New bill to overhaul rail industry

Ridwan Max Sijabat, The Jakarta Post, Jakarta

The rail transportation bill currently being prepared at the House of Representatives ends the state's monopoly on the industry and requires an audit of state railway company PT Kereta Api (PT KA).

Putra Jaya, chairman of the working committee assigned by the House of Representatives to prepare the bill, said a thorough audit was needed to separate PT KA's assets from the state's assets in the company and assess the status of the company.

"The audit must be completed within three years," he told The Jakarta Post here Friday.

Following the bill's endorsement, scheduled for March 27, the government and PT KA are also required to conduct a technical audit as a preliminary step toward rehabilitating all facilities and railway networks on Java and Sumatra.

"All these problems have contributed to the state-owned company's service to the public and they have to be settled to regain the public's trust in railway transportation," Putra said.

The transitional ruling also stipulates that all trains, wagons, railway infrastructure and networks are to be audited and repaired to make trains an alternative cheap and safe public transportation mode.

"The public have the right to cheap and safe transportation and the government has an obligation to provide it in compensation for the taxes the people pay to the state," he said.

PT KA's management will also be asked to increase the salaries of all employees whose status was not upgraded when the firm became a limited company in 1992. Since 1992, all employees who were originally recruited as servicemen have been underpaid and have not been registered with social security programs.

The bill also opens the way for national corporations to take part in the rail industry, although it does not set out detailed regulations.

"The government will issue a regulation detailing the private sector's involvement in the train business. The bill gives only general rules," Transportation Minister Hatta Radjasa said in a meeting with the working committee Thursday.

The minister said that despite the bill, the government would remain the main regulator in the railway transportation.

He explained that the government would likely give concessions to national corporations to run monorails and mass rapid transportation in big cities and run special trains to transport coal, fuel and other commodities.

He said that several national companies had proposed setting up special trains in Kalimantan to transport fuel and coals.

PT KA president Ronny Wahyudi hailed the bill, which he said would encourage his company to be more competitive and efficient in the future.

"It is a good plan and will make us healthier. We will work efficiently in order to compete with trains operated by private companies," he said.

Chief of the Federation of International Transport Workers in Jakarta Hanafi Rustandi, however, said that the bill was prone to manipulation.

"The bill will not benefit the public ... therefore there must be room for the public to raise their views on its substance," he said.

Putra said the bill invited national corporations to take part in the train business but they would not be allowed to use infrastructure and networks belonging to the state and PT KA.

"The private sector is invited to invest by establishing their own networks and the tariffs will be decided by the government," he said, adding that the concession would be valid for 35 years and after it expired, all their train businesses would be taken over by the government.

The bill, which will replace the 1992 Railway Operation Law, is one of the four bills being prepared by the government and the House on the management of sea, air and land transportation in Indonesia.

'Greenie' cars to be on parade at this year's premier car show

The Jakarta Post, Jakarta

New "environmentally friendly" cars are expected to take center stage at the 15th Indonesian International Motor Show 2007, which will be held in Jakarta from July 20 to 29.

"All the exhibitors have been asked to introduce their environmentally friendly cars so as to fit in with the event's theme," Johnny Dharmawan, the man in charge of the event, told a media briefing Thursday.

The names of the "greenie" cars that will be on display during the show, which will take "Green-Better Living" as its theme, were not available, however.

Jaguar, VW, Daimler, Audi and Volvo are some of the top-of-the-range carmakers that will be exhibiting during the country's premier motor trade event.

However, as happened last year, Germany's BMW will not be taking part in the show, which is organized by the Association of Indonesian Automotive Manufacturers (Gaikindo).

"Many new models, such as new SUVs and MPVs, will be on show during the event," Johnny said.

Also speaking during the media briefing, Gaikindo chairman Bambang Trisulo said the event had adopted environmentally friendly themes since 2005 so as to help promote awareness of the need to create a better environment.

While in the past two years there had been a lack of enthusiasm on the part of automobile firms about the "green car" concept, he expressed the hope that more environmentally friendly cars would be exhibited this year.

Bambang also said he hoped the annual event would help increase car sales, which declined slightly last month due to the major floods that paralyzed Jakarta.

"We hope that vehicle sales will reach 400,000 this year," Bambang said. Last year, domestic vehicle sales only amounted to 318,904 units (both passenger and commercial vehicles), below the Gaikindo target of 600,000.

With the decline in interest rates, Bambang said he was upbeat that this year's target could be achieved.

Indonesia's vehicle sales reached a record high of 534,000 in 2005.

A total of 5,406 vehicles, with a value of over Rp 1 trillion (US$109.89 million), were sold during last year's motor show.

The event organizer, Dyandra Promosindo, expressed the hope that the value of sales this year would be higher against a backdrop of lower lending rates, given that car purchases in Indonesia are mostly financed by consumer loans.

Some 200,000 people are expected to visit the 10-day show, which will be held at the 35,000-square-meter exhibition arena at the Jakarta Convention Center, Dyandra said.

Indonesia blasted for foot-dragging in New Year's Day jetliner crash probe

The Jakarta Post

JAKARTA (AP): The Indonesian jet crashed into the sea without issuing a mayday, killing all 102 people on board. Months later its wreckage and in-flight recorders lie on the seabed amid a dispute over who should recover them - a delay that experts saymay jeopardize global air safety.

"I find it impossible to believe that we can have, in the 21st Century, an aviation accident with a modern aircraft and no successful attempt to get the recorder," said Jim Hall, former chairman of the U.S. National Transportation Board.

Hall said it is important to learn if the Boeing 737 - the world's most popular airplane - had structural problems.

Other aviation experts agreed, saying time is running out.

"Saltwater is corrosive, so the longer the 'black boxes' are submerged, the greater the damage potential," said Paul Czysz, a professor emeritus at St. Louis University in the U.S. state of Missouri.

"To one outside the event, it would appear that determining the cause of the crash is not in the forefront of activities," he said.

Indonesia has recently seen a string of plane crashes.

