Pakistan and China cooperation to forge trade gateway: senator

Want China Times, Staff Reporter 2015-04-22

A tunnel under construction on the Karakoram Highway connecting Xinjiang
in China with Pakistan's Gilgit-Baltistan region, April 18. (Photo/Xinhua)

Two-way trade between China and Pakistan is expected to swell by 300% to 400% in the next five years along with the construction of the China-Pakistan Economic Corridor (CPEC) that connects Kashgar city in northwestern China's Xinjiang Uygur autonomous region to the southwestern Pakistan port of Gwadar via highways, railways and pipelines, Hong Kong's Ta Kung Pao reports, citing a Pakistani senator.

"The corridor will greatly benefit both Pakistan and China, as it involves deployments in comprehensive cooperation in the fields of manufacturing, energy, and transportation, etc," Saleem Mandviwalla told the paper when asked which country will benefit more from the project.

The senator also expected Gwadar Port, located at the mouth of the Persian Gulf in Pakistan's southwestern province of Baloschistan, to become the key gateway for Middle East transshipments to China in the coming few years.

President Xi Jinping of China is paying his first state visit for the year to Pakistan to oversee the signing of agreements pertaining to the implementation of the CPEC project, which may serve as a model for China in promoting its Belt and Road Initiative, the paper reported.

With the construction of the economic corridor, Mandviwalla said Pakistan will enjoy significant infrastructure improvement and transfer of manufacturing industries from China, thereby changing his country's economic structure. China's demand for clean energy to support the next decade of economic growth will be fully met by the new oil pipelines constructed under the project, he added.

China-Pakistan trade amounted to US$16.006 billion in 2014, with China enjoying a large trade surplus by recording US$13.248 billion in shipments to Pakistan. But Mandviwalla believes that once Gwadar becomes the gateway for shipments to China from Iran, Afghanistan and other neighboring countries, the trade imbalance will improve drastically.

Mandviwalla told the paper he believes Pakistan will eventually become the cornerstone of the trade gateway for Central Asia and the Middle East after the Gwadar-Xinjiang railways and highways are operational.

Padang allocates Rp1.07 billion for city cleanliness

Padang, W Sumatra (ANTARA News) - Padang municipal administration has allocated some 1.07 billion rupiah to carry out the city cleanliness and park intensification program, its mayor said. 

The cleanliness and the park intensification program funds had been allocated in the city`s 2009 budget and the program will be implemented by the city cleanliness and parks handling office, Padang mayor Fauzi Bahar said when explaining his note of the city 2009 budget here on Saturday. 

The budget will be used to finance eight activities relating to efforts to stepping up the city cleanliness and parks facility procurement, he said. 

The eight activities would include an increasing number of personnel for the cleanliness and park controlling program and providing several rest rooms in the city parks, the mayor added. 

Padang with some 800 thousand population once gained an Adipura, award given to cities for cleanliness. 

In addition, the city administration has also allocated some 590 million rupiah to developing the transportation facilities, among other things the "Samudra Bungus" seaport.

Fire guts Bounty cruise warehouse

Indah Setiawati, The Jakarta Post, Jakarta | Sat, 02/07/2009 1:11 PM  |  Bali 

Fire engulfed parts of a warehouse belonging to the Bounty cruise ship company at Benoa Port in Denpasar on Friday morning. 

The fire damaged two storage rooms that held two huge tanks of water and diesel, but no casualties were reported. 

Benoa Marine Police chief Adj. Comr. Gusti Ayu Putu Suwinaci said the fire was extinguished before it spread to a larger room nearby and a ship under construction. The fire was put out with the help of neighboring company PT Jaya Kota and port operator PT Pelabuhan Indonesia (Pelindo). Ayu said four fire engines came late to the scene to find that the fire had already been tamed. Firefighters were helped by a machine that sucked up seawater from Jaya Kota into a tank that would normally have been used to water ornamental plants at the port. 

"We do not know the source of the fire yet, as the investigation is still underway. When I arrived, the fire erupted from the roof of the middle room where the water tank was kept," she said. 

