Spending on infrastructure set to rise by 34 percent next year

Ary Hermawan, The Jakarta Post, Jakarta

The government will allocate more money for infrastructure development in next year's budget in an effort to ease the distribution bottlenecks that have seriously hampered the country's economic growth.

"The bottleneck problem will become worse in 2008 if nothing is done to deal with the infrastructure issue," Coordinating Minister for the Economy Boediono said Wednesday in Jakarta.

Boediono said that the government planned to increase spending on infrastructure by 34 percent to Rp 56 trillion (about US$6.2 billion) next year from Rp 41 trillion this year. The Public Works Ministry and Transportation Ministry would receive Rp 34.3 trillion and Rp 24.2 trillion, respectively.

The Rp 56 trillion would include Rp 7.03 trillion for the regions paid out of the Special Transfer Fund (DAK).

The coordinating minister stressed that while infrastructure spending would account for the biggest increase in budget spending, human development would also remain a top priority.

Human development, which includes education and health, would receive some Rp 83 trillion next year, an increase of about Rp 7.9 trillion over this year's figure. The human development allocation would therefore account for about 15 percent of total 2008 budget spending, which Boediono estimated would amount to Rp 554 trillion.

He said that the 6.8 percent growth penciled in for 2008 would be difficult to achieve if nothing was done to speed up the construction of infrastructure, such as new expressways and power plants.

"We have acute experience of these problems. We lack electricity, expressways, ports," he stressed.

He said that to achieve the 2008 growth target, the government would further relax its fiscal policy.

"We have decided to change our fiscal policy to support economic growth," he said, explaining that up until 2005, post-crisis fiscal policy had been primarily intended to achieve fiscal consolidation. "We have now entered a period where spending should serve as a stimulus for growth," he explained.

The country's tax to GDP ratio has slowly climbed from less than 10 percent in 1999 to 12 percent in 2006. The ratio is expected to rise to 13 percent this year. Meanwhile, with the latest debt repayment to the International Monetary Fund (IMF), the debt to GDP ratio has fallen to 42 percent from 60 percent in 2004 and 100 percent in 2000.

The government is predicting that year-on-year inflation will remain moderate at 6 to 6.5 percent next year, while Bank Indonesia (the central bank) is expected to further trim its key rate to 7.5 percent.

The oil price reference employed for the 2008 budget is

US$57 per barrel, while the country is expected to produce 1.034 billion barrels per day.

Foreign exchange reserves are forecast to grow to between $59.3 billion and $61.1 billion next year, from $51.6 billion at present, with the average rupiah-U.S. dollar exchange rate remaining at Rp 9,300 per dollar.

"It is actually possible to achieve 7 percent growth, as we did before the 1998 crisis, which in itself was a remarkable achievement. The difference now is that we have to do it in a different social and political environment -- a more democratic society," he said.

Radar an issue at Medan airport

Apriadi Gunawan, The Jakarta Post, Medan

A government transportation safety team announced Wednesday that it had found a large number of flaws in the management of flight safety at Polonia International Airport in Medan, North Sumatra.

The National Team for the Evaluation of Transportation Safety and Security said it had discovered that the radar at the airport were old and that the person who operated them did not speak English, a key requirement.

Team member Tengku Burhanuddin said the airport's management had been told to immediately upgrade the radar.

"Out technology has advanced and we've asked that the radar be modernized. The request should immediately be followed up by the airport management in order to ensure flight safety," he told journalists.

The team, led by former Air Force chief of staff Chappy Hakim, last month urged the government to revamp the aviation industry and shut down airlines that ignored safety regulations following a series of deadly accidents.

The team also recommended the consolidation of air traffic control at the country's airports, which is currently under the shared management of state-owned airport operators PT Angkasa Pura I and II and the Transportation Ministry.

Tengku, who was accompanied by another team member, Jusman, said they were conducting inspections at Polonia to ensure transportation safety. The inspection covered the airport's radar, security and air traffic control services.

When asked whether Polonia airport met safety requirements, he said that the airport was in a difficult position.

It would cost a large amount of money to fix the safety flaws but the airport would close when the new airport at Kuala Namu in Deli Serdang regency, which is currently under construction, opens in 2009.

All the team's findings, he said, would be reported to President Susilo Bambang Yudhoyono within two weeks.

"But we're no longer issuing recommendations since the intention of our field trip (to Polonia) was actually to check whether (airport managements) have followed our previous recommendations to the President or not," said Tengku, who is the brother of the late North Sumatra governor T. Rizal Nurdin, who died in the Mandala plane crash near Polonia airport in September 2005.

Polonia International Airport head Frido Frinaldo said the airport's two radars were made in 1979 and 2002.

He said the management would pay attention to all suggestions made by the team.

But air traffic control staff at Polonia said only the 1979 radar was operational. The 2002 radar is not in use because it has not been tested.

"The system of the 1979 radar was made in France while the system for the 2002 radar was locally made by the Bandung Technology Institute. The French radar is practical but its condition is critical," a member of the air traffic control staff told The Jakarta Post.

The staff, who declined to be named, said the old radar had recently broken down for three days.

False dates found on sea safety equipment

BANTEN: Safety inspectors have seized hundreds of items of marine safety equipment aboard ferries crossing the Sunda Strait in Merak Port, Banten, due to their allegedly falsified expiry dates.

Port authority head Dalle Effendi said Tuesday the confiscated equipment had expired in 1998 but the expiry date on its packaging was 2010.

The safety equipment, including smoke flares, rockets and emergency food supplies, was stored in 25 lifeboats aboard a number of ferries.

Dalle, however, did not identify the ferries, saying only that the investigation was ongoing.

He said ferry crew members had tried to convince the safety inspectors the equipment had been checked and would not expire until 2010.

Besides keeping the ferries from leaving the port, the port authority also sent out a letter notifying sea safety equipment companies of the finding.

The port authority had previously acknowledged that more than half of the ferries sailing from Merak Port to Bakauheni on Sumatra island did not meet international safety standards.

According to Dalle, the central government was largely to blame for not putting a limit on the age of vessels. Therefore, he urged the Transportation Ministry to ban vessels over the age of 20 years from operating, for passengers' safety.

