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RI can be center of regional
growth, says Jokowi

President Joko “Jokowi” Widodo said that Indonesia could be the center of growth in the Asia-Africa region thanks to its geopolitical and geo-economical conditions.

“Seen from its geopolitical and geo-economical conditions, Indonesia could be the center of growth in the region,” he said before departing to Malaysia from Halim Perdanakusuma Airport in East Jakarta on Sunday.

He said stable conditions in the region would allow Indonesia to become the center of growth in the region.

“In the future, we will pay more attention to maritime development, enhancement of bilateral cooperation, construction of infrastructure and this all will lead to good economic growth,” he said as quoted by Antara news agency. (rms)(++++)

- See more at: http://www.thejakartapost.com/news/2015/04/26/ri-can-be-center-regional-growth-says-jokowi.html#sthash.s0iN7AJJ.dpuf

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President Joko “Jokowi” Widodo said that Indonesia could be the center of growth in the Asia-Africa region thanks to its geopolitical and geo-economical conditions	He said stable conditions in the region would allow Indonesia to become the center of growth in the region
“Seen from its geopolitical and geo-economical conditions, Indonesia could be the center of growth in the region,” he said before departing to Malaysia from Halim Perdanakusuma Airport in East Jakarta on Sunday.
“In the future, we will pay more attention to maritime development, enhancement of bilateral cooperation, construction of infrastructure and this all will lead to good economic growth,” he said as quoted by Antara news agency. (rms)(++++)

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Garuda second-worst performer
in SE Asia

National flag carrier Garuda Indonesia was ranked second from bottom on the list of Southeast Asia’s publicly listed airlines in terms of financial performance, according to data from the Center for Asia Pacific Aviation (CAPA).

Data from the aviation think tank that was released on April 21 shows that out of 18 publicly listed airlines or subsidiaries and affiliates that reported financial results, only seven were in the black.

Garuda Indonesia was among the worst performers with US$419 million in operating losses, ranking second from bottom above Thai Airways, which recorded $523 million in operating loss, the data showed.

“Thailand was set back by a prolonged period of political instability, which significantly impacted inbound demand, meanwhile Indonesia was heavily impacted by the depreciation of the rupiah, weaker economic growth and [uncertainty surrounding] the presidential election,” the group said.

There were more than 40 full-service passenger carriers operating in Southeast Asia in 2014, including regional operators.

CAPA estimates that fewer than 10 of these carriers were profitable in 2014, among which were Bangkok Airways, Philippine Airlines, Singapore Airlines and SilkAir.

Of the 22 low-cost carriers (LCCs) operating in Southeast Asia in 2014 only about five were profitable, including three publicly listed carriers — Cebu Pacific, Malaysia AirAsia and Thai AirAsia, CAPA said.

According to CAPA, the situation will improve this year due to the reduction in oil prices and expected capacity cuts at two of the main flag carriers, Malaysia Airlines and Thai Airways.

Arista Atmadjati, industry analyst and marketing specialist for PT Garuda Indonesia, concurred saying that Indonesian airlines, particularly Garuda should take advantage of the expected capacity cuts at Malaysian Airlines and Thai Airways, by taking over the routes operated by the airlines this year.

“For instance the Jakarta-Kuala Lumpur route. Garuda should increase the capacity or operate a more frequent schedule to grab the market,” Arista told The Jakarta Post on Sunday.

Separately, aviation analyst Gerry Soejatman said that it would remain hard for the national airline to improve its performance this year despite the plunging oil price, as Transportation Ministry’s Regulation No. 91/2014 on a price ceiling mechanism had begun to take its toll on the country’s airline industry.

“It will remain difficult for Garuda to improve its performance due to its weakening domestic market. It looks like the government’s ceiling and floor price policy has started to have a negative impact,” Gerry said.

Under the regulation, the price floor for scheduled low-cost airlines is set at 40 percent of the maximum price, up from 30 percent previously.

Garuda booked net losses of $373 million in 2014 — compared to $11.2 million net profits in 2013 — as foreign exchange losses and rising costs squeezed its revenues.

Garuda Indonesia president director Arif Wibowo previously attributed the company’s poor financial performance to the weakening of the rupiah against the US dollar and the rising price of fuel, which touched a record high last year.

He also blamed the regulatory aspects that were less favorable to the country’s aviation industry.

Apart from the external aspects, Arif said that Garuda was in an investment stage in 2014, during which they brought 35 new aircraft for the expansion of both Garuda and its low-cost arm Citilink. - See more at: http://www.thejakartapost.com/news/2015/04/27/garuda-second-worst-performer-se-asia.html#sthash.DoVba1Lg.dpuf

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“Thailand was set back by a prolonged period of political instability, which significantly impacted inbound demand, meanwhile Indonesia was heavily impacted by the depreciation of the rupiah, weaker economic growth and [uncertainty surrounding] the presidential election,” the group said.	Of the 22 low-cost carriers (LCCs) operating in Southeast Asia in 2014 only about five were profitable, including three publicly listed carriers — Cebu Pacific, Malaysia AirAsia and Thai AirAsia, CAPA said.
“For instance the Jakarta-Kuala Lumpur route. Garuda should increase the capacity or operate a more frequent schedule to grab the market,” Arista told The Jakarta Post on Sunday.	Arista Atmadjati, industry analyst and marketing specialist for PT Garuda Indonesia, concurred saying that Indonesian airlines, particularly Garuda should take advantage of the expected capacity cuts at Malaysian Airlines and Thai Airways, by taking over the routes operated by the airlines this year.
“It will remain difficult for Garuda to improve its performance due to its weakening domestic market. It looks like the government’s ceiling and floor price policy has started to have a negative impact,” Gerry said.	Gerry Soejatman said that it would remain hard for the national airline to improve its performance this year despite the plunging oil price, as Transportation Ministry’s Regulation No. 91/2014 on a price ceiling mechanism had begun to take its toll on the country’s airline industry.
	Arif said that Garuda was in an investment stage in 2014, during which they brought 35 new aircraft for the expansion of both Garuda and its low-cost arm Citilink.

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Pertamina 90 percent ready
to launch Pertalite

State oil and gas company Pertamina’s marketing director Ahmad Bambang conveyed on Monday the readiness of his company to distribute Pertalite, a Research Octane Number (RON) 90 fuel, starting from May.

“We are around 90 percent ready,” he said as quoted by tempo.co in Jakarta on Sunday.

Bambang said Pertamina’s readiness included activities to produce, introduce, launch and distribute the new fuel product.

He further said Pertamina had continued to introduce Pertalite, which would replace the current RON 88 Premium, to people especially those living in Jakarta and surrounding areas. Jakarta would be the main focus of Pertalite distribution before Pertamina distributed the new fuel product to several other big cities in Java.

In the initial stage of distribution, Ahmad said Pertamina would channel 500 kiloliters of Pertalite per day before increasing it to 1,000 kiloliters per day.

He said one of the obstacles affecting the launch of Pertalite was related to its distribution permit. Pertamina is still waiting for approval on the launch of Pertalite from the House of Representatives.

“Once we get the House’s approval, we will launch it in May,” said Ahmad.

Earlier, Pertamina said it planned to release a new fuel product called Pertalite, which would have a RON of 90 in specification, or slightly higher than the current widely used RON 88, in May. It said the launch of the RON 90 fuel would be a transitional period ahead of the pulling of RON 88 premium within the next two years in line with government directives.

The plan has drawn sharp criticism from various parties, accusing that, among other things, Pertamina’s policy is not in line with a recommendation from the oil and gas sector reform team, which urged Pertamina to replace the current Premium with Pertamax. (ebf)

- See more at: http://www.thejakartapost.com/news/2015/04/27/pertamina-90-percent-ready-launch-pertalite.html#sthash.xOyxPyEV.dpuf

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“We are around 90 percent ready,” he said as quoted by tempo.co in Jakarta on Sunday.	Bambang said Pertamina’s readiness included activities to produce, introduce, launch and distribute the new fuel product.
“Once we get the House’s approval, we will launch it in May,” said Ahmad.	Ahmad said Pertamina would channel 500 kiloliters of Pertalite per day before increasing it to 1,000 kiloliters per day.
	He said one of the obstacles affecting the launch of Pertalite was related to its distribution permit. Pertamina is still waiting for approval on the launch of Pertalite from the House of Representatives.
	Pertamina said it planned to release a new fuel product called Pertalite, which would have a RON of 90 in specification, or slightly higher than the current widely used RON 88, in May. It said the launch of the RON 90 fuel would be a transitional period ahead of the pulling of RON 88 premium within the next two years in line with government directives.