Eastern Europe : the new export market for furniture

Eastern European countries should be as the new export destination country for furniture production from Indonesia. However, cooperation on banks sector between banks in Indonesia with a bank in Eastern Europe, should start  pioneering now. Ambar Cahyono, Chairman of the Indonesia Association of Furniture and Handicraft (Asmindo), said, for time being the main export destination of Indonesia furniture is still to United States and European countries (excluding Eastern Europe). The current  export volume reaching two billion U.S. dollars per year.

U.S. markets are sluggish at this time, because not recover yet from the global financial crisis. Therefore, Indonesia should create a new market, which is probably the most are : Eastern European countries such as Russia, Hungary, and Bulgaria. The reason, the economic condition of Eastern European countries are not affected by the U.S crisis. In addition, the furniture is also interest by the customer in that countries. The Indonesia competitors only China. However Ambar sure the Indonesia products able to displacement China's dominance by put the right and fast strategy. The obstacles to penetrate the Eastern European market is banking. For time being there in no Indonesia banks  had co-operation with the banks in Eastern Erope. Indonesian have embassies in Eastern Europe that should be encouraged to participate. "However, because the embassy still new, so presumably less of capation ," he said.

The main Indonesian furniture products are made from teak. Each year needed around 600,000 cubic meters of teak for export. This amount is big enough so need to thin how to fullfill the raw materials. How is, of course, by doing the conservation efforts. In connection with that, Asmindo will plant 200,000 seedlings super teak in Central Java and Yogyakarta this year, starting in March 2009.The regions are in Kulon Progo, Gunungkidul (Yogyakarta) and Wonogiri and Tegal (Central Java).

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The Export-Import activities in Tanjung Priok Jakarta slip off

Export activities at Tanjung Priok Port, Jakarta, and other industries areas have decreased sharply. These conditions reflected by declining of ship visits and the amount of container that entry the sea-port and industrial area.  "Nearly no activity in our logistics depot. More and more slack, even continued toward to the lowest point. This is already started since December 2008, but the condition is now increasingly worrisome," said Gempa Nursyamsu Yasin, General Manager Logistics Regions PT Kawasan Berikat Nusantara (KBN).

Many of the warehousing and stack field at Jln. Akses Marunda, Jakarta is empty. "If there is no global crisis, this stack field very full. There are always activities. Nowdays is empty, container decreased 50 percent, "he said.  Usually, there are always loading and transfer of goods activities. "In normal conditions, the unloading and transfer of goods did not stop for 24 hours. Also there is no empty space at the logistics depot. Now there were containers which never move, "he said. PT KBN has three business areas, namely Marunda, Cakung, and Tanjung Priok. KBN logistics depot is located in Marunda the total area of 80 hectares. 15 hectares have been used for warehousing and stack field, able to accommodate at least 3,000 container. But currently only 1.500 containers left.

It looks similar in Tanjung Priok Port, Jakarta. The stack field appears unoccupied, for example around 2 hectares, on the west gate VIII. "These conditions have started since December 2008, but now become worst," said Hambar Wiyadi - Assistant Manager Customer Service and Public Relations of PT Pelindo II Tanjung Priok. He gave an example, the flow of goods which shipped to international trade in conventional quay in Tanjung Priok Jakarta, in January 2009 was 301,393 tons. That number had fallen around 17 percent compared with the same period in 2008, reaching 513,774 tons.

The container flow in January 2009 in Jakarta International Container Terminal (JICT) also decreases. In January 2008, there are 167,237 TEUs, in January this year (2009) had fallen around 27 percent, to only around 121,393 TEUs.  In the container terminal TPK Koja, the container flow also decreases 30-34 percent. In January 2008, there are 52,876 TEUs, which shipped abroad, but even in January this degenerate into 36,533 TEUs. Only in the conventional terminal increased to reach 89 percent.

According to Hambar Wiyadi, at this time the export activities are sluggish, the flow of ship arrival continued to decrease. In normal conditions, the scout ship serves 1500 per month. However, in November 2008 only 1,400, in December came down again into 1,300, and in January 2009 only 1,211 ship. The real crisis is also seen from the flow of goods and container vehicle transporter incoming to Tanjung Priok.  "In normal conditions, there are 7,000 trucks into the port. In November-December 2008 only 6,000 trucks per day while in January 2009 only 5,000 trucks. February is also bound to decrease. April is expected to have a normal, "said Hambar.

Head of Organda Unit Angsuspel Tanjung Priok, Mr. Sudirman Tanjung recognize the impact of global crisis are influnce the transportation sector. "During the production sector in the industrial slump, no transaction, and ship visits have decreased, clearly impact for the inland transportation services sector," said Sudirman. According to the Sudirman, transportation sector is also sluggish, declining to 25 percent of normal conditions. Order transportation services are also quiet. The impact of global crisis is worse from the domestic financial crisis.

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The Indonesia Textiles Export optimistic achieve 8 Billion U.S. Dollar

The Indonesia government is optimistic that total exports of textiles and textile products (TPT) in 2009 is able to achieve 8 billion U.S. dollars. "Our textile exports in 2008 reached 10.83 billion U.S. dollars. This year we have not known yet how many is the decreasing, but if decrease believe not more than 8 billion U.S. dollars," said Minister of Industry (Menperin) Fahmi Idris on the opening of the "Indonesia Japan Economic Partnership Agreement" (IJEPA) Textile and Apparel Industry seminar in Jakarta on Monday (23 / 2).