"Setting an age limit will help minimize accidents at sea," he said, adding that the age of ferries crossing the Sunda Strait ranged from 15 to 37 years.

Airport confiscates liquids, aerosols

The Jakarta Post

JAKARTA: Soekarno-Hatta International Airport security has confiscated a total of 30 bags of liquids, aerosols and gels from passengers since the implementation of stricter cabin baggage limits Saturday.

Airport security coordinator Agus Kuswoyo said Tuesday that the confiscations had been necessary because passengers were carrying more than the permitted 100 milliliters per item of liquids, aerosols and gels.

As of March 31, the airport implemented enhanced rules on cabin baggage. Creams, lotions, oils, perfumes, sprays, gels and the contents of pressurized containers must be carried in containers of 100 milliliter capacity or less. Liquids carried in containers larger than the maximum limit are not accepted, even if the container is only partly filled.

The containers also must be packed in one transparent re-sealable plastic bag of no more than one liter capacity per passenger.

Agus said security had been amassing eight sacks of confiscated items a day on average since Saturday.

Lorena Air defies turbulence, set for take off by end of May

The Jakarta Post, Jakarta

By the end of May, a new full-service Indonesian airline, Lorena Air, is set to have taken to the skies, serving six routes between six major cities using three leased Boeing 737-400 aircraft.

President director Eka Sari Lorena Soerbakti said Tuesday that the airline would at first fly from Jakarta to Manado (North Sulawesi), Balikpapan (East Kalimantan), Padang (West Sumatra), Palembang (South Sumatra) and Denpasar (Bali).

"Then later this year, we intend to purchase three more aircraft of a similar type as we also plan to introduce a Medan-Surabaya service," Eka said during a visit to The Jakarta Post.

The carrier is 100 percent owned by the Lorena group -- best known as a luxury bus operator on the islands of Java, Madura, Bali and Sumatra.

With Lorena boasting years of experience in the transportation business, Eka says she believes the airline has what it takes to be successful, even at a time when the country's airline industry is reeling from a series of tragic accidents.

From the disappearance of a Boeing 737-400 operated by Adam Air off Sulawesi early in the year to a Garuda Indonesia Boeing 737-400 aircraft bursting into flames after overshooting the runway at Adisucipto airport in Yogyakarta in March, a huge question mark has been left hanging over airline safety in Indonesia.

However, despite the current lack of confidence in the local aviation industry, Eka said she believed Lorena could carve out a niche and establish a place for itself in the market as a full-service carrier.

"There were 39 million domestic air passengers last year, about 3 million more than the target. And the number will continue to rise.

"The demand is there. So, I think the arrival of Lorena is timely. With all these safety concerns, the market is actually waiting for a full-service, dependable airline," Eka said.

The new airline, Eka said, had signed an agreement with Futura International Airways, a leading global charter company based in Spain, for consultancy and advisory services, including for aircraft maintenance, and pilot and flight-crew training.

Lorena was currently seeking safety certification from both the U.S. Federal Aviation Administration (FAA) and the Joint Aviation Authorities (JAA), the European equivalent of the FAA.

National flag-carrier Garuda Nusantara is currently the only domestic carrier that has certification from the FAA.

"We expect to have flown around 1.5 million passengers by the end of the year," Eka said, adding that the company also planned to establish overseas routes, starting with Singapore, next year.

Etihad opens new RI office

The Jakarta Post

JAKARTA: Etihad Airways, the national airline of the United Arab Emirates (UAE), officially opened its new office in Jakarta on Tuesday.

Located on Jalan Sudirman, South Jakarta, the new office will handle sales and all of the airline's other business in Indonesia, manager Geoff Rhodes told reporters following the official opening ceremony.

Since it first commenced operations here last year, Etihad has been flying from Jakarta to Abu Dhabi, UAE, six times a week, and has been carrying about 2,268 passengers per week, representing a 70 percent load factor. The airline plans to increase the number of its flights to Jakarta to eight per week starting Aug. 1, and to 12 per week by the end of the year.

"We actually have the right to fly eight times a week, but at the moment the market is still sluggish. We will increase the number of flights as the market improves," Rhodes said.

Last week, Abu Dhabi-based Etihad established a new route to Sydney, Australia. In July, it will start flying to two more new destinations -- Dublin in Ireland and Milan in Italy.

Wheel problem forces jetliner back to departure airport

The Jakarta Post

JAKARTA (JP): A Batavia Air jetliner has to return to Sam Ratulangi Airport, Manado, on Monday due to problem on its wheel just 20 minutes after taking off from the airport.

RCTI TV station reported that the Boeing 737-400 airplane was scheduled to leave for Jakarta but it had to cancel the schedule due to the incident.

Batavia Air refuses to clarify the incident according RCTI.

TGV breaks train speed record

CNN

PARIS, France (AP) -- France broke the world speed record on rails Tuesday with a souped-up fast train, a feat to showcase the technology it is trying to sell to overseas markets including China.

The new record is expected to gild France's image in the expanding market for high-speed technology as countries like China turn to bullet trains.

The black-and-chrome train with three double-decker cars sped along a new line linking Paris to eastern France, starting in the town of Preny. It broke the 1990 rail record, also held by a French train, of 515.3 kph (320.2 mph).

The specially designed train was outfitted to reach up to 540 kph (335.5 mph) -- about the speed of a short-distance freight propeller plane.

The TGV, short for "train a grande vitesse," as France's bullet trains are called, is made up of three double-decker cars between two engines. It has been equipped with larger wheels than the usual TGV to cover more ground with each rotation and a stronger, 25,000-horsepower engine, said Alain Cuccaroni, in charge of the technical aspects of testing.

Adjustments have also been made to the new track, which opens June 10, notably the banking on turns. Rails were also treated for perfect contact, Cuccaroni said.

The electrical tension in the overhead cable was beefed up, from 25,000 volts to 31,000. Tuesday was the first time that double-decker cars were being used at such a high speed, according to officials of Alstom, which makes TGVs and which crawled back a year ago from the edge of bankruptcy.

The double-decker cars were transformed into a laboratory for the event so that technicians from the state-run rail company SNCF and Alstom can gather data during the run.

Japan holds the absolute speed record for a train, with its magnetically levitated Maglev train that skims over a guideway on powerful magnetic fields without ever touching the track.

The Maglev set a record of 581 kph (361 mph) in 2003. The goal of the operation, called V150, is more than "simply breaking a record," Cuccaroni said.

Test data should help improve the security and comfort of passengers in the future, he said. France competes with neighboring Germany and with Japan for contracts.

Transport Minister Dominique Perben received a California delegation hours before Tuesday's record attempt. California is studying prospects for a high-speed line running from Sacramento in the north to San Diego, in the south, via San Francisco and Los Angeles. China, the biggest potential market, was to start building a high-speed line this year between Beijing and Shanghai to cut travel time from nine hours to five.

Indonesia Jan-Feb tourist arrivals up 13.59 pct yoy

Jakarta (ANTARA News) - Foreign tourist arrivals in the first two months to February rose 13.59 pct year-on-year to 639,937 with arrivals at the resort island of Bali leading the increase, data from the Central Bureau of Statistics showed.

It showed that tourist arrivals via Bali's Ngurah Rai airport during the first two months, rose 47 pct year-on-year to 238,777.

The country's tourist industry has been hurt by a number of terror attacks in recent years.

AirAsia to fly to Banda Aceh

The Jakarta Post

BANDA ACEH, Aceh Province (The Star/ANN): AirAsia will start direct flights between Kuala Lumpur and Banda Aceh by next month, said Malaysia's Tourism Minister Adnan Tengku Mansor.

He said discussions had been held with AirAsia and Firefly to consider direct flights from Aceh and Medan to various states in Malaysia.

"One of the problems faced by the airlines is the absence of a Customs, Immigration and Quarantine center," he said.

Speaking after opening the Plaza Medan Fair to promote the Visit Malaysia 2007 Roadshow, Adnansaid:"Indonesia is the third-largest contributor to tourist arrivals after Singapore and Thailand. A growth of 26.4% tourists from Indonesia has been recorded in 2006 compared with 2005.

"There is definitely a great potential seeing as there are approximately 45 million people in Sumatra."

Minister sets deadline for monorail project

The Jakarta Post

JAKARTA (JP): Finance Minister Sri Mulyani Indrawati gave three years for PT Jakarta Monorail to complete the transportation project in the capital, which will be financed by Dubai Islamic Bank (DIB).

Her statement was made as a follow up to her decree issued on March 15, ruling that the government will cover the financial shortage if the number of passengers miss the minimal target of 160,000 per day.

Ministry's spokesman Syamsiar Said said Monday that under the decree, the government would pay US$11.25 million per year at the most within five years.

He said the ministry also required the Jakarta City Council to approve a regulation ruling that the city administration has to prepare a similar amount of money to cover the possible shortfall before the central government disburses its money.

The capacity of the monorail project is 270,000 passengers per day.

Initially, two lines of the monorail project were scheduled to operate early this year, but concession holder PT Jakarta Monorail found difficulty to find investors to finance the project.

DIB finally expressed its agreement to finance the project with a condition that the government has to cover possible financial shortage.

Analysts expressed pessimism that monorail would be able to meet its minimal target of passengers because the Rp7,500 ticket price per trip is too expensive for most of Jakartans.

East Java mud begins disrupting train services

The Jakarta Post

JEMBER, East Java (Antara): Mudflow from PT Lapindo Brantas gas field in Porong district, Sidoarjo regency has began disrupting train services from East Java capital of Surabaya to nearby town of Banyuwangi, an official says.

Spokesman of State railway operator PT KAI Eko Suminto said Sunday that the trains have to slow down their speed when they passed through railways in Porong, fearing that the dam separating the mud and the railway would collapse.

He also added that two trains could not pass through the area in the same time, causing all trains arrived at stations hours behind their schedules."Mutiara Timur train from Surabaya arrived two hours behind the schedule," Eko was quoted by Antara news agency as saying, adding that the train run some five kilometers per hour.

The mud have been flowing from the gas field since early last year, inundating more than 10,000 houses, dozens of factories, and hectares of agricultural fields.

All efforts, including dropping concrete balls to the mouth of the volcano mud, have been carried out. But it is not successful. Experts say that the mudflow may occur for decades.

Indonesia crash pilots 'argued'

BBC World

The pilots of an Indonesian passenger jet were arguing about the plane's speed moments before it crashed last month, a senior investigator has said.

Tatang Kurniadi told Australian television that the co-pilot wanted to turn around instead of landing.

The two pilots, who both survived, were flying together for the first time.

The Garuda Airlines Boeing 737-400 crashed as it landed at Yogyakarta airport on 7 March, killing 21 of the 140 people on board.

Survivors and witnesses said the plane came in to land at a high speed before it overshot the runway into a rice field and burst into flames.

Passengers and crew scrambled for safety through emergency exits as fire raced through the cabin, leaving the wreckage a gutted shell.

'Absent-mindedness'

The voice and flight data recorders are being analysed in Australia.

"There was also some argumentation between the co-pilot and the pilot and captain relating with the speed and flaps," Mr Kurniadi told the Nine Network.

He said the wing flaps, which help slow the plane down for landing, did not jam and it appeared it would have been possible to circle around for another attempt at landing.

He said he did not know why the pilot chose to continue with the landing.

"I worry that this accident came from the absent-mindedness of the cockpit," he said.

He said the pilot was very experienced with more than 15,000 flying hours. The co-pilot was a "young pilot with just about 2,000 flying hours".

The cockpit voice recorder was badly burnt in the crash but investigators said last month that they had been able to recover the last 30 minutes of the crew's conversation.

Mr Kurniadi said he expected the investigation to be completed in a month.

Bill ends government railway monopoly

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Under the spotlight of a massive rally in front of the State Palace, the House of Representatives approved Tuesday the rail transportation bill, allowing the private sector to take part in the rail industry.

All 10 factions at the House gave their support to the bill in a plenary session here in an effort to reform the much-criticized public transportation system in the country.

They said the rail industry had to become more competitive but continue to provide cheap transportation.

