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Bali News by Bali Update
BALI UPDATE #525 - 02 October 2006

Garuda to Abandon Bali as a Secondary Air Hub
Bali Bound Flights from Australia and Japan to Transit Via Jakarta if Garuda Hub Plan Goes Ahead.

Travel Trade Gazette's (TTG) Mimi Hudoyo reports that Garuda Indonesia may soon be restructuring its network, minimizing the role of Bali as a flight hub for its flights from Australia and Japan.

Quoting Garuda's Vice-president of Sales and Marketing, Agus Priyanto, "We are now studying the way we operate out of dual hubs in Jakarta and Bali. But we expect to only use Jakarta because having two hubs is too costly and the recovery of the Australian market to Bali has been slower than expected, and (due to) Garuda's limited fleet."

If the national carrier goes ahead with the proposed change to its air hub structures, passengers from Japan and Australia on Garuda will face the disincentive of longer flight times to Bali, due to an intermediate stop in Jakarta. Bali-Perth flights are expected to remain operating on a direct basis.

 

Garuda Projets Profitability and a Newer Fleet of Aircraft
Garuda Reveals its Plans for the Use of US$104 million in Emergency Cash Injections Received from the Government.

The Indonesian language Bisnis Indonesia reports that Garuda Indonesia will allocate US$1.6 million for rental fees to secure two new Boeing 737 NG aircraft in 2006.

The funds will be channeled from the US$52.2 million dollar cash injection recently approved by the members of the National People's Consultatative Assembly (DPR).

The four uses designated for the emergency cash injection to the national carrier are:

o Initlal lease payments for the rental of two new B-737 NG worth US$1.6 million.

o Repayment of US$14.7 million of short term debts totalling US$43.6 million.

o Payments for US$17.3 million in repairs and overhaul of a projeted US$19.6 needed for six Airbus 330 aircraft owned by Garuda.

o Allocation of US$18.9 million or a an estimated US$20 million needed to undertake repairs on the rest of Garuda's aging fleet of aircraft.

An second cash injection of US$52.5 million, allocated from the 2007 State budget, will be used next year for ongoing management restructing at Garuda, short term loan repayments, and additional repairs needed on the Airline's fleet.

Targeting a Profit in 2007

Meanwhile, the Indonesian language BisnisBali confirms that Garuda is projecting a profit of Rp. 444 billion (approximately US$48.2 million) in 2007, an impressive financial rebound from losses of Rp. 692 billion (approximately US$ 75.2 million) suffered by the Airline in 2005.

A Garuda Indonesia spokeman recently told the Indonesian Parliament that the airline expects total revenues in 2007 to reach Rp. 13,136 trillion (approximately US$1.42 billion).

 

Drawing Lines in the Sand?
Editorial: Urgent Steps Must Be Taken to Help Bali Reclaim its Beaches as its Own.

Last week, regional authorities in Gianyar shut down a luxury villa project under construction on Cucukan Beach, near Blahbatuh, when the project was found to have been partially built on 300 square meters of government land and to have violated mandatory "set back" limits forbidding construction too close to local shorelines. Developers of that project have been told to demolish those parts of the construction that do not meet local building requirements.

As part of a continuing crackdown on illegal building in Bali, Denpasar authorities similarly "froze" three villa and apartment projects in the Canggu area of North Kuta that reportedly did not possess the required building perrmits. Concurrently, authorities are taking action against a villa in Kuta that was built uder a permits for a private residence but is now being leased out as a commercial villa enterprise.

While it is encouraging to see local officials are finally taking some steps to slow the helter skelter free-for-all of villa construction that is fundamentally changing the character of the Island, there are indications that a more radical re-examination of building regulation on Bali's beaches may be long overdue.

With Bali repeatedly winning awards as one of the world's favorite holiday island destinations, a more thoughtful approach on how best to protect and preserve Bali's precious beach front and tidal mangroves are needed in order to maintain the island's reputation and make its tourism product sustainable for the long term.

No One Owns the Shoreline

Preserving beaches and ensuring full access for every Island resident is a principle already protected by local laws in Bali. In fact, the concept that "No One Owns the Shoreline" is a generally accepted rule-of-thumb for local governments and property ownership stretching from Waikiki to Wisconsin.

However, the "free enjoyment" of universal beach access takes on an even added importance in Bali where beach areas play an essential areas in Bali-Hindu relgious rites of passage (yadnya).

Balinese hotels, villa owners and resorts that persist to arrogantly build barriers and fences that bisect the shore line; build structures that usurp beach areas by ignoring established "set back" rules; and encourage their staff to "chase off bothersome locals" who linger in front of their properties are guilty of either ignorance and a disregard for the basic fundamentals that govern Bali's culture.

