Tag: Indonesia

  • Closer Trade Ties Between Indonesia and Philippines

    Closer Trade Ties Between Indonesia and Philippines

    Indonesia and the Philippines, as immediate neighboring countries, have many to offers in the fields of among other things trade, culture and security.

    In fact, the Philippines is  a significant trade partner as its contributed around US$2.3 billion in trade surplus to Indonesia last year.

    Indonesian Ambassador to the Philippines Johny J Lumintang said recently that the surplus was the third largest for Indonesia in its international trade.

    Data from the Philippine Statistics Authority revealed that the countrys imports from Indonesia during the period between January and December 2015 stood at $2.927 billion, while exports to Indonesia were only valued at $628.2 million.

    However, the figures declined from the previous year when Philippines imports and exports from and to Indonesia reached $3.037 billion and $759.658 million, respectively.

    Three major Indonesian products imported by the Philippines, include automotive, coal, and coffee, with total values of $619.8 million, $519.4 million, and $208.6 million, respectively.

    There are great demands for coal for Filipino power plants, the diplomat said.

    The two nations have also intensified bilateral cooperation in various fields such as in economic, politic, socio-culture, and sea patrol security.

    “With the Philippines, Indonesia should not compete but cooperate as our products are mostly similar,” the ambassador said.

    Indonesias Trade Attach in Manila Irawan said 16 Indonesian food and beverage products have been marketed widely in Filipino supermarkets.

    Philippine President Benigno Aquino (R) speaks with Indonesian President Joko Widodo (L) at the presidential palace in Manila on February 9, 2015.  Widodo is meeting with Aquino to sign bilateral agreements and discuss various issues, possibly including territorial conflicts in the South China Sea.   AFP PHOTO / POOL / FRANCIS R. MALASIG
    Philippine President Benigno Aquino (R) speaks with Indonesian President Joko Widodo (L) at the presidential palace in Manila.

    Among the products as Kopiko 78 Degree, Indofood instant noodles, Bimoli and Mitra cooking oil, Tiger and Oreo biscuits, Extra Joss, You C-1000, Fruit Tea, nata de coco, Kopiko candy, Energen, and Diabetasol biscuits and powder milk.

    Indonesias food and beverage product market share in the Philippines is 8.13 percent.

    Last year, the Philippines imported food and beverages worth US$ 452.1 million from Indonesia, and exported US$15.8 million.

    Having economic growth at 6.9 percent, the Philippine is a potential market as its population is also big, he said.

    He hoped more small and medium scale industries products could be marketed in the Philippine.

    Eight food and beverage producers participated in the ASEAN Salon International de l Agroalimentaire held in Manila on May 31-June 2 2016.

    In the meantime, The Philippine government is also eager to promote its products in Indonesian markets.

    Filipino retail brands were exhibited at the “Lifestyle Philippines” event in Jakarta, on June 10, 2016.

    “Lifestyle Philippines” was a branding initiative led by the Philippine Trade and Investment Center (PTIC) in Jakarta which aimd to promote and create more awareness of Filipino-made products.

    During her remarks, Philippine Ambassador to Indonesia Maria Lumen Isleta stated that, It is an initiative to which our Embassy with the support of the Filipino community, have given our best efforts because we believe it can contribute to the friendship and close cooperation between our two countries.

    The event included a fashion show featuring Karimadon and Rusty Lopez, two iconic brands in the Philippines that have begun to create a following in the Indonesian forward-clientele market.

    Other brands displayed were Plains and Prints, Cruzzini Barong Tagalog, and Barong Batik, a fashion innovation that has successfully fused Philippine barong and Indonesian batik, a creation that many diplomats and dignitaries have begun to favor for its elegance.

    Apart from apparel, the event also showcased Filipino food products, hand-woven crafts, cosmetics and neutraceutical, tourism and travel, as well as education services.

    Flavors Philippines featured products with potentials to be exported here such as Goldilocks polvoron, Mama Sitas sauces and mixes, Leslies snack products, Destilleria Limtuacos spirits and liquors, among others.

    Artisanal food products sourced from the various regions in the Philippines such as dried fruits and nuts, jams and marmalades, bottled sardines, and chocolate dipped dried mangoes will be at the exhibition as well.

    Woven Chic, a special section on hand-woven crafts will show indigenous textiles from the Philippines, traditional dresses, linens, and modern and traditional pieces of jewelry.

    “This initiative hopes to increase trade with Indonesia, which in 2015 stood at US$3.6 billion. The Philippines exported about US$628.27 million of goods and services to Indonesia, while the Indonesia had US$2.93 billion trade with its counterpart,” Philippine Embassy Trade Representative Alma Argayoso said in a statement recently.

    “The regional integration in ASEAN presents opportunities for Philippine companies to expand to Indonesia and other ASEAN markets, and we certainly would like to actively take part in supporting Philippines companies in their regional expansion. We look forward to make Filipino products more available in the Indonesian market, particularly since there are many Indonesians who have visited and studied in the Philippines who look for our products,” she added.

  • Hilton hotel chain steadily expanding operations in Indonesia

    Hilton hotel chain steadily expanding operations in Indonesia

    Hilton Worldwide, a US-based global hotel chain, has steadily been expanding its operations in Indonesia to tap new market opportunities in a hospitality industry that is thriving on the back of steady economic growth and the free visas being offered to the citizens of most of the countries in the world.

    “We already have four properties under our management and eight others, which are under construction in Jakarta, Tangerang, Surabaya and Bali, will open within the next two years”, Hilton’s vice president for Southeast Asia and India William Costley told The Jakarta Post on Wednesday.

    The four properties already in operation are the Double Tree by Hilton in Jakarta, the Hilton in Bandung, the Conrad and the Hilton Garden Inn, both in Bali.

    Hilton, which manages more than 4,600 properties in 103 countries, is also looking for new opportunities in Lombok, Medan in North Sumatra, Balikpapan in East Kalimantan and Palembang in South Sumatra, Costley said.

    It is mostly a matter of finding the right partner for promoting Hilton service standards because Hilton has many brands to fit in with different locations, he said.

    “But we are always directly involved together with the owners in the process of designing and constructing every hotel we will manage and in training its human resources,” he added.

    Costley said the steady growth of Southeast Asia’s largest economy and the ASEAN open skies policy would boost business travel and the whole hospitality industry in many other cities across the vast archipelago.

    “We are quite excited about the prospect of the tourism industry, especially after the launching of the visa-free facility,” he said. “And I think the target of 20 million tourist arrivals in 2020 is not impossible.”

    He sees great potential for developing Indonesia into one of the most favorite tourist destinations and tourism is also the right kind of industry Indonesia needs because of its labor intensive, multiplier impact and, most importantly, this industry is friendly to the environment and earns a lot of foreign currency.

    “Take for example this Double Tree by Hilton hotel here, which has 253 rooms. It employs only two expatriates and the rest of the staff are locals,” Costley pointed out.

    Hilton Worldwide has a portfolio of 13 brands, including the Waldorf Astoria, the Conrad, the Hilton, the Double Tree by Hilton and the Hotel Garden Inn, which are promoted as landmark properties in Indonesia.

    Costley said the Waldorf Astoria, Hilton’s most luxury brand, which will be housed in a 74-story mixed-use building currently under construction on Jl. MH Thamrin in Jakarta, will open in 2018 with 181 rooms.

    Two other properties under construction in Ubud and Seminyak, both in Bali, will operate within the next two years and are also under the Waldorf Astoria brand, while the Hilton Bali (formerly the Grand Nikko) will operate later this year with 408 rooms, he added.

    The other four hotels in Hilton’s management portfolio that will open within the next two years are the Double Tree by Hilton in Surabaya and Karawaci in Tangerang and the Hilton Garden Inn in Kemang, Jakarta, and Karawaci.

    Costley said the Hilton group is strongly committed to strengthening and expanding its growing portfolio of landmark properties in such key destinations as Indonesia.

    Our Hilton Honors loyalty program has 55 million members around the world, and this huge data bank is surely an effective means of promoting Indonesia globally,” Costley added.

  • Aeon Indonesia dumps Ministop c-store partner

    Aeon Indonesia dumps Ministop c-store partner

    Aeon Indonesia has ended its partnership with its local partner in the Ministop c-store chain.

    The move will result in Aeon exiting the market temporarily while it seeks a new business partner.

    According to local media reports, Aeon teamed with Bahagia Niaga Lestari (BNL) in 2012. But after four years, the joint venture has managed to open just six stores.

    Aeon has meanwhile been expanding its Ministop network across Vietnam, the Philippines and South Korea.

    Aeon says it is committed to Indonesia and hopes to form a new joint venture.

  • Are These Retail REITs Trading For Less Than What They’re Worth?

    Are These Retail REITs Trading For Less Than What They’re Worth?

    The price-to-book (PB) ratio is a popular way to value a real estate investment trust (REIT).

    The P/B ratio is calculated by dividing the market capitalisation of a REIT with its book value, or net asset value. Theoretically, having a P/B ratio that is less than 1 means that a REIT is trading for less than what it’s worth – an investor who buys the REIT could liquidate all its assets, settle all its obligations, and still end up with a profit.

    A recent report indicated that the average P/B ratio for Singapore’s REIT universe (the local stock market has 27 REITs and six stapled trusts) was 0.9. The list of 33 trusts included eight Retail REITs, as defined by the Global Industry Classification Standard.

    Here’re five quick highlights from the report on the eight Retail REITs (figures as of 8 June 2016, unless otherwise stated):

    1. Lippo Malls Indonesia Retail Trust (SGX: D5IU) has a P/B ratio of 0.9. The REIT is home to 19 retail malls and seven retail spaces in Indonesia and offers a distribution yield of 9.9%. While the REIT’s yield looks high, it’s worth noting that its total returns over the past three years have been a negative 15%.
    2. CapitaLand Retail China Trust (SGX: AU8U) also has a P/B ratio of 0.9. The REIT offers a distribution yield of 6.7% and has recorded a total return of 19.1% over the past three years. It is focused on the ownership of retail malls in China and currently has stakes in 10 shopping malls across six Chinese cities.
    3. Meanwhile, Starhill Global Real Estate Investment Trust (SGX: P40U) is yet another REIT with a P/B ratio of 0.9. The REIT has stakes in Wisma Atria and Ngee Ann City in Singapore. In all, the REIT owns commercial as well as retail properties in four other countries, namely Australia, China, Japan, and Malaysia. Over the past three years, Starhill Global REIT has delivered total returns of 4.9%. The REIT offers a 6.5% distribution yield.
    4. Not all retail REITs are trading below their book values. SPH REIT (SGX: SK6U), whose portfolio only has two properties right now (the retail malls Paragon and Clementi Mall in Singapore), trades at its book value. The REIT offers a distribution yield of 6.0% and has recorded a negative total return of 5.8% over the past year.
    5. CapitaLand Mall Trust (SGX: C38U) is one REIT that has a P/B ratio of over 1 – more specifically, the REIT has a P/B ratio of 1.1. CapitaLand Mall Trust, which owns 16 retail malls here, is the Singapore stock market’s first and oldest REIT. It offers a 5.3% distribution yield and has total returns of 14% over the past three year.

    The P/B ratio represents a starting point for investors who are looking for REITs that may be undervalued. Valuation, though, has to be complemented by understanding a REIT’s asset quality, the performance of the REIT’s portfolio in the past, and its future prospects, among other important things.

