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BALI UPDATE #091 - NOVEMBER 1998
IN THIS UPDATE
- Robby Djohan reassigned from CEO post at GARUDA
- President Habibie promises to assist the Shipping Industry
- Indonesia to be "Featured Country" at PATA Mart 1999
- QANTAS adds a flight to Bali
- Borobudur bids "bye-bye" to Intercontiental
- Airline alliances bring local changes
ROBBY DJOHAN REASSIGNSED
FROM CEO POST AT GARUDA
The Government announced today that Mr. Robby Djohan
has been reassigned from the President Director's role at GARUDA to head
the establishment of the Mandiri Bank, a new Government-back bank charged
with revitalizing the nation's ailing banking industry.
Replacing Mr. Djohan after his reign of only a few
months at the National Carrier, will be Mr. Abdul Gani, the former President
of Bank Duta.
Mr. Djohan managed to undertake a number of dramatic
reforms in the short time he headed Garuda, including route restructuring,
aircraft rationalization, returning 26 leased aircraft to the lessors,
and massive staff reductions.
PRESIDENT HABIBIE PROMISES
TO ASSIST THE SHIPPING INDUSTRY
Speaking before the Indonesian Shipping Association
in Jakarta last week, President Habibie promised to review the current
value-added-tax (VAT) imposed on Indonesian shipping operators who purchase
ships or parts abroad.
If the president follows through on his promise,
such a decision will be in direct opposition to guidelines set by the
International Monetary Fund (IMF) who only see shipping as a tax revenue
source with little or no reference to the fundamental importance of maintaining
a large and efficient national shipping armada in a country comprised
of 17,508 islands.
Due to a non-competitive tax and regulatory environment,
Indonesia's shipping industry is on the verge of collapse.
Accordingly, Indonesia's Cruise industry also remains
stuck in its infancy, unable to play its proper role as a major generator
of foreign exchange and employment opportunities.
INDONESIA TO BE "FEATURED
COUNTRY" AT PATA MART 1999 Indonesia, at the height of the social
upheaval of last May, withdrew itself from the hosting role for the PATA
Global 200 conference.
With Indonesian tourism now on the rebound, the Country
has won its bid to be the "Featured Country" at the 1999 PATA Mart to
be held in Singapore in April 1999. As "Featured Country" Indonesia will
be responsible for hosting a gala grand opening evening and for organizing
pre and post conference programs for the more than 1,200 buyers expected
at the event.
The re-emergence of Indonesian tourism as a player
at PATA MART 1999 is being driven by the former Minister of Tourism for
Indonesia, Mr. Joop Ave, who now serves as a special advisor on tourism
to the President.
With "Pak Joop" at the helm, you can count on Indonesia
making a "big splash" at PATA MART in Singapore.
QANTAS ADDS A FLIGHT
Effective October 31, QANTAS (QF) has added an additional
weekly flight from Sydney to Bali, bringing to 14 the number of weekly
flights from Australia to Bali.
In a related story, The Sydney Morning Herald has
reported that business from Australia to Bali is booming. Aided by a deprecating
Australian Dollar almost everywhere Else except Indonesia, where the OZ
dollar has actually appreciated, Bali has displaced the United Kingdom
and the United States as Australia's most preferred holiday destination
after New Zealand.
According to the Australian Bureau of Statistics,
some 324,000 Australians visited Indonesia in the first six months of
BOROBUDUR BIDS "BYE-BYE"
In Edition # 077 of this newsletter (September 26,
1998), we reviewed how many hotel owners are re-examining their management
relationships with large, international hotel chains in the midst of the
current economic crisis.
In what might be viewed as a related development,
P.T. Jakarta International Hotels and Development (JIHD), the owners of
the Borobudur Intercontinental Hotel, have announced that they will end
a 25 year management relationship with Intercontinental as of 01 January
On that date, the Borobudur Hotel will "go it alone"
as the manager of their own fortunes. Opened in 1974, the Borobudur Intercontinental
Hotel has just completed a 22 month, US$ 70 million renovation program.
AIRLINE ALLIANCES BRING
Much has been said of airline alliances, where airlines
cooperate in order to improve service and reduce costs.
A local manifestation of this development was the
recent announcement that British Airways (BA) and QANTAS (QF) would be
operated under a single national manager in Indonesia, effective from
01 December 1998.
On that date, both airlines will begin answering
to the former BA Manager for Indonesia, Ms. Claire Hatton. The former
QANTAS Manager for Indonesia, Rick Coyle, has returned to Sydney to assume
a position with QF's Head office.
It is anticipated that in time, both airline's Jakarta
offices will be combined under a single roof.
Pundits are busy speculating on what will emerge
as the common language of the new BA/QF office in Jakarta. Will it be
the King's English or the local dialect of that language known as "stryne"
spoken in the antipodes?
In any case, she'll be right mate!
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