City Council Vows to Rid Jakarta of 3-Wheel Bemo

Jakarta Globe, Arientha Primanita & Ulma Haryanto, February 11, 2010

A line of bemo await passengers in Central Jakarta. (JG Photo)

The days of the pollution-belching, three-wheeled bemo may finally be numbered, the Jakarta city administration said on Wednesday.

“We hope by 2011 there will be no bemo on the streets of Jakarta,” said Riza Hasyim, deputy head of the Jakarta Transportation Agency.

Riza said that according to a 1996 gubernatorial decree the bemo were illegal.

Bemo are a fixture of the Jakarta cityscape. The unique vehicles seat four to five people relatively comfortably, but often hold as many as nine passengers.

Riaza said Jakarta Police and Public Order Agency officers would begin impounding the vehicles and destroying them after a warning period had expired.

Aliman Aat, a city councilor from Commission B, which oversees economic affairs, said the council supported the plan.

“The bemo do not have permits to operate in Jakarta so they are illegal,” he said, adding that the city council will allocate the required funds in its revised budget.

Aliman said the bemo, which now operate primarily in and around Bendungan Hilir (Benhil), Tanah Abang and Karet in South Jakarta, were bad for the environment and traffic congestion.

He said efforts to remove the vehicles from the city’s streets had begun in 1996 with the freezing of operating permits for 1,096 bemo.

Taufik, another city councilor, said the administration had been unable to rid the city of bemo because the vehicles were often operated by street thugs known as preman.

Bemo drivers spoken to by the Jakarta Globe on Wednesday, however, said they believed the local government’s decision was unfair.

“They never explained to us why we are illegal. Is it because of environmental concerns? Are the vehicles ugly? Tell us what is wrong with the bemo and we can fix it,” said Mia, from the City’s Poor People Network (JKRM).

Samsul, one of about 100 bemo drivers in Benhil, said he had been a bemo driver for 15 years after moving from Indramayu, West Java, to find a better life in Jakarta.

Although he was aware of the government plan to eradicate all bemo, he said he was illiterate and had nowhere else to go. He said despite the 1996 ban, a number of new drivers had recently begun working as bemo operators.

“I learned how to drive a bemo from my uncle who brought me to Jakarta,” he said. “He has returned to Indramayu because of illness.”

Samsul said he earned Rp 30,000 ($3.20) each day after covering the cost of renting the vehicle and buying gasoline. He said it was tough to make a living to support his unemployed wife and two children. “But there are other drivers with more mouths to feed,” he added.

Muhammad Yusuf, 16, lives in Pejompongan and uses bemo. However, he admitted that bemo is not the only means of transport that he rely on.

“I can travel with bemo, angkot, anything nowadays, so I would not be too upset if one day bemo are not operating anymore” he said.

According to the Jakarta Bemo Driver Community (PBJ), there are around 1,000 active bemo in the capital, with one bemo usually shared between two drivers.

Aircraft makes emergency landing in rice paddy in East Kalimantan

Nurni Sulaiman, The Jakarta Post, Balikpapan, East Kalimantan | Thu, 02/11/2010 1:52 PM

A twin turbo-prop small aircraft was forced to make an emergency landing in a rice paddy in Kutai Kartanegara, East Kalimantan, following engine failure, injuring at least two passengers in the process.

The aircraft, an ATR-42-300 operated by PT Trigana Air, was carrying 46 passengers and five crew from Tanjung Selor City to Samarinda when the engine failed.

Roesmanto, head of flight security and safety at Termindung Airport in Samarinda, told Antara state news agency that the pilot had planned to make an emergency landing at Sepinggan International Airport in Balikpapan, which is bigger than Termindung Airport.

However, the plane was unable to reach the airport and was forced to land in the rice field located near the 45 kilometer marker on the Balikpapan to Samarinda highway at around 11:30 a.m. local time.

Garuda makes corporate sales deal with Shell

Antara News, Thursday, February 11, 2010 02:19 WIB

Jakarta (ANTARA News) - PT Garuda Indonesia has concluded a corporate sales agreement with PT Shell Indonesia as part of its program to cooperate with 750 companies to secure a potential income of Rp2 trillion.

"It is in line with the increase in our capacity after the acquisition this year of 24 new planes and the opening of 10 new domestic and international routes," Garuda president director Emirsyah Satar said after the signing of the corporate sales accord with Shell Indonesia here on Wednesday.

He said last year the airline company signed a memorandum of understanding for corporate sales with 580 big companies in Indonesia with total income expected more than Rp600 billion.

In connection with the cooperation Emirsyah said the company had prepared special packages for Shell employees in Indonesia for domestic as well as international flights.

The president director of Shell Indonesia, Darwin Silalahi, said the contract was not only based upon a discount facility but it also showed Garuda`s capability to serve a big number of customers.

Darwin declined to tell the number of Shell Indonesia employees nor the discount Shell would receive from Garuda.

To develop corporate market in the future Garuda will ease access for its corporate partners through "Garuda Online Booking Corporate" facility and will also expand abroad, Garuda`s head of communications, Pujobroto, said.

He said Garuda had also launched a service based on a concept of hospitality rooted in the Indonesian culture called "Garuda Indonesia Experience" last August.

With regard to its service Garuda has earned a four-star class recognition from Sky Trax which is an international rating agency for airline service. It expects to earn the five-star title in 2013, he said.

Shell is a global energy and petrochemical business group with around 102,000 employees in more than 100 countries and regions, based in the Hague, the Netherlands.

In Indonesia it operates in various locations in Java and Kalimantan and has kept looking for an opportunity for developing business and to contribute significantly to Indonesia.

Indonesian Sales of Leading Compact Cars Hit Record Levels

Jakarta Globe, Irvan Tisnabudi, February 08, 2010

Traffic jams and high gas prices are driving Indonesians to choose smaller cars like the Honda Jazz. (Bloomberg Photo/Prashanth Vishwanathan)

Facing global economic uncertainty, volatile energy prices and crushing traffic jams, more and more residents of Jakarta are trading in their larger cars for compact hatchbacks, pushing sales of the two market-leading models to record highs in recent months.

Both Toyota and Honda will take crumbs of comfort — amid their international problems over massive recalls of a number of models — from booming compact sales for the last quarter of 2009.

Toyota said it posted back-to-back record sales for its compact Yaris in November and December, while Honda said it enjoyed record sales of its Jazz model in two of the last three months of 2009.

Toyota said it sold 8,576 Yaris units last year, including 1,180 units in November alone. The Yaris was Toyota’s fourth-most popular model in Indonesia. Honda said it sold 15,713 units of the Jazz last year, including 1,888 units in October, making it its best seller in Indonesia.

“With the economy getting better as the year drew to a close, people’s purchasing power improved and those who live in cities like Jakarta will have their eyes on smaller, more compact cars,” said Bambang Trisulo, chairman of the Indonesian Automotive Industry Association (Gaikindo).

Gaikindo says the Yaris and Jazz are the two most popular vehicles among 1.5-liter hatchbacks, with more than 50 percent of the local market between them.

Consumers cited gas mileage and the convenience of driving a compact car in congested Jakarta as among reasons they were opting for smaller vehicles. “I recently traded my Nissan X-Trail sports-utility vehicle for the Toyota Yaris. I couldn’t stand having to pay for the gas the SUV consumes,” said Adit, a 28-year-old lawyer.

Atma Jaya University student Ari said he preferred the Yaris to other Toyota models for its size and fuel efficiency. “I think the Yaris is the most suitable automobile for the current conditions,” Ari said. “The bigger size of the Rush, Avanza and Innova adds to the difficulties of driving in crowded traffic.”

The international images of both Japanese carmakers have suffered due to recent recalls. Toyota is reeling from a global recall of more than 8 million of its vehicles, spanning eight models, though not the Yaris.

Honda has recalled 646,000 Fit and Jazz models built in China and Japan between 2002 and 2008 due to a faulty window component, and announced last week that it would recall more than 3,000 City models sold in Indonesia in 2007 and 2008. The Jazz is not under any recall in Indonesia.

Representatives of the Indonesian subsidiaries of Toyota and Honda last week expressed confidence that domestic sales would continue to grow. “For 2010, we at Honda have set a total sales target of 47,000 units, and I expect the Jazz to continue to be the best-selling product,” said Jonfis Fandy, director of marketing and after-sales service at PT Honda Prospect Motor.

Dimas Aska, a marketing and public relations executive at PT Toyota Astra Motor said: “Toyota is the number one automotive brand in terms of sales total in Indonesia, so our goal for this year is, of course, to maintain that.”

The Yaris sells from Rp 185 million ($19,600) to Rp 220 million, while the Jazz ranges from Rp 195 million to Rp 225 million.

Trains from Japan to arrive in March

Indah Setiawati, The Jakarta Post, Jakarta | Mon, 02/08/2010 12:03 PM

Commuters in the city and surrounding areas will see the arrival of 10 of 40 used-electric train carriages imported from Japan in March, an official said.

“Every month, starting March, we will receive 10 carriages until June,” corporate secretary of PT KAI Commuter Jabodetabek (KCJ) Makmur Syaheran told The Jakarta Post.

The imported carriages, produced between the 1980s and 1990s, would add to the existing 386 electric trains. Makmur refused to reveal the trains’ prices.

The KCJ serves commuting routes across the Greater Jakarta area, including tracks linking the city’s main stations to Serpong, Bogor, Depok, Tangerang and Bekasi in Greater Jakarta.

Makmur said the KCJ, which has become a subsidiary of state-owned railway company PT Kereta Api (KA) since August 2008, tried to improve service quality by providing more carriages and repairing a number of train stations.

This month, he added, his company would open a bidding process for another procurement of 48 used carriages from Japan.

“We will procure carriages for electric trains every year. This is part of our effort to increase comfort quality,” he said.

With regard to the renovation of 17 train stations, Makmur said, this month it had entered the first phase, with Juanda station in Central Jakarta, for example, to be equipped with new benches.

He added that street vendors sprawling at the platform would be relocated.

Makmur said the KCJ would also develop an electronic ticketing system to many trains to curb the number of illegal passengers.

A resident of Depok Saleh Purwanto who commuted daily to his workplace in Jakarta, said he would welcome the imported used trains, saying that the news had been long awaited.

He said, however, that the additional number of trains would be meaningless if the KCJ did not improve their daily operational condition.

He said he expected on-time arrivals and departures of the electric train, but was often disappointed when faced with sudden schedule delays.

“Recently, the delay often happens Monday,” he said.

He said the delays were usually caused by train damage and troubled signals.

“If the problems are known, why doesn’t the company provide backup trains or evacuate passengers when the train stops before arriving at its destination?” he said.

Volunteer group KRLmania urged PT KAI Commuter Jabodetabek that the imported trains replaced economy-class electric trains that were unreliable.

The editorial page of the group’s website stated that PT KA should work on improving the signaling system of the electric trains, making it more reliable.

The KCJ currently manages 170 kilometers of railway lines and 56 railway stations.

It was reported that approximately 400,000 passengers from Greater Jakarta now use the trains every day, an increase from 325,000 last year. The KCJ targets to attract 1 million passengers per day by 2012. Furthermore, in 2014 it targets to carry 3 million passengers per day.

In order to improve its service, the company revealed that it would take all non-AC economy-class trains out of service and replace them with AC economy-class trains by 2011.

So far, more than 40 stations allow passengers to easily pass through without tickets.

It is common to see passengers on train roofs during peak hour. Incidents where illegal passengers were electrocuted were reported in 2009.

Ride on

The Jakarta Post, Sun, 02/07/2010 10:26 PM

Ride on: Members of Mercedes-Benz Club Indonesia convoy in "Mercedes-Benz Rally Batavia: Tribute to Indonesia" on Jl. Medan Merdeka Selatan in Jakarta on Sunday. The convoy also planted 3,000 trees along Jl. Sedyatmo and the East and West Flood Canals. JP/Wendra Ajistyatama

Related Article:

Car rally tours architectural landmarks for greener Jakarta

Toyota’s Woes Are Those of Japan Inc.

Jakarta Globe, Linda Sieg & Nathan Layne, February 07, 2010

Toyota’s massive recalls exemplify how Japanese companies can suffer from being too inward-looking. (AFP Photo/Yoshikazu Tsuno)

Tokyo. Toyota Motor’s mass recall crisis may seem peculiarly its own, but the top carmaker’s woes are a cautionary tale for other Japanese companies needing to expand abroad and drive earnings growth.

Critics say Toyota, hemorrhaging its reputation for reliability as it recalls millions of cars over a sometimes fatal accelerator defect, failed to balance a traditionally tight management style that ensured quality with the world’s changing demands.

Stefan Lippert, a business professor at Temple University in Japan, calls it the “ kaisha dilemma,” using the Japanese word for “company.” “The incredible success of the Japanese economy is based on the kaisha . It’s based on this specific management model,” he said, referring to Japan’s rapid economic growth before stalling in the 1990s. “However, times have changed.”

If Japanese companies cannot break the mold, they risk losing further ground to South Korean and Chinese rivals that are more proactive in grooming local talent that knows its markets best.

Korea’s Samsung Electronics has pushed aside the Japanese to become the world’s top maker of LCD televisions.

“Toyota is part and parcel of what’s bothering Japan right now,” said Darrel Whitten, managing director of consultant Investor Networks. “They have to come to terms with globalization. I don’t think it’s a situation any more where you can run everything from headquarters.”

The challenge could be especially tough for Japan’s service companies, now facing increasing pressure to look for growth beyond their deflation-plagued home markets.

Fast Retailing, whose popular Uniqlo chain of fast-fashion shops and heat-trapping underwear gets just 12 percent of revenues abroad, for example is expanding aggressively into Asian markets.

“Companies viewed as just domestic are creating an interesting buzz in Asia,” Whitten said. “The question is, can they have flexibility and an open enough management structure that can run a competitive global operation.”

In the 1980s Japan’s tech, motor-vehicle and machinery exporters were the envy of the business world. They charged into overseas markets with high quality but reasonably priced products, taking customers from US and European manufacturers.

Some are still among the top performers in their industries — from Honda in cars to Canon in cameras and copiers to Fanuc in industrial robots.

But others, like once-mighty electronics conglomerate Sony, have lost their competitive edge to more nimble overseas rivals.

Analysis

Reuters

Editorial: Repairing cars and reputation

The Jakarta Post | Fri, 02/05/2010 10:27 AM | Opinion

Only a few newspapers here gave much attention to Toyota Motor Corporation’s (TMC) announcement last week of the recall of millions of its cars worldwide for faulty accelerator pedals and Honda Motor’s similar move to repair 646,000 units of its Fit/Jazz and City models because of possible faulty window switches.

Even Toyota’s sole Indonesia distributor, Toyota Astra Motor (TAM), didn’t provide much information, only making a three-paragraph statement on its website quoting its Japanese principal in reassuring customers that all Toyota cars sold in Asia, including Indonesia, and Oceania, were not affected by the massive recall.

TMC explained Toyota’s accelerator problem did not affect cars in Asian markets because they were fitted with accelerators supplied by Japanese components maker Denso. The recalled cars were fitted with pedals made by American parts supplier CTS in Indiana. None of the Toyota cars fitted with the Denso pedals were recalled.

Honda’s Indonesian sole distributor, PT Honda Prospect Motor, did issue a special press release explaining that 3,240 City models sold in the country between 2007 and 2008 should be repaired as they used power window switches identical to those distributed in North America and UK.

Honda Prospect explained jazz sedans sold in Indonesia, different from those marketed in Europe and the US, which used faulty components made by Omron, were fitted with parts manufactured by Japanese parts supplier Denso.

However, the explanations by both Toyota and Honda, which are the most popular car makers in Indonesia, seemed too cursory and simplistic for such an important matter as transportation safety.

The way they played down the issue suggested the benchmark safety standards for autos sold in the country were much higher than those in the United States, UK, Canada and China, the markets most affected by the recall.

We wonder why Toyota Astra, which, like its Japanese principal, is long known for its devotion to quality control and its meticulous approach to building cars and servicing customers, didn’t explain in detail the technical fault affecting Toyota cars, which has caused fatal accidents, most notably in the US.

After all, two of the eight affected Toyota models in the US – Camry and Corolla – are quite popular in Indonesia. Honda City and Jazz cars also have been among the top sellers.

Toyota Astra and Honda here should not sit back and relax, complacent that there is technically nothing wrong with their cars due to different parts suppliers.

Both car assemblers should not wait until a series of fatal accidents occur. It is much better for Toyota Astra and Honda Prospect to go out of the way, conducting random technical tests especially on Corolla and Camry and Jazz models to convey a clear, strong message they really care more about the safety of its customers than mere income.

Such tests are necessary especially in Indonesia where car accidents are hardly subjected to comprehensive investigations by road transportation safety regulators.

The moves by Toyota and Honda to make massive withdrawals in the US, Europe, Canada and China, would certainly inflict big losses due to lost production and sales as well as repair costs.

But in the long run, such gestures and goodwill will contain the damage caused by the massive recalls and would even improve their reputation, which is a key to maintaining customer loyalty.

Related Article:

Toyota UK Recall News

A Singapore airforce A F-111 performing a ‘dump and burn.’

Jakarta Globe, Lisa Siregar, February 05, 2010

Green Wings Soar Over Singapore

Anoise from afar turns the heads of the sunglasses-wearing crowd standing along Changi Beach in Singapore. Within seconds, a dark green jet comes into view slitting the bright blue sky with precise loops and neck-craning turns.

After a few banks and a little more hotdogging, the pilot releases a trail of fuel and a wall of fire rips from the tail of the plane.

The crowd scrambles for their cameras in hope of capturing the moment.

The elongated flame is the signature of the Royal Australian Air Force’s F-111, which that country plans to retire this year. This is the F-111’s last “dump and burn” performance outside of Australia.

The aerial display is all part of the day’s festivities at the 2010 Singapore Airshow, a six-day event that ends on Sunday.

The first four days of the show were designated exclusively for trade attendees while this weekend’s activities are meant to wow the public.

From the Airbus A330-200F to the Bell 206, B-407 and B-429 helicopters, planes and choppers from almost 20 distributors are on display across 100,000 square meters just outside the Changi Exhibition Center.

Located along the east side of Changi International Airport, the air show brings together 250 delegations from close to 80 countries, including the air forces from the United States, Korea and Australia.

The event boasts some 820 exhibiting companies from over 40 countries. Exhibitioners vary from global aerospace companies to spare parts suppliers.

Tickets are $14 for adults and $6 for children 12 and under.

According to Jimmy Lau, the managing director of the air show, 85 percent of this year’s exhibitors were on hand for the air show’s first annual event in 2008. Meanwhile, the number of the pre-registered air show attendees has shot up from 8,000 in 2008 to 12,000 this year.

Lau said he was delighted with the positive response.

“This is definitely a good indication of the increasing confidence of major players as the industry slowly emerges from the recent downturn,” Lau said. He added that the air show would enable the industry to feel for a pulse of what would happen in the year ahead.

One of the new features of the 2010 air show is the Green Pavilion, where companies are showcasing the latest advances in environmentally friendly technology.

On the second day of the event, the International Air Transport Association kicked off the environmental exhibit at Changi International Airport by illustrating key elements bridging the environment and business, which included efforts to reduce emissions and increase fuel efficiency.

“Safety and environment are two first priorities in IATA,” said Giovanni Bisignani, chief executive of the association.

PT Garuda Indonesia, the nation’s flag carrier, led a initiative to sign a memorandum of understanding with the IATA. Bisignani said Garuda was the 15th airline to sign the memorandum.

One of the programs outlined in the agreement is a commitment to use biofuels.

Biofuels, produced from renewable resources like palm oil, are intended to reduce carbon emissions throughout the life cycle of the commercial planes.

The increased reliance on biofuels is anticipated to provide an estimated 80 percent reduction in aeriel emissions. Fuel is also one of the biggest operating costs for the aviation industry, which biofuels are meant to cut.

According to Emirsyah Satar, the president director of Garuda, the signing of the memorandum on Tuesday reinforced the company’s commitment to the environment.

“Regarding the MOU, we will start by replacing airplanes engines with the ones which are more environmental friendly,” Emirsyah said. “Garuda is the first airline in Indonesia to sign the MOU with IATA regarding the use of biofuels,”

The carrier also plans to offer passengers the option of reducing their carbon footprint when flying Garuda.

When asked whether the optional emission charge would deter thrifty Indonesian passengers, most of whom are still extremely price-conscious, Emirsyah said this was not the company’s only environmental initiative.

“This is not only our program to encourage passengers to care for the environment. We have also had the One Tree One Passenger policy in place for two years,” he said.

Meanwhile, the international community continues to make strides in environmental sustainability.

Plane manufactures around the world are continually pushing to create a “greener” aircraft.

Higher oil prices have driven manufacturers to produce more fuel-efficient planes because they will have to go green if they want to stand any chance in the market ,according to Kevin Smith, the head of marketing for Bombardier, a Canadian aircraft manufacturer that counts Japan Airlines, Qantas and Air New Zealand among its clients.

“In Europe, they have emission charges that you have to pay when the airplanes are not green,” Smith said. “This is to increase airlines to buy greener airplanes, it’s the whole environment issue, and it will go all over the world,”

Indonesia, Smith said, had the potential to be Southeast Asia’s biggest market. On Monday, Bombardier plans to visit Jakarta in hopes of securing new clients. “Indonesia’s economy is beginning to move,” said David Dixon, Bombardier’s vice president of sales for the Asia-Pacific region.

But air show attendants from Indonesia were looking for airlines to provide clear facts about the impact they were having on the environment.

“I personally care about environmental issues,” said Lina Purba, the director of Total Biz, an Indonesian aviation services company. “But there is no information about what makes an airplane green for the public or which local airplanes are environmental friendly.”

When Lina chooses a flight, she doesn’t book her ticket based on biofuels or a more environmentally friendly airline, but she strongly suggests that the general public be given more information about what airlines are doing to protect the environment.

Most Indonesians are generally more focused on finding the cheapest ticket, not environmental issues said Mahmudin Angkasa, who works for an aviation contracting and supply firm in Indonesia.

“For me, safety is the most important factor,” said Mahmudin, referring to rash of plane crashes Indonesia has experienced due to old and outdated planes being put in the air without taking the proper safety precautions.

Mahmudin doesn’t think that the local aviation business is ready to pay attention to the environment, but said any focus Indonesia puts on the issue is an improvement.

“At least, now the government has started to certify and try to maintain the airplanes,” he said.

For more information, please visit www.singaporeairshow.com.

Garuda plans to develop secondary hubs, adds more routes

Novan Iman Santosa, The Jakarta Post, Singapore | Fri, 02/05/2010 11:21 AM

Indonesian flag carrier Garuda Indonesia plans to develop secondary hubs in Indonesian major cities in addition to its major hubs in Jakarta and Denpasar as part of its Quantum Leap program.

The secondary hubs would include cities such as Balikpapan in East Kalimantan, Medan in North Sumatra, Surabaya in East Java and Makassar in South Sulawesi, Garuda’s president director Emirsyah Satar said Wednesday.

Speaking at the Singapore Airshow in Changi, he said the secondary hubs were to generate local or feeder traffic as part of Garuda’s efforts to expand new routes to strengthen its domestic network.

Other efforts include feeds to and from international routes, and domestic hub by-pass routes for mature markets, such as the Medan-Surabaya route, without stopping over in Jakarta.

“We also plan to develop flights from all provincial capitals to Jakarta,” he told reporters.

Garuda is aiming to increase the frequency of flights covering existing high density networks.

Emirsyah said the Indonesian domestic market still had room to grow in the world’s largest archipelago with some 230 million people.

“The domestic market is about 40 million passengers so there is still plenty of room to grow,” he said.

“Especially now that we have regional autonomy in which each region has more freedom to handle its own affairs.”

Garuda recorded 1,333 departures per week in 2008 and aims for 2,702 departures per week by 2014.

On international routes, Garuda had 338 departures in 2008 and plans for 1,222 per week in 2014.

Emirsyah said the airline plans to expand routes to include Hong Kong, India and ASEAN countries as well as opening European and American routes.

Garuda will fly to Amsterdam as of June 1 with other cities being considered, including Frankfurt, London and Paris as well as Los Angeles.

Emirsyah said Garuda would still focus on the Asia Pacific region saying it was where the economic activities were taking place nowadays.

Emirsyah also said Garuda was pursuing full membership of global airline alliance arrangements.

“We have support from KLM and Korean Air for membership of the SkyTeam alliance,” he said.

Garuda also aims to increase its fleet of aircraft from 54 in 2008 to 116 by 2014.

The airline will use Boeing 737-800 New Generation for domestic and regional routes, Airbus 330-200/300 for medium-haul and Boeing 777-300 ER aircraft for long haul routes.

Toyota UK Recall News

Lack of Transport Alternatives Will Lead To Total Gridlock in Cities, Ministry Says

Jakarta Globe, Putri Prameshwari, February 03, 2010

Other Indonesian cities are threatened by Jakarta-style gridlock, the Transportation Ministry says. (SP Photo)

Not only Jakarta, but other big cities across the country could be faced with total gridlock if they continued to rely exclusively on road-based mass transportation, the Transportation Ministry said on Wednesday.

Deputy Transportation Minister Bambang Susantono said that if the transportation system in cities was not improved by 2014, roads could be choked by cars, buses and motorcycles.

“Total gridlock will occur if we don’t do something,” Bambang said, adding that the threat was extremely dire in metropolitan areas with satellite cities, such as Jakarta, Bogor, Depok, Tangerang and Bekasi, collectively known as Jabodetabek, as well as in Gresik, Bangkalan, Kertosono, Mojokerto, Surabaya, Sidoarjo and Lamongan in East Java, known as Gerbang Kertasusilo.

He was speaking at the Transportation Safety Awareness workshop in Jakarta, held by the ministry and the Australian government.

Bambang said that such cities must integrate and utilize railway transportation in order to minimize road congestion. Large metros like Jakarta and Surabaya, he said, must also have bus rapid transit systems connected to the trains.

“If a city does not have an existing commuter train line it should maximize the use of BRT,” he said.

The ministry, Bambang said, has been carrying on discussions with the Ministry of Public Works to analyze which roads could be used for BRT. He also said that on several roads, the left lane should be dedicated exclusively for heavy vehicles.

“Roads in some countries have a high occupancy vehicle lane,” he said, adding that this was one alternative for managing traffic.

The ministry has been campaigning for the use of rails for mass transit because they are fast, cheap and more environmentally friendly than most other transportation modes. New routes have been added in Java and Sumatra in recent months, and old tracks have been reopened.

On Tuesday, the Indonesian Transportation Society (MTI) announced that five cities aside from Jakarta would suffer total gridlock by 2015 to 2025 if there was no effective transportation policy. The cities are Bandung, Makassar, Medan, Surabaya and Semarang.

Damantoro, MTI’s secretary of urban transportation, said the government must either make significant improvements or seek an alternative other than roads for transportation.

“Railway-based transportation is a must for cities that already have the facilities,”he said.

Garuda Plans IPO This Year

The Wall Street Journal, by P.R. VENKAT

Garuda plans to increase its fleet size to 116 from 67 currently over the next five years. The company will take delivery of 24 aircraft this year.

SINGAPORE -- PT Garuda Indonesia Wednesday said it plans to go public by mid-2010 and aims to raise US$300 million through a listing in Indonesia.

Garuda Chief Executive Emirsyah Satar said in a statement that airline is close to completing its debt restructuring.

The move to clean up the national carrier's balance sheet is aimed at giving its public offering a better chance at success following several previous failed attempts by the Indonesian government to offload its stake. Garuda said earlier this month that it has reached an agreement with investors to restructure notes that were due in 2007.

The proceeds from the initial public offering will be used to fund Garuda's "long-term growth plans," Mr. Satar said.

"We have yet to determine the underwriters [for the IPO]. The IPO will either be in late second quarter or early third quarter of this year," he added.

Garuda plans to increase its fleet size to 116 from 67 currently over the next five years. The company will take delivery of 24 aircraft this year.

The fleet size will be based mainly on Boeing 737-800s and Airbus A330-300/20s, which are operated on medium- and long-haul routes.

Mr. Satar said that Garuda has converted the 10 Boeing 787 jets it ordered two years ago into Boeing 777-300E aircraft as the Indonesian carrier wasn't willing to wait out the delays in the production of the 787 plane.

"The airline will introduce the 10 Boeing 777 on new ultra long-range flights starting 2011 as it expands its international network," he said.

Garuda also said it plans to add 10 domestic routes this year and start a daily non-stop service to Amsterdam June 1.

Besides, Amsterdam, the airline is also looking to fly other European destinations such as Frankfurt, Paris, London and Rome.

"This [new international series of routes] will be launched over the next few years," he said.

Mr. Satar said that Garuda is also planning to create a separate low-cost carrier by the end of this year to meet the growing demand of domestic and short-duration travel.

"We are in the process to get regulatory approvals to establish the entity," Mr. Satar said, adding that the low-cost carrier will operate a fleet of about 20 aircraft.

Garuda currently has a low-cost carrier subsidiary called Citilink.

Jakarta acts as ‘model’ for city transport

Indah Setiawati, The Jakarta Post, Jakarta | Wed, 02/03/2010 11:43 AM

Experts have urged the central government to push for transportation reforms in Jakarta, claiming that the city acts as a role model for other cities across Indonesia.

“Other cities in the country regard Jakarta as an ‘older sibling’, and will quickly adopt any improvements made to public transportation in the capital,” Indonesia Transportation Society (MTI) secretary-general Danang Parikesit said Tuesday.

Danang was perhaps alluding to the development of the Transjakarta bus rapid transit (BRT) system, which had lead to the development of BRT systems in several other cities including the Trans Jogja service in Yogyakarta, the Trans Semarang in Semarang, Central Java, and the Trans Pakuan in Bogor, West Java.

The BRT systems in those cities are not exactly the same as the Jakarta busway, because they do not have dedicated lanes yet. However, the design of the buses is similar, with the Trans Jogja and Trans Pakuan using smaller buses and Trans Semarang using the same size.

Reforms were urgent because the limited existing roads were not enough to serve the 120 million residents anticipated to be living in cities across Java island by 2025, Danang said.

“We only highlight the threat of traffic gridlock in Jakarta, but other big cities like Bandung [West Java] and Surabaya [East Java] will face the same problem if there is no fundamental policy change,” he said.

MTI data shows that the average speed of vehicles in Jakarta is 20 kilometers per hour, slightly higher than the 19 kilometers per hour in Bandung, and less than the 25 kilometers per hour in other big cities.

Damantoro, another expert, said the MTI recommended the reforms be supported by Transit-Oriented Development (TOD), Transport Demand Management (TDM), law enforcement and non-motorized transport.

“The reforms must be supported by these other four actions because we consider that there is no single solution for transportation in cities,”

Transportation reforms could include the development of an efficient public transportation network that was integrated with the spatial plan, Damantoro said.

He also called for the restriction of permits for private operators of public transportation, and the allocation of a budget to provide incentives and disincentives to improve the performance of transportation services.

Damantoro said TDM included restrictions on private driving licenses, and pricing schemes, spaces and times for parking management.

Indonesia needs to start using technology to enforce traffic regulations, he said.

The role of non-motorized vehicles also needed to be prioritized by providing supporting infrastructure, Damantoro said.

Danang said he did not see a concern in building housing areas near public transportation networks.

“The dispute raised by Pondok Indah residents [in South Jakarta] over the development of the Transjakarta network in the area is one example,” he said.

Danang said the MTI continued its support for the Transjakarta system, aimed at encouraging people to use public transportation instead of private vehicles.

The Transjakarta busway could be improved by clearing other vehicles from the exclusive busway lanes and adopting better technology in ticketing to make sure the system was fair, he said.

Jakarta Plans 'Protest Park' to Ease Traffic Mayhem

Jakarta Globe, Angus Thompson, February 02, 2010

Students laying on the street during a protest against President Susilo Bambang Yudhoyono at Diponegoro intersection, Central Jakarta, on Thursday. (JG Photo/Jurnasyanto Sukarno)

Fed up with protests snarling Jakarta’s already chaotic traffic, the authorities in one of the world’s most congested cities plan to build a park dedicated to keeping public demonstrations off the streets.

The park is also a sign that democracy has taken hold in Indonesia, when demonstrations were almost out of the question during the 32-year rule of autocratic former President Suharto until public frustration with his leadership led to mass protests in the late 1990s that eventually drove him from power.

Since then, colourful and noisy demonstrations have become a common occurence in Indonesia. While they are seldom violent, these protests can sometimes make the capital’s already bad traffic even worse, especially when activists march around a landmark roundabout near Hotel Indonesia.

Jakarta Governor Fauzi Bowo now wants to build a speaker’s corner, with room for 10,000 people, near Indonesia’s National Monument, spokesman Cucu Ahmad Kurnia told Reuters on Tuesday.

“We want to make it so everybody has a place to speak their mind, and so they know the right place to do that,” said Kurnia.

The Presidential Palace, the Vice President’s office and the Governor’s office are within close range of the monument, in the centre of Merdeka Square.

The protests make getting around Indonesia’s sprawling capital and suburbs, home to some 14 million people, even more time-consuming and arduous as they add to the traffic jams caused by rising motorcycle and car ownership, as well as heavy flooding during the rainy season.

Bowo last year banned rallies around the Hotel Indonesia after clashes between opposing demonstrators.

The park, which Kurnia said will be completed some time next year, would also be equipped with a stage for concerts.

The mayor of Jakarta, Sylviana Murni, said it was the government’s responsibility to allocate an area for people to criticise those in power.

“We must do that for our people to be satisfied,” she told Reuters, adding that the inspiration had come from the famous Speaker’s Corner in Hyde Park, London.

Reuters

Qantas to Slash First-Class Seating

Jakarta Globe, February 01, 2010

In keeping with a leaner market, Qantas reportedly plans to dump most of its first-class seats. (AFP Photo)

Australia’s flag carrier Qantas is planning to dump two-thirds of its first-class airline seats as part of a radical $350 million overhaul of its long-haul fleet, a report said on Monday.

The changes, which could increase economy seating areas on planes by up to 20 percent, come after the world financial crisis sparked a dramatic slump in demand for expensive premium seating on long-distance flights.

Under the scheme, which could be announced within weeks, Qantas would retain first-class seats only on its London and Los Angeles flights, the Australian Financial Review reported. 

AFP