We pray that local authotiries will continue with their current crackdown on zoning violations in Bali, particularly along the Island's beaches. Those building found to be violating the "set back" requirements should be quickly bulldozed and their foundations replaced with beach sand – all at the owner's expense. While such steps may appear as draconian, a strict and unbiased enforcement of the rules is the only way to reclaim Bali's beaches and serve warning to future developers who have grown overly-confident that all rules can somehow be waived in Indonesia.

We also hope that Bali's legislators will consider toughening the rules on beachside development to ensure these precious areas are preserved for future generations. Tougher pollution controls preventing contamination of Bali's beaches and streams, and mandatory public right-of-ways connecting public roadways and beach fronts to the beaches at regular intervals along the enture island's shoreline are representative of what's happening on islands elsewhere possessing leaders familiar with good governance and thoughtful environmental stewardship.

 

Turtle Island's Unrealized Promise
Local Community Leader Claims Developers Have Severely Damaged Serangan Island.

According to a report published in the Indonesian language Bali Post, the reclamation project on Pulau Serangan, being carried out by PT Bali Turtle Development (PTBTD), has caused substantial suffering for the people living on Bali's nearest island neighbor. The island, once a green and fertile locale surrounded by waters in which a wide variety of fish, crustaceans and other sea life were harvested by Pulau Serangan's residents.

Sadly, little is left of the island's former beauty. The 418 hectare reclamation project - comprised of 100 hectares of the Original Island and 318 hectares of new land, is now a barren limestone outcropping.

I Wayan Sudarsana, the Secretary of the People's Forum for the Rehabilitation of Serangan Island told the Bali Post that the reclamation project has caused a number of difficulties for the island's residents, falling far short he claims of the many promises made over the past years by the project developers which included an integrated tourism development and luxury hotel.

As part of the major reclamation project, the eastern shore of the island has undergone major excavation and the destruction of hectares of mangrove forests that once surrounded the island. And, according to Sudarsana, developers have destroyed surrounding coral reefs to a distance of up to more than 1,000 meters from the shoreline, effectively eliminating the natural habitat of the sea life that once lives in these areas.

According to Sudarsana, an agreement by his family to trade a 560 square meter plot of ancestral land on the island for a relocated smaller plot of 370 square meters has resulted in the seizure of his family compound without the promised compensatory plot.

The Pulau Serangan Activist also claims that a survey conducted by Udayana University students in 2000 showed that the people health on the island is suffering, with substantially raised incidents of eye and pulmonary infections.

According to the report, the Bali Post was unsuccessful in repeated attempts to meet with representatives of PTBTD and seek their comments of rebuttal.

Current estimates place 161 poor families as living on Serangan Island.

 

Bali Carrefour Project Draws Protests
Traffic and Overwhelming Competition for Local Traders Among Concerns Expressed by Kuta Community Leader.

According to a story published in the Indonesian language Bali Post, the ongoing construction of a large Carrefour outlet on Kuta's Sunset Road is drawing protests from a local retailers' association (Asprindo) and local residents.

Concerned that the opening of the hypermarket will economically sideline local traders and create a traffic congestion problem, concerned local resident are labeling the project's originators as "unconcerned" with the welfare of the people of Kuta.

A local community leader and regional parliamentarian, Puspa Negara, told the Bali Post, "It's as though the people of Denpasar have received no socialization at all in connection with the proposed business with many people asking questions in connection with the project."

A law passed in 1999 requires that all investment projects undertake impact studies that include a requirement to "socialize" new projects to surrounding communities before being granted a license to proceed.

The outspoken local legislator reminded Carrefour's developers of their obligation to undertake impact studies including any potential impact on local traffic conditions. "We (local Balinese) suffer the consequences of such projects, while the profit is alienated to other regions of the country," complained Puspa Negara.

Admitting that he does not know whether of not the Carrefour project enjoys public support, Puspa Negara said that the people's feelings will only be known when they receive a thorough explanation of what the project entails.

 

Cunning and Culling from Australia
Four Australian Parliamentarians Send Inconsistent Signals on Capital Punishment During a Recent Visit to Jakarta.

Four Australian parliamentarians visited their counterparts at the People's Consultative Assembly (DPR) in Jakarta on Thursday, September 21, 2006 to send confusing mixed signals on exactly where Indonesia's near neighbor stands on the issue of capital punishment.

The four Australian legislators, representing both ruling and opposition members of the Government, included Peter Slopper, Alan Ferguson, Anna Pacre and Harry Jenkins.

Confusing?

During their visit the legislators logged in with the Indonesian parliamentarians sending "mixed signals" on the following issues:

o They protested the recent execution of three Christian men in Sulawesi found guilty of fomenting religious riots and killing in Poso.

o They questioned the prolonged legal process that is delaying the final execution of the three Bali Bombers convicted in connection with the October 12, 2002 attack that killed 202 people.

o They called for an elimination of the death penalty in Indonesia or at least the specific sentence commucation as it applies to the six Australian members of the Bali Nine awaiting execution for their conviction for drug smuggling.

