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
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.
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
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
Turtle Island's Unrealized
Leader Claims Developers Have Severely Damaged
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
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
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
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
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
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
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.
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
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
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
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
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
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
Camera, Action, Kim
Bali Film Commission
to Represent Indonesia a Busan International Film
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
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.
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
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,
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,
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
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
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
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.