Sutiyoso sure water taxi is a winner

The Jakarta Post, Jakarta

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

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

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

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

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

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

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

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

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

All 13 rivers are seriously polluted.

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

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

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

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

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

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

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

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

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

It is expected to cost US$800 million.

Disasters shake Indonesian press

BBC News

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

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

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

Read More ....

Deal is inked linking MidAmerica, Indonesia

BY MIKE FITZGERALD

News-Democrat

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

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

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

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

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

City weighs price scheme for main roads

The Jakarta Post, Jakarta

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sweden is the most recent country to adopt the ERP.

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

Australian team would repeat the identification.

The Jakarta Post

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

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

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

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

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

Banks Provide Rp7.6 Trillion for Toll Road

Thursday, 08 March, 2007 | 14:40 WIB

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

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

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

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

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

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

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

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

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

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

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

Agoeng Wijaya and Desy Pakpahan

Investigators probe jetliner fire as forensic teams identify the dead

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

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

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

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

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

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

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

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

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

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

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

Garuda Plane Crash in Indonesia Kills at Least 21

By Berni Moestafa and Claire Leow

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

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

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

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

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

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

Boeing Investigator

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

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

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

Old Planes

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

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

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

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

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

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

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

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

House OKs funds for flood control programs

The Jakarta Post, Jakarta

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Another train derails in Surabaya

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

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

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

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

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

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

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

Flood canal plan years out of date experts say

Anissa S. Febrina, The Jakarta Post, Jakarta

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Govt set to sell Jasa Marga's tollways for cash

Ary Hermawan, The Jakarta Post, Jakarta

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

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

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

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

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

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

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

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

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

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

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

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

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

'More to aircraft safety than age'

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Arrivals of foreign tourists in Indonesia down 18.74 pct

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

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

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

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

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

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

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

Sixteen train cars to be replaced

The Jakarta Post

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

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

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

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

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

Setback for West Java int'l airport plan

Yuli Tri Suwarni, The Jakarta Post, Bandung

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

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

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

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

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

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

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

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

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

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

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

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

Government Discusses Capital Injection for PT KAI

Wednesday, 28 February, 2007 | 16:15 WIB

TEMPO Interactive, Jakarta: PT Kereta Api Indonesia (the Indonesian Railway Company) is short of facilities and infrastructure maintenance funds amounting to Rp1.4 trillion per year.

According to Hatta Radjasa, Transportation Minister, these maintenance funds are very important in order to improve the security and safety of journeys by train.

Maintenance covers infrastructure construction, replacement of old rails and sleeper, and also carriage as well as locomotive upgrading.

“This lack of maintenance funds must be resolved,” Hatta told reporters during a visit to Cirebon train station with Vice President Jusuf Kalla, Wednesday (28/2).

Every year PT KAI needs maintenance funds totaling Rp2.2 trillion, but the available funds are only Rp800 billion.

During a transportation sector meeting on the presidential train on Wednesday, Hatta talked about the option of injecting capital funds into PT KAI to cover these needs.

This option is one alternative because this state-owned railway company’s revenues are insufficient for the maintenance costs.

However, the government is still discussing the source of funds.

Oktamandjaya Wiguna

Major reshuffle for Transportation Ministry

JAKARTA: The Transportation Ministry will soon have a major reshuffle involving the ministry's directors general and secretary general, reports say.

A source who asked to remain anonymous told Antara news agency Monday that the ministry would soon inaugurate new secretary general and directors general of sea, air and land transportation, following a series of national transportation accidents.

"Tjuk Sukardiman will be the new secretary general, replacing current secretary general Wendy Aritenang," the source said, referring to the former director general of sea transportation.

Iskandar Abubakar, Hastjarja Harijogi and Moh. Iksan Tatang are the current directors general of land, sea and air transportation, respectively. -- JP

Indonesia may expand inspection of Boeing jets

Accident prompts scrutiny of 737-300s

BLOOMBERG NEWS

Indonesia may conduct safety checks on all Boeing Co. 737-300s operated by domestic airlines after an accident this week involving the same type of aircraft, its Transport Ministry said Friday.

Indonesia may expand the inspection now under way on seven Adam Air 737-300s operated by PT Adam Skyconnection Airlines, Bambang Ervan, a spokesman at the Transport Ministry, said in a telephone interview in Jakarta, confirming a report Friday by Bisnis Indonesia.

The move could disrupt airline operations in the Southeast Asian nation, where domestic passenger volume growth has averaged more than 25 percent since 1999. Local airlines operate 40 of the Boeing 737-300 planes, Bisnis Indonesia said in its report.

Indonesia's government, which has allowed 70 companies to operate airlines, also plans to rate carriers based on their safety record and will shut those that rank the lowest, Transport Minister Hatta Rajasa said.

Carriers with the best safety record will be ranked one; a rating of two will mean the airline has to fix problems, while those rated three will be forced to close, Rajasa said.

Authorities are examining Adam Air's 737-300 fleet after one of the planes broke its fuselage when it made a hard landing in rainy weather at the Surabaya airport in East Java on Feb. 21. The aircraft was bent and its tail almost touched the runway. It should have withstood the hard landing, Ervan said.

If Adam Air's other six planes show similar problems, the ministry will expand its inspection, he said. Planes under scrutiny will have to be suspended, he said.

Boeing is providing technical support as required to help Adam Air ensure the airworthiness of its fleet, Mark Hooper, a Hong Kong-based spokesman at Boeing, said in an e-mailed statement Friday.

"Boeing stands ready to provide technical assistance to Indonesian authorities as they investigate the cause of this accident," Hooper said.

Ervan couldn't say how long it will take to inspect Adam Air's fleet. "We're looking for irregularities in the production, things that could lead to an accident," he said.

Garuda Indonesia, the nation's largest carrier, has 17 Boeing 737-300s in its fleet of 52 planes, according to its Web site. A Garuda spokesman couldn't be reached for comment.

Wednesday's accident marks the second for Adam Air in less then two months. An Adam Air plane disappeared off the coast of Sulawesi Jan. 1 with 102 people on board.

Indonesian officials have said that the Boeing 737-400 plane probably crashed into the ocean and sank.

Adam Air paints its ill-fated plane

SURABAYA (Antara) : Management of Adam Air has painted its ill-fated plane, which made hard landing at Juanda international airport in East Java's capital of Surabaya Wednesday.

Antara news agency reported that the whole body of the Boeing 737-300 plane had turned into white from its orange dominant color of the airline.

Spokesman of Juanda airport Edmondus Priyono said the move by Adam Air management was still tolerable as long as it will not cause the loss of evidence of the Wednesday's accident.

Edmondus said investigators from the National Commission for Transportation Safety (KNKT) would soon examine the condition of the plane.

"I am waiting for members of KNKT, who will investigate the plane," he was quoted by Antara news agency as saying.

The incident caused cracking in the middle of the plane body, shaping angle of some 35 decrees.

The government grounded all seven Boeing 737-300 planes owned by Adam Air soon after the accident.

Another Adam Air plane went missing with its 108 passengers on its way from Surabaya to North Sulawesi capital of Manado on Jan. 1. Rescuers could find small parts of the plane, but failed to locate the main body and the passengers.

Adam Air passengers ask for money back

The Jakarta Post

TANGERANG: Many people who had booked tickets with Adam Air have asked for their money back, following the incident at Juanda International Airport in Surabaya on Wednesday.

The reason most of them gave was that they had lost faith in the airline.

"I am scared the same thing might happen again if I fly with Adam Air," said Bambang, who had purchased tickets for Balikpapan, East Kalimantan.

"I returned the tickets and got my money back in full. It is not difficult."

Susan, who had tickets to Batam, chose to fly with another airline.

"I returned the tickets after Adam Air canceled its flight to Batam due to the incident in Surabaya." she said.

The government grounded all seven Boeing 737-300 passenger jets operated by Adam Air after one of them made a hard landing in Surabaya on Wednesday.

CAUGHT IN THE MIDDLE

The Jakarta Post

A new bajaj (three-wheeled pedicab) -- which takes compressed natural gas (CNG) -- is parked between two old bajaj Friday in Bulungan, South Jakarta.

(JP/Arief Suhardiman)

Hyundai to produce trucks and buses in Indonesia

Jakarta (ANTARA News) - South Korean automotive giant Hyundai will start producing trucks and buses in Indonesia as of March this year with an investment of US$23 million.

"Hyundai is growing confident it will produce trucks and buses in Indonesia after the government decided to stop importing used cars starting this year," the director general of transport industry and telemathics of the ministry of industry, Budi Darmadi, said here on Friday.

He said Hyundai in cooperation with Korindo Group would set up PT Kostramas Jaya in the building of trucks of above 8.5 Gross Vehicle Weight and large buses.

The new plant which will be built in Balaraja, Tangerang, Banten, West Java, will have a capacity of producing around 300 buses and 200 trucks a month.

He said the US23 million investment would only be for building the plant and providing production facilities. "It excludes funds for land procurement, because the land would be provided by Korindo," he said.

He said Hyundai has a highly prospective market in Indonesia for its trucks and buses following the government`s decision to stop the import of used cars, and in view of the country`s high economic growth rate.

"We hope besides trucks and buses Hyundai would also produce passengers cars in Indonesia," he said.

So far the cars produced by Hyundai in Indonesia included Atoz, Accent and Trajet cars. He hoped Hyundai would increase its investment in Indonesia following an increase in market share for smaller cars.

"We continued contacting Hyundai suggesting them to raise their investment in Indonesia," he said.

In November last year, the Indonesian minister of industry visited South Korea to discuss investment in passenger car production.

Budi said he was optimistic that the automotive market in Indonesia would further develop. He also believed demands for cars would reach 400,000 units this year after dropping last year to around 300,000 only.

"We are optimistic sales would reach 500,000 units by the end of 2008 like in 2005," he said.

Experts warn Jakarta Bay project may up flood risk

Adianto P Simamora, The Jakarta Post, Jakarta

The construction of the North Flood Canal in Jakarta could be one way of reducing the flood risk in the city.

But the ongoing land reclamation project -- which will modify a 32-kilometer stretch of the city's northern coastline, extending it seaward -- will render it ineffective, environmentalists warned Wednesday.

State Minister for the Environment Rachmat Witoelar said the reclamation of the seabed would obstruct the movement of water back toward the sea.

He suggested the Jakarta administration reconsider its decision to carry out its own environmental impact analysis for the project.

"The administration must involve the central government in the process because the project will also affect the environment in neighboring provinces."

The controversial reclamation project would add about 2,700 hectares to the city. The land would be designated for industrial parks, hotels, office buildings and upscale accommodation for up to 1.19 million residents.

Governor Sutiyoso, in his appearance on Metro TV during the flood early this month, said the reclamation project would be one way of preventing floods caused by high tides.

Forty percent of the city is situated below sea level.

"About 72 percent of the world's coastal cities have reclaimed part of their seabeds. It is an age-old issue. We will monitor the project all the way and stop it if the land reclamation is damaging the environment," Sutiyoso said.

An expert from the Bandung Institute of Technology (ITB), Atika Lubis, said the construction of infrastructure near the cost would increase the flood risk in the city.

"The reclamation project will, of course, jeopardize the success of the North Flood Canal. It will reduce the rate at which surface water reaches the sea, thus causing floods."

She said the administration needed to be aware of the slow permeability rate of the city's land.

"The reforestation of areas of North Jakarta, for example, will not contribute much to flood prevention efforts because clay does not hold water very well," she said.

"Therefore, the construction of apartments, hotels or other infrastructure along the coastline or in delta areas will further hold up the flow of water into the sea," she said.

Armi Susandi, a coordinator at the Indonesia Association of Geophysicists (HAGI), warned more areas of Jakarta would be prone to flooding in the future due to global warming.

"The water level in Jakarta Bay will rise by 57 millimeters a year, while the land will subside by 80 mm a year," he said.

Armi, who is also an ITB meteorologist, said many areas of Cilincing, Koja, Tanjung Priok, Pademangan and Penjaringan in North Jakarta would be under water by 2050.

"By our estimations, some 160 square kilometers of Jakarta will be swamped by 2050," he said.

Global warming, the gradual increase in the earth's surface temperature, is thought to be caused by human activity.

Meanwhile, ITB geologist Lambok Hutasoit said the presence of buildings higher than six stories in Central Jakarta had caused the land to sink by between 22 and 75 cm in two years.

"People are blaming land subsidence on the exploitation of groundwater. But it only comprises 17 percent of the problem," he said.

Lambok proposed the construction of giant groundwater tunnels to prevent floods in the rainy season and water shortages in the dry season.

"We can apply the underground tunnel system developed in Chicago, where a 200-km tunnel was built to store water," said Lambok, who is also an expert at the city's mining agency.

Garuda, Merpati stakes up for grabs

Ary Hermawan, The Jakarta Post, Jakarta

The government is to sell up to 49 percent and 40 percent respectively of its stakes in carriers Garuda Indonesia and Merpati Nusantara this year in an effort to overhaul their performances and help plug the budget deficit.

Garuda and Merpati will be among nine state enterprises in which stakes will be sold this year under the privatization program. In addition, the government will also sell off its minority stakes in six other companies.

"The privatization committee has approved the divestment of stakes in nine SOEs and six publicly listed firms," State Minister for State Enterprises Sugiharto said Tuesday on the sidelines of a hearing with the House of Representatives' finance commission.

Besides Garuda and Merpati, the state will also sell stakes in state firms PT Jasa Marga, Bank Negara Indonesia, PT Wijaya Karya, PT ISI, PT Iglas, PT Cambrics Primisima and PT Permodalan Nasional Madani.

Meanwhile, the state will sell its entire minority stakes in PT JIHD, PT Atmindo, PT Intirub, PT PPLI, PT Kertas Blabak and PT Kertas Basuki Rahmat.

However, the privatization committee has delayed the planned divestment of stakes in PT BTN, PT Krakatau Steel, PT Dirgantara Indonesia, PT Kertas Padalarang and five consulting firms until comprehensive studies on the firms have been completed.

In the case of turnpike operator Jasa Marga, the government plans to gradually sell of up to a maximum of 49 percent of its 100 percent stake so as to strengthen the firm's capital base and finance the construction of the Semarang-Solo expressway in Central Java, the Gempol-Pasuruan expressway in East Java and the Bogor orbital route in West Java.

As for PT BNI, the government plans to reduce its stake in the bank from the current 99.12 percent to 51 percent through both a rights issue and the divestment of 20 percent of its overall stake.

Meanwhile, the state will sell its entire stakes in PT Industri Soda Indonesia (100 percent), PT Industri Gelas (63.82 percent) and PT Cambrics Primissima (52.79 percent).

The privatization program is officially expected to generate proceeds of Rp 3.3 trillion this year, but Sugiharto said the government might revise the figure upwards to Rp 4.3 trillion.

"We still have to discuss the plan with the House budget committee," he said.

While the government is upbeat about the divestment program, privatization remains a sensitive issue.

In response to the government's plans, lawmakers decided Tuesday to set up a working committee to scrutinize the proposed divestments before giving their approval.

"We don't want the case of PT Indosat to happen again," said Nursanita Nasution of the Prosperous Justice Party, referring to the fact that the state has been left with only a 14 percent stake in Indosat after about 42 percent of its shares in the company were sold to Singapore Technologies Telemedia Pte. Ltd. (STT).

Finance Minister Sri Mulyani said the government promised to keep the privatization process transparent.

"The government, and in particular the Finance Ministry, has asked the State Ministry for State Enterprises to improve all the relevant procedures and to do everything transparently," she said.

Air crew nabbed for data manipulation

Multa Fidrus, The Jakarta Post, Tangerang

Airport police announced Tuesday they had arrested 13 employees of Adam Air low-cost airline and an employee of airport operator PT Angkasa Pura for allegedly manipulating passenger data for their own gain.

The practice is believed to have been going on since August.

"We have questioned 43 airline employees. Thirteen of them have been named suspects and consequently detained," Soekarno-Hatta Airport Police chief Adj. Sr. Comr. Guntur Setyanto said.

The preliminary questioning of the suspects revealed how they worked, police said.

The suspects changed the status of passengers in the check-in counter computer database from regular to transit.

"They altered passenger information in order to increase the total number of transit passengers.

"On paper, this caused a reduction in the total amount of air passenger duty collected. The duty is payable according to how many passengers are departing the country. This allowed Adam Air employees to get away with depositing less with the airport operator," officer Guntur said.

Air passenger duty is levied by the government and collected by the carrier issuing the ticket.

Guntur said the money made from the illegal venture was split between the airline employees and a PT Angkasa Pura employee in the passenger service charge section.

The only female suspect, Lia, said she had no idea she was involved in a criminal activity.

The check-in counter attendant said she had been asked by her supervisor to change the passenger data and later received a sum of money.

"I thought the money was a bonus from my supervisor," she said, adding that she would never knowingly participate in a crime.

Police seized a number of passenger tickets, passenger lists and a computer from the check-in counter.

The suspects have been charged under Article 372 of the Criminal Code on embezzlement, which carries a maximum punishment of five years' jail.

Police suspect other airlines operating at the airport might be involved in similar activities and plan to investigate their data-collection systems.

"We will not stop here. Our investigators are looking into the activities of other airlines because we believe there must be a strong network among airline employees to have given them the confidence to do this," Guntur said.

However, police have yet to calculate the potential loss of airport tax revenue to the state.

"We cannot put a figure on it until we have processed identification data on passengers against the data entered in the system. We have to dig deeper," he said.

He said the duty on flights was Rp 30,000.

"It's been going on since August and possibly even before that. If they collected Rp 30,000 from even 50 passengers a day, you can imagine how much money they made."

Indonesian firm launches women-only buses

Jakarta (ANTARA News) - An Indonesian company has launched a women-only bus service, believed to be the first in the world's largest Muslim-populated country, a report said Monday.

Five buses would initially serve a new route in Pekanbaru, capital of Riau province on the island of Sumatra, the Kompas newspaper said in its online edition.

PT Riau Kencana Madani launched the service to provide women with a safe mode of transport that would also protect them from sexual harassment, as frequently happened on regular buses, it quoted company president Deddy Mizward as saying.

While accepting only female passengers, the buses would still be driven by men as Mizward said they had so far failed to recruit any women willing to work as drivers.

Most Indonesian Muslims, accounting for more than 80 percent of the country's some 214 million people, follow a moderate form of Islam.

Flood prevention on MRT advisors' agenda

Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta

To ensure the safety of Jakarta's Mass Rapid Transit (MRT) system, the project's Japanese-Indonesia advisory committee has announced its plans to discuss flood prevention later this year.

The decision was made last week after the first meeting of the committee, which comprises experts and media representatives from both countries.

Japanese Deputy Ambassador Satoru Satoh said Thursday the advisory committee resolved to meet twice a year for two to three years before starting the construction.

The committee has three main agenda items for the coming meetings.

First, Satoh said, would be discussion of possible designs for the MRT. He said designs would have to be able to ensure passengers' safety and security, prevent flooding and provide a plan for mitigating traffic jams during construction.

Second on the agenda were arrangements for the sustainable operation and maintenance of the MRT, as well plans to connect the new system to Jakarta's existing public transport.

As the third item, the committee would also discuss public relations efforts to improve the manners of public transport users, Satoh said.

"The second meeting of the committee we decided would be held in the second half of this year," he said.

During their first meeting last week, committee members also conducted a survey on the MRT project site and reviewed Jakarta's traffic.

According to Satoh, the results of the meeting will be submitted as "recommendations" to Transportation Minister Hatta Rajasa and Jakarta Governor Sutiyoso.

The project, which is supported by the Japanese government, will span 14.5 kilometers -- including a 4 km underground section -- connecting Dukuh Atas in Central Jakarta to Lebak Bulus in South Jakarta.

Construction is expected to start in 2008, with the completed MRT up and running by 2014.

The meeting is the first sign of progress since the Japanese government agreed in November last year to provide a US$16.4 million loan to finance preconstruction work. The loan came with an interest rate of .4 percent.

The preconstruction work, which would take 18 to 24 months to complete, includes the design of the principal components of the MRT system and the establishment of a company to manage construction.

Satoh said the Japanese government and the project advisory committee would ensure the tender process is transparent.

"No companies either from Japan or Indonesia have been named to hold the project. The tender auction will be announced later through the media," he said.