Last week, a Boeing 737 careened off a runway, bursting into flames and killing 21 people.

The month before, a jetliner's fuselage split in half on a hard landing, sending carry-on luggage flying through the cabin but causing no injuries.

Indonesia's government has acknowledged it does not have enough quality personnel or technology to match the needs of its booming aviation sector.

This week, the country's top aviation official was fired. Many believe beleaguered Transport Minister Hatta Rajasa may be next.

Signals from the Adam Air flight recorders, often called "black boxes," have been traced to the ocean floor at a depth of about 1,700 meters (about a mile), but the government lacks the technology to salvage them.

Frans Wenas, head of the ministry's safety committee, said it is up to Adam Air to recover the black boxes from the New Year's Day crash - but at such a depth, it would be costly and difficult.

The budget airline said an agreement with U.S-based Phoenix International fell through after the company failed to guarantee recovery. Negotiations with another firm are now under way, said Capt. Hartono, Adam Air's director of safety and security, who goes by only one name.

"I don't see how any responsible salvage company could guarantee recovery," said Czysz, the aviation expert. "The longer the delay in locating the 'black boxes' the less the possibility they will be located."

Crash investigators have said they believe a mid-air explosion was not the likely cause of the accident because little wreckage was found, suggesting the plane had plunged into the water intact at great speed.

Without data from the flight recorders or the recovery of significant pieces of fuselage, experts say that reaching a definitive conclusion on the cause of the accident will be impossible.

Three-in-one policy soon to be history

The Jakarta Post, Jakarta

Governor Sutiyoso on Monday said Electronic Road Pricing (ERP) would replace the three-in-one policy, which has been deemed an ineffective means of controlling the traffic.

"So far, with the three-in-one policy, we have raised more problems than money. What's more, motorists flaunt the law," he told reporters at City Hall.

The policy requires motorists passing major streets during peak hours to have two passengers. However, they can always find a shortcut and hire "jockeys" or people they pick up on the roadside for a small fee.

"If the three-in-one policy is ineffective, why shouldn't we replace it with something else?" Sutiyoso said.

He said the government was in the process of studying the ERP system.

"If it were up to me, I'd bring it in immediately," said the governor, implying he would take heed of public opinion and the results of the research.

Sutiyoso said the revenue generated from the ERP would be used to subsidize public transportation so the fares would be lower.

The governor has been defending the three-in-one policy, which was brought in 1992, since he took up his post in 1997.

City transportation agency head Nurahman said the agency was working on the engineering design for the ERP.

"We are also studying the technical aspects to identify the most suitable system for Jakarta. But we are likely to go with the Singaporean system, which uses a pre-paid smart card, because it is much cheaper to operate compared to the systems in London or Hong Kong, and fits with conditions here.

"The study will be finished in a year, so hopefully by the end of the year we'll be able to start building the ERP infrastructure and the trial of the system will start in 2008," Nurahman said.

He said the trial charge zone would be the roads between Blok M, South Jakarta, and Kota, North Jakarta, on which the busway operates.

The ERP system, which is used in a number of countries including Singapore, Hong Kong, England, Germany, Austria and Belgium, requires car owners to purchase an electronic ticket to drive on main thoroughfares in the city during peak hours.

The transportation agency will work together with the Institute for Transportation and Development Policy (ITDP) and other related stakeholders to develop the system.

Data from ITDP shows that the number of vehicles in Jakarta grows by 11 percent per year. There are more than five million private cars in the city.

New air transport chief says safety top priority

Alvin Darlanika Soedarjo, The Jakarta Post, Jakarta

The new air transportation chief has vowed there will be tough consequences for airlines disregarding safety procedures.

Budhi Muliawan Suyitno, appointed director general for air transportation on Tuesday, said he would rank the safety standards of all airlines in Indonesia.

"We will suspend airlines at the bottom of the list," he said.

Budhi replaced M. Ikhsan in a recent shake-up at the Transportation Ministry after a series of transportation accidents this year. He was previously the ministry's inspector general, a role which Ikhsan now assumes.

Budhi was transportation minister for three months during the administration of president Abdurrahman Wahid.

In addition to ranking the safety standards of airlines, Budhi said he would improve national air transportation safety awareness and upgrade human resources in the regulatory body.

Transportation Minister Hatta Radjasa said the reason behind the reshuffle at the ministry was to maximize the performance of officials.

The increase in the number of air passengers in Indonesia should be accompanied by improvements in safety standards, he added.

"Regaining the trust of people regarding air transportation is important," Hatta said.

He said both regulators and operators were obliged to follow recommendations from the National Team for the Evaluation of Transportation Safety and Security.

"The new director general should be given a chance to facilitate significant change. We still have ample room for improvement," team spokesman Oetarjo Diran told The Jakarta Post.

He said that improvements should be made concerning weak regulations, outdated technology and poorly trained human resources.

"Saving lives is the highest priority in the transportation industry. It's more important than saving dollars."

The team, which collected data from local airlines, the Transportation Ministry and state-owned airport operator PT Angkasa Pura, reported their findings on the aviation industry to President Susilo Bambang Yudhoyono on Monday.

"We will present recommendations on other forms of transportation next week," Diran added.

Meanwhile, air traffic control and navigation services will be handled by a single operator, according to Transportation Ministry plans.

Air traffic and navigation services are currently run by different operators. State-owned airport operator PT Angkasa Pura I is responsible for large airports in eastern Indonesia, PT Angkasa Pura II for western Indonesia and the Transportation Ministry for smaller airports.

Airworthiness certification director Yurlis Hasibuan said the type of organization to be responsible for air traffic control and navigation had yet to be determined.

"It could be a state-owned company or a public service board," he said during a two-day aviation safety seminar.

Hideo Watanabe, an expert from the Japan International Cooperation Agency, said that investigators in the National Transportation Safety Committee required further training.

Watanabe said training for investigators was important as their findings would be used to improve safety regulations.

Investigators identify last 5 victims of jetliner fire

YOGYAKARTA (Agencies): Forensic experts identified the last five victims of a jetliner that burst into flames as it crash-landed near Yogyakarta city, as investigators pulled charred luggage from the plane's burned-out shell Saturday.

All five were identified as Australians. Their bodies were badly burned, requiring forensic experts to work late into the night to complete the identification.

"Thank God it's over," said Slamet Poernomo, leader of the forensic experts.

A doctor, who was involved in the forensic team, told MetroTV television Friday that from all bodies had been able to be identified Friday, but members of Australian disaster response team wanted to carry out more careful identification.

The crash killed 21 people, while 119 others were able to escape through the exits of the burning Garuda Airlines plane. It overshot a runway in Yogyakarta and skidded into a rice field before exploding into a fireball.

It was the fourth accident involving a commercial jetliner in Indonesia since 2005. Experts say poor maintenance, rule-bending and a shortage of properly trained pilots may contribute to the sprawling country's poor aviation safety record.

Indonesia should be "ashamed," Vice President Yusuf Kalla said Friday, vowing to replace several top Transport Ministry officials. "We will issue stronger regulations and older aircraft will be banned," he said.

The bodies of the Australian victims - three men and two women - will be sent home for burial as soon as death certificates are issued, said Graeme Swift, head of Australia's disaster response team.

Meanwhile, field investigators continued to search through the wreckage, collecting blackened suitcases and burned boxes.

The remaining shell of the Boeing 737-400 was expected to be moved to an airport hangar for further analysis.

"We have to work quickly but carefully," said Joseph Tumenggung, a field investigator.

The cause of Wednesday's crash is still being investigated, and data from the plane's black boxes will be analyzed in Australia.

The pilot said he felt "a very powerful downdraft just before landing," said Capt. Stephanus Geraldus, president of Garuda's pilots' association, referring to a phenomena typically caused by differences in air temperature or pressure.

BNI, BRI to provide Rp 1.38t for tollway

The Jakarta Post, Jakarta

State-owned Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI) have signed a loan syndication agreement to partly finance the construction of a 35-kilometer tollway in Java.

Under the agreement, which was signed Friday in Jakarta, the two banks will provide a loan of Rp 1.38 trillion (US$151.65 million) to tollway operator PT Semesta Marga Raya.

"The loan, which is for the construction of a tollway between Kanci in Cirebon, West Java, and Penjagan in Brebes, Central Java, will have a 10-year maturity," BNI president director Sigit Pramono said as quoted by Antara after the signing of the loan facility.

BNI, as the syndicate leader, would provide Rp 897.6 billion, or 65 percent, of the total loan, and BRI the remaining Rp 483.3 billion, or 35 percent, he explained.

The tollway project is part of the government's program to accelerate infrastructural development.

The government had earlier announced an ambitious plan to construct a 1,000-kilometer tolled expressway along the north coast of Java within three years.

The Public Works Ministry and local administrations have already procured the land for the construction of the Kanci-Penjagan tollway.

Semesta, which will construct the Kanci-Penjagan scheme, is 35 percent owned by PT Bakrie Investindo, 25 percent by PT Satria Citra Perkasa, 25 percent by Transglobal Finance Ltd. and 15 percent by Pan Galactic Investment Ltd.

Police seize smuggled bikes

The Jakarta Post

BEKASI: Ten big motorcycles were seized during a series of traffic operations in the municipality in 2006 because the owners failed to produce ownership and vehicle registration documents, police say.

"We suspect the motorcycles were smuggled into the country," Bekasi Police's traffic chief Comr. Bonaparte Silalahi said Friday.

The motorcycles, many of which are starting to rust, are now parked at the police station. They include different models of Harley Davidson, Honda's Shadow Classic and Kawasaki's Vulcan Classic. There are also motorcycles without any brand attached to them.

"They are not made or assembled in the country ... some of them also have fake license plates," Silalahi said.

"The case is now in the hands of the general crimes unit. We will keep the motorcycles as evidence." -- JP

'No Car Day' will be held once a month

Adianto P. Simamora, The Jakarta Post, Jakarta

The Jakarta administration is organizing a series of "No Car Days" in May, barring all private cars from entering certain streets with the aim of promoting the public transportation system.

The Jakarta Environmental Management Agency (BPLHD) said a longer-term goal of the campaign was to clean up the capital's stifling air pollution and ease traffic jams.

"We will only allow public transportation vehicles on the streets. We will also be encouraging people to ride bicycles or take andong (traditional horse-drawn carriages)," Ridwan Panjaitan, the head of the agency's air pollution unit, told The Jakarta Post on Friday.

The first No Car Day will be held in North Jakarta on May 26 from 6. a.m to 6 p.m. Cars will only be barred from one street. The administration, however, is yet to choose between Jl. Pramuka, Jl. Otista and Jl. DI Panjaitan.

"It will be decided next month by the North Jakarta mayor. The most important thing is the event will be carried out along the most congested road," Ridwan said.

After North Jakarta, other municipalities of the city will take turns putting the concept to the test. Next year, it is hoped No Car Day will be a monthly event in every municipality.

Ridwan said the agency would use mobile stations to monitor air pollution levels seven days prior to and after the event.

"We will compare the readings and announce the results to the public."

Police and other government employees will guard the restricted street during the event.

The administration previously held Car Free Days together with non-governmental organizations.

However, they were only ever held on Sundays in the fast lanes of roads in the city center from 6 a.m. to 3 p.m.

It was reported that pollution levels dropped by 20-30 percent during the last event.

Ridwan said the Car Free Day in North Jakarta would be held on a Saturday to avoid possible disruptions to business activities.

"We still need to get the public behind the event. By next year, I think it's safe to say we'll be holding Car Free Days on working days."

International Car Free Day falls on Sept. 22. The concept was first introduced in France in 1998 but has fast become popular in other countries.

The city's air pollution bylaw requires municipal administrations to hold Car Free Days regularly starting next year.

It also bans smoking in a range of public places, as well as making emissions tests mandatory for private vehicles and requiring public transportation operators to use compressed natural gas.

Violators could face up to six months' jail or a Rp 50 million fine if found guilty.

However, none of the requirements of the bylaw have been properly met due to weak law enforcement.

Jakarta is one of the most polluted cities in the world.

The city recorded only 41 days of "good" air quality last year.

The administration has said the transportation sector contributes up to 70 percent of the air pollution in Jakarta.

There are currently more than 2.5 million private cars, 3.8 million motorcycles and 255,000 public transportation vehicles on city streets every day.

The administration has long been struggling to reduce the influx of private cars into the capital, including by increasing parking fees.

It has pledged to ticket the owners of private cars that do not have an emissions inspection sticker on the windshield, starting June.

Sutiyoso sure water taxi is a winner

The Jakarta Post, Jakarta

As Sutiyoso's time as governor draws to a close, the people around him are working against time to ensure his plan to establish an inland water transportation system gets off the ground by the middle of the year.

City transportation agency head Nurachman said Friday the water taxi's Ciliwung River route -- from Karet in Central Jakarta to Manggarai sluice gate in South Jakarta was a well-chosen pilot program to gauge the appeal of water-based transportation.

"We hope passengers can try out the 4.2-kilometer route as early as June," he told The Jakarta Post.

"The city public works agency is currently in the process of repairing the West Flood Canal, which intercepts the Ciliwung, to make way for the water taxi service."

The administration has so far built water taxi stops in Karet Belakang, Dukuh Atas and PD PAL Jaya subdistricts.

The administration also plans to construct riverbank stations, where passengers will be able to make ticket purchases.

The type of vessels that will be employed has yet to be announced.

Despite his deputy, Fauzi Bowo, challenging the suitability of the system given the fact that many of the city's rivers are silted up with mud and rubbish, Sutiyoso is convinced it's a good way to ease traffic congestion on city streets. He is determined to see the service offered before his term ends in July.

Ciliwung River is the largest of the 13 rivers that cut through the capital.

All 13 rivers are seriously polluted.

The Jakarta Environmental Management Agency (BPLHD) said the water taxi service could actually improve the state of the city's rivers.

"We would constantly be monitoring the water quality and would certainly make it a priority to get rid of the stench. We're also planning to landscape the banks so commuters can enjoy a nice view," said Ridwan Panjaitan, the head of air pollution control at the agency.

The water taxi service is part of the city's integrated MRT project, comprising also the busway, subway and monorail systems.

Sutiyoso's first project, the busway, was launched two years ago.

There are currently seven corridors linking a number of areas of the city. Another eight corridors are under construction.

The monorail, meanwhile, will comprise two lines -- the green line and the blue line -- and cost an estimated US$650 million.

The 14.3-kilometer green line will run through Central Jakarta and South Jakarta, from Jl. Rasuna Said and Jl. Gatot Subroto to the Sudirman business district, and then to Senayan, Jl. Pejompongan and back to Jl. Rasuna Said.

The blue line will link Kampung Melayu in East Jakarta to Roxy, West Jakarta.

Meanwhile, the planned subway would run from Lebak Bulus in South Jakarta, to Kota in West Jakarta.

It is expected to cost US$800 million.

Disasters shake Indonesian press

BBC News

In a week that saw landslides, an earthquake and a plane crash in Indonesia, newspapers wonder why the country keeps attracting disasters of various kinds.

Several dailies say that Wednesday's Garuda Airlines crash was caused by negligence and call for Jakarta to take immediate action to prevent more accidents.

One paper suggests that "national repentance" may prevent further disasters.

Read More ....

Deal is inked linking MidAmerica, Indonesia

BY MIKE FITZGERALD

News-Democrat

The "air bridge" between MidAmerica St. Louis Airport and Hang Nading International Airport, in Indonesia, is a reality.

Mark Kern, the St. Clair County Board chairman, has signed the memorandum of understanding with the industrial authority of Batam, an island known for scores of electronics factories 12 miles off the coast of Singapore. The pact clears the way for direct cargo flights to begin between the two airports -- the only agreement of its kind between Indonesia and a U.S. airport -- though no flights have yet been scheduled.

Kern inked the deal during a meeting at the Indonesian Trade Ministry in Jakarta, late Friday morning Indonesian time, or 10:30 p.m. CST Thursday.

The pact's provisions includes incentives aimed at marketing to the air cargo community, promoting air commerce between the two airports and security needs.

Also signing the deal were representatives of Evergreen International Airlines, an Oregon-based operator of wide-bodied freight haulers, and Cardig International, a Jakarta-based provider of aviation services, logistics, catering and security.

City weighs price scheme for main roads

The Jakarta Post, Jakarta

The Jakarta Transportation Agency is drawing up plans to introduce Electronic Road Pricing (ERP) to better control traffic and improve air quality in the capital.

The agency's deputy head, Udar Pristono, said his employees were finalizing details of the plan.

"We are analyzing the legal aspects to synchronize the system with government regulations on taxes and the bylaw about traffic," he explained.

"We are also studying the technical aspects to identify which is going to be the most appropriate system to be adopted here."

The system, which is in use in countries including Singapore, Germany, Austria and Belgium, would require car owners to purchase an electronic ticket to drive on main thoroughfares in the city.

ERP is expected to replace the current three-in-one policy, which requires cars to have at least three passengers in order to use major streets during peak hours.

According to Udar, the most suitable ERP for Jakarta would be one like Singapore's, which uses a pre-paid smart card. He said the agency had yet to determine the optimal ticket price.

"There are many criteria that we should consider, including people's ability and willingness to pay," he told The Jakarta Post.

Udar was upbeat about people's likely acceptance of the system, noting that people already shell out money for extra passengers in order to use major roads during the peak hours.

"If they are now willing to pay the three-in-one jockeys, why would they mind buying an ERP ticket? They will get what they pay for," he said. He added that the agency would set an affordable price.

The agency will work together with the Institute for Transportation and Development Policy (ITDP) and other related stakeholders to develop the system.

ITDP founder and president Michael Replogle said the system offered many advantages, including increasing road capacity to its maximum productive level and increasing vehicle speeds.

"The system can also reduce congestion, pollution and fuel consumption since it may encourage people to use public transportation," he said Thursday during a discussion of ERP.

"Thus, the revenue of public transportation will also rise."

Oscar Alarik, deputy director of Stockholm's congestion charge secretariat, who also attended the discussion, said Sweden had conducted a seven-month trial of the system in 2006.

"The people were skeptical about ERP before we started the trial. Based on survey results, about 60 percent of them opposed it," he said.

"But after we had applied the system for six months, more people changed their perception as they began to feel the benefits of the system."

Sweden is the most recent country to adopt the ERP.

According to data from ITDP, the number of vehicles in Jakarta grows by 11 percent per year. There are around five million private cars and motorcycles on the city's roads.

Australian team would repeat the identification.

The Jakarta Post

MetroTV television reported that they included five bodies of Australians, who were killed in the accident.

Sudibjo, a member of the Indonesian forensic team, said the Indonesian team had no objection to the wish of the Australia's Disaster Victim Identification (DVI) team to repeat identification to the bodies.

Meanwhile, Garuda Indonesia said that it would carry out investigation to two killed passengers, who were not on the list of the ill-fated jetliner.

Meanwhile, Public affairs counsellor of the Australian Embassy in Jakarta Steven Barraclough said that there was no conclusion about the process of the identification.

"We cannot give any information because the process of the identification is still taking place," Barraclough was quoted by Antara news agency as saying.

Banks Provide Rp7.6 Trillion for Toll Road

Thursday, 08 March, 2007 | 14:40 WIB

TEMPO Interactive, Jakarta: PT Bank Mandiri, PT Bank Negara Indonesia and PT Bank Rakyat Indonesia will provide Rp7.6 trillion in loans for PT Jasa Marga.

The funds will be used to build three toll roads, Semarang-Solo, Gempol-Pasuruan and the Bogor Outer Ring Road.

The Rp7.6 trillion financing will be provided by Mandiri with 40 percent, BNI 35 percent and BRI 25 percent using the club deal method..

Under the club deal method, none of the creditor banks is the leader, which means that an agreement is signed by Jasa Marga with each creditor.

Agus Martowardojo, Bank Mandiri’s Managing Director, said that the disbursement was a form of the bank’s support in developing toll roads.

“The loan agreement has now been signed, so what’s left now is the land acquisition,” he said in Jakarta yesterday (7/3).

According to Agus, two out of three toll roads to be financed, Semarang-Solo and Gempol-Pasuruan toll roads are part of the Trans-Java toll road development. “

We hope that with this financing, the Trans-Java toll road development can be soon realized,” he said.

BNI’s Managing Director Sigit Pramono said that BNI has prepared toll road financing of around Rp12 trillion.

Of that amount, Rp8.8 trillion was prepared for Trans-Java toll road development and the remainder is for non Trans-Java toll roads.

“As much as Rp5.6 trillion for Trans-Java (toll roads) has been approved (to be disbursed),” he said.

Agoeng Wijaya and Desy Pakpahan

Investigators probe jetliner fire as forensic teams identify the dead

YOGYAKARTA (Agencies): Investigators picked through the charred debris of a Boeing 737-400 that burst into flames after careering off a runway in Indonesia, as forensic doctors Thursday struggled to identify the 21 people killed, many burned beyond recognition.

About 117 dazed and bloodied survivors staggered from the jetliner after it broke through a fence and came to rest in a rice paddy on Wednesday. Most escaped without major injuries, although several suffered burns and broken bones.

Those killed were trapped in the wreckage of the Garuda Airlines plane after it caught fire, sending billowing clouds of black smoke and orange flames high into the air. The plane had been carrying 140 passengers and crew, officials said.

Antara news agency reported forensic teams could identified eight of the 21 casualties of the jetliner fire. The teams found difficulty to identify the bodies because many of them were badly burned.

They are Suwarni from Yogyakarta, Oemaryati from Yogyakarta, Zaenah from Jakarta, Olga alias Supardi Wahyu from Jakarta, Giyarti Purnomo from Jakarta, Koesnadi Harjasoematri from Yogyakarta, FX Sukamto from Jakarta, and Priyo Sujalmo from Surabaya.

The accident at Yogyakarta international airport on Java island was the third plane crash in as many months in Indonesia, raising urgent questions about the safety of the country's booming airline sector.

Two people were missing and five Australians were feared to be among the dead.

Australian and Indonesian crash investigators Thursday examined the blackened fuselage and other parts of the plane scattered over a brilliant green rice paddy at the end of the runway, taking photos and notes as they worked.

"We are working hard to investigate the crash, we can not even make a preliminary conclusion yet, but it is clear there are no indications of sabotage or intentional explosions in this crash as yet," Joseph Tumenggung, the head of the investigation team,told The Associated Press.

Alexandra Bertellotti, a journalist with Italian broadcaster RAI, said the plane was going at a "crazy speed" as it approached Yogyakarta airport after a 50-minute flight from the capital, Jakarta.

"It was going into a dive and I was certain we would crash on the ground," he told the Italian news agency ANSA. "I was sitting behind the wing. I saw that the pilot was trying to stop it, but it was too fast. It literarily bounced on the strip."

Garuda Plane Crash in Indonesia Kills at Least 21

By Berni Moestafa and Claire Leow

March 7 (Bloomberg) -- A PT Garuda Indonesia plane crashed in central Java, killing at least 21 people and increasing concerns about safety of travel in Indonesia, where three planes have crashed this year.

The 15-year-old Boeing Co. 737-400 plane was carrying 140 people. Rescuers evacuated 97 people, Cabinet Secretary Sudi Silalahi said at a briefing in Jakarta today.

President Susilo Bambang Yudhoyono ordered an investigation into the country's transportation safety standards after two earlier crashes. In January, a 17 year-old PT Adam Skyconnection Airlines Boeing Co. 737-300 plane, carrying 102 people, plunged into the ocean off the coast of Indonesia's Sulawesi island and another plane broke up on landing in February.