Fahmi Idris said in the middle of this global financial crisis condition, TPT industry meet the big challenges. Decreasing of the demand, limited working capital, the production decreased due to the use of old machinery and employee termination to be a constraint for the TPT industry.

However, in some developed countries, according to Fahmi Idris, the demand for textile products such as clothing so remain. "So also with the Japanese even though we remain optimistic with the number of different," he said. He asserted in 2008 the TPT industry is able to absorb 10.28 million total labor force. Related to the export market of the TPT industry, Fahmi Idris affirm, some actions have been taken by the government by penetrate the market in the countries of the Middle East. "In the near time we will do TPT exhibition there," he said.

Menperin also said, the relationship between Indonesia-Japan is not simply pure business. Meeting in the form of textile seminars with Japan also the development of technology and related technical industries. "Hopefully this can improve the implementation of the IJEPA, especially in TPT industry," he said.

Japan well known in the market has a textile character with high taste and fashion changes very quickly. Therefore, probing the markets and the exchange of information becomes very important  so the Indonesia product can enter the Japanese market with the right design, quantity, and quality of the product. "With this seminar we have to know the taste textile market in Japan because of a matter of commercial talk here will also be talking about technical products," added Fahmi.

Indonesian Still Lack 80 Million of Palm Oil Seeds

In connection with development of palm oil plantations, Indonesia is still short of about 80 million stalks of palm oil seedlings. Although considered the current stock safe enough, but the production ability of excellent oil palm seed still lacking. Government is planning to open the import superior oil palm seedlings for big plantation companies.
Darmansyah Basyaruddin, Director of Seedling and Production  Facilities Directorate General of Agriculture Ministry of Agriculture,  on destruction of illegal oil palm seedlings in the Lee U Village, Darul Imarah Subdistrict, Aceh Besar regency, on Tuesday (17/2), said, even though the number of seed production palm oil is still less, for the year 2009 this production capability is considered safe enough.
Darmansyah explain, eight units implementing technical and oil palm companies in Indonesia has potential to produce approximately 230 million oil palm seeds every year, equivalent to the development of oil palm plantations covering 1.1 million hectares.
However, according to Darmansyah, until now, every year the above companies,  only able to produce about 150-160 million seedlings of oil palm plantation superior. "Indonesia still lack quite a lot. But, we assess the seed supply conditions safe enough," he said.

U.S protection will not (too) affect the Indonesia Export

Coordinating Minister for Economy Sri Mulyani said the protection that the U.S. government apply will not affect the Indonesia export.
"We are more export on the goods of primary consumption, so may not be too influential," said Sri Mulyani in Jakarta Office of the President, on Monday (16/2/2009).
Related to the protection by the U.S., she said that all countries in general behave like that.
"All countries will do the same, on the current declining of economic growth, political pressure is usually practice to secure the domestic product," she said.
However, she continued, if all countries do (the protection), it will aggravate the financial crisis because all countries do not trade each other and then the world economy weakened.
"So Indonesia still use the protection, but still lead the flow of the trade," she said.
Sri Mulyani accompanying President Susilo Bambang Yudhoyono when receive the President of Asian Development Bank (ADB) Haruhiko Kuroda on the preparatory meeting to the annual ADB-42 in Bali, 2-5 May 2009.

Citilink open a new flight route : Surabaya-Makassar

The local airline company, Citilink optimistic the inaugural flight Surabaya-Makassar on Sunday (15/2/), will reach the passenger load factor level  100 percent of the 170 seats offered. "We believe the target load factor will be 100 percent filled. Moreover, Makassar has the potential of growing business and generally become a tourist destinations," said the Head of Sales Citilink Surabaya, Mochamad Helmy, in Surabaya, Friday (13/2).  By opening this flight route, Makassar expected be a center for passengers who want to have business in the vicinity of Makassar, such as Gorontalo, Manado, and Kendari. "Targetted of the passenger flight to Makassar are the businessman, professionals, students, and families," he said.

According to Helmy, this new route will be supported by 1 unit of the type of aircraft Boeing 737-400 with 170 seats. The flight frequency of once a day. Flight schedule is every 15:35 WIB with transit time about one hour 10 minutes. Then, departing again from Surabaya to Makassar every 18:35 WITA.  "Up to three months onwards, we give the promo fare of IDR 99,000.00 + + per seats or the net price is IDR 150,000 per seat. The normal condition in the benchmark price is IDR 250,000 - IDR 300,000 per seat. However, during the holiday can charge up to IDR 600,000, "he said.

In the promo price for these new routes, a quota of passengers to enjoy the promotion is expected to achieve 20 percent of seat capacity. While the remaining 80 percent of the capacity of seats will be sold at normal price.  This is considering we apply the limited quota seats during the promotion. In fact, during February to March we are free up the cost of  luggage up to 20 kilograms. When more than 20 kgs, will apply normal rates IDR 5,000 per kg, said Helmy.

Vice President of Citilink, Joseph A Saul, said, during the years 2008 Citilink has six new flight routes : Surabaya-Jakarta, Surabaya - