Indonesia to Offer PPP Projects Worth $52b

Jakarta Globe, Eko Adityo Nugroho, Nov 06, 2014

Jakarta's government has set the capital's Decent Living Index at Rp 2.5 million
 ($206) for 2015, a strong signal to workers that minimum wages are unlikely
to increase substantially. (Reuters Photo/Beawiharta)

Jakarta. The Indonesian government plans to offer 43 infrastructure projects worth $52 billion to private investors next year, according to an official of the National Development Planning Ministry.

Bastari Panji Indra, a director at the ministry, said the projects will be offered under public-private partnership (PPP) schemes.

The projects offered include airports, monorail and, light rail transits, toll roads, coal transportation trains, ports, and water supply.

The government has published details regarding the projects in the Public Private Partnership Book 2015, which guides infrastructure development in the country.

Speaking on the sideline of Indonesia Infrastructure Week late on Wednesday, Bastari said of the 43 projects, eight are classified as “ready” to be offered, 11 are   “prospective” and 24 are marked as “potential.”

Bastari said the government will offer 10 major airport projects to private investors, including Juwata in North Kalimantan, Tjilik Riwut in Central Kalimantan and Fatmawati Soekarno in Bengkulu.

“Apart from airports, there are also a monorail project, coal transportation by train, water supply and six ports,” Bastari said.

Citing the Public Private Partnership Book 2015, he said the government plans to build an express train line connecting the Halim Perdanakusuma Airport in East Jakarta to the Soekarno-Hatta International Airport in Tangerang, Banten, in order to ease passenger commuting.

The director also announced a light rail transit system in Bandung, West Java, new train networks for South Sumatra, three water supply projects in Semarang, Central Java; Pekanbaru in Riau, and Pondok Gede in Bekasi.

Bastari also flagged a project for waste disposal processing in Bogor and Depok.

Deputy Minister Dedy Supriadi Priatna, who is charged with infrastructure affairs, said the government plans to revise the PPP scheme to attract investors, including with the introduction of a performance-based annuity scheme.

Under such a scheme, private investors contribute to development, financing and the operation of a project with a given concession time.

Once the project is open for commercial use, investors will receive regular payments for providing the service to the public, with a performance standard agreed to by both parties.

The new government under President Joko Widodo has a lot of research to do into the infrastructure sector.

Poor road and toll road conditions, over-crowded airports, over-capacity ports, and a lack of train networks have been cited as the main stumbling blocks to strong and sustained economic growth.

The previous administration under Susilo Bambang Yudhoyono repeatedly offered infrastructure projects to tender, but only a few have been completed.

Poor preparation of projects, complex bureaucracy and low return in investment for the private sector remain major factors that deter investor interest.

Dutch investor to support production of N219 planes

Antara News, Fri, February 17 2012

Bandung, W Java (ANTARA News) - Dutch investor RT ComInvestment Co.Ltd. supports the funding for the production of N219 aircraft by PT Dirgantara Indonesia, ordered by PT Nusantara Buana Air.

"The funding agreement was signed in Singapore between PT NBA and RT ComInvestment Co. Ltd. on Wednesday," Sonny Saleh Ibrahim, the president director`s assistant for quality management system and communications development of PT Dirgantara Indonesia (PTDI), said here on Friday.

He said on the same day PTDI signed a letter of intent for the order of 20 N219 aircraft and an option for additional 10 aircraft.

The signing was done on the sidelines of the Airshow in Singapore witnessed by three ministers, namely Industry Minister MS Hidayat, State Enterprises Minister Dahlan Iskan and Trade Minister Gita Wirjawan.

PTDI in the signing was represented by its president director Budi Santoso, the director of technology and development and administrative affairs Dita Donny Jafri, the director of aerostructure Andi Alisyahbana, the director of aircraft services Budi Wuraskito and the director of aircraft integration and finance, Budiman Saleh.

"The trust given to PTDI to manufacture the N219 aircraft shows that we are really important part of air development in the country," Sonny Ibrahim, the company`s former head of rocket program, said.

The value of the contract was US$120 million. The two companies had also agreed to discuss and negotiate technical things and business aspects.

N219 is a feeder plane powered by two turboprop engines capable of carrying 19 passengers and a payload of 3,000 kilograms with a cruising speed of 213 knots.

The aircraft is now still under the process of development with a certification target in the first quarter of 2014.

The plane is designed to be able to take off and land in a short runway of 600 meter long.

On the day of the signing of the N219 contract PTDI also signed a contract with Military Airbus for the manufacturing of nine military transport aircraft C295. PTDI will contribute with a number of important components including fuselage and tail.

The C295 aircraft which is to be used by the Air Force will be delivered between 2012-2014. The aircraft will later be named CN-295.

Editor: Heru

Indonesian Military Signs $325 Million Airbus Deal

Jakarta Globe, February 15, 2012

Singapore Air Force’s F-15 and F-16 fly by each other during
the aerial  display on the opening day of the Singapore Airshow
on Tuesday. (AP Photo/Bryan van der Beek)

               

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Singapore. Indonesia on Wednesday signed a $325 million contract with Airbus Military for nine C-295 transport planes to be used for defense, logistical and humanitarian purposes.

The first plane will be sent to the Southeast Asian nation this year, with the remainder scheduled for delivery by 2014.

“This is a proud moment for our country as well as for the Indonesian aerospace industry,” said Indonesian Defense Minister Purnomo Yusgiantoro, at the signing of the deal at the Singapore Airshow.

“The C-295 provides the ideal capacity to respond to Indonesia’s current and future military and humanitarian transport needs,” he added.

The model is a medium-sized transport plane which can be configured for different operational purposes such as ground surveillance, anti-submarine warfare and search and rescue operations.

The planes will be used for “a variety of roles including military, logistical, humanitarian and medical evacuation missions,” according to a statement.

Yusgiantoro did not rule out future purchases of the C-295, saying other branches of the armed forces were interested in the plane.

“The police for instance... are also interested in this. And you know that (the) 295 version that we ordered now is for the Air Force, and probably the army is also interested,” he said.

The deal includes a collaboration between state-owned aviation firm PT Dirgantara Indonesia (PTDI) and Airbus Military, with Indonesia manufacturing parts for the C-295.

The partnership will allow the Indonesian firm to “grow its aerospace business as a tier-one supplier,” said PTDI Chief Executive Budi Santoso.

“This will position PTDI on the global aerospace scene and allow us to enhance our skills and workforce,” he added.

Indonesia’s defense budget totalled $6.39 billion in 2011, ranking second in Southeast Asia behind Singapore.

Agence France-Presse

Boeing Finalizes $22.4b Deal With Lion Air for 230 Planes

Jakarta Globe, Royston Sim - Straits Times Indonesia, February 14, 2012

Boeing announced a $22.4 billion deal with Lion Air on Tuesday afternoon
for 230 airplane orders — the largest deal in its history in terms of dollar value
and total number of airplanes. (Antara Photo/Lucky)  

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Boeing announced a $22.4 billion deal with Lion Air on Tuesday afternoon for 230 airplane orders — the largest deal in its history in terms of dollar value and total number of airplanes.

This deal alone has exceeded the $10 billion of deals signed at the previous Airshow in 2010.

Jakarta-based Lion Air and Boeing finalized an order for 201 737 Maxs and 29 737-900 ERs.

Lion Air will also acquire rights to purchase another 150 airplanes.

The Singapore Airshow runs from Tuesday till Sunday at Changi Exhibition Centre

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Indonesia Wants to Change Drug Tests for Pilots

RI, US agree on $600 mln cooperation project

Antara News, Fri, November 18 2011

US President Barack Obama and Indonesian President Susilo Bambang

 Yudhoyono shaking hands following statements to the press after their

 meeting on the sidelines of the Association of Southeast Asian Nations (Asean)

 and East Asia summits in Nusa Dua on Indonesia’s resort island of Bali on Friday.

(AFP Photo)

 Indonesian President Susilo Bambang Yudhoyono and US President Barack Obama announced the agreement in a joint statement to the press following their bilateral meeting at the Bali Nusa Dua Convention Center (BNDCC).

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Nusa Dua, Bali (ANTARA News) - Indonesia and the United States have agreed on a US$600 million cooperation project under a so-called "Millennium Challenge Corporation Compact" in support of environmentally friendly and sustainable development in the former.

Indonesian President Susilo Bambang Yudhoyono and US President Barack Obama announced the agreement in a joint statement to the press following their bilateral meeting at the Bali Nusa Dua Convention Center (BNDCC) here on Friday.

"Indonesia is thankful to the US for the Millennium Comprehensive Partnership worth US$600 million to support environmentally friendly development," President Yudhoyono said.

The cooperation was designed to assist Indonesia in developing clean energy, food and public health programs as well as in modernizing goods and service procurement process.

President Yudhoyono said the Indonesia-US relations had been improving since the two nations signed a comprehensive partnership agreement a few years ago.

In the political, legal and security fields both nations had been engaged in various activities such as dialogs, military education and training including the US grant of F-16s to Indonesia, he said.

Both nations also had signed a trade and investment agreement to increase investment and trade ties between the two nations, he said.

President Yudhoyono also expressed Indonesia`s wish to become a US strategic partner in building democratic cooperation which pays respect for human rights.

Meanwhile, President Obama said his visit to Bali for the 6th East Asia Summit was a concrete example of the US focus on the Asia-Pacific region to get better involved in the regional organization.

He shared Yudhoyono`s view that relations between the two countries had been improving since the signing of the comprehensive partnership agreement.

He said the signing of a commercial agreement between Boeing and Lion Air at Grand Hyatt Hotel in Bali earlier in the day was an example of the ever increasingly closer cooperation between the two nations in the economic field.

Under the agreement, Lion Air is planning to buy 200 Boeing planes for at least US$2 billion.

Editor: Heru

Related Article:

Indonesia’s Lion Air to Buy 230 New Boeing 737s in $21.7b Deal

Indonesia’s Lion Air to Buy 230 New Boeing 737s in $21.7b Deal

Jakarta Globe, November 17, 2011

Indonesia’s Lion Air has agreed to buy 230 Boeing 737 aircraft with a
 list price of $21.7 billion, the White House said on Thursday, touting the
sale as the US firm’s biggest-ever commercial order. (Antara Photo/File)   

     

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Nusa Dua. Indonesia’s Lion Air has agreed to buy 230 Boeing 737 aircraft with a list price of $21.7 billion, the White House said on Thursday, touting the sale as the US firm’s biggest-ever commercial order.

The deal was announced soon after President Barack Obama touched down in Bali for the East Asia summit on the final leg of a regional tour partly aimed at drumming up markets for US products at a time of slow growth back home.

The White House also highlighted other deals, some already announced, including the sale of eight Boeing 777 planes to Singapore Airlines and an order for Sikorsky Black Hawk helicopters by Brunei’s Ministry of Defense.

Officials said the Lion Air order was for 201 Boeing 737MAX aircraft and 29 Next Generation 737ER planes.

“The President will join a signing ceremony between the representatives of Boeing and Lion Air on November 18,” a White House statement said.

“With 230 airplanes at a list price of $21.7 billion, this order represents the largest commercial airplane agreement ever for Boeing.”

Aviation Week reported on November 4 that Lion Air, Indonesia’s largest privately-held carrier, was seeking new narrow bodied aircraft and was considering 737s and the European-made Airbus 320.

The White House also said that the deal included options for a further 150 aircraft valued at $14 billion, which could put the eventual deal at $35 billion.

Officials said that the deal would support 110,000 American jobs at Boeing and at suppliers throughout 43 American states, at a time of 9.0 percent unemployment which is clouding Obama’s 2012 reelection prospects.

The White House also highlighted another big Boeing deal, the sale of eight 777-300ER jets to Singapore Airlines worth $2.4 billion which will support a further 11,000 US jobs. That contract had already been made public.

Indonesia’s Garuda Airlines meanwhile has signed a contract to buy 50 CFM56 General Electric engines worth $1.3 billion, the White House said..

And Sikorsky will sell Brunei 12 Blackhawk S-70i helicopters worth $325 million, the White House said, adding that the total value of all the deals was $25 billion.

Agence France-Presse

Indonesia's Lion Air has placed the largest ever commercial airplane
order in Boeing's history, valued at $21.7 billion. (AFP Photo) 

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Firm earmarks $655m to expand five airports

The Jakarta Post, Jakarta | Fri, 08/26/2011

State airport operator PT Angkasa Pura I (AP I) has allocated Rp 5.6 trillion (US$655.2 million) to expand five airports in Bali, East Kalimantan, East Java, Yogyakarta and South Kalimantan, the company’s spokesman said.

Company public relations manager, Merpin Butarbutar, said in Jakarta on Thursday that AP I would upgrade the five exports into world-class airports, with “airport city” concepts, equipped with hotels and shopping centers, by 2013.

“Almost all airports operated by AP I are currently over capacity. AP I will prioritize the expansion of passenger and logistic terminals to enhance our services as well as revenues,” Merpin said.

The five airports include the Ngurah Rai airport in Denpasar, Bali; Sepinggan International Airport in Balikpapan, East Kalimantan; Juanda International Airport in East Java and Adisutjipto International Airport in Yogyakarta.

In addition to the five airports, the company also operates another eight airports, most of which are located in eastern areas of Indonesia.

The total number of passengers at the 13 airports rose by an average of 11 percent, from 41 million in 2009 to 49 million in 2010, Merpin said.

He pointed out the Ngurah Rai airport in Bali served more than 11 million passengers in 2010, a figure far higher than the 7.5 million passengers the airport could ideally handle.

Ngurah Rai International Airport, which contributes the most to AP I’s revenues, is currently undergoing renovations to upgrade its capacity to be able to handle 25 million passengers a year, while expansion projects for the remaining four airports are expected to begin soon.

According to an earlier report, under the planned expansion, AP I will exchange the domestic and international terminals at Ngurah Rai airport in order to cope with an increase in international passengers.

The new international terminal will be expanded to cover an area of 120,000 square meters.

The company also plans to build a 39,000-square-meter, three-story car park, which will have room to accommodate up to 1,500 vehicles.

The Ngurah Rai airport expansion will use Rp 1.94 trillion of the total budget — the highest amount among the five airports — while the expansion of Sepinggan airport in Balikpapan will require Rp 1.56 trillion.

The company will use internal funds and bank loans to finance the projects, Merpin added.

As part of its expansion plans, he continued, AP I has established subsidiaries in four sectors: hotels, property, logistics and services, with a total investment of Rp 100 billion, to boost its non-aeronautical revenue.

“We expect the establishment of the new subsidiaries to boost the contribution of our ‘non-aero’ businesses to our total revenue to 60 percent by 2020, from 22 percent in 2010,” he said. AP I also recently launched its new logo in Bali, hoping to refresh its company’s image.

The new logo, worth more than Rp 200 million, depicts two hands of two different colors — green and blue — shaking each other, which “symbolize humane service, as well as safety and security, two key elements in the airport business,” Merpin said. (swd)

Jakarta’s Soekarno-Hatta International Airport to Get $1.37b Face-Lift

Jakarta Globe, July 26, 2011

Mobile Brigade (Brimob) officers conducting search operations in an
 attempt to clean up Soekarno-Hatta International Airport on the outskirts of
 Jakarta recently. The substandard airport is to get a Rp 11.7 trillion
($1.37 billion) overhaul, the Ministry of Transportation said on Tuesday.
(JG Photo/F. Raharjo)  

    

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Jakarta’s substandard Soekarno-Hatta International Airport is to get a Rp 11.7 trillion ($1.37 billion) overhaul, the Ministry of Transportation said on Tuesday.

Herry Bhakti Gumay, director general of aviation transportation at ministry, was quoted by Detik.com as saying the revamp would be entirely funded by State-owned airport operator Angkasa Pura II.

“Construction will start in 2012 and in 2014, Soekarno-Hatta will become a world-class airport,” Herry told the news portal.

Changes included completing development of Terminal 3 by 2013, renovating terminals one and two, building a new cargo terminal by 2013.

Other improvements include an automated transportation system linking the terminals as well as a shopping mall and a hotel.

Herry acknowledged that Soekarno-Hatta was now incapable of coping with the number of passengers, which continue to grow.

“Currently the airport’s capacity is designed for 22 million passengers [annually] but in reality, the number of passengers has grown to 44 million,” Herry said.

The plan to redevelop the airport was first announced by Vice President Boediono in May.

Vice Presidential Spokesman Boediono’s said it was hoped that the number of passengers would increase to 62 million people by 2014.

“That will mean increasing the apron capacity from the current 125 aircraft to 174 aircraft.

AirAsia to Move Base to Jakarta

Jakarta Globe, A. Lin Neumann | July 22, 2011

Tony Fernandes, Group CEO of AirAsia speaks during a joint company
 press conference with AirAsia in Tokyo, Japan, on Thursday. AirAsia has
 chosen Jakarta to be its regional headquarters in an effort to be seen as a
Southeast Asian airline rather than just a Malaysian one.
(EPA Photo/Everett Kennedy Brown)   

       

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Tokyo. AirAsia has chosen Jakarta to be its regional headquarters in an effort to be seen as a Southeast Asian airline rather than just a Malaysian one.

The region’s largest low-cost airline plans to open its base in the capital at South Jakarta’s Equity Building in October, group chief executive Tony Fernandes told the Jakarta Globe on Thursday. 

It plans to take advantage of easy access to the Asean secretariat in advance of the “open skies” agreement that will go into effect in 2015.

That agreement will lower barriers for air travel between the region’s capitals.

Asked why he chose to move the fast-growing airline’s principal corporate base to Jakarta from Kuala Lumpur, Fernandes said: “Asean is based in Jakarta, and Indonesia will be the largest economy in Asean in times to come … And I like it there.”

Fernandes, who is Malaysian, said he had already bought a home in Jakarta within walking distance of the new office. “I don’t like the Jakarta traffic,” he said.

The Equity Building is in the Sudirman Central Business District, near the Indonesia Stock Exchange (IDX). According to aviation experts, AirAsia’s relocation to Jakarta highlights the country’s growing importance in the region’s aviation sector.

“This will be great for our aviation industry,” said Dudi Sudibyo, an aviation industry analyst in Jakarta. “This will push us to be better.”

To match AirAsia’s ambitious strategy, the Indonesian government will have to continue to improve infrastructure to accommodate more passengers flying into and around the country, said Bambang Ervan, a Transportation Ministry spokesman.

“This is very positive, we welcome AirAsia’s plan,” he said. “It shows that AirAsia, one of the world leaders in the aviation industry, has confidence in Indonesia’s strong growth.”

The Indonesia National Air Carriers Association (Inaca) forecasts passenger growth at 10 percent to 15 percent this year.

Central Statistics Agency (BPS) data showed that air traffic in Indonesia grew 22 percent to 53.4 million passengers in 2010 on the back of demand from the middle class for domestic flights. 

That is higher than the 9 percent average increase recorded by Asia-Pacific carriers, according to data from the International Air Transport Association.

“Indonesia is among very few countries that managed to record strong growth in air traffic last year,” Bambang said. “The lack of available airlines compared to population and geographic conditions is only a sign that there’s a lot of opportunity here.”

Fernandes was in Tokyo for the announcement of AirAsia Japan, a new joint venture with Japan’s largest carrier, the ANA Group, to launch Japan’s second budget airline next year.

He confirmed his airline’s recent order for 300 Airbus A320neos. The deal, originally for 200 planes, was increased with an option for 100 more. It was the largest single aircraft order until Wednesday, when American Airlines ordered 460 Airbus and Boeing aircraft in a $38 billion deal.

Fernandes played down concerns raised by some analysts about the possible debt implications of such a deal, saying the company was cash rich, with a turnover of more than $4 billion last year, and operated as a group with a profit margin of about 20 percent.

RI, EU ink agreement on 'open skies' aviation market

The Jakarta Post, Jakarta | Thu, 06/30/2011

Indonesia and the European Union (EU) signed a “horizontal agreement” on Wednesday on the aviation industry, aiming for a more liberalized or “open skies” aviation market  between the two parties.

“The Agreement between The Government of the Republic of Indonesia and The European Union on Certain Aspects of Air Services” was signed in Brussels on Wednesday evening by Indonesian Transportation Minister Freddy Numberi, Hungarian Ambassador to the EU Agnes Vargha and European Commission Vice President and commissioner responsible for transport Siim Kallas.

“The transportation minister said during the signing of the agreement that it was an important step to strengthen the relationship between Indonesia and the EU in the future, through the implementation of high standards of air transportation security and safety,” Indonesian Transportation Ministry spokesperson J. A. Barata said in a Thursday press release.

“The horizontal agreement between Indonesia and the EU will serve as a legal ground for bilateral agreements on certain aspects [of air services], such as aviation safety, taxation requirements and compliance with regulations on competitions,” he said.

Barata said the new agreement would complement existing bilateral agreements on aviation Indonesia had earlier signed with 18 member states of the EU: Austria, Belgium, Britain, Bulgaria, Czech, Denmark, Finland, France, Germany, Hungary, Italy, Luxembourg, the Netherlands, Poland, Romania, Spain, Sweden and Greece.

“The agreement is expected to encourage more intensified flows of goods and humans, increases in investments and the growth of tourism between the two parties, which in turn is expected to boost our national welfare and economic growth,” Barata said.

Garuda Orders 25 Airbus A320 Planes to Replace Boeing 737 Fleet

Jakarta Globe, Femi Adi | June 22, 2011

PT Garuda Indonesia ordered 25 Airbus SAS A320s, including 10 A320neos, as it replaces a fleet of Boeing Co. single-aisle aircraft at its low-cost unit.

The contract, worth about $2.2 billion at list prices, also includes options for another 25 A320neo planes, Garuda Chief Financial Officer Elisa Lumbantoruan said by e-mail today.

The Citilink unit, which operates five 737s, will receive the new Airbus aircraft from early 2014, he said.

The deal builds momentum for the A320neo after Toulouse- based Airbus yesterday won 90 orders for the plane on the first day of the Paris Air Show.

Boeing is deciding between joining Airbus in offering a revamped single-aisle aircraft with new engines and developing an all-new model.

Garuda, Indonesia's biggest carrier, picked the Airbus planes because of lower operating costs and because they were more quickly available than Boeing models, Lumbantoruan said.

Slots for the 737 are sold out until 2016, Jim Albaugh, the head of Boeing's commercial-plane unit, said in an interview yesterday.

Airbus markets the A320neo as 15 percent more fuel efficient than current planes. Deliveries of the new aircraft are due to begin in 2015.

Citilink also plans to add four leased Airbus A320s this year to support traffic growth that's three times as fast as last year, Garuda said earlier this month. The unit flies to domestic cities including Jakarta, Surabaya and Denpasar.

Bloomberg

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Garuda cares about forest reservation

Antara News, by Otniel Tamindael, Tue, June 7 2011

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akarta (ANTARA News) - To make a valuable contribution to the fight against global climate change, state-owned airline company PT Garuda Indonesia cares deeply about forest preservation.

The company has carried out tree planting activities to help sustain forests in in a number of areas across the country to provide wider environmental and socio-economic benefits.

In the Gunung Padang forest area in West Sumatra, national flag carrier Garuda Indonesia Airlines planted thousands of trees recently.

"Thousands of the trees Garuda has planted at Gunung Padang forest area are made up of various kinds including Mahogany and Meranti," Garuda Padang branch general manager Dedi Irawan said in Padang on Sunday.

In the natural rain forest, Mahogany is a very large canopy tree, sometimes reaching over 150 feet in height with trunks sometimes more than 6 feet in diameter above a large basal buttress.

Mahogany is a generally open-crowned tree with gray to brownish-red fissured bark, and is regarded by many as the world`s premier wood for fine cabinetry, high-class furniture, pianos and other musical instruments, figured and decorative veneer, interior trim, and carving.

Besides Mahogany, Meranti is also an important emergent tree of the tropical forests in Asia. Its wood is light to medium weight and widely used for light construction and more importantly for veneers.

Many other forest products are derived from Meranti, which is classified in the division Magnoliophyta, class Magnoliopsida, order Theales, family Dipterocarpaceae.

Dedi Irawan said the Mahogany and Meranti tree planting activity by Garuda Indonesia was conducted at Gunung Padang in West Sumara because he area has been deforested.

"If reforestation is not done immediately at Gunung Padang forest area, it will would have a bad impact on the people living nearby," Dedi Irawan said.

According to him, sustainable reforestation at critical land through the government projects and public participation was one way to prevent any future natural disasters such as floods.

"The tree planting activity to help prevent erosion and restore critical land because of illegal logging is part of Garuda Indonesia`s concern for environmental damage," Dedi Irawan said.

"Forest is a buffer for the life of surrounding communities, and therefore Garuda Indonesia is very concerned about the destruction of forests due to illegal logging," he added.

Dedi said the tree planting activity at Gunung Padang forest area by Garuda was in cooperation with Padang city administration

to restore forest sustainability.

He added that Garuda started environmental care program of "One Passenger One Tree in 2007 as part of its Corporate Social Responsibility (CSR Garuda Indonesia).

Garuda Indonesia also carried out tree planting activity in Aceh province in January last year in cooperation with the International Leuser Foundation (YLI) and the provincial government of Aceh to help sustain the forests in the province.

At the time Garuda President Director Emirsyah Satar said the planting of 24,000 trees in Aceh reflected the state-owned airline company`s care about forest preservation and community economic improvement.

According to garudamagazine.com, Garuda Indonesia has realized an environmental protection program to help mitigate global climate change by rehabilitating the forest through tree replanting at Sebangau National Park in Central Kalimantan following the signing of memorandum of understanding (MoU) in November 2007.

The reforestation in the Sebangau National Park covers an area of 250 hectares and involves 100,000 trees, which were planted by setting aside part of the proceeds from ticket sales to passengers flying on Garuda Indonesia routes from Australia and Japan.

In his remarks, Emirsyah Satar said at the time that the tree planting activity was in line with Garuda Indonesia`s program of concern for natural conservation and also with the efforts of the global aviation industry to achieve "clear sky" operation by 2050.

Emirsyah Satar also noted that the activity was expected to create opportunities for economic improvement for the local community through development of ecotourism in Sebangau National park, much as Garuda Indonesia has already done in Yogyakarta through the "One Passenger One Tree" program.

An agro-ecotourism zone has been developed in Karang Tengah, Yogyakarta, through planting of 50,000 Mahogany and Cashew trees, from which golden silk would be produced that is unique in the world.

Garuda Indonesia has done this for several interrelated reasons: to spur more tourists to visit Yogyakarta, especially those who are interested in agro-ecotourism; to empower and foster local silkworm farmers; and to conserve the environment by planting trees with productive economic value.

Carbon Positive believes that tree planting can and will make a valuable contribution to the fight against global climate change.

It believes that carbon markets in their various forms are key to providing an effective means of financing tree-planting activities on the scale needed to make a difference globally.

Planting trees is hugely beneficial to the world in the face of accelerating climate change for there is a strong international scientific consensus that human activity is causing global warming.

At a local level, tree planting on deforested lands will create further environmental benefits because forests play a vital role in regulating water supplies, helping to reduce both water shortages in times drought and damaging floods in heavy rains.

Forests also provide habitats for a wide array of plants and animal species, a number of which are threatened with extinction by deforestation.

Therefore Garuda Indonesia`s care about forest preservation is expected to help support the local community`s livelihood, and through its tree planting activity, Garuda is a pioneer in conservation among state-owned enterprises.

Editor: Priyambodo RH

Garuda allowed to fly directly to Syria

Antara News, Tue, March 22 2011

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Jakarta (ANTARA News) - Syria is to allow Indonesian flag carrier Garuda to fly directly to the Middle-Eastern country, chief economic minister Hatta Rajasa said here on Tuesday.

"They have offered Garuda to conduct direct flights to Syria based on the freedom right," he said after holding a bilateral talk with visiting Syrian Deputy Prime Minister Abdullah Al-Dadari.

He said the opening of Garuda direct flights to that country was one of the topics discussed at the meeting.

The meeting also discussed implementation of Greater Arab Free Trade Agreement (GAFTA), Syria`s plan to implement infrastructure development with support of project officers from Indonesia and Syria`s plan to purchase helicopters from PT Dirgantara Indonesia.

"The Syrian deputy prime minister has already visited Bandung, the location of PT Dirgantara Indonesia and the Bandung Institute of Technology (ITB)," he said.

During the visit to ITB Syria built education cooperation with regard to its plan to build a petroleum university.

"We will immediately follow up the cooperation by discussing it at a ministerial level," he said.

Indonesia and Syria has set up a business cooperation council on October 13, 2010 as a forum for developing business network and exchange of information between the two countries` businessmen and investors.

The two countries` governments are supporting cooperation between private parties for the development of economic, trade and investment cooperation.

Editor: Jafar M Sidik

TNI accepts F-16 grants from US

Antara News, Mon, February 14 2011

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Jakarta (ANTARA News) - The Indonesian Defense Forces (TNI) has accepted the US offer to grant two squadrons of F-16A/B Fighting Falcons.

TNI commander Admiral Agus Suhartono said to ANTARA here on Monday the process of agreement had been conveyed to the ministry of defense and confirmation was now being waited from the US.

"The process is still going on. It has been followed up by the ministry of defense and we are now waiting for confirmation from the US regarding Indonesia`s decision to accept the offer," he said.

"TNI has actually programmed procurement for new F-16 planes from the US in 2014 which are more sophisticate. In terms of price however it will be cheaper if we accept the grant of two squadron of F-16," he said.

In terms of technology, he said, the 24 fighters could be upgraded with the latest technology equal to that of F-16 C/D Block 52 which is the newest type of F-16.

"The avionic system could be upgraded as well as their weapon system. So the F-16 fighters granted are still reliable weapons to give deterrent effect," he said.

Even they could still be operated until the next 25 years. "So it is more efficient and effective for us to accept the grant rather than to buy six new planes of the type," he said.

Air Force spokesman Real marshal Bambang Samoedro meanwhile said TNI hoped the grant would soon be able to meet its needs for a fighting squadron maximally.

"With the grant the air force could soon get additional fighter jets and must not have to wait until 2014. It will be better in terms of deterrent effects," he said.

Editor: Ruslan

Related Article:

Indonesia to accept US fighter plane grant