In reply the Indonesian lawmakers attempted to explain to their Australian coleagues the reasoning behind President Yudhoyono's uncomprising stance demanding the execution of major drug dealers and the inherent futility and counterproductiveness of threats or itimidation by Australian public figures and the press when it comes to "selective enforcement" of capital punishment in Indonesia as it impacts on Australian felons.

The two countries legislators arrived at an impasse when the Australian tried to persuade members of the DPR that mercy for the Bali Nine would assist efforts to recast the current negative image of Indonesia popular in the their nation's press.

 

Bali as a Cruise Port
Tourism Official Reports Bali Being Considered by Large International Cruise Operators as a Possible Base Port.

The Indonesian language Bisnis Indonesia reports that no less than three international cruise operators are currently considering Bali as a turn-around port.

The Secretary General of the Department of Culture and Tourism, Sapta Nirwandar explained that the development reflects the growing interest in cruise tourism worldwide.

International Cruise ship visits to Indonesia continue to grow with tourism authorities expecting the targeted 82 visits for all of 2007 to be easily exceeded. The targeted ship visits for 2007 is 100.

According to Sapta, Bali is becoming increasingly viewed as a possible base port for cruise ship operators, a change from its past role as merely a cruise stop.

"There are now three international companies who have expressed an interest in making Bali a turn around port. This means (Bali) will no longer be just a cruise stop, but a port. This also means that cruise voyages will begin and end from Bali." Sapta told Bisnis Indonesia.

The tourism official would not specifically name the cruise operators eyeing Bali as a base port, but did confirm the companies involved are American and European cruise operators, among the 10 largest worldwide.

 

VP Praises Indonesia's Tourism Industry
Jusuf Kalla Calls for Renewed Commitment to Tourism Promotion.

Speaking at the close of the Tourism Indonesian Mart & Expo (TIME) held in Makassar, Indonesia's Vice President issued his thanks and appreciation to those who organized and supported the travel trade event.

The Vice President's comments were read by Indonesia's Minister of Culture and Tourism, Jero Wacik, at the opening of TIME in which the Government's continuing commitment t0 tourism was underlined via Presidential Instruction No. 16 of 2005 that commanded cooperation between all sectors and levels of the official bureaucracy in support of tourism.

VP Jusuf Kalla, who did not attend the opening of the 13th Annual TIME due to international travel commitments, said in his comments that now is the time to aggressively promote Indonesian tourism following the series of natural disasters that have recently befallen the Country.

TIME was held for the first time in Eastern Indonesia where it attracted 110 buyers from 21 countries and 124 sellers representing 20 different provinces in Indonesia. 62 members of the press were also invited to attend the travel show.

 

Camera, Action, Kim Chee
Bali Film Commission to Represent Indonesia a Busan International Film Commission.

For the fourth consecutive year, Bali Film Center (BFC) will be attending the Busan International Film Commission and Industry Showcase (BIFCOM), considered Asia's premier film industry event for film commissions and production services, in South Korea 15-18 October. BFC will participate in the event involving more than 70 film commissions and film industry exhibitors in order to raise awareness of film making possibilities in Indonesia.

Since its inception in 2001, BIFCOM is held in conjunction with Pusan International Film Festival (PIFF) and Pusan Promotion Plan (PPP). This year will mark the launch of the Asian Film Market (AFM), - a promotional fair addressing all aspects of filmmaking—sales offices, market screenings, buyer services, production and co-production services, and financing. Organizers of the event are seeking to transform Busan into the center of the Asian film industry.

Presenting seminars, workshops and demonstrations by industry professionals including 'Business Models and Visions in Digital Cinema', BIFCOM will showcase the latest filmmaking technology and location information on countries in the region.

During the event, Asian Film Commissions Network (AFCNet), the 23-member commissions from eight nations (including Indonesia) will jointly exhibit and hold its annual general assembly. Hosting a seminar on "Supporting International Productions and the Challenges They Bring," AFCNet focuses on the importance of building and improving a system that rewards film productions shooting in Asia.

 

Community Policing Bali Style
Kuta Police Provide Training for Local Civilian Police Squads.

60 local pecalang members from North Kuta recently received a day's session of special training on traffic control and maintaining public order on Monday, September 18, 2006 from the Bali Police.

Pecalang is the name applied in Indonesia to traditionally dressed members of the local vigilante corps established in local community units across Bali and normally deployed to maintain order at religious ceremonies and festivals.

Supervised by the precinct chief of North Bali, Officer IB Ketut Mantra, the participants received pointers on combating criminality, basic traffic control and maintaining positive relationships with the public.

Local Kuta community official, Made Parmita, commended the training program and called for it to be undertaken on a yearly basis in order to train the ever-changing cadres who comprise Kuta's pecalang.