``It's a serious problem when you have two fatal crashes in a short period of time,'' said Jim Eckes, managing director of Hong Kong-based Indoswiss Aviation, which advises airlines. ``There's a lot of indication that airlines in Indonesia are not being maintained properly or that pilot training isn't up to par.''

In today's crash, the plane's fuselage melted as it was consumed by flames about 100 meters off the runway, according to television reports. Sugeng Dwi Riyanto, a health ministry official, who had earlier reported there were 58 fatalities, said officials had double counted. Riyanto said he had seen 22 bodies.

Flight GA 200 originated in Jakarta and crashed as it landed in Yogyakarta at about 7 a.m. local time. There were 133 passengers and seven crew members aboard, according to Pujobroto, a Garuda spokesman, who uses one name.

Boeing Investigator

``A Boeing air safety investigator is in Indonesia and will assist with the investigation,'' said Boeing spokesman Ken Mercer from Seattle. ``Boeing expresses profound concern for the safety of the passengers and crew.''

Local hospitals were treating at least 62 people for injuries. The injured include at least 26 Indonesians, one Japanese and one Australian, Sif Wuryanto, a spokesman at a local hospital said by phone.

Four of nine Australians on the plane are missing, Australia's Foreign Minister Alexander Downer said in a briefing in Jakarta today. The rest are being treated in local hospitals, he said. Downer, who is in Indonesia to attend a conference on terrorism, will go to Yogyakarta later today.

Old Planes

About 80 percent to 90 percent of planes in Indonesia are over 10 years old, according to PT Lion Mentari Airlines spokesman Hasyim Arsal Alhabsyi.

Air transport is growing rapidly in Indonesia, driven by low fares. The number of passengers on domestic flights probably rose to about 32 million in 2006 from 29 million in 2005, Indonesian transport minister Hatta Rajasa said on Oct. 18. This compares with 23 million in 2004 and 6 million in 1999, Rajasa said.

``The accident may spark fear of travel given that Garuda has been the safety benchmark for the Indonesian airline industry,'' said Bambang Susantono, chairman of the Indonesian Transport Society, an independent group of transportation experts. ``We need a thorough evaluation of what happened.''

In 2004, there were 23 scheduled airlines operating and 37 licenses had been issued in Indonesia, according to the World Bank. Indonesia's sudden air transport development became possible by the collapse of the Suharto regime in 1998. Before 1999, there were five scheduled carriers and a few charter operators, the World Bank said.

Indonesia last month grounded seven of Adam Skyconnection Airlines's Boeing 737-300 planes, a third of its fleet, after the fuselage of one of its jets broke upon landing in Surabaya, East Java on Feb. 21.

On Feb. 28, Transport Minister Rajasa said Indonesia may ban airlines from buying older planes. The government may cut the maximum age used planes can be sold at to 10 years from the current 20, he said.

On Sept. 5, 2005, a PT Mandala Airlines jetliner crashed into a residential district North Sumatra province, killing 149 people.

To contact the reporter on this story: Berni Moestafa in Jakarta at bmoestafa@bloomberg.net ; Claire Leow in Jakarta at cleow@bloomberg.net .

House OKs funds for flood control programs

The Jakarta Post, Jakarta

The House of Representatives and the central government have agreed to fund a range of projects to provide long-term flood-protection for thousands of families.

The projects include the construction of dams, lakes and the East Flood Canal, as well as the revitalization of rivers.

"Funding has been allocated in the state budget for multiyear commitments until 2009," Akhmad Muqowam, who sits on House of Representatives Commission V for public works, said Monday during a hearing.

"High priority projects will be listed when budget adjustments are made mid this year."

For the East Flood Canal project, the central government -- through the Public Works Ministry -- has agreed to fund the canal's construction, while the city administration is responsible for the land acquisition process.

The project, which is scheduled for completion by 2010, requires a total investment of Rp 3.8 trillion. The canal will cut through Cipinang, Sunter and Cakung rivers.

The ministry has proposed the central government allocate Rp 2 trillion for construction work, with the Jakarta administration contributing the remaining Rp 1.8 trillion.

Public Works Minister Djoko Kirmanto said the construction itself needed Rp 2.5 trillion.

Governor Sutiyoso, who also attended the hearing Monday, said the administration was aiming to acquire all land for the project by the end of the year.

"We will focus on the East Flood Canal project, and hopefully the land acquisition process will be over before Jakarta has a new governor," said Sutiyoso who finishes his term in August.

As of today, only a 7.7-kilometer stretch of the 23.7-km canal has been completed.

For the construction of dams, including those located outside the city, the Jakarta administration will cooperate with West Java and Banten provinces.

More than 80 people died in last month's floods, which affected between 45-75 percent of the city. Sixty-five others died of flood-related illnesses, including leptospirosis, a disease spread by rats.

Besides the flood recovery projects, the city administration is also planning to relocate 71,000 families from riverbanks to low-cost apartments built by the Public Housing Ministry.

Public Housing Minister Muhammad Yusuf Asyari said the ministry would build 725 apartment blocks at a total cost of Rp 6.5 trillion. Each block could accommodate 100 families.

Another train derails in Surabaya

SURABAYA (Antara): A train derailed in East Java's capital of Surabaya Tuesday morning, but there was no immediate report of casualty and serious damage.

Eyewitnesses said the incident occurred minutes after the Penataran train was leaving for Gubeng station in Surabaya for nearby city of Blitar.

Tuesday's accident was the latest in a series of train accidents occurring in Java.

A "Sancaka" train en route from Surabaya to Yogyakarta last Wednesday derailed in Gogo village, about one kilometer from Nganjuk station in East Java.

Four wheels of one of the train's three business class coaches had rolled off the track, said a spokesman of the local office of the Indonesian Railway Company, Wahyu Kartono.

Previously, two "Bengawan" trains en route from Solo to Jakarta derailed respectively near Banyumas (Central Java) and Cirebon (West Java).