The bill stipulates the private sector, including multinational corporations, is allowed to take part, along with the state-owned PT Kereta Api Indonesia (KAI), in providing rail transportation and the manufacture of supporting facilities.

It requires the government to issue a regulation on the detailed participation of the private sector in the rail industry.

Putra Jaya Husein, spokesman for the National Mandate Party faction, said in the faction's political stand during the plenary session presided over by Deputy House Speaker Muhaimin Iskandar, that despite the private sector's participation, the government remained the only authority in setting train fares to ensure a cheap service.

"PT KAI and private providers must make a profit to let them survive, but the government is required to give subsidies to ensure cheap rail transportation for the public," he said.

The Indonesian Democratic Party of Struggle (PDI-P) asked the government to issue regulations to govern the involvement of the private sector in public and special rail transportation.

"Private corporations should be encouraged to provide rail transportation for destinations with a high load factor and to invest in special rail transportation to create a healthy competition with PT KAI," said Rendi Affandi, spokesman for the PDI-P faction.

Special rail transportation systems carry cargo and raw materials in industrial zones in Java, Sumatra and Kalimantan.

The National Awakening Party (PKB) faction said the private sector should be allowed to operate in Greater Jakarta to help solve the chronic public transportation problem in the capital city.

"In fact, PT KAI has been found to be unable to serve the densely populated region with its residents, most of whom work in Jakarta," said Abdullah Azwar Anas of the PKB faction.

The bill carries a maximum 15-year jail sentence and a maximum fine of Rp 5 billion (US$548,967.9) for train operators found guilty of ignoring safety regulations and companies or individuals who damage rail facilities.

It also mandates the government to audit assets used by PT KA and the company's assets in the coming three years to make the company liquid.

As the legislators assembled to endorse the rail transportation bill, hundreds of active and retired PT KAI employees marched from Gambir railway station to the nearby State Palace, both in Central Jakarta, to demand the inclusion of their rights in the newly-endorsed railway law.

Transportation Minister Hatta Radjasa said after a meeting with leaders of the PT KAI workers union at the State Palace that former PT KAI employees would be paid the way the government paid regular civil servants.

Since PT KAI was converted from a state-owned company into a profit-seeking enterprise, more than 32,000 of its employees have seen their jobs downgraded. Of these, 27,000 are still working for the company, while 9,000 have retired.

Garuda Indonesia buys 35 jets from Boeing

Jakarta (ANTARA News) - Garuda Indonesia has bought 35 new jets from Boeing Co which will start arriving from 2009, the flag Garuda spokesman Pujo Broto said.

"This involves a package of 25 Boeing 737-800 Next Generation and 10 Boeing 787-8 Dreamliners," Broto was quoted by AFP as saying.

Broto declined to give the full value of the aircraft order but said an initial 23 mln usd had been paid.

The Next Generation aircraft are to be used for domestic travel and are due by late 2009. The Dreamliners, expected from 2011, are earmarked for long-haul international routes.

Qatar Airways expected to bring more foreign tourists to Bali

Rita A.Widiadana, The Jakarta Post, Jimbaran, Bali

With the launch of direct flight from Doha to Bali's provincial capital, Denpasar, last week, Qatar Airways is expected to help bring more tourists from the Middle East and Europe to the resort island.

Speaking Thursday to reporters at a media gathering at the Ritz Carlton hotel in Jimbaran Bay, Qatar Airways's chief executive officer Akbar Al Baker, said he hoped the airline would not only bring visitors from the Middle East to Bali, but also from Europe and North America.

"Bali has always been one of the world's top destinations despite terrorist attacks years ago. People will again go back to Bali and forget those terrible events," Al Baker said.

Qatar Airways, which launched its new route to Denpasar on Saturday, flies to Bali's capital four times a week via Kuala Lumpur using Airbus A300-600 aircraft.

In 2001, Qatar Airways introduced Indonesia's capital Jakarta to its growing list of global destinations.

"With stronger economic ties developing between Indonesia and other countries, we can expect a surge in the number of visitors both to and from Bali," Al Baker explained.

According to figures from the Bali Tourism Authority, the number of visitors from the Middle East is still very small, amounting to only 800 a month. Bali receives about 1.2 million visitors a year.

"We can't tell you how many passengers from the Middle East will come to Bali, but I can assure you that people in my country consider Bali to be an attractive holiday destination," he said, adding that at present Qataris and other people from the Middle East mostly spent their holidays in Europe.

Gede Nurjaya, the head of the Bali Tourism Authority, warmly welcomed the start of direct flights between Doha and Denpasar.

"We have to be prepared to receive Middle Eastern visitors, and also more Europeans," he said, adding that since Garuda Indonesian discontinued its European routes, including London, Amsterdam and Paris, several years ago, the number of European visitors had dropped significantly.

Europe is one of Bali's most important markets, in addition to Australia, Japan, Korea and Taiwan.

Culture and Tourism Minister Jero Wacik praised Qatar's decision to fly to Denpasar, hoping that with the airline's arrival, more tourists from the Middle East and Europe would visit Bali and other parts of Indonesia.

Besides Denpasar, the airline also launched inaugural flights last week from Doha to Ho Chi Minh City, Vietnam, and from Doha to Chennai, India.

The addition of Denpasar and Ho Chi Minh City sees Qatar Airways' Far East network increase from 12 to 14 destinations. The airline also serves Hong Kong, Osaka, Beijing, Seoul, Shanghai, Singapore, Bangkok, Kuala Lumpur, Jakarta, Yangon, Manila and Cebu.

Garuda black boxes deciphered

The Jakarta Post

JAKARTA: The black box of the ill-fated Garuda jetliner has been deciphered, but the public must now wait up to three months before the information is disclosed, a chief investigator said Wednesday.

Mardjono Siswosumarno, who leads the investigation on the Boeing 737-400 crash that killed 22 of its passengers, said the cockpit voice recorder contained the last 30 minutes of conversation before the accident.

"We can hear everything from the pilot's and co-pilot's conversations to flight attendants giving instructions to passengers," Mardjono was quoted as saying by Detik.com news agency.