The storage tank of diesel, which would have spread the fire, was still intact and its storage room only had major damage to its roof. The middle room that kept some gasoline and a water tank was destroyed, while the larger room that kept aluminum materials only had minor damage on its roof. 

Bounty owner, I Gde Wiratha, who is also the chairman of the Bali branch of the Indonesian Chamber of Commerce and Industry, said he could not yet estimate the total loss. 

"I wonder what caused the fire; maybe an electricity surge or a lit cigarette? But that zone is a nonsmoking area," he said. He arrived at the scene in the afternoon after the blaze was put out. 

He said the blaze taught him to immediately provide a special hydrant that was suitable for such a situation. 

"It's a wake-up call for us, for not having a special hydrant," he said, adding that a currently available hydrant was not supported by an adequate water supply. 

His wife, Yeni Wiratha, said she was grateful for the quick response that prevented the fire spreading to other buildings. 

"It's indeed proof that God still protects us," she said.

IRN to build Rp3t Sumatra railway, roads

Khairul Saleh, The Jakarta Post, Baturaja, South Sumatra 

PT Inti Rajawali Nusantara (IRN) plans to build roads and railways in Bengkulu and South Sumatra provinces at a cost of around Rp 3 trillion (US$300 million). 

The projects will connect Muaraenim in South Sumatra and Linau Bintuhan in Bengkulu. The roads and the railway will pass through Ogan Komering Ulu and Ogan Komering Ulu Selatan in South Sumatra, IRN president director Hakman Novi said recently. 

The company is developing transportation infrastructure to facilitate the conveyance of its mining and plantation products such as coal and crude palm oil. 

Currently, IRN depends on the railway from Tanjung Enim, Muaraenim regency, for transporting the company's products to Palembang or Lampung. 

The new roads and railway will shorten the distance for transporting coal from the South Sumatran cities to the three major seaports, Tanjung Enim and Tanjung Api-Api in South Sumatra, and Tanjung Karang in Lampung. 

Once the new roads have been developed, the distance by road between Tanjung Enim to Linau Bintuahan will only be 150 kilometers. 

In the long-term, the company also plans to develop the seaport of Linau into an international class gateway to the provinces of Bengkulu and South Sumatra. 

"This will attract more investors and create jobs while at the same time offering safe, efficient, and competitive transportation, which will facilitate the development of the industries of the two regions," he said. 

The planned Rp 3 trillion investment would be spent during the next 3 to 5 years, he said. 

"Every legal requirement will be met, including the permit from the Forestry Ministry because the project will pass through the Bukit Raja Mandara protected forest," he said. 

"The land compensation for the people of the affected areas will be paid wholly by the company," he said. "No government funds are being used for this project." 

Ogan Komering Ulu regent Yuli Nawawi said that he appreciated the projects planned by IRN. 

He emphasized that central and provincial governments would ensure that the company used only the areas designated in their surveys for the purposes already stipulated. 

He added that the projects, for which all permits must be properly issued, would speed up the development of the region.

CATCH OF THE DAY

The Jakarta Post | Fri, 05/09/2008 11:28 AM

CATCH OF THE DAY: Customs officials inspect one of two illegally imported luxury sedans at Tanjung Priok port on Thursday in Jakarta. Officials said the smuggling attempt was foiled after the customs inspector spotted irregularities in the import documents. The bust was apparently worth as much as Rp. 3.2 billion (US$351,000) to the state. (JP/Ricky Yudistira)

Govt to focus on port, railway projects

Aditya Suharmoko, The Jakarta Post, Jakarta | Sat, 05/03/2008 11:14 AM 

The government will prioritize the development of port and railway infrastructure this year to ease the flow of goods and reduce high transportation costs in the country, a minister says.

"Our priority is to reduce bottlenecks in ports and railways, including at Tanjung Priok port, and railways on Java island," Transportation Minister Jusman Syafii Djamal said after a meeting with economic ministers on Friday.

Among development plans for this year, he said, was the modernization of navigation systems in three international airports: Kuala Namu airport in Medan, Lombok airport in Lombok and Hasanuddin airport in Makassar.