In a train accident on January 15, 2006 in Banyumas, four people were killed and several others injured. Meanwhile, last Monday's accident involving a "Bengawan" train in Cirebon only slightly injured one person.

Flood canal plan years out of date experts say

Anissa S. Febrina, The Jakarta Post, Jakarta

Building the East Flood Canal according to the current plan, which was drawn up about 80 years ago, would only heighten the threat of flooding in the city, experts say.

Speaking on Tuesday at a public discussion on spatial planning, Trisakti University hydrology expert Erwin Iskandar recommended the start of the canal be taken further south.

"Both of the flood canals were designed according to conditions in Batavia, or old Jakarta, which had a total area of 2,500 hectares," Erwin said.

"Now the city's area is 65,000 hectares, the master plan must be revised."

He said that by taking the start of the canal further south, where the land was higher, the flood risk in outer areas would be minimized.

Erwin said the existing West Flood Canal was only able to stop central areas of Jakarta from flooding because at the time of its construction the outer areas were not inhabited and therefore in less need of protection.

The West Canal Flood, designed by engineer Herman van Breen, was constructed in 1922 in response to the great flood in Batavia in 1918.

The canal cut through the Cideng, Krukut and Grogol rivers, channeling their water directly into the sea.

"Their main concern then was to keep people living in Weltevreden (now the Medan Merdeka area) and Menteng dry. Fortunately, the outer areas had not been inhabited," Erwin said.

As witnessed today, outer areas like Manggarai, South Jakarta, and Jatinegara, East Jakarta, were among the most severely affected in both the 2002 and 2007 floods.

He said a similar condition could be created in outer areas of the East Flood Canal, like Cipinang in East Jakarta, if the project were to be built to the current plan.

During last month's floods, 75 percent of the city was affected, almost four times the area affected in 2002.

For the city administration it is the perfect time to push forward with the canal plan.

The project, which is scheduled for completion by 2010, requires a Rp 4.124 trillion investment -- both for land acquisition and the construction of the stretch of the canal that would cut through the Cipinang, Sunter and Cakung rivers.

As of today, only a 7.7 km stretch of the 23.7-km canal has been completed.

The canal, which has an upstream depth of three meters and a downstream depth of seven m, is projected to accommodate more than 390 cubic meters of water per second.

Environmentalists have criticized the plan as shortsighted and suggested either building lakes or developing a deep tunnel reservoir.

During the discussion, Tarumanagara urban planning expert Kemal Taruc highlighted the need for the city administration to develop a land contour map to calculate average depths across the city in a hypothetical flood.

"The simulation is needed as a precaution. We could warn residents based on the estimated depths," Kemal said.

He added that previously urban planners and experts from the Agency for the Assessment and Application of Technology (BPPT) had offered to establish floodplain boundaries and flood depths through detailed analysis.

"Unfortunately, the administration does not even have a thing as simple as a land contour map."

Govt set to sell Jasa Marga's tollways for cash

Ary Hermawan, The Jakarta Post, Jakarta

In a bid to raise funds for the expansion of the country's expressway network, the government has decided to sell off the tollways operated by PT Jasa Marga, Vice President Jusuf Kalla says.

"We must speed up the construction of new expressways. To do so, we need to strengthen Jasa Marga financially. So, we are planning to sell its assets, including the turnpikes it operates, to raise the required funds," Kalla said after a limited Cabinet meeting at the headquarters of the Public Works Ministry.

At present, Jasa Marga operates 16 tollways, with the three longest being the Jakarta-Bogor expressway (46 kilometers), Jakarta-Cikampek expressway (72 kilometers) and the Cikampek-Padalarang (61 kilometers) expressway. Altogether, Jasa Marga operates some 456 kilometers of tollways across the country.

The sell-off will be launched "as soon as possible", Kalla said when asked by reporters, while refraining from specifying a date.

Public Works Minister Djoko Kirmanto said the most valuable tollway would be the first to be offered to investors. "The most productive one will be given priority," he said.

Indonesia has been trying to energize its economy by building more roads, railways and ports to reduce high transportation costs. "Transportation costs here are higher than in neighboring countries, where they have more developed expressway networks," Kalla said.

According to the Vice President, the speeding up of highway construction is a must. He said that the sell-off of Jasa Marga's expressways was needed to ensure that the government's target of building a 1,000-kilometer expressway stretching along Java's north coast within the three years up to 2010 could be achieved.

Djoko said that three domestic banks, Bank Mandiri, Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI), had expressed a willingness to provide a total of Rp 15 trillion in loans to finance the expressway's construction.

The government had earlier announced a plan to divest between 30 and 35 percent of its shares in the tollway operator through an initial public offering (IPO), which was scheduled to be launched in the first semester of this year.

Jasa Marga president director Frans S. Sunito said the firm hoped to raise between Rp 2 trillion and Rp 3 trillion from the IPO. The fresh funds, he said, would be used to finance the building of three new tollways connecting Semarang and Solo in Central Java, Gempol and Pasuruan in East Java, and the Bogor orbital route in West Java.

The company's development director, Abdul Hadi, said that the three expressways could cost up to Rp 10 trillion, 30 percent of which would come from the firm's own funds.

"The rest will come from borrowing," he said, adding that, besides bank loans, the firm also planned to issue a Rp 1 trillion bond this year.

The company booked Rp 2.3 trillion in total revenues last year, a 20 percent increase from Rp 1.9 trillion in 2005. Its operating profit rose by 30 percent to Rp 825 billion in 2006, from Rp 633 billion previously. "We expect 20 percent growth in operating profit this year," said the firm's finance director, Reynaldi Hermansyah

'More to aircraft safety than age'

Andi Haswidi, The Jakarta Post, Jakarta, March 02, 2007

Maintenance and safety checks should remain the top priorities in the effort to prevent air accidents, despite the government's plan to limit the age of aircraft that can be bought or leased by local airlines, the country's aviation watchdog and local carriers say.

National Transportation Safety Commission (KNKT) chairman Setio Rahardjo said he understood why the government might be focusing on the age of aircraft as being the main cause of recent accidents.

