa)