Indonesia asks for Delhi Metro's assistance

Business Standard, New Delhi July 04, 2008, 19:53 IST

Indonesia has sought Delhi Metro's assistance in providing consultancy services for the proposed metro system in its capital Jakarta.

A high level transport delegation  from Indonesia met E Sreedharan, MD, DMRC to discuss the possibility of DMRC providing consultancy service to the Jakarta metro.

The Indonesian delegation indicated that they would soon approach DMRC for signing a memorandum of understanding (MoU) in areas including economic operational viability studies since the Delhi metro is one of the few metro's in the world making operational profit.

Other countries that have shown interest in Delhi Metro's expertise include Syria, Pakistan, Ireland, Sri Lanka, Vietnam etc.

VP says Terminal 3 of Soekarno-Hatta Airport ready this year

Jakarta, (ANTARA News) - Vice President Jusuf Kalla has expressed optimism that the construction of Soekarno-Hatta International Airport`s terminal-3 would be completed at the end of this year.

"I have just inspected the construction site of terminal-3 and I find that it will be completed at the end of this year," the vice president said after the inspection at Soekarno-Hatta Airport on Saturday.

Meanwhile, project manager Yudhi Listiono said the completion of terminal-3 has reached 38 percent from the original target of 37 percent.

Yudhi also explained to the vice president that the construction of the terminal was divided into five phases and would be completed in two years.

"But the first phase will be ready at the end of this year," Kalla said.

The vice president explained that when the first phase of terminal-3 was ready, it would be able to accommodate 4 million people, but when all five phases were ready they would accommodate 20 million people.

"So far, terminal-1 and terminal-2 only accommodate around 20 million, but every year they accommodate more than 34 million passengers," Kalla said.

Therefore, he asserted that the construction of terminal-3 should be accelerated to anticipate the increasing economic growth.

Navy orders three aircraft form PT Dirgantara Indonesia

The Jakarta Post

Antara, Surabaya |Thu, 07/03/2008 4:33 PM

The Indonesian Navy has ordered two maritime patrol aircraft and one CN 212-400 plane from the country's aircraft industry PT Dirgantara Indonesia (DI).

"The number of naval aircraft we have is still small and therefore we will continue to increase it," Navy chief of staff Admiral Sumardjono said here on Thursday.

He said he would continue to improve the naval armament system including aircraft and warships through transfer-of-technology deals with other countries.

"The oldest aircraft we have at present were made in the 1980s but we will continue to rejuvenate our fleet," Sumardjono said, adding that only airworthy planes would be operated.

Meanwhile, the head of the Navy's Aviation Center, Admiral Sumartono, said the Navy now had a total of 68 airplanes of various types but only 48 of them were serviceable.

Indonesia grounds small airlines to meet safety standards

Wed Jul 2, 2008 7:37am BST 

JAKARTA, July 2 (Reuters) - Indonesia's transport ministry grounded five small airlines this week because they did not meet safety standards, a ministry official said on Wednesday.

The transport ministry gave Helizona, SMAC, Asco Nusa Air, Tri-MG Intra Asia Airlines and Dirgantara Air Service three months to meet minimum safety standards, Budi Mulyawan Suyitno, director general of air transportation, said. "Those airlines, with small planes for rent, didn't meet safety standards," Suyitno said. "If within three months they don't show any improvement we will revoke their air operator's certificate."

Suyitno said this move was part of an on-going process to improve the the safety standards of Indonesian airlines.

In March, Indonesian budget carrier Adam Air, which has suffered a series of accidents and defaulted on debt payments, had its flights grounded over safety concerns.

Indonesia's airline industry has grown rapidly in the past decade following liberalisation, with the launch of new players and a wider choice of routes across the sprawling archipelago.

However, the world's fourth-most populous country has suffered a string of airline disasters in recent years, raising concerns about safety standards and prompting the European Union to ban all Indonesian airlines from its airspace.

In January 2007, an Adam Air plane crashed into the sea off Sulawesi island, with all 102 people on board presumed dead. In March 2007 a Garuda plane carrying 140 people on board skidded off the Yogyakarta runway, killing 21 people. 

(Reporting by Olivia Rondonuwu; Editing by Sugita Katyal and Valerie Lee)

Govt to introduce electronic airplane tickets

Medan, N Sumatra (ANTARA News) - The Transportation Ministry said the government will soon introduce electronic air tickets (e-tickets) to airline companies.

"In fact, all airline companies would eventually apply the electronic air ticketing system, which would reduce profiteering practices," Head of the Air Transportation Service Division Chief at the Air Transportation Directorate General Soedarmadji told Antara here on Friday.

He said that the ruling which is a must for airline companies was specified in the revised transporation ministrial decree No 81, 2004 on air transporters management. 

According to him, the revised regulation was approved by the Air Tranportation Director General and now it was only a matter of time before the transportation minister gives a green light. 

"So at present, the electronic ticket system is already specified in a concept, and awaiting a signature of the minister," he said.

In addition to the introduction of the e-tickets, the government also set the mininum number of aircraft an airline company is required to have. 

"A new airline company wishing to fly to destinations in Indonesia should have at least five aircraft, but an old airline company will have two years to meet the requirement," Soedarmadji said. 

An electronic ticket is obtained through a website or by telephone. 

This form of airline ticket quickly replaced the old paper tickets (from close to zero to 100% in about 10 years) and became mandatory for IATA members as of June 1, 2008. In the previous years, with the paper tickets, airlines frequently charged an extra for issuing them. E-tickets are also available for certain entertainment venues.

Once a reservation is made, an e-ticket is valied only as a digital record in the airline company`s computers. Customers usually print out a copy of their receipt which contains the record locator or reservation number and the e-ticket number.

Electronic tickets are introduced in road, urban or rail public transport too. For example, in February 2007 the Czech bus reservation system AMSBUS introduced the e-jizdenka for several bus routes.

Air force confirms location of missing aircraft

The Jakarta Post, Jakarta | Fri, 06/27/2008 5:46 PM

The Air Force deputy chief of staff Vice Marshal I Gusti Made Oka confirmed Friday that the location of a missing aircraft had been found although rescue workers had yet to reach the area.

"The location is at a deep gorge as reported by some residents," he told Metro TV station.

Residents have reported that they have seen ruins of the ill- fated NC-212-200 light transport airplane at Tegal Lilin hamlet of Pasir Gaok village in Tenjolaya district.

He added that his pilots cannot land near the location as the weather was bad and the terrain was difficult.

However, he said, all the victims would be evacuated as soon as possible as the Air Force had prepared a makeshift helipad near the location.

Oka said he cannot confirmed whether all people onboard were dead.

"We are not sure of that yet although villagers said they saw bodies scattered around the airplane. Let's hope there is a miracle," he said.

The airplane was conducting an aerial surveillance training mission when it lost contact at about 10:23 a.m. The aircraft tail registration number is A-2106.

The airplane is manned by 5 crew member and carrying 13 passengers. Seven of them are officers from air force' aerial mapping and surveillance agency.

Six other passengers are civilians, including three foreigners, from a firm supplying a digital mapping. The foreigners were instructors in the training mission. (nvn)

Related Article:

Air Force still investigating cause of plane crash

CASA C-212 Aviocar

Air force prepares planes to send crash victims` bodies home

All 18 bodies recovered from wreckage of air force' plane

List of crew and passengers of air force' missing NC-212-200

Passengers can demand compensation for flight delays

The Jakarta Post, Jakarta | Fri, 06/20/2008 10:33 AM

With the signing of a new decree from the transportation minister, airline passengers can now demand compensation for delayed flights.

The Transportation Ministry's director general for air transportation Budhi Mulyawan Suyitno said the regulation, which revises a 2004 regulation, was aimed at disciplining airlines to meet their schedules.

"The minister signed the regulation last week, and we have asked the Indonesian National Air Carriers Association (INACA) to introduce it to airline companies," Budhi told The Jakarta Post on Thursday.

With the new regulation, "Airlines will no longer mistreat their passengers. They won't promise something to passengers if they cannot deliver," Budhi said.

The new regulation says that for a 30 to 90-minute delay, an airline must provide refreshments for passengers, and for a 90 to 180-minute delay, they must additionally provide main courses and find alternate flights for passengers.

For delays of more than 180 minutes, "Airlines should find alternate flights, and if they fail to do that, they must provide passengers with accommodation," Budhi said.

The regulation, however, is toothless as it does not provide any sanction for violations.

Budhi said that all delays and failures to provide compensation would be recorded and affect the airlines' quarterly assessment by the ministry.

"Bad reports will make it difficult for them to register for extra flights, for example," Budhi said.

Budhi said that national carriers had gained bad reputations due to their inability to stick to schedules.

"This regulation will discipline them, telling them that if they can't operate well, then don't enter this industry," he said.

Garuda spokesman Ikhsan Rosaan said that providing compensation to passengers was nothing new to the state-owned airline company.

"We already have a similar policy on compensation for delayed flights. For example, for a delay of more than two hours, we provide refreshments and lunch for passengers," Ikhsan said.

Moreover, "We don't see it as a regulation, but part of our services to passengers," he said, adding that Garuda had appointed insurance firm PT Asuransi Jasa Indonesia (Jasindo) to deal with customers' rights, including compensations for flight delays.

Mandala Airlines head of corporate communications Trisia Megawati said, "We have our own internal regulations that more than cover the regulations". (dia)

Yudhoyono leads Cabinet in bike-to-work promotion

Desy Nurhayati, The Jakarta Post, Jakarta | Sat, 06/21/2008 12:21 PM

President Susilo Bambang Yudhoyono rode a bicycle around the Merdeka Palace and the neighboring National Monument (Monas) on Friday in a bid to draw attention to a healthier lifestyle and less air pollution.

Riding a blue tandem bicycle with First Lady Kristiani Herawati (left), the President arrived at Monas at 7 a.m and awaited the arrival of cyclists from the Bike to Work community.

Yudhoyono was accompanied by several cabinet ministers, including State Minister for Youth and Sports Adhyaksa Dault, State Minister for the Environment Rachmat Witoelar, State Minister for Research and Technology Kusmayanto Kadiman and Transportation Minister Jusman Syafii Djamal.

Also joining the presidential entourage were Energy and Mineral Resources Minister Purnomo Yusgiantoro, Trade Minister Mari Elka Pangestu, State Secretary Hatta Radjasa and Cabinet Secretary Sudi Silalahi.

After hundreds of cyclists had arrived at Monas, Yudhoyono led them back to the State Palace for an informal gathering, where food carts and a buffet had been set up.

"I invite everyone to try riding a bicycle to work. We can benefit much from this activity, apart from keeping healthy and having fun," Yudhoyono told the cyclists.

"We can save more fuel, especially now, what with skyrocketing fuel prices. And we can also preserve the environment by reducing pollution."

Toto Sugito, head of the Bike to Work community, presented Yudhoyono with a picture of a gas station in which the petrol pumps had been replaced by water dispensers.

He expressed his appreciation of the President's support for the group's cause and called on the government to seriously consider building bicycle lanes.

IATA to buy new helicopters

The Jakarta Post, Fri, 06/20/2008 10:33 AM 

JAKARTA: Publicly listed charter airline PT Indonesia Air Transport (IATA) will buy another three new helicopters worth more than US$30 million in response to higher demand from foreign companies.

"We will use external cash to finance the purchase, which will be ordered from Europe," said president director Hartono Tanoesoedibjo at a press conference Thursday. He said the firm might issue bonds or seek loans from local and foreign banks.

IATA currently operates six helicopters and 10 airplanes for its flight charter business.

It has recently secured a one-year contract charter from mining firm PT INCO worth $3.6 million to fly from Soroako, Papua to Ujung Pandang, South Sulawesi.

The company is scheduled to operate regular flights starting in the fourth quarter of this year after securing an operating license from the Transportation Ministry.

Hartono said the airline would initially serve areas mostly in eastern Indonesia, including Bali, Balikpapan and Manado. -- JP (rff)

Garuda Indonesia and Singapore Airlines start sharing journeys

The Jakarta Post, Jakarta | Sat, 06/21/2008 12:22 PM

Garuda Indonesia and Singapore Airlines (SIA) have signed an agreement under which the carriers will benefit from joint marketing and promotion, code sharing and special rate agreements.

The memorandum of understanding was signed Friday in Jakarta by Garuda Indonesia president and chief executive officer Emirsyah Satar and SIA chief executive officer Chew Choon Seng.

"The industry has become more competitive and the increasing fuel price has put extra pressure on us, so we have to cooperate to increase efficiency and service (quality)," Emirsyah said in the press conference.

The airlines will begin the code sharing with an additional daily flight between Denpasar and Singapore starting August 2.

Initially, SIA will assume the role of operator by providing the flight, while Garuda will act as marketer and sell the seats. In the future, the companies will share the services.

"(The new flight) will increase our capacity, so our passengers from Saigon or Beijing can go directly to Bali from Singapore. The new schedule is also an improvement," Garuda Indonesia commercial director Agus Priyanto said.

Currently, Garuda operates 11 flights per week for the Denpasar-Singapore route, while SIA operates eight per week.

Garuda will also benefit from a special arrangement on ticket rates referred to as the special prorate agreement (SPA) for flights between Indonesia and Singapore that continue to Europe, China, India, Japan, the U.S. or Southeast Asia.

SIA is similarly entitled to the SPA for flights between Singapore and Indonesia that continue to Australia or north Asia.

SIA's Chew said he was especially pleased to be able to tap into Indonesia's tourist destination routes.

The two company chiefs said air traffic between the countries remained high.

Chew said air traffic from Asia, the EU, Australia and New Zealand remained busy, but that trans-Atlantic flights to the U.S. had seen a huge reduction in tourist travelers.

"Instead of traveling across the Atlantic, people travel regionally. We have seen more travelers from Japan and Australia," Agus of Garuda said.

Garuda recorded a 7 percent increase in passengers in this year's first quarter compared to in the same period last year.

Agus said Garuda was currently experiencing a load factor of 85 percent of capacity, and that the airline was preparing an additional 70,000 seats for the holiday season, 40 percent of which will be designated for regional travelers.

Having received two new airplanes in the last two months, Garuda plans to add one extra trip to its existing five flights per week to Sydney and one to its three flights per week to Melbourne. The agreements and pricings will be reviewed seasonally in March and October.(mri)

Honda to mass produce and lease FCX Clarity fuel-cell car

June 16th, 2008 by Peter, Product Reviews 

Honda have announced that they are to mass produce their FCX Clarity fuel-cell car, they hope to be able to do this within the next ten years. Honda, who are Japans second largest automaker after Toyota, are looking for ways to meet public demand for more fuel efficient car models, and they might just have the answer with the Honda FCX Clarity.

Honda President Takeo Fukui, has said “If we can bring costs down by a certain amount, I think we can start mass-production.” Honda have now started production of these more environmentally friendly cars today, and hope to be able to lease at least 200 of these FCX Clarity’s vehicles in the US and Japan over the next three years. Honda already have five customers for these new vehicles in the US.

According to Bloomberg, the Honda FCX Clarity will be available in California, US, in the beginning of July as they already have plans for a range of hydrogen fueling stations across the state. This new Honda has a top speed of 105 miles per hours, which is more than fast enough, well we are not meant to drive that fast anyway. 

Honda along with a number of other major automakers are now adding a number of new low-pollution models to their car range, like fuel-cell and gasoline-electric hybrids. These hybrids had a slow start as the public did not know much about this new kind of technology. However; as the price of oil is increasing almost every day, hybrid cars is a technology that is growing fast and this technology will only get better.

Related Articles:

WITNESS: Four days at the wheel of a hydrogen car

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Honda rolls out new zero-emission car

Hydrogen Production

By The Way: Safety in numbers -- or fear of the mob?

The Jakarta Post, Duncan Graham, Sun, 05/18/2008 10:48 AM

Is there a transportation system anywhere in the world more efficient than Indonesia's?

Sure it's shambolic, uncomfortable and unsafe. But it's also cheap, flexible and ever-present.

Getting to work in Malang is a breeze; no need to study timetables and ransack the piggy bank for the fare as in New Zealand. The bald-tired bemo (minibus) will be waiting ready to zip from end to end of the city for Rp 2,000 (US 20 cents)

Don't run -- he'll wait, unless he has double the legal load. Another will be along in two ticks. Bending a bule (Westerner) frame into a hairpin to get through the door while watching the wallet, squeezing a 40 centimeter bottom into a 20 cm bench space, snagging nails on rusting rails and sucking carcinogens from motorbikes and Marlboros are the downsides.

The service is almost door-to-door. Just a short stride to the job. It's past Klojen market with hazards to negotiate, though no problem given the right attitude.

First are the ranks of becak (pedicabs), every driver bemused as to why a foreigner would prefer to walk. The real titanium-torso wrinklies (as opposed to those 70 years young despite their tough trade) sing out in antique Dutch. For them, all bule come from the Netherlands.

Then the butcher slashing and chopping at a window in a wall hung with hands of bananas, all prices negotiable; you'd be silly to pay above Rp 5,000 (US 50 cents) for two kilograms of the freshest, sweetest fruit this side of the equator.

A harridan with a bloke's biceps bullies undecided customers while hacking the twitching meat on a counter with more flies than an Australian sheep station. For ox shanks she uses half a tree trunk, its splintered anvil stuffed with fat and bone chips, probably going back to the Majapahit era. The site is an archaeologist's challenge -- and a health inspector's.

White-eyed beggars flash their cataracts for aluminum coins. A local clinic not three minutes distant will fix their blindness for Rp 7 million (US $ 760) an eye. NZ charities invite $ 25 donations so one poor Asian can see with the skills volunteered by Western surgeons.

A pregnant too-young teen polishes plastic bottles of water to make them more appealing; acrid smoke spits off a tire clamp as a man squats to repair a puncture. His mate offers battered and blunt hand tools for sale, tradesmen's discards.

In the next 100 metres the smell of crushed coffee from beans grown on nearby volcanic slopes competes with the gagging stench of rotting rubbish. This is raked into carts by the yellow-clad sanitary squad scattering black plastic into the breeze. An exhibitionist pisses against a wall under graffiti warning against such behavior because it's alongside a school.

The kids pay no attention. They're besieging food carts selling fried bananas, steamed peanuts, frozen colored water and anything that will clog arteries, lift blood pressure and quicken heartbeats.

But then so does running this gauntlet of humanity, maybe 1,000 strong. There are no human threats -- many participants in the Klojen kaleidoscope are friendly, acknowledging the curious stranger, the bewildered bule. The rest are indifferent, preoccupied with survival.

And in Indonesia that means being with people who say: Mangan ora mangan, asal ngumpul -- we may have nothing to eat but we have each other.

In Wellington, where we've been for the past few months, the tidy streets are briefly full only during commuters' rush hours. Even then the traffic is orderly, disciplined, soon to vanish behind closed doors. Westerners like it that way -- Indonesians do not.

This is an issue that can turn multicultural marital relationships into a martial arts contest. I want to be alone -- she wants crowds. The bubbling hubbub of life in Indonesia, its rollicking racket is meat and drink to my beloved.

I'd rather read a book looking for knowledge -- she'd sooner seek a crowd and glean their wisdom.

Indonesians see safety in numbers -- Westerners fear the crowd; it might be a mob.

Not in Klojen. This is a snapshot of everyday -- work and idleness, pain and hope, resignation and reward. It's well worth the walk. The same emotions and experiences flourish in Wellington, though you'd never know. They're not on public display.

 

India`s Bajaj, Renault and Nissan join hands to make US$2,500 car

New Delhi (ANTARA News/Asia Pulse) - Bajaj Auto Ltd (BSE:500490), India's second largest two-wheeler maker, on Monday announced a joint venture with Renault and Nissan (TSE:7201) to produce a US$2,500 car by 2011 that will compete with the Nano, the world's cheapest car from Tata Motors (BSE:500570).

The JV for manufacturing the small car, code-named ULC, would be owned 50 per cent by Bajaj Auto Ltd (BAL) and 25 per cent each by French car maker Renault and Japan's Nissan, a BAL statement said here.

The car, which would be rolled out from a brand new plant in Maharashtra and available in the Indian market in 2011, would also be positioned for exports to other markets.

Out with the old 'bajaj,' in with the new

The Jakarta Post, Jakarta | Thu, 05/08/2008 11:03 AM

OUT WITH THE OLD, IN WITH THE NEW

Two officers arranged parts of old two-stroke bajaj (three-wheeled pedicab) at a vacant lot in Pulo Gebang, East Jakarta on Wednesday.

 

In the background, hundreds of other bajaj were piled high, awaiting a similar fate. The city administration would later press the bajaj parts using a steamroller. 

The measure was made as part of the city administration's bid to replace the old two-stroke engine bajaj with its newer CNG-fueled successor. 

The city planned to demolish as many as 250 bajaj starting Wednesday. 

"I believe this conversion can benefit bajaj owners and drivers. This will also have environmental benefits because we hope to reduce the amount of pollution these vehicles cause," Governor Fauzi Bowo said Wednesday while witnessing the demolition. 

The phase-out program could serve at least three purposes, he said. 

First, it would help reduce air pollution because CNG engine emissions are considered less polluting than emissions from two-stroke gasoline engines. Second, it would help bajaj owners and drivers to increase their earnings because CNG was cheaper and CNG-based bajaj are quieter, thus more preferable. 

Thirdly, he said, it would reduce the government's spending on gasoline subsidy; the city had estimated that for every 500 bajaj replacements, the government could save up to Rp 6.3 billion (US$684,782) every year. 

The administration first introduced the CNG-based model last year, targeting to replace a total of 5,000 bajaj by the end of this year. 

Latest data showed there were 14,424 bajaj operating in the capital, 500 of which were the CNG model. 

The price of the new bajaj, sold by PT Abdi Raharja, is Rp 38.9 million, while an old bajaj costs around Rp 17 million. 

Jakarta Bajaj drivers association chief Tarjono said he expected the administration would give bajaj owners a subsidy to help pay interest on their bajaj loans. 

"I agree with the bajaj replacement but the current bank interest, which is 23 percent per year, is too steep for us. 

"We expect the interest to go down to around 12 percent," he said. (ind)

Red Cross launches cleanups to help prevent more floods

The Jakarta Post, Jakarta | Sat, 05/10/2008 10:34 AM

The Indonesian Red Cross (PMI) launched a neighborhood cleanup campaign Thursday in a bid to highlight the threat of flooding in several parts of the city.

The campaign in Petamburan, Central Jakarta, is the first in a planned series of nationwide campaigns. The area is notoriously prone to flooding.

Hundreds of local residents and students from schools in the neighborhood took part in cleaning out gutters, digging biopore holes and distributing tree seedlings, hygiene products and baby kits.

PMI volunteers supervised the cleanup, which took in private homes, public facilities and streets. The PMI also provided 10 garbage receptacles for sorting organic and inorganic waste.

PMI secretary-general, Iyang D. Sukandar, said several sponsors had provided support for the activities, including the International Federation of Red Cross and Red Crescent Societies, the German Red Cross and the Dutch Red Cross.

"The Agriculture Ministry provided us with the seedlings, and their distribution is part of our effort to curb the effects of global warming," he said.

"Cleaning up the environment and making biopores are also important in helping us adapt to the changing climate," he said.

Iyang said the campaign was conducted to commemorate the 145th anniversary of the World Red Cross Red Crescent Day on May 8.

Agus Surono, head of the Petamburan neighborhood unit, said the PMI's efforts were laudable because they helped raise awareness of the annual flood threat.

"The communities here need to work together with the PMI on a more regular basis," he said.

PMI press officer Aulia Arriani said the PMI usually dealt with disaster relief management, so preventive activities like this were very important.

"This kind of activity promotes community participation in preparing for disasters. We can also educate people and recruit more volunteers from local communities," she said.

She said the PMI also gave free health checks and blood-type tests.

"The blood-type tests are very useful for us to prepare a list of potential blood donors. We have about 250 candidates from this area," she said.(uwi)

Lorena Air to start flying Jakarta-Surabaya in June

The Jakarta Post ,  Jakarta   |  Sat, 05/10/2008 10:34 AM

The domestic airline industry is becoming more competitive with PT Eka Sari Lorena Airlines (Lorena Air) soon to enter the market hit hard by increasing fuel prices.

"Indonesia has a large population and people still need to travel. There is always opportunity to build a successful (airline) business here," Lorena Air CEO Eka Sari Lorena Surbakti said on Friday.

Lorena Air, which is a subsidiary of transportation company Lorena Group, is scheduled to fly its first two Boeing 737-300 aircraft on June 6. The company will serve the Jakarta-Surabaya route four times a day.

On June 12, the company will start serving Palembang and Pekanbaru twice a day.

"Demand for air transportation services for these routes is still high," said Eka at the launch of Lorena Air's ticket sales.

"The company will develop integrated transportation services," she said.

"We offer what is called an 'air to door' service, where passengers can continue to travel to their destination after stepping off our plane by using our buses."

Lorena Group is one of the country's most well-known bus operators.

Lorena will compete head-on with national carrier Garuda Indonesia Airways. That's the reason why the company will offer lower prices for the same services offered by Garuda, Eka said.

Lorena Air has targeted to carry 1.5 million passengers this year, focusing on the premium market.

The company will commence operations with two carriers, but will procure four more Boeing 737-300 aircraft later this year. It was supposed to fly last year, but failed to secure the necessary carriers.

CFO Michael Madrigal said the company, which now employs around 120 staff, invested over US$5 million excluding aircraft lease costs.

According to Lorena Air's website, it has spent $30 million for the two Boeing 737-300 aircraft.

There are 16 domestic airlines serving domestic routes currently in the country. (rff)

RI aviation industry 'should consolidate'

The Jakarta Post, Jakarta | Wed, 05/07/2008 9:39 AM

With cutthroat competition in the country's aviation industry and soaring oil prices, a consolidation within the sector is the way forward, national flag carrier Garuda Indonesia Airlines said Tuesday.

"The way I see it, there is a distinct possibility there will be fewer airlines in the country soon... Other airlines know this too, whether they like it or not," Garuda president Emirsyah Satar said.

The imminent increase in domestic fuel prices and continuing global uncertainty over skyrocketing oil prices will take its toll on local airlines, he said.

The government said it would raise fuel prices to control the burgeoning fuel subsidy. The resulting inflation would affect people's spending power and consequently discourage them from traveling by air.

The price of jet fuel has also been increased, forcing Garuda to raise its fuel surcharge from about Rp 80,000 (US$8) to about Rp 100,000.

Against this backdrop, competition among local airlines -- which have been engaged in a price war for the past two years -- has heightened, giving added impetus to airlines to consolidate, said Emirsyah.

The European Union's ban on Indonesian airlines flying into Europe will also be a factor in any possible consolidation, he said

In April, the EU renewed its ban, while warning European citizens against taking Indonesian airlines following four fatal crashes last year.

Emirsyah did not rule out the possibility of Garuda acquiring smaller airlines.

"If the opportunity presents itself, and it proves to be lucrative, with strong benefits coming from such an expansion, then yes we'll take it," he said.

Garuda, the nation's largest airline, increased its fleet by 60 airplanes, including 10 Boeing 777-300ER jumbo jets and 50 Boeing 737NG next-generation jets, which would begin arriving in 2009.

The shift toward consolidation follows a global trend that has seen many airlines declare bankruptcy or merge with other airlines to stay afloat.

Last year, U.S. carrier Continental Airlines announced a possible merger with United Airlines, following the merger of Delta Airlines and Northwest Airlines.

Hasyim Arsal Alhabsy, public relations manager for Lion Air, said in two years time his company would consider acquiring airlines from Thailand, Vietnam and Bangladesh in anticipation of the free airspace market in the ASEAN region.

Indonesia has 25 airline companies, including charter airlines, compared with only three in China. (anw)

Govt speeds up $10b Java Sumatra bridge

Oyos Saroso H.N., The Jakarta Post, Jakarta | Fri, 05/09/2008 9:38 AM

The government is slated to begin construction next year of the country's longest and most expensive bridge, linking Sumatra and Java islands, a year ahead of schedule.

Lampung Governor Sjachroedin Z.P. said Thursday the government would start work on the 29 kilometer bridge across the Sunda strait early in a bid to boost economic activities in Sumatra.

The bridge, connecting Bakauheni in Lampung with Merak in Banten, will cost about US$10 billion over the next 15 years, Sjachroedin said.

"All the governors in Sumatra want the development to begin soon and they expect it won't burden the government financially," he said, adding the bridge was expected to be operational by 2025.

Public Works Minister Djoko Kirmanto said the construction costs would be shouldered mainly by private investors, with the central government financing only 5 percent of the project.

"We will attract investors to finance the bridge development by offering them incentives," he said. (rff)

CATCH OF THE DAY

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

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

RI to get $2b in loans from World Bank for development

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

The World Bank will lend US$2 billion for the country's development programs this year, the National Development Planning Board (Bappenas) announced Thursday.

The government could receive even more loans than those previously promised, according to Bappenas director for international financing Dewo Broto Joko Putranto.

"The (additional) loans can be included as loans allocated for 2009," said Dewo, as quoted by Antara.

The board will wait until it learns the exact amount needed to plug this year's state budget deficit before determining how much to propose the World Bank allocate.

World Bank spokesman Randy Salim said the $2 billion in loans would be divided into program loans and project loans.

"About $1.2 billion of the loans will be spent on programs related to climate change, education and infrastructure policy development," Salim told The Jakarta Post.

"On top of this amount, there is another $400 million in programs related to poverty alleviation."

The remaining $400 million, he said, would go toward developing roads, dams and flood-control projects and improving tax administration.

"Indonesia and the World Bank are also negotiating $300-$400 million in additional loans for infrastructure development," Salim said.

This month the World Bank will release its "Infrastructure Development Policy Loan", in which some $200 million will be channeled to support infrastructure improvement in Indonesia.

In a related development, the director general for state debt management, Rahmat Waluyanto, said the government would get an additional $2.9 billion in program loans this year, as reported by Antara.

Of this amount, $1.1 billion would come from the Asian Development Bank and $500-$600 million from the Japan Bank for International Cooperation (JBIC).

Waluyanto said part of the JBIC loan would be spent on programs related to climate change.

"About $1.2 billion worth of the loans will be used to plug the state budget deficit this year," Waluyanto said. (JP/rff)

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Govt to focus on port, railway projects

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Police tough on airport taxi drivers

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

TANGERANG: Police at Soekarno-Hatta International Airport have ticketed some 580 taxi drivers for traffic and document violations since Feb. 28.

"Based on our evaluations, most of the drivers failed to show driving licenses," airport traffic police chief Comr. Sutimin told The Jakarta Post Friday.

According the airport police's data, 211 out the 580 ticketed drivers worked for the Blue Bird Group.

"The drivers will face two-months imprisonment or fines of as much as Rp 2 million for violating the 1992 traffic law," Sutimin said.

In response to complaints that many taxi drivers were refusing to use the meter, the police launched a crackdown on taxis.

Besides taxi drivers, the police also ticketed 41 drivers using private cars for public transportation from the airport.

The drivers could be charged under the traffic law, which carries sanctions of three months in jail or Rp 3 million fines, Sutimin said. -- JP