Posts tagged jakarta

Indonesian courier start-up Go-Jek wins fame, prize

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Small Indonesian start-up Go-Jek is getting plenty of coverage today after winning a US$10,000 prize in the Global Entrepreneurship Program: Indonesia. The company, which uses ‘ojeks’ (motorcycle taxis) as courier drivers, also accepted donations from a prominent US entrepreneur and is looking into further partnerships with foreign companies.

Click here for a CNN Video report on Go-Jek

Indonesia’s cities, especially Jakarta, have become notorious for traffic gridlock in recent years, as the booming economy puts more vehicles on the roads than current infrastructure can handle. Short of a helicopter, the best way to beat traffic jams is on the back of a motorcycle, and there are plenty of people offering the back half of their saddle for a reasonable price.

Go-Jek took the concept of ojek service and made it more reputable with a bright green branded image and reliable drivers. In operation since February 2011, they take passengers and will courier any package that can be carried on a motorcycle. As well as being cheap, the company offers a decent and much-needed income stream to Jakarta’s legions of motorcycle riders.

The Jakarta Globe has an interview with 27 year-old co-founder and chief executive Nadiem Makarim, who founded Go-Jek in February 2011 with partners Brian Cu and Michaelangelo Moran. The company now has seven full time employees, over 200 regular drivers, 80 pick-up points across Jakarta with over 600 unique customers and 50-60 jobs a day. The founders plan to use their new fame and investment to drive a large expansion over the coming year.

The Global Entrepreneurship Program Indonesia (GEPI) held a showcase of Indonesian startups in Bali from 22-24 July, attracting interested angel investors from the US and around the world. Organizers said the response was “beyond expectations”.

sources & articles: CNN, Go-Jek, gepi-indonesia.org, Jakarta Globe

AirAsia to move its regional HQ to Jakarta this year

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Some good news for Indonesia’s travel industry this morning, although possibly at Malaysia’s expense: Low-cost carrier AirAsia announced it would move its regional headquarters from Kuala Lumpur to Jakarta this year, looking to capitalize on Indonesia’s much larger and increasingly wealthy consumer base.

The airline said its move won’t impact Malaysian operations, but it does challenge Malaysia’s ambitions to be a regional transit hub. AirAsia is also busy recruiting staff for its new AirAsia Singapore operation, and CEO Tony Fernandes said they would be ‘night-stopping’ aircraft in the city to meet early morning flights.

Business has been pretty good for AirAsia this year. It has 49% stakes in Thailand and Indonesia, both set to go public in 2011, and has begun a joint venture to start AirAsia Philippines. It made a RM1.1 billion (US$364 million) net profit last year, doubling that of the previous year and beating analysts’ projections of RM822 million ($272 million). It operates 105 aircraft with another 122 on order and options for 63 more. Passenger demand also continues to increase, filling 82% of available spaces.

source & article: The Malaysian Insider

Jakarta the busiest airport in Southeast Asia

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Here’s an interesting fact: in 2010, Jakarta’s Soeharto-Hatta airport became the busiest in Southeast Asia with a whopping 43.7 million passengers received in 2010, up 17.7% on the previous year, according to eTurboNews.

This news might surprise anyone who assumed a higher profile hub like Singapore’s Changi or Bangkok’s Suvarnabhumi would take the crown. After all, both feature shiny, modern and award-winning terminals designed to handle larger numbers and both saw double-digit percentage passenger increases in 2010. Domestic passengers were by far the majority of Jakarta’s traffic, with internationals making up only 9 million (20-22%) of the total. Bangkok, on the other hand, received 33 million international passengers (77% of its total 42.78 million) and Singapore is the busiest international gateway with a total of 42.08 million passengers (as a city-state, all flights are international).

Indonesians’ increased purchasing power is the main reason for an increase in air travel, with 43.7 million domestic passengers country-wide in 2010, a 22% increase from 2009. Total international passenger numbers also grew 20% to 9.6 million in the same period. Both numbers are expected to continue increasing in 2011 and beyond.