He also said the ministry would develop ports designed to load crude palm oil (CPO) as the commodity had become the country's main export.

In the first quarter of 2008, CPO was the major contributor to the rise in the country's non-oil-and-gas exports, which increased 47 percent to $4.4 billion compared to in the same period last year.

To help secure domestic distribution, Jusman said the ministry would fast track permit issuance for coal railway transportation projects to help secure distribution, particularly to state power plants.

"For port and railway projects under development by coal producers, we will speed-up permit issuance," Jusman said.

The ministry stated its budget this year was reduced to Rp 14.11 trillion (US$1.53 billion) after a 7.76 percent cut aimed to reduce state expenditures in response to a surge in global oil prices.

The Finance Ministry has cut the budget allocation to all government offices by a maximum 10 percent to safeguard the state budget, which is burdened by oil subsidies.

Despite the cut, Jusman said the ministry would try to improve the country's transportation system, including by restoring trains and modernizing navigation systems.

He also said the country's transportation and logistics systems needed to be integrated so the ministry could design a complete, multi-year infrastructure development strategy.

"Our transportation and logistics systems must be integrated. The Transportation Ministry will design a master plan to rebuild the country's ports, airports and railways to support logistics," he said.

The Indonesian Chamber of Commerce and Industry has repeatedly said inferior infrastructure would result in increased product prices and burdened customers.

Milestone under ADB Financed Roads Project Reached

Asian Development Bank

Banda Aceh, INDONESIA – On Wednesday 5 March 2008, officials from BRR, the Indonesian government’s agency responsible for post-tsunami and earthquake rehabilitation and reconstruction of Aceh and Nias, the Banda Aceh city government as well as from the Asian Development Bank (ADB) witnessed the placement of a beam of the Laguna Bridge, an important milestone under the ongoing project for the reconstruction of the roads linking the port area at Ulee Lheue to the city center of Banda Aceh, the provincial capital of Nanggroe Aceh Darussalam (NAD), and to the Aceh West Coast Road.

“This project is the crown jewel of the reconstruction projects in Banda Aceh,” says Kuntoro Mangkusubroto, Head of BRR. “I’m eager to see its successful completion in November this year.”

The mayor of Banda Aceh, Mawardi Nurdin, says, “We’d like to give great thanks to ADB for its many contributions to Banda Aceh, such as this road, the many houses rebuilt as well as other public facilities.”

The road project serves the Meuraxa communities as well as providing access to the ports serving the Banda Aceh fishing industry and the ferry service to Sabang on Pulau Weh, which is a well-know tourist destination and has the potential to become a regional deep sea water port.

The December 2004 earthquake and tsunami caused widespread damage to the residential and commercial areas as well as infrastructure and roads in the Ulee Lheue - Meuraxa area. In addition, ground levels were distorted with some places subsiding more than one meter causing much of what was formerly dry land to be submerged, with other areas being higher than previously.

Read whole story ...

Indonesia's Bukit Asam in $1.8 bln coal transport project

Fri Feb 29, 2008 8:07am EST

JAKARTA, Feb 29 (Reuters) - Indonesian coal miner PT Tambang Batubara Bukit Asam Tbk PTBA.JK said on Friday it plans to improve coal deliveries with new infrastructure projects worth a combined $1.8 billion.

Ageing infrastructure has hampered Bukit Asam's ability to deliver coal to its customers, who include the state electricity firm.

Bukit Asam -- the smallest of Indonesia's three listed coal miners, with a market value of $2.9 billion -- said it will upgrade the existing railway linking its coal mine in Sumatra to the port, and will build a new railway in the same area.

Sukrisno, president director of Bukit Asam, said the firm plans to form a joint venture with PT Kereta Api Indonesia to upgrade the infrastructure by improving stations, coaches, bridges and tracks.

"PT KA (Kereta Api) and PT BA (Bukit Asam) will work together to improve the infrastructure in a bid to raise the company's annual capacity to transport coal to 20 million tonnes by 2012," Sukrisno told Reuters.