  • Amazon To March Into Indonesia With $600 Million: Winners And Losers

    Amazon To March Into Indonesia With $600 Million: Winners And Losers

    Amazon.com has said it plans to expand its e-commerce empire to Indonesia, with a $600 million investment for the first year.
    It makes perfect business sense. Indonesia’s e-commerce space is only about $3.2 billion in sales, a tiny fraction of its $150 billion retail market. Indonesia is also the world’s 4th most populous country with 250 million population.

    When Amazon moves in, the market shudders. Who are the movers and shakers in the Indonesian e-commerce space right now?

    It turns out Amazon will be competing with start-ups backed by Alibaba Group and its buddy SoftBank.

    Lazada, a direct-sales marketplace that spans the entire ASEAN, has 75% of its transactions coming from Indonesia. It was founded by Rocket Internet and was recently valued at $1.5 billion through an investment from Alibaba. It generated $1 billion GMV last year and made $275 million in sales.

    Tokopedia is an Indonesian pure play. It is backed by SoftBank and Sequoia Capital.

    Bukalapak is smaller than Tokopedia and is 49% owned by local media conglomerate PT Elang Mahkota Technologi, or Emtek Group.

    Warehouse logistics companies can benefit if Indonesia’s e-commerce picks up. Mega Manunggal Property  is one stock we can look at.

  • Hogan Lovells launches mobile app for doing business in Indonesia

    Hogan Lovells launches mobile app for doing business in Indonesia

    Hogan Lovells (in association with Dewi Negara Fachri & Partners) has launched an innovative new app called “How To Indo” to help businesses navigate the legal landscape when doing business in Indonesia.

    The app will change the way that anyone doing, or considering doing, business in Indonesia can access relevant legal guidance.

    Anyone with an Apple or Android device will be able to access key guides on what you need to know about doing business in Indonesia. From M&A and infrastructure transactions to Hogan Lovellsfinancing arrangements, from restructuring and insolvency to managing a dispute, these guides cover the key legal issues in doing business in Indonesia.

    Mark Cooper, Corporate Partner, Singapore said:

    “We hope that this innovative product leads the way in helping clients to navigate the regulatory landscape in Indonesia and makes it easier for them to take informed business decisions.”

    The app is available to download today:

    Click here to download the Apple version.

    Click here to download the Android version.

  • Indonesia Concerned About Donald Trump

    Indonesia Concerned About Donald Trump

    Indonesia’s vice-president yesterday voiced concerns over US presidential candidate Donald Trump’s comments on Muslims, saying “discrimination according to religion” could prompt retaliatory policies from other countries.

    Jusuf Kalla said the government was “not happy with Trump’s opinions” – the first critical remarks from a top official in the world’s most populous Muslim-majority nation, which come as Mr. Trump called for more profiling in the US to battle crime.

    “Any country, especially big countries, seen making policies about ‘radicalism’ or discrimination according to religion will be a bad issue,” Mr. Kalla said.

    “There will be ‘vice-versa’ policies from other countries,” he said, adding an impact would be felt on economy and trade.

    Mr. Trump’s inflammatory remarks on Muslims, including wanting to temporarily ban them from entering the US, on foreign policy and on international trade ties have raised concerns in some Asian countries over a potentially “isolationist” United States.

    In Indonesia, Southeast Asia’s biggest economy, politicians are already thinking about restricting US trade and investment if Mr. Trump becomes president. An online petition, urging a ban on the billionaire and his businesses from the country, has received nearly 47,000 signatures.

    The real estate developer also has partnerships to operate luxury resorts on Bali and in Java, which Indonesian officials have said could be threatened by his rhetoric.

    “Of course there will be an impact, not for Indonesia, but for his business,” Mr. Kalla said, when asked about Mr. Trump’s involvement in the resorts.

  • AirAsia seeks governement support to explore more Indonesian destinations

    AirAsia seeks governement support to explore more Indonesian destinations

    AirAsia Group CEO Tony Fernandes shares his views on his company’s Indonesian unit and his business strategy.Once an ailing airline struggling with debt, Malaysia-based budget carrier AirAsia has successfully transformed itself to become one of the most successful airlines in the region while working to achieve its noble vision: democratising air travel by offering low fares and high quality service. Despite a market slowdown, AirAsia has so far become the world’s best-performing airline stock this year.

    In Indonesia, the company manages two units – Indonesia AirAsia (IAA), which operates a fleet of 29 Airbus A320s, and Indonesia AirAsia X, the country’s first long-haul, low-cost carrier – and has become a serious competitor for major local low-cost airlines, including Lion Air and Citilink. Last week, AirAsia Group CEO Tony Fernandes invited The Jakarta Post’s Farida Susanty to his office in Kuala Lumpur to discuss the company’s business strategy, his vision for the company’s Indonesian units and his response to the recent launch of the world’s biggest alliance of low-cost airlines to challenge the company’s stronghold in the business. The following are excerpts of the interview.

    You keep saying that Indonesia is more than just Bali. How do you envision the country’s aviation industry in the next few years?

    Tony Fernandes: We want to invest more in Indonesia. That’s why we’re after a change in Indonesian regulations. We think that domestic flights are already well-covered as Citilink, Lion Air and Sriwijaya Air are doing a good job. We also contribute a little. However, our strength is in international flights and this is the reason why our international flight to Bandung West Java, Indonesia’s fourth most-populous city is always full. No one flew to Bandung before us. So we want to do more Bandung [flights]. We have 55 million international passengers that we can bring to Indonesia. So, what do we need? Well, we need the regulations on ownership to change. We would like taxes for leasing and fuel to be more market-driven. We would like the Indonesian government to look at smaller airports. I said to the Indonesian government, for small airports that have no international flights, why don’t they bring down the charges for airlines, so at least we can try some direct flights from Thailand, Malaysia, Singapore or even China?

  • Indonesia promotes specialty coffee in the Netherlands

    Indonesia promotes specialty coffee in the Netherlands

    Indonesia has again promoted its specialty coffee in the Netherlands to draw the attention of several people in The Hague.

    The promotional activity, being conducted through the Indonesia Coffee Festival, complied with the Indonesian governments policy to conduct economic diplomacy in the Netherlands.

    The promotion at the New Babylon Meeting Center was organized by the Indonesian Embassy in The Hague along with the Indonesian Students Association (PPI) in the Netherlands and PPI in The Hague, Minister Counsellor of Information, Social, and Cultural Affairs for the Indonesian Embassy in The Hague Azis Nurwahyudi informed Antara here on Monday.

    In his remarks, Indonesian Ambassador to the Kingdom of the Netherlands Wesaka Puja stated that coffee was one of Indonesias leading export commodities as the country was the fourth-largest coffee producer in the world.

    The Indonesian government has continued to expand its overseas markets, especially in Europe, he remarked.

    Chairman of the Committee on The Hagues PPI Priska Astasari stated that the joint activity was also aimed at promoting economic development in Indonesia.

    Some seven companies from Indonesia were invited to participate in the festival: Adena Coffee, Javanusa, De Ngokow Coffee, Ephraim Coffee, Asasta Power, Mr O, and Blanco Coffee and Book.

    During the festival, some talk shows were organized to hold discussions on the various traits of Indonesian coffee.

    For instance, Charis Christian Julianto from the Ephraim Coffee Company disseminated information on coffee farming in Indonesia, including the history of the emergence of coffee beans in Indonesia and the concept of sustainable coffee production adopted by the Indonesian coffee farmers and entrepreneurs.

    Thereafter, Sara Datuk from the Javanusa Company provided information on the different flavors of coffee from various regions in Indonesia, such as the provinces of Aceh, West Java, and Papua.

    Aki Baihaki noted that fair trade in coffee should be profitable for entrepreneurs and the coffee farmers.

    Barista Yakup Aydin also demonstrated the ways of making espresso and latte art.

    Bimo Pramana from the Blanco Coffee and Book Company in Yogyakarta Province stated that by attending the Indonesia Coffee Festival in The Hague, he had gained a new experience and had increase his knowledge regarding the demand in the European market, especially in the Netherlands.

    The event also offered an opportunity to build a network among coffee entrepreneurs in both countries.

  • Taiwan Mobile eyes investments in India, Indonesia

    Taiwan Mobile eyes investments in India, Indonesia

    Taiwan Mobile is considering investing in the telecoms markets of India and Indonesia due to their strong growth potential.

    At the operator’s annual general meeting, chairman Richard Tsai said the company is evaluating opportunities to enter the markets.

    While Tsai acknowledged that India’s overcrowded market has resulted in heavy price competition, he said that the large population is creating opportunities in segments including data transmission.

    The operator is evaluating the possibility of teaming up with operators in India to carve out a slice of the nascent 4G market in the nation.

    According to Tsai, the company has also been eyeing an entry into the e-commerce sector in Southeast Asia, with subsidiary momo.com preparing to explore the markets of the Philippines and Vietnam.

    Domestically Taiwan Mobile is focused on developing its third party payment business while kicking off an OTT content business. Taiwan Mobile has meanwhile set a target of lifting its 4G subscriber base to 5 million in 2017 from 3 million at the end of 2015.

  • Indonesia plans to implement certification to prevent fish laundering

    Indonesia plans to implement certification to prevent fish laundering

    Indonesia will implement a certification system to prevent fish laundering, Minister of Fisheries and Marine Resources Susi Pudjiastuti said here on Tuesday.

    “I will make sure that all imports of fish will require a catch certificate in order to prevent so-called fish laundering,” she stated.

    She admitted that Indonesia imported fish to meet the demand from the industrial sector such as certain restaurants which need salmon fish, a species not found in the country.

    The minister explained that she has allowed these imports because she believed it will not hurt the price of local fish.

    “Our fish imports have dropped,” she continued, adding, “Indonesia imported many kinds of fish, not only salmon, which are not found in the country.”

    Susi pointed out that skipjack tuna is not found all year round in Indonesia. In addition to the decreasing trend of fish imports, the fish culture in Indonesia has also helped reduce dependency on fish feed, she noted.

    She praised her offices program of distributing various types of fish feed machines to various regions as it seemed to have yielded results.

    The office has increased the number of auditors from 700 to 1,000 this year to certify good fish culture practice.

    “We want more counselors and auditors as the number of people involved in fish culture has also increased. Similarly, production, exports and fish consumption have also increased,” the director general of fish culture, Slamet Soebjakto, informed in Mataram on May 26.

  • Astra doubts car sales would increase

    Astra doubts car sales would increase

    The country’s largest car manufacturer, PT Astra Internasional, expresses doubt that sales of automotive products would increase in 2016.

    Car and motorcycle sales would not increase under the economic slowdown, Astra’s investor relation officer, Ira Ardianti, said here on Monday night.

    Sales of both two and four wheeled motor vehicles have been flat in the past five months, she cited. The people’s purchasing power is still weak and have no fund to spare for luxury, she said.

    Sales of motorcycles dropped in the regions mainly because of the commodity price fall such as palm oil and rubber prices, Ardianti said.

    In the first quarter of 2016, Astra’s car sales dropped to 127,000 units from 137,000 units in the same period last year. In April and May, Astra’s sales of cars totaled 31,000 units and 33,000 units respectively.

    Its sales of motorcycles also shrank to 1.1 million units in the first quarter of 2016. In April and May sales were recorded at 348,000 units and 338,000 units respectively.

    “We could not make prediction , but hopefully the economy would improve and the people’s purchasing power would be stronger,” she said.

    The Indonesian Automotive Industry Association (Gaikindo), however, said car sales in Indonesia (from factories to dealers) surged 11 percent to 87,919 units in May 2016, the second straight month of rising car sales year-on-year.

    Gaikindo chairman Jongkie Sugiarto attributed the increase mainly to delivery of new models ahead of Idul Fitri holiday.

    In April car sales in Indonesia grew 4.6 percent to 84,703 units from 81,000 units in the same month last year.

    This is encouraging after being on the decline for 16 straight months previously.

    Stakeholders in the automotive industry hope that this is the start of a rebound, in line with accelerating economic growth.

    In the first quarter of 2016 Indonesias economic growth accelerated to a growth pace of 4.92 percent yoy), higher than the 4.73 percent GDP growth pace in the same quarter last year.

  • Peruri to build currency paper factory in 2017

    Peruri to build currency paper factory in 2017

    The state-owned money printing company, Peruri, has set a target to build a currency paper factory in 2017, according to the companys President Director, Prasetio.

    Such a currency printing firm is badly needed because Indonesia does not have one so far, Prasetio pointed out here on Monday.

    “God willing, we will be able to sign a Memorandum of Understanding (MoU) with our partners, so that it can be realized next year,” Prasetio explained, adding that the venture is open to both domestic and foreign investors to be partners.

    Prasetio further said that the currency paper plant will be built on Peuris own land in the West Java Provincial District of Karawang.

    Prasetio did not elaborate how much investment would be required for the project.

  • Citilink to serve international flights China-Morotai

    Citilink to serve international flights China-Morotai

    Citilink plans to open a new international flight route between China and the Morotai island in North Maluku to support development of the island into one of ten main tourist destinations in the country.

    Head of the North Maluku Telecommunications and Informatics Service Burhan Mansyur said the management of the airline has signed a memorandum of understanding with the district administration of Morotai on the plan to open the international flight route.

    The Morotai island was one of military bases of the Alliance Forces during the World War II facing Japan in the Pacific war.

    The plan is Citilink, a subsidiary of the nations flag carrier Garuda Indonesia, would open the route between China and Morotai via Manado in North Sulawesi.

    Realization of the plan, however, would depends on the completion of project to modernize the Leo Wattimena airport of Morotai, Burhan said here on Tuesday.

    He said the runway of the airport already meets the conditions to serve international flights but it needs renovation in its passenger terminal.

    He said as one of ten main tourist destinations, modernization of the the airport would be given a priority with fund from the state budget.

    Head of the North Maluku Tourism and Cultural Service Anwar Husen said the opening the international flight route would bring more foreign tourists to the Pacific rim island.

    Not many foreign tourists are interested to visit Morotia on problem in air transport, Anawar said.

    Even domestic tourists from the western part of the country could visit Morotai only via Manado and Ternate.

    Apart from its historical background as former main military base of the Allied Force, Ternate has wide sparkling sand beach and under sea panoramic scene attracting many surfers to that location.

  • Garuda to strengthen fleet with 17 new units of aircraft

    Garuda to strengthen fleet with 17 new units of aircraft

    Garuda Indonesia Group said it will strengthen its fleet with 17 new units of aircraft this year. The 17 units of aircraft will include a Boeing 777-300 ER, four units of Airbus A 330-300, and four units of ATR 72-600 for Garuda Indonesia and 8 units of Airbus A 320 aircraft for its subsidiary Citilink,a Garuda vice president for Corporate Communications Benny Siga Butarbutar said here on Tuesday.

    With the addition of new units, the Garuda Indonesia Group will operate 197 units of aircraft, Benny said on the sideline of commissioning a new route between Medans Kualanamu airport and Singapore.

    “The total number is 197 units including 53 units operated by Citilink,” he said.

    Citilink is a budget airline serving mainly domestic flights, with Garuda, the nations flag carrier serving international as well as domestic flights.

    From Kualanamu Garuda Indonesia Group serves direct flights to Jakarta, Banda Aceh, Lhokseumawe, Sabang, Batam, Lampung, Palembang, Denpasar, Sibolga, and Gunung Sitoli on the islanf of Nias off western coast of North Sumatra.

    Garuda Indonesia President M Arif Wibowo said the airline will also increase service for short distance flights.