The pressure is now on to upgrade Soeharto-Hatta’s facilities. Like other infrastructure in Indonesia it has struggled to keep up with economic growth, and could be a barrier to further growth without improvements. The airport’s official capacity of 22 million per year is only half the 2010 total, and there is still no rail link to the city center. The government has acknowledged the problem and the airport’s state-controlled operator, Angkasa Pura II, plans to expand the newer Terminal 3′s capacity from 4 to 20 million passengers by 2012/13, starting April this year. Work on a brand new Terminal 4 will also begin this year, intended to take the airport’s total capacity to 60 million per year by 2016, and rumors have begun to circulate that the rail link will finally be constructed. A recent agreement with Japan will bring in US$31 billion investment in Jakarta’s transport infrastructure.

source & article: eTurboNews

Japan, Indonesia sign economic MoU

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More Japan stories: if anyone doubts Japan is still a major economic player in the region, this week’s news should set them straight. As its companies, tourists and investors continue to explore Southeast Asia, the Japanese government has reminded us that Japan will indeed finish 2010 as the world’s second largest economy despite pessimistic predictions otherwise.

Japanese Foreign Minster Seiji Maehara also visited Indonesia this week and signed a Memorandum of Understanding on economic development cooperation. The MoU falls under the Metropolitan Priority Area (MPA) program, designed to improve infrastructure in Indonesia’s urban areas and would see Japanese investment in roads, electricity, railways, water and ports. The main focus for now is improving conditions in Jakarta, but the countries would like to use their cooperation as a model for investment in other industrial areas, as well as a basis for improved social communication.

source & articles: The Jakarta Post, Wall Street Journal

Jakarta’s new street food vendor tax meets opposition

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Now, from Indonesia’s biggest tycoons to some smaller, yet just as essential operators: street food vendors in Jakarta have come out against city government plans to tax them should they earn over Rp 60 million (US$6,660) in a year.

The Jakarta government plans to introduce the 10% levy on the city’s over 2,000 street food stalls starting 1 January 2011. It is expected to bring in an extra Rp 50 billion ($5.55 million) a year in revenue. Vendors are claiming the new tax will hit struggling operators, who may make Rp 200,000 ($22) a day at best, too hard as they face increasing competition from other sellers. Others question whether most vendors would even reach the government’s Rp 60 million a year threshold.

source & article: The Jakarta Post

Update 12/7: The Jakarta government has postponed the new tax as its “implementation needs to be restudied” (from Antara)

Private sector to pay for improvements to Jakarta’s international airport?

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Indonesia’s State Enterprises Ministry is looking for ways to speed up improvements to Jakarta’s main international airport, Soekarno-Hatta, which suffers from aging facilities and overcrowding. The best solution, it hinted, would be a joint venture between the current government-owned operator and the private sector, perhaps even a foreign company.

Government enterprise Angkasa Pura (separated into Parts I and II) manages all air traffic and airports in Indonesia. AP II operates western Indonesian airports including Soekarno Hatta International. Hari Susetyo, the Ministry’s deputy for transportation and logistics, said that while AP ii was capable of making the necessary improvements by itself, a joint venture would speed up the rehabilitation.

Soekarno Hatta International Airport, Indonesia’s main gateway, opened in 1984 but has received criticism lately for being overcrowded and inadequate for the demands of Southeast Asia’s largest economy. Power outages and radar system crashes in recent years have led to disruptions and lengthy delays. Some are calling for the private sector to take complete control of the project.

Challenges facing those organizing improvements would be finding a local partner with the right expertise for the job, or finding an international operation which understand Indonesia’s needs. Angkasa Pura II is working on a feasibility study and blueprint for rehabilitation, along with investment guidelines for potential partners.

source & article: the Jakarta Globe

Jakarta’s Governor announces new elevated roads

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Indonesia’s capital will build elevated roadways to solve its chronic traffic congestion, says the city’s Governor Fauzi Bowo.

Although 890 new motorbikes and 240 new cars are registered with the police every day (an 11% annual increase), new roads are only being built at 0.01% a year. Since the government could not stop people purchasing new vehicles, Fauzi said, the best solution was to build more roads above the city.

The planned sections would be 12 meters above the ground and 9 meters wide, would be paid for from the regional budget and would not require any aquisition of new land. The first phase, about 5.5km long, has an estimated budget of Rp 1.3 trillion (US$145 million). Another 3.5km section would cost Rp 800 billion ($87 million).

While many agree the new roads were desperately needed, some have said that Jakarta’s traffic problem cannot be solved without improvements to public transport and better integration to offer commuters more options. The Governor seemed to agree, promising the government would “try to improve” the city’s public transportation.

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