Earlier, the airliner's flight data recorder had been successfully read in Australia by the Australian Transportation Safety Bureau (ATSB). The bureau later sent the badly-burnt voice recorder to its maker, Honeywell, in Seattle for deciphering. -- JP

Emergency chopper landing in Papua

The Jakarta Post

JAYAPURA, Papua: Technical problems forced an Air Force helicopter to make an emergency landing at Terpones airport in Keerom regency.

Four people were on board the helicopter: the pilot, the co-pilot and two technicians.

The co-pilot, identified as David, was slightly wounded during the landing. He was rushed to the Air Force's health clinic in Sentani near Jayapura.

"Only David was injured," said Capt. Biyantoro from the Sentani base.

Biyantoro said that the helicopter made the emergency landing due to a malfunctioning instrument panel. "All the indicators on the panel were off, confusing the pilot," he said.

Kalla defends the purchase of 12 choppers

The Jakarta Post

JAKARTA (Antara): Vice President Jusuf Kalla Tuesday defended the government's purchase of 12 helicopters, which will be used to carry out immediate helps for victims of natural disasters.

He also denied that the procurement of the choppers did not pass through right procedures.

"There is nothing wrong with the procedure. All those stories are nonsense," he was quoted by Antara news agency as saying before leaving for his Middle East trip.

Many criticized the procurement of the choppers, which were being held by Custom Office because supplier has not paid entry taxes. There was also a report that the procurement involved Kalla's relative.

According to Kalla, the chopper purchase is for the pride of the nation and for the sake of people's interests because so far, Indonesia always borrowed choppers from neighboring countries to give immediate help to victims of natural disasters.

He also denied that the choppers will be used for commercial transports.

Plane makes emergency landing in Papua

The Jakarta Post

JAYAPURA (Antara): A Puma 3315 trainer aircraft owned by the Indonesian Air Force (TNI AU) made an emergency landing in the Oksibil-Okbibab region in Bintang district, Papua province, on Tuesday.

None of the four airmen aboard the plane sustained injury, spokesman of the Trikora Regional Military Command Lt. Col. Imam Santosa said.

"The Puma was on routine training flight," he said. The plane which took off from Jayapura, capital of Papua province, at 09.25 p.m. was believed to have developed a technical problem forcing it to make the emergency landing, he said.

Qatar Airways opens Diha-Denpasar flight route

Denpasar, Bali (ANTARA News) - Qatar Airways will open a new flight route of Doha - Denpasar with a transit in Kuala Lumpur, Malaysia, and the initial flight is expected to be officiated on Wednesday.

"The airlines` Chief Executive Officer (CEO) Akbar Al Baker who is also Qatar`s Minister for Tourism will attend for the function," Freddy SPS of the Bali Tourism Board said on Monday.

The airlines` manager area of Indonesia Joe Rajadurai, meanwhile after a meeting with Bali Governor Dewa Beratha said the airlines has committed to support the tourist sector in Bali and would cooperate with the provincial tourism office to promote tourist destination here.

Freddy said it would bring more tourists from the European and Middle East countries as well as Malaysia.

Bali Governor Dewa Beratha, meanwhile said the provincial administration supported the opening of the new route.

The airlines will be the first airline company from the Middle East operating in Bali.

Beratha also expressed a hope that the airlines would serve the direct flight connecting Doha and Bali in the near future.

Indonesia Air plans to expand, launch scheduled, cargo services

The Jakarta Post, Jakarta

Publicly listed charter airline operator PT Indonesia Air Transport (IATA) is expanding its business into scheduled passenger and cargo services.

"We are planning to move, one step at a time, to open up scheduled services within the next two or three years," IATA president director Roekman Prawirasasra said Friday after a shareholders extraordinary meeting.

"Most airlines choose to compete on lucrative routes, such as the Jakarta-Surabaya route, but this company prefers to serve the eastern parts of the country," he said, adding that the company, which will serve the country's main tourist destination, Bali, and major cities in the eastern part of the country, saw major business opportunities in scheduled services.

IATA has purchased two ATR 42-300 airplanes for US$3 million each from the Denmark-based Nordic Aviation Contractor. In cooperation with tourism company PT Mirantha Nuansa Ayu, IATA has been flying one of the planes in Bali since earlier this month, while the other one is still in Denmark and will commence operations in May.

According to Roekman, IATA will purchase another three aircraft, either ATRs or Fokker 50s, in order to provide scheduled services.

The company is also considering whether to move into the cargo business, despite the current gloomy market conditions.

IATA plans to spend US$30 million on aircraft procurement this year alone.

Currently, IATA, with a fleet of 17 aircraft, provides services to a number of mining and forestry companies.

The firm, which is 79.8 percent owned by publicly listed PT Bimantara Citra, closed 2006 with a surging net profit of Rp 28.64 billion ($3.11 million), up by 89 percent from Rp 15.12 billion in 2005, despite a fall in company revenue.

Roekaman said that the increase in net profit was partly due to a decline of debt-repayment expenses.

IATA's revenue in 2006 fell by 12 percent to Rp 204.13 billion from Rp 231.05 billion in the previous year due to the strengthening of the rupiah against U.S. dollar.

For this year, IATA expects to boost its revenue and net profit by between 10 and 15 percent.

Busway relief expected in April

JAKARTA (The Jakarta Post): Relief is expected for the long queues on the four newest busway corridors, with additional buses expected to arrive in April.

Sixty-one new TransJakarta buses will begin operating along Corridor 4 between Pulogadung and Dukuh Atas, and Corridor 6 from Ragunan to Kuningan. An additional 51 buses will start plying Corridor 5 from Kampung Melayu to Ancol, and Corridor 7 between Kampung Melayu and Kampung Rambutan.

TransJakarta manager Rene Nunumete said Thursday that currently there were a total of 56 buses operating on the four new corridors. This includes 25 buses pulled from corridors 1 and 2.

According to the Jakarta Transportation Agency, a total of 129 buses will eventually serve the four new corridors, consisting of 112 regular buses and 17 articulated buses.

The articulated buses, imported from China, are expected to arrive in May.

Window of Merpati plane fractures while flying

JAKARTA (JP): A front part of window glass of Boeing 737-300 plane posed rupture when the aircraft operated by state-owned Merpati Airways was on its flight from Bali capital of Denpasar to East Nusa Tenggara capital of Kupang, report says.