However, attention to maintenance, safety control and human-factor issues was more important, he stressed.

"It's no use if a brand new aircraft is not maintained as required, or the skills needed to operate or fly it are lacking," he told The Jakarta Post by phone Thursday.

The government also needed to increase the level of monitoring to ensure that the country's airline operators complied with the relevant safety standards.

Transportation Minister Hatta Radjasa said Wednesday that the government planned to ban airlines from buying or leasing aircraft of more than 10 years old as part of an apparently newfound concern for safety following a series of dramatic, often fatal, incidents.

The government last week grounded seven of Adam Air's Boeing 737-300 aircraft, a third of its fleet, after the fuselage of one of its jets cracked upon landing in Surabaya on Feb. 21. On Jan. 1, a 17-year-old Adam Air plane, carrying 102 people, disappeared off the coast of Sulawesi.

The Jan. 1 Adam Air disappearance is Indonesia's worst air disaster since Sept. 5, 2005, when a 24-year-old Mandala Airlines aircraft crashed into a residential area in Medan, North Sumatra province, killing 149 people.

Besides accidents involving aircraft, Indonesia has also suffered a spate of shipping accidents over the last two months.

Hatta, who is coming under pressure to resign following the accidents, did not elaborate on how the proposed restrictions on aircraft age would work.

But the ministry's director of airworthiness certification, Yurlis Hasibuan, said the proposed regulation would only affect the age of aircraft to be bought or leased by operators, reducing this to a maximum of 10 years old from the current 20. However, the maximum age of aircraft that could be operated would remain 35 years.

Speaking separately to the Post, the representatives of a number of airlines said they supported the government's proposal to reduce the age of aircraft, but shared the view that the operation of new aircraft alone would not guarantee safety if proper safety control and reliable human resources were lacking.

"The aviation industry is heavily regulated by nature. A technician has to be licensed, the cabin crew must receive special training, and pilots have to undergo proficiency checks. The government has to make sure that every airline complies with the applicable standards as they are updated and improved. These are very important for improving safety," explained Garuda Indonesia spokesman Pudjo Broto.

Meanwhile, Adam Air president director Adam Suherman told the Post that he would support any proposal to restrict the age of aircraft.

However, Adam once again stressed that the age of an aircraft was not the sole factor involved in ensuring safety. He argued that both theoretically and empirically, planes that were older than 10 years and less than 25 years old could still be operated safely as long as maintenance standards were adhered to.

Arrivals of foreign tourists in Indonesia down 18.74 pct

Jakarta (ANTARA News) - The arrivals of foreign tourists in Indonesia in January 2007 fell 18.74 percent compared with those in the previous month of December, a statistics official said here on Thursday.

"But if compared with the corresponding period in 2006, the arrivals of foreign tourists last January upped 6.91 percent," Deputy Head for Economic Statistics of the Central Bureau of Statistics (BPS), Pietojo, said.

He said that the number of foreign tourist arrivals through 15 immigration gates last January were recorded at 317.6 thousands while that who arrived in the same period in 2006 stood at 297 thousands.

According to Pietojo, the occupancy rate of star-rated hotels in 10 tourist destination cities in December was about 49.30 percent, or increased by 3.81 percent compared to that in the previous month of November.

He said that the length of stay of foreign guests at star-rated hotels in December 2006 was 2.12 days, which was a decline by 0.02 percent compared with that in November of the same year.

The BPS offcial also pointed out that the number of domestic air passengers in January 2007 was recorded at 2.15 million, which fell 18.67 percent compared with that in December 2006.

"The number of air passangers for overseas destinations also dropped 21.53 percent to 489 thousand," he said.

Sixteen train cars to be replaced

The Jakarta Post

YOGYAKARTA: Train company PT KAI plans to stop the operation of 16 old train cars to minimize the potential for accidents, the company's spokesman said Thursday.

Spokesman Mochtadi said the company was currently in the process of auditing 111 cars. The audit was expected to be completed this month.

"We plan to stop using 16 cars since they're old and might harm passengers if continued to be used," Mochtadi said.

The 16 cars, he said, were in poor condition, with several suffering light to serious damage. "We're proposing to the company's directors to replace the cars," Mochtadi said.

The Yogyakarta-based company now has 186 train cars, the oldest of which was assembled in 1966 and the newest in the 1990s.

Setback for West Java int'l airport plan

Yuli Tri Suwarni, The Jakarta Post, Bandung

The West Java Legislative Council has raised questions over the legitimacy of a body set up to develop an international airport in the province.

The council's development affairs commission has questioned the legal basis of the West Java International Airport Management and Cooperation Body, demanding that Governor Danny Setiawan revise three decrees that led to the formation of the body.

Commission member Marudin Silalahi said the decrees did not provide legal certainty and failed to outline the job sharing responsibilities within the body.

"Most of the procedures, structures and personnel (of the airport body) come from outside the government, while the body is financed by the provincial budget," Marudin said Wednesday.

West Java hopes to construct its own international airport to accommodate residents and tourists, as well as to speed up the process of exporting goods produced in the province, particularly textiles, overseas.

The plan was first submitted to the central government in 2004, with the Transportation Ministry issuing a permit for the construction of the airport in Kertajati district, Majalengka regency, in May 2005.

Heri Hudaya, the head of the West Java provincial administration's program control agency, said the decrees, which were issued last year, could be revised. But in the meantime, he asked the council to allow the airport body to continue its work.

"The revision can go ahead but we want the body to continue looking for investors," Heri said.

He said several investors, including from Brunei, China and Malaysia, have shown interest in the project.

The Rp 24.5 trillion (US$2.6 billion) airport is expected to be built in stages, with construction beginning in 2008.

The airport, which is expected to be able to accommodate around 30 million passengers annually, will stand on 1,800 hectares of land, with the runway measuring around 3,500 meters in length.

In addition to the airport, the administration plans to construct an "Aero City" on 5,000 hectares of land to support the airport. This city will host businesses, hotels and shopping areas.