Bukit Asam produced 8.5 million tonnes of coal in 2007 and wants to increase its production to 9.3 million in 2008.

PT Kereta Api could not be reached for comment.

Bukit Asam estimated that upgrading the railway would cost $734 million, and could be funded out of cashflow or using bank loans, Sukrisno said.

The Indonesian coal miner will team up with China Railways Engineering and PT Trans Pacific to build a second railway line and a port in Bandar Lampung, on the southern tip of Sumatra.

The project, worth $1.1 billion, will increase its coal transport capacity by a further 20 million tonnes by 2011, Sukrisno said.

Bukit Asam reported unaudited net profit of 760 billion rupiah ($83.8 million) for 2007, compared to 485.67 billion in 2006. Sales revenue climbed 16 percent to 4.11 trillion rupiah.

Work on the project will start at the end of this year or early next year, Sukrisno said, adding that the firm expects its coal output to reach 50 million tonnes a year in five years' time.

Indonesia is the world's top thermal coal exporter. Coal prices was quoted at $130 a tonne free on board Newcastle port late on Wednesday. Coal prices hit an all-time high of $150 a tonne for a spot deal struck earlier this month.


($1=9,070 rupiah) (Reporting by Mita Valina Liem and Andreas Ismar, editing by Sara Webb)

Govt to speed up construction of Cibitung-Tanjung Priok turnpike

The Jakarta Post

JAKARTA (Antara): Construction of the Cibitung-Tanjung Priok turnpike will be accelerated to overcome traffic jams from and to Jakarta's Tanjung Priok seaport, a government official said.

"The government will speed up construction of the turnpike from Cibitung to Tanjung Priok port," deputy for infrastructure and regional development to the coordinating minister for the economy, Bambang Susantono, said Tuesday on the sidelines of a seminar on the medium-term national development program in the transportation sector.

Bambang said the acceleration would be part of the government's efforts to resolve traffic problems around Tanjung Priok.

The government will also extend the turnpike to industrial areas in Cikarang and Cikarang Timur, he said.

The government has earmarked Rp 200 billion to clear land for the construction of the Cibitung-Tanjung Priok tollway, he said.

Korean investors eye railway projects

The Jakarta Post, Jakarta

Nearly 40 South Korean businessmen representing the country's major companies are visiting Indonesia to take a closer look at a number of infrastructure projects offered by the government.

The Korean contingent in the republic is part of the two countries' economic partnership agreement.

The business executives together with senior officials from Indonesia's ministry of construction and transportation, and the ministry of planning and budget met their Indonesian counterparts here Monday to discuss the projects, which include the development of railways, toll road and sea ports.

"Many Korean companies expressed their interests in railway development projects in the country during the meeting," the deputy minister for infrastructure and regional development at the office of the Coordinating Minister for the Economy Bambang Susantono said.

"They will discuss their proposals with related ministry officials."

The Korea Development Institute's (KDI) managing director Kim Jay-Hyung said the Korean companies and the Indonesian government were currently discussing projects including those on railway and seaport construction, but he refused to elaborate further.

"Infrastructure development is an essential element for economic growth," Kim said.

"Limited public budget, however, won't be able to fulfill the demand.

"Therefore, encouraging private sector capital investments in infrastructure facilities is an alternative method to fulfill the demand."

The Korea-Indonesia partnership program was initiated in December 2006 to foster a mutual economic relationship between the two countries.

In October this year, both governments signed a memorandum of understanding (MoU) aimed at sharing knowledge and experiences, attracting Korean companies to invest in Indonesia, and building productive partnerships.

The deputy chief for infrastructure at the National Development Planning Agency, Dedy S. Priatna, said the country's infrastructure development required a total investment of US$65 billion for the 2005-2009 period, while the government was only able to provide S$25 billion.

To fill the gap, participation of the private sector was essential.

However, Dedy added, inviting foreign parties to take part in the development of the projects faced some major problems, including those related to land acquisition, laws and regulations that needed to be adjusted to facilitate partnership program, a lack of domestic capital market to finance partnership projects and the poor quality of project preparations.

He said those issues needed to be fixed to accelerate the country's slow pace of infrastructure development.

The government was currently finalizing a scheme to determine the maximum cost of land acquisitions in major infrastructure projects, an issue noted as one of the major causes of project delays. (adt)

Infrastructure key to Mamuju's progress

Andi Hajramurni, The Jakarta Post, Makassar

Mamuju regency is the provincial capital of West Sulawesi, but poor infrastructure means isolation and poverty for people living there.

The regency's airport and port do not meet national standards while the number of roads and bridges is limited, leaving 45 percent of 8,000-square-kilometer Mamuju trailing behind other regencies in terms of development.

While rich in natural resources -- marine-based, mining, farming and forestry -- some 45 percent of the regency's population of 300,000 still live below the poverty line.

Mamuju Regent Suhardi Duka acknowledged that limited infrastructure, in particular a shortage of roads and bridges, was responsible for the high poverty rate in the regency.

He said poor infrastructure prevented village-dwellers in coastal and mountainous areas from selling their products.

Those regions -- reached only on foot or by horse after a journey of several days -- also suffered in terms of education and health care.

"We have determined to prioritize infrastructure development and improve accessibility, so people can leave their isolation," Suhardi told The Jakarta Post in Makassar, South Sulawesi. He said the regency had rich natural resources.

In the marine sector, fish and seaweed is at approximately 60,000 tons annually.

In agriculture, the regency has some 23,00 hectares of rice fields, 60,000 hectares of cacao and some 20,000 hectares under palm oil production, as well as corn and oranges.

In mining, Mamuju has untouched coal, iron and gold resources.

The regency also has some 500,000 hectares of forest -- both productive and protected.

However, poor infrastructure in the regency means that these resources can't be exploited, because residents aren't able to get their products to market.

For example, products marked for export must pass through Makassar, as Mamuju's port and airport are sub-standard.

The regency has allocated Rp 250 billion for a two-year road and bridge construction plan, to begin in 2007.

This year, the regency budget is Rp 450 billion, of which only Rp 14 billion derives from revenue. Low revenue is also blamed on poor infrastructure.

Apart from a lack of roads and bridges, many parts of the regency still don't have electricity.

Even in the city center, only 20 to 30 percent of residents are tied to the grid of state electricity company, Perusahaan Listrik Negara (PLN). The others are left in the dark.

"We still have to do many things to develop Mamuju, especially since it is a provincial capital.

"It might take five to eight years for the regency to catch up with development progress (elsewhere)," Suhardi said.

While working to improve infrastructure, the regency's administration is also trying to speed up human resource development.

Currently, the regency makes education -- from kindergarten to senior high school -- and health services -- from the community health centers up to grade three hospitals -- available free of charge.

"Better welfare, health services and education are three basic rights of residents that the government has to provide.

"Infrastructure development, as well as free education and health services should be done in an integrated way to reach the goals." -- JP

'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.

Why fixate on toll roads when there are railroads?

The Jakarta Post

Ari Pitoyo, Head of Research

Indonesia's new transportation minister has set railway transportation development as a priority. How far do we need to go?

Discussion on infrastructure usually circles around road infrastructure, especially toll roads. However progress in this area so far has been lackluster. What about railroads?

Here are some statistics. The total length of railroad tracks around Indonesia is only 4,500 kilometers, of which around 14 percent (small-width tracks) are 70-130 years old and 45 percent (medium-width tracks) are 60-100 years old.

Only the remaining 59 percent are relatively new.

Data on locomotives are also less than encouraging. To date there are 519 locomotives, of which most have reportedly passed their economic lives. As for the cars, data from the website of state railway operator PT KAI show that 44 percent of cargo cars are 16-30 years old and 31 percent are 31-40 years old.

So the huge number of rail accidents recorded each year should not come as any surprise.

In the last 12 years, there was an average of nine accidents per year.

But the potential is huge. Railroad infrastructure is less complicated compared to toll roads. There are no meaningful land acquisition problems, as railroad tracks are government property.

The responsibility of railroad infrastructure development falls to the government. According to the 1992 railroad law, railroad tracks, signals and bridges are government owned. The government can delegate the maintenance to appointed institutions.

But maintenance is minimal. Liputan6.com reported that the cost of required maintenance reaches Rp 6.6 trillion. What's the problem? Comments we gathered mostly point toward lack of funds. One House of Representatives member said that since 1950, 29.3 kilometers of railroad track are rendered unusable each year.

The number of train stations has dropped 62 percent, and six units of locomotives per year are going out of operation. This decline in operational assets happened despite a 9.3 percent growth of passengers per year.

PT KAI suffers fund shortages from the current budget arrangement with the government. PT KAI is required by the government to promptly pay fees for the usage of railroad tracks, however payment from the government to PT KAI for Public Service Obligations (PSO) is untimely; accumulated delays since 2000 have reportedly reached Rp 1.6 trillion.

PT KAI also has not been paid for the maintenance it did for railroad tracks and other government-owned assets. So if accidents happen, should the responsibility be borne only by PT KAI's management and its machinists?

The House of Representatives recently approved revisions to the 1992 railroad law. These revisions open the possibility for new players to join the domestic railroad business, which is now exclusive to PT KAI. However, considering the badly tattered infrastructure, we think investors will not instantly jump onto the bandwagon.

Who will be held responsible if an accident occurs? Who will be in charge of the investigation? And who will ensure that the investigators are unbiased?

Here then is the irony. We believe railroads are easier to improve compared to toll roads, and the benefits are also huge. As a mode of transportation, railroads have several advantages, namely speed and capacity. A train with eight cars can carry up to 1,200 people, equal to 16 buses with 75 people/unit capacity.

A dedicated track would improve speed and also safety. In many countries, railroads are the backbone of public transportation.

Contrary to toll road development, which aside from needing massive capital, has to face additional problems such as land acquisition, all that is needed for railroad development is government commitment and funds.

Funds, we also believe, are not difficult to obtain, given the abundance of global liquidity.

Of course return on investment needs to be adequate. However, we believe several factors do make returns on railroad investment more attractive: (1) no land acquisition is required; and (2) much of the supporting infrastructure, such as stations and signaling equipment, are already built and only need improvement.

Railroads are also a labor-intensive business, thus may help create employment opportunities.

One ironic case of neglect are the problems in container transportation from Bandung to Tanjung Priok, North Jakarta. Currently, containers transported by rail from container terminals in Bandung can not be directly transported to the ships at Tanjung Priok harbor, and have to stop at a station near Tanjung Priok and then be reloaded onto trucks to be brought to ships.

The problem is that 35 people now live on the land owned by PT Pelindo, a state-owned port operator. Potential: in 2004, the service carried 7,602 TEUs (Twenty-foot Equivalent Units), and in 2006 that amount grew 21 percent to 9,235 TEUs.

Thus in this case, development is being held hostage by 35 people who do not even have a right to the land in the first place.

Clearly, railroad improvements can not be categorized as a challenge; but inaction can be categorized as neglect.

W. Sumatran administrations agree on trains

Syofiardi Bachyul Jb, The Jakarta Post, Padang

Nine regency and city administrations in West Sumatra have said they support and help operate and build new rail tracks in the province.

They included the West Sumatra provincial administration and those of eight towns and cities where the train is scheduled to operate: Padang city, Pariaman regency and city, Padangpanjang city, Solok city and regency, Sawahlunto city and Tanahdatar regency.

West Sumatra Governor Gamawan Fauzi said the support was important to review train operation in the province as it would ease land clearance for the new tracks and boost the tourism sector.

"Each local administration has been asked to set aside a budget for the province's train company for the next two years to start up a plan to activate the train routes, both for tourism and transportation means," he said.

The train company, he said, would need around Rp 6.3 billion in capital. The provincial administration would set aside Rp 1.7 billion from its budget and the rest would be divided between the local administrations.