MetroTV reported that the plane could land safely in an airport in Kupang, but its extending flight to Jakarta had to be delayed for hours while waiting for window glass to replace the rift one from Surabaya.

Merpati official could not say about the cause of the rupture, saying that it was still under investigation.

Adam Air escapes license revocation

JAKARTA (The Jakarta Post): Despite experiencing a series of accidents, Adam Air escaped license revocation as it was only categorized Thursday by the Ministry of Transportation as one of the worst airlines in the country that fail to meet several safety requirements.

The Ministry also announced that six other airlines – Metro Batavia, Trans Wisata, Tri MG Intra Asia Airlines, Manunggal Air Service, Jatayu Gelang Sejahtera, Kartika Airlines - were also put in the same category as Adam Air.

The other 13 airlines were placed in the second category as they were only able to meet the minimum safety requirements.

None of the local airlines met all safety requirements as required by the regulations, the Ministry’s Air Transportation Director General Budi Mulyawan Suyitno was quoted by Metro TV as saying.

He said that Adam Air and the other six airlines under the worst category would be given a-three-month period to improve their airlines otherwise their licenses would be revoked.

Seven Airlines Impose Sanctions

Friday, 23 March, 2007 | 11:09 WIB

TEMPO Interactive, Jakarta: The Transportation Department will impose sanctions on seven airlines. According to Director General of Air Transportation at the Transportation Department, Budhi Mulyawan Suyitn, the restrictions were a follow-up as the result of evaluation to 20 scheduled airlines with 30 seat capacity or scheduled cargo.

The evaluation comprised three categories. The first category is fulfillment of civil flight safety regulation requirements. The second is the companies that have fulfilled minimal requirements of civil flights but have not yet fulfilled some of the others. The third, the companies have fulfilled minimum civil flight safety requirements but not yet those which potentially will reduce safety level.

According to Budi, out of 20 airlines evaluated, seven are included in the third category. The seven airlines are those which will receive administration sanction of the first, second and third warning with a three-month interval. If there is not any improvement, it will be continued by freezing the air operator’s certificate (AOC).

The evaluation is carried out every three months. If there is not any improvement, the company’s license will be revoked. This provision will be effective starting tomorrow.

He added, out of the 20 airlines, not one is included as the first category. In the second category, there are 13 airlines.

The Transportation Department also evaluated 34 other airline companies with a capacity below 20 seats or unscheduled cargo. Out of the 34 airline companies, 14 are included in the third category. The remainder are in the second category.

HARUN MAHBUB

Airline Rank

First Category: None

Second Category

Garuda Indonesia; Merpati Nusantara Airline; Lion Mentari Airline; Sriwijaya Air; Wing badiAirline; Indonesia Air Asia; Mandala Airline; Pelita Air Service; Riau Airline; Express Transportasi Antar Benua; Trigana Air Service; Travel Express Aviation Service; Republik Express Airline.

Third Category

Metro Batavia; Adamsky Connection Airline; Kartika Airline; Trans-wisata Air; Tri MG Intra Asia Airline; Manunggal Air Service; Jatayu Gelang Sejahtera

China approves plan to build large jet to rival Boeing, Airbus

Beijing (ANTARA News) - China has approved a plan to build large passenger aircraft to compete with Boeing and Airbus, who together currently dominate the market here, the government and state-run media said Monday.

The decision was made at a meeting of the Cabinet presided over by Premier Wen Jiabao after listening to details of a feasibility study on the project, the State Council said in a statement posted on the government's website.

The plan is to "design and build airplanes that can carry more than 150 passengers and compete with Airbus and Boeing," the state-run China Daily was quoted by AFP as saying in a report.

The newspaper characterised the move as "a major strategic decision" and said the project will begin "as soon as possible."

In the statement, the Cabinet also said it has approved a plan to set up a company to manufacture large aircraft.

China has the technical and material capabilities to develop large aircraft, having been building its aviation industry for 50 years, the statement said.

China's experience has so far been limited to manufacturing smaller, regional aircraft, with the ARJ-21, holding up to 105 seats, expected to begin delivery in 2009, according to state media.

The Cabinet meeting was held on February 26. It did not explain why it took three weeks to announce the decision to the public.

There have been previous indications in public statements and media reports that China had ambitions in the market for large passenger aircraft.

China Aviation Corp I, a major aerospace company, said earlier this month it was looking to develop a new generation of aircraft engines to reduce its reliance on foreign manufacturers.

"As a country with a huge demand for large-sized planes, it is absolutely unimaginable to rely on imports of aero-engines for long," Liu Daxiang, the company's deputy chief of science and technology, told the China Daily.

China's new-generation engines must be more powerful than those in use in current Airbus or Boeing aircraft, Liu said.

According to the latest market outlook from China Aviation Corp I, China will need 2,230 large aircraft by 2025.

This forecast comes on the back of impressive growth rates in civil aviation in China, fueled by an economy that expanded by 10.7 percent last year.

Some 160 million passengers flew on Chinese airlines during 2006, a rise of 15 percent on the previous year, according to previously released local aviation statistics

Proton plans to open 10 centres in Indonesia

By Zuraimi Abdullah, The Business Times

March 19 2007

PROTON Holdings Bhd, which officially entered Indonesia last Friday, plans to open up to 10 sales and service centres in the republic by March 2008.

This is to facilitate the national carmaker's target of capturing a 1.7 per cent share of all vehicles sold in the republic in five years, said heads of Proton's Indonesian marketing arm.

Three outlets were opened simultaneously in Slipi, Jalan Warung Buncit and Pokok Indah, all in Jakarta, on Saturday.

PT Proton Edar Indonesia directors Norhisham Kamal and Dwi Sasetia said its other outlets will be located in Samarang, Surabaya, Bali, Makasar, Medan, Jogjakarta and Bandung.

Total cost of setting up the outlets could reach US$8 million (RM28 million), they added.

Norhisham and Dwi spoke to Malaysian reporters before Proton's launch in Indonesia by International Trade and Industry Minister Datuk Seri Rafidah Aziz on Friday in Jakarta.