The sub-district chief for North Kuta, AA Yuda Darma, also expressed his support for the community policing training saying the increasing number of traditional ceremonies and the resulting need to close local roads underline the necessity of such training.

 

I Wined and Wined
Seven Nights of Award Winning Gravitas Wines at The Ritz-Carlton, Bali Resort & Spa's Dava Restaurant October 9-15, 2006.

One of New Zealand's most highly regarded wine producers is teaming up with The Ritz-Carlton, Bali Resort & Spa in a remarkable event at its signature Dava Restaurant featuring Gravitas Wines of Great Stature in combination with a five-course degustation dinner created by Dava's Chef de Cuisine, Dean Keddell, from Monday, October 9 to Sunday, October 15, 2006.

With four purposefully chosen Gravitas fine wines paired to the special menu created by Chef Dean, guests will be privileged to sample award-winning flavors in a world class combination of dual excellence. Alternatively, guests may choose from Dava's sumptuous a-la-carte menu throughout the week which, as a matter of course, also offers wine pairing notes and suggestions.

"We continue to have world class wines available exclusively for our Dava guests. These stunning wines come from the 'wine capital' of New Zealand's Marlborough region and will, together with the sumptuous flavors of Dava, make for an incredibly impressive week-long gourmet event," said Troy Clarry, the Resort's Executive Assistant Manager for Food & Beverage.

During the week-long engagement, wine-maker Martyn Nicholls will be dazzling guests with his stunning wines from New Zealand’s Marlborough region via complimentary tastings on October 13 & 14, 2006.

Gravitas Wines have won over 80 medals and major accolades in the past three years alone. Their featured 2005 Pinot Noir included during the Bali week was judged as the Southern Hemisphere's top Pinot Noir, while the Sauvignon Blanc won seven Gold medals in various international wine shows, including France's leading wine competition, Citadelles. Similarly, it was one of only 3 Gold Medal winnersin the world's largest wine competition - The London International Wine & Spirits Challenge, and rated as one of the World's Top 100 Wines of any style, by the 2005 Wine Report.

Fine New Zealand wines magnificently paired to a special five-course dinner the menu begins with amuse bouche followed by Borneo crab, avocado, crème fraîche, caviar, sweet corn sorbet - served with a 2005 gravitas unoaked Chardonnay. A red-cooked quail with hand-cut noodles, hot foie gras, spiced pear chutney forms the perfect companion for a 2005 gravitas Pinot Noir, whilst the coconut grilled ocean trout, rice cake, hot and spicy peanut salad is impeccable in collaboration with the seven-time gold medal winner, - 2005 Gravitas Sauvignon Blanc. The 2005 Gravitas Llate Harvest Riesling gives a refreshing finish befitting the planned desert of granny smith apples won-tons, vanilla sabayon, palm sugar apple syrup, sorbet and apple chips.

The Gravitas/Dava Degustation menu is priced at Rp. 650,000 ++ (approximately US$85.49) per person – available only for dinner between October 9-15. Dava's a-la-carte menu is also available with Gravitas wines by the glass at special prices.

Dava's special guest, Martyn Nicholls, the owner of Gravitas Winery will give an introduction to the vineyard and wines with complimentary tastings from the range on October 13 & 14, 2006.

For reservations: +62-(0) 361 702 222

 

Kamal Chaoui Heads InterContinental Resort Bali
Frenchman with Years of Asian Experience Now in Charge of Bali Five Star Resort.

InterContinental Resort Bali has announced the appointment of Kamal Chaoui as General Manager and Regional General Manager InterContinental Resorts - Southern Asia. Chaoui replaces Amadeo Zarzosa who has taken on a senior role with a new hotel development in Dubai.

Chaoui, a French national, first Bali assignment was in 1990 when he joined the Food and Beverage opening team of Grand Hyatt Bali. Shortly after the Bali opening, he was promoted to the position of Director of Food and Beverage. Leaving Bali in 1993 to become Executive Assistant Manager at the Hyatt Regency Santiago, Chile.

A graduate of Glion Hotel School, Switzerland with a Diploma in Hotel Management and the University of Nevada (USA) with a Bachelor of Sciences in Hotel Administration, Chaoui began his hotel career with Hyatt International Corporation. He has worked his way through the hotel hierarchy in Food and Beverage and General Manager positions that took him to Mexico, Australia, Indonesia, French Polynesia, Chile, Malaysia, and Morocco.

Chaoui then spent several years as Area General Manager for Banyan Tree Hotels and Resorts managing the luxurious and award-winning resort, Banyan Tree Phuket. Most recently, based in Kuala Lumpur, Chaoui was Senior Vice President and Head of Hotels & Resorts Division for Berjaya Hotels and Resorts' 15 properties worldwide.

 

 
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