"Trains enjoyed a heyday in West Sumatra at one point, providing significant economic and education contributions to areas along routes.

"But train operation suffered a setback in the 1980s before entirely stopping in the 1990s. Trains are in fact significant to boosting the region's potency and we intend to revive them," Gamawan said.

Trains play significant role in boosting tourism while serving as an important form of transportation for mining and plantation products. Trains carry not only coal and palm oil or rubber from West Sumatra but also from Riau and Jambi provinces.

"A coal mining company in Muaro Bungo, Jambi, used 100 trucks to carry coals to Teluk Bayur Port in Padang in a day. We can replace this with trains from Muaro Sijunjung, which is located on the border with Muaro Bungo," he said.

Head of the West Sumatra train company Sukirman Denin said train operations in West Sumatra would receive Rp 6.2 billion in financial support from the Transportation Ministry, but another Rp 6.3 billion is still needed from local administrations for its first two years.

"We've started running a passenger train from Padang city to Pariaman city every day since Feb. 15 with 40 percent of seats filled.

"But the Padang city administration's contribution off Rp 100 million assistance per month has not yet been realized," Sukirman said, raising hopes that the recent signing of a memorandum of understanding with local administrations on the plan would speed up the assistance.

When a quake struck the province in March, 32 train track points were damaged, but Sukirman said most of the damage tracks have been repaired, at a cost of Rp 3.5 billion. "Only two points have not been repaired," he said.

PT KAI president director Ronny Wahyudi said the new railway law opened up opportunity for local administrations and private sectors.

"West Sumatra is a lucrative market for the train business. PT KAI has access to facilities here and it will be beneficial to boost transport and tourism in the province," he said.

He said the company plans to officiate a Padang-Padangpanjang-Sawahlunto route in June, passing through Lembah Anah valley, a popular tourism site.

The company, he said, also plans to revive coal transport from Sawahlunto to Teluk Bayur port as well as building tracks from Duku to Minangkabau International Airport.

Coordinator of the West Sumatra Train Awareness Community Chaidir Nien Latief told The Jakarta Post that the construction of the trans Sumatra train track, which was first initiated during Dutch rule, from Lampung to Banda Aceh and from western to eastern coastal areas, could be revived.

He said for the first phase, the easiest route to build would be from Teluk Bayur to Pekanbaru in Riau province.

"There is a need for serious support from the government to realize the plan," he said.

More money for remote areas next year, says minister

Ary Hermawan, The Jakarta Post, Jakarta

The Transportation Ministry will focus its capital spending on remote and disaster-hit areas in 2008, with Rp 3 trillion (US$333 million) having been set aside to build and expand airports and seaports in Papua, Maluku and North Sumatra.

According to the ministry's 2008 business plan, these development projects are based on the assumption that the ministry will get Rp 15 trillion next year, a 49 percent increase over its budget for this year.

"We will distribute the funds proportionately to those provinces ... infrastructure development in Papua and West Irian Jaya has been identified as a priority," Transportation Minister Hatta Radjasa said last week.

The ministry will allocate Rp 1 trillion for expanding existing ports and airports, and building new ones in the two eastern provinces. "This is one of the biggest items," Hatta said. It includes the expansion of seven strategic ports in Papua at a cost of Rp 86 billion.

The construction of more seaports and the provision of more ferries archipelagic provinces, such as Maluku, North Maluku, East Nusa Tenggara and North Sulawesi, would also be prioritized so as to shorten travel times in these regions.

"Especially in Maluku, it can involve a month's wait for a ship from one island to another at the moment," Hatta said. The ministry plans to allocate Rp 239 billion on the development of the sea-transportation sector in the province.

Another large chunk of the money will be spent on the construction of the new Kualanamu Airport in North Sumatra (Rp 930 billion) and Lombok Baru Airport (Rp 515 billion) in West Nusa Tenggara, and on expanding Hasanuddin Airport, which will cost about Rp 491 billion.

The ministry will continue funding the construction of the Kualanamu Airport and Hasanuddin Airport through 2009, Hatta added.

The ministry's plan also states that it will provide Rp 200 billion for the expansion or construction of 27 small airports in remote and disaster-hit areas, including Banda Aceh, Nias, Meulaboh, Nunukan, Atambua, Alor, Tanah Merah and Nabire.

Hatta said capital expenditure in the transportation sector would be aimed at supporting economic growth.

"Transportation is the backbone of the economy as it has an important role to play in reducing the costs of distribution in every industry," he said.

LIPI ready to meet radar demand

Alvin Darlanika Soedarjo, The Jakarta Post, Jakarta

The Indonesian Institute of Sciences (LIPI) says it has met specifications set by the Indonesian Navy after successfully develop maritime radars.

The institute announced Monday that it had successfully developed maritime radar technology in collaboration with the Technical University of Delft in the Netherlands. The radar is able to detect any object entering Indonesian territorial waters.

"The Defense Ministry has ordered three maritime radars with a coverage of about 35 nautical miles each," said LIPI's radar project head researcher Mashury Wahab on Thursday.

Mashury, who attended a two-day radar seminar at LIPI headquarters, said the Navy required a radar with a minimum coverage of 20 nautical miles.

The institute said, however, that further research is still required to meet specifications set by the Air Force.

"Usually, it takes about six months to build a radar after the order is placed. The manufacturing time for each unit for an institution may also vary as a radar is usually ordered for customization," he said.

"Military and civil radars, such as for the Meteorology and Geophysics Agency (BMG), have different characteristics and specifications."

As for the Air Force, Mashury said LIPI was already planning to develop a more sophisticated radar system.

"Our partner from the Technical University of Delft is optimistic that we could develop the radar, as they have enough expertise."

Local engineers, he said, were already able to repair foreign radars used by the Air Force.

The Air Force, which currently uses radars imported from the U.K. and France, said it would use domestically-produced radars developed by LIPI provided they have a coverage of 250 nautical miles.

It is estimated that the cost of using domestically-produced radars is one-tenth the cost of using imported radars.

Umar Anggara Jenie, LIPI's chairman, told The Jakarta Post that the further development and implementation of domestically-produced radars would have to occur in phases.

"We should first apply the currently available technology before reaching the next level," he said.

"A leap in such technology, such as in the enlargement of the radar's radius, cannot be achieved without using the currently available technology first."

Mashury insisted the advancement of local radar technology should be balanced with the establishment of a supporting organization.

"Indonesia needs a national radar organization as a means of communication between related institutions. It'll become a forum for exchanging ideas and to collaborate in research," he said.

He proposed that the organization should consist of highly-ranked officials, such as government ministers dealing with defense, research and technology affairs, chairpersons of LIPI, BMG and the Agency for the Assessment and Application of Technology, as well as representatives from state airport operators PT Angkasa Pura I and II.

Dean of the School of Electrical Engineering and Informatics at the Bandung Institute of Technology, Adang Suwandi Ahmad, said that prior to reaching the manufacturing stage, radars should be subject to testing and certification phases.

"Then we also need supporting industries such as the state-owned aircraft maker PT Dirgantara Indonesia," he said.

Railway project to be revived

The Jakarta Post

PALEMBANG, South Sumatra: The government will revive a plan for the construction of a 98-kilometer railway track between Simpang station in Ogan Ilir regency and Tanjung Api-api port on the eastern coast of South Sumatra, an official said Tuesday.

South Sumatra Governor Syahrial Oesman said the plan was briefly canceled following an order from Minister of Transportation Hatta Rajasa early last month.

However, Syahrial said Minister Hatta had since told him that President Susilo Bambang Yudhoyono wanted the project to go ahead as scheduled.

"So there is no longer any delay in the construction of the project," Syahrial said, adding that the project would cost Rp 1.54 trillion (approximately US$167 million).

The construction of the project is scheduled to start this year, he said.

Syahrial said that the South Sumatra provincial administration would be in charge of land clearing for both the railway track and stations.

"The South Sumatra provincial administration has earmarked funds amounting to Rp 48 billion for land clearing," he said.