Proton would directly operate two outlets including the one in Slipi. The balance of eight are to be run by independent dealers.

Savvy and Gen. 2 are the first Proton models being sold in Indonesia as passenger cars from last Saturday, while the Wira model has been on the road here as a taxi since last August.

"We have to change the perception that Proton is only a taxi manufacturer. We need to have strong promotion. We do hope that with the outlets in the main cities, Indonesians will accept Proton's other models too," Dwi said.

Dwi and Norhisham are bullish on Proton's prospects, going by Toyota's success in having its other models well-accepted here despite the Vios being sold as taxis.

Meanwhile, the first Proton car buyer in Indonesia, only known as Fauze, has selected a red Gen. 2.

"This is my third car and I am proud to have a Malaysian car. I thought, 'Why not this time I add an Asian-made car to my collection?" Fauze, in his 40s, added that he fell in love with the Gen. 2 while visiting a motor show in Kuala Lumpur last year.

Three days off causes increase in train passengers

The Jakarta Post, Jakarta

Jakarta train stations were packed Saturday as residents flocked to leave the city for the long weekend. March 19 is Nyepi (the Hindu Day of Silence).

The city's largest railway station, Gambir in Central Jakarta, saw a 30 percent increase in passenger numbers, with most heading to Bandung and Cirebon in West Java, Surabaya and Malang in East Java, Yogyakarta, and Purwokerto, Kutoarjo, and Surakarta in Central Java.

State railway company PT Kereta Api (PT KA) spokesman for Greater Jakarta Ahmad Sujadi said that the increase was a significant one and was seen across all classes, forcing the company to add two more passenger cars to each train.

"The Argo Lawu and Argo Bromo trains, which usually carry six cars now have eight, implying an increase of about 100 passengers at every departure," Ahmad told Antara.

He said many travelers had bought round-trip tickets in the weeks leading up to the holiday and the number of departing passengers had been rising since Friday night, with many people also returning to their villages after the work week.

Despite the large number of people leaving the city, traffic remained a problem in much of Jakarta on Saturday, particularly around shopping malls.

A family from Tanjung Barat, South Jakarta, said it had taken them one-and-a-half hours to get to Senayan in Central Jakarta, a trip that normally takes less than an hour.

Budiswan and his wife were taking their family to an event at the sports stadium, where one of their children was taking part in a marching-band competition.

"There was bad traffic at Semanggi (interchange) on Jl. Gatot Subroto. The turnpike is also jammed. Maybe, people are leaving town in their private cars and that is why the traffic is unusually congested," said the father of three.

Bali welcomes silence for 'Nyepi' holiday

The Jakarta Post, Denpasar

The resort island of Bali will be temporarily closed for 24 hours as of Monday morning at 6 a.m. through to the same time Tuesday to observe Nyepi (the Hindu Day of Silence).

The island's Ngurah Rai International Airport will welcome its last flight on Sunday at midnight and will halt operations until the morning of March 20, according to airport spokesman Ahmad Munir.

"We announced the closure on Jan. 9 to all domestic and international airlines plying Bali routes. Therefore, (the companies) already understand the situation," Munir said.

During the ritual of Nyepi, 90 percent of the island's 3.5 million inhabitants will practice Yoga Semedi and Catur Berata Penyepian (meditation), Amati Geni (which forbids them from lighting fires and switching on lights), Amati Karya (working), Amati Lelanguan (enjoying leisure activities) and Amati Lelungan (leaving their houses).

Bali will be completely darkened and silenced for a full day, allowing the island's Hindu population to meditate, contemplate and pray for a better future.

Nyepi is one of the most important religious rituals for Balinese Hindus to welcome the Saka New Year 1929.

No visitors are allowed to come to the island during the day of silence. All entry points, apart from the international airport, Gilimanuk Port in West Bali and Padang Bai Port in East Bali, will be closed.

Gede Putrawan, head of Gilimanuk Port said the ferry port will be closed on Monday morning from 5:30 a.m. through to Tuesday at 6 p.m.

In Padang Bai, the last ferry to travel to Lombok Island will depart by 4:30 a.m. on Monday morning.

Domestic and foreign visitors are encouraged to stay in their hotels and other places of accommodation during the holiday, as the island will be tightly guarded by traditional Balinese security guards, Pecalang, to ensure all people abide by the holiday regulations.

Schools, public and private offices, and banks will put a hold on operations on the day. Most local and foreign bank ATMs will only operate until 12 noon on Sunday and will be reopened on March 21.

Prior to the Nyepi holiday, Balinese Hindus carried out a series of rituals that began last Friday when thousands of Hindus paraded to the beach nearest them to hold the Melasti ritual -- the cleansing of utensils and more importantly, their souls.

The Melasti ceremony symbolizes the purification of the earth and the universe through the removal of all evil elements.

On Sunday, the Balinese will hold a Tawur Kesanga ceremony, a ritual to present a caru (sacrifice) to the Bhuta Kala (demons), which will be symbolized by giant Ogoh-ogoh dolls that act to ward off any devilish or negative forces.

On the same afternoon, thousands of people will carry their Ogoh-ogoh and set them on fire at a Pengurupukan ritual.

Bali Police chief Insp. Gen. Paulus Purwoko said he had already deployed hundreds of police officers to ensure the smooth running of the ceremony.

"Many streets will be closed and rerouted to avoid traffic jams in many places in Bali this coming Sunday afternoon. I suggest to visitors they stay away from the crowds for their own security," Purwoko said.

He said Christian leaders have also been asked to hold Sunday mass by 4 p.m. at the latest due to the impending traffic jams.

But for many of the island's visitors, these ceremonies provide a rare tourist attraction, with many traveling to Bali specifically to watch the holiday celebrations.

Tjokorda Ardana Sukawati, chairman of the Bali Hotels and Restaurants Association, said that despite the many tourists who have been attracted to the island over the Nyepi holiday, hotels have been encouraged not to hold live music performances and to refrain from switching on lights.

"The majority of hotels in Bali are now fully booked. They are offering a variety of Nyepi packages," he said.

New report gives bleak view of air safety

M. Taufiqurrahman, The Jakarta Post, Jakarta

Confirming what the public has long suspected, a government-sanctioned fact-finding team has announced that safety standards in the airline industry have been gravely compromised.

The National Team for the Evaluation of Transportation Safety and Security said the government, airline industry and airport operators were all culpable for violating safety regulations, resulting in a string of air disasters.

"Facts that we collected in the field confirm what the public has long believed, that safety in the air transportation industry is at its lowest point," team spokesman Oetarjo Diran said at a press conference Monday.

Members of the team met President Susilo Bambang Yudhoyono to present their review of the state of the air transportation industry. The team was formed in early January, following the crash on New Year's Day of a Boeing 737-400 operated by Adam Air.

Over the past two months, the team has collected data from the Transportation Ministry, state-owned airport operator PT Angkasa Pura and airlines, and interviewed 42 individuals.

In its survey, the team discovered regulation oversights in almost every quarter of the industry.

"We have weak regulations, outdated technology and poorly trained human resources," Oetarjo said.

The team also said unethical conduct bordering on the criminal was common at airlines.

"Some of these infractions could be considered crimes, but we had trouble collecting the evidence to corroborate our accusations," Oetarjo said.

The team attributed the lax security standards to the deregulation of the airline industry in the late 1990s, when private investors were given the right to operate airlines without sufficient funds or expertise.

Yudhoyono asked the team to draw up a concrete plan of action to help the industry achieve zero-accident status within the next three years.

The team is expected to present its recommendations early next week.

In response to the report, Transportation Minister Hatta Radjasa said the first step for the government would be to improve the infrastructure of the aviation industry.

He said the government would initiate projects such as the extension of runways at some of the country's international airports.

Hatta said one of the first runways to be extended would be the one at Adi Sucipto International Airport in Yogyakarta, where a Garuda Boeing 737-400 crash-landed Wednesday, killing 21 people.

The government, through PT Angkasa Pura, is also expected to procure new radars for a number of airports.

"You know, our radar at Soekarno-Hatta International Airport frequently breaks down. It was first installed in 1985 and we need to refurbish it," Hatta told reporters.

Central Sulawesi to build two more airports

The Jakarta Post

PALU (Antara): Central Sulawesi provincial administration will soon have two new airports that will be built in the districts of Tojo Una-una and Morowali in the next few years.

"We have proposed the plan to the Directorate of the Air Transportation last year," Head of the local air transportation office Adiyono said on Saturday.

He added his office has conducted a survey to see the location for the airports, namely in the Uedele village in Ampana, Tojo Una-una district and in Umbele village in Morowali district.

"We have also presented the plan to the director general for air transportation," he added.

He hoped the construction would be commenced in 2010. He added that each of the airport would be built on a 100-hectare plot of land and has a 900-length of runway.

From lobsters to people: Airline runs from Air Force base

Apriadi Gunawan, The Jakarta Post, Medan

A commercial airline has been operating flights out of an Air Force base in Medan, North Sumatra, for almost two years.

Susi Air serves regular passenger and cargo routes to several destinations in North Sumatra and Aceh. It also has a branch office in Jakarta and opened another one in Jayapura, Papua, in November last year.

The airline, which is owned by PT ASI Pudjiastuti Aviation, was founded in late 2004 by Susi Pudjiastuti to serve the local fishing communities of Western Indonesia to enable them to quickly supply lobsters and fresh fish to markets in Asia.

The company's finance director, Dedi Irfan Pasaribu, said that in the beginning the airline used the Air Force base as a temporary terminal to distribute tsunami relief to Aceh and Nias Island, North Sumatra. The airline reached the worst-hit Meulaboh two days after the tsunami devastated Aceh on Dec. 26, 2004.

At that time there was only one Susi Air aircraft assisting in relief operations. When their work in Aceh and Nias Island was completed, the company decided to operate a commercial airline serving local routes from Polonia airport.

"Since June 2005 we have sent three proposals to the airport's management PT Angkasa Pura II. But until now we have not received a response or been allocated adequate facilities like other airlines currently operating out of Polonia. For that reason, we will continue using the Air Force base as our terminal," Dedi told The Jakarta Post.

The Air Force has no objections to allowing Susi Air use its hangar as a terminal, which is located about 500 meters from Polonia and shares the same runway.

"Basically, we only pay (the Air Force) maintenance costs. However, if the company earns more, we'll share it," Dedi said.

The airline, in cooperation with Bumi Travel agency, operates six flights per day, four of which serve local routes within the province. The four flights travel to Silangit airport in North Tapanuli regency, Sibisa in Toba Samosir, Aek Godang in South Tapanuli and Binaka in Nias.

The two other fights travel to Sinabang airport in Simeulue and Cut Nya' Dien in Meulaboh, both in Aceh.

The company's corporate legal officer, Winarso, said Susi Air uses Cessna C208B aircraft to serve all of its routes and employs eight local and four foreign pilots.

"We have two aircraft that fly on a daily basis serving local routes in North Sumatra and Aceh. Both aircraft were made in 2004 and each has a 12-seat capacity," he said.

Head of PT Angkasa Pura II at Polonia airport, Frido Frinaldo, said the company had never received a proposal from the management of Susi Air on their wish to operate at the airport.

"I've been working here for six months but I've never received a request from Susi Air management to use the terminal. It just seems to be an excuse," Frido told the Post.

He said if Susi Air management had serious intentions to operate out of Polonia, it could be discussed.

"Everything can be discussed but it has not been possible because I have never met anyone from the company while they have been using the Air Force base for sometime," Frido said, adding that all commercial airlines in the country, including Susi Air, should depart from commercial terminals.

Head of Polonia airport's administration Yuli Sudoso said Susi Air has been reported to the Transportation Ministry in Jakarta for violating commercial airline regulations by using the Air Force base.

"We urge Susi Air to immediately move its operations to Polonia airport in Medan because they are violating regulations concerning passengers and cargo because the relevant facilities are not available at the Air Force base," he said.

Responding to the call, Winarso said the airline would continue using the Air Force base.

"We are desperate because we are receiving no response to our proposals. Besides, the Air Force base is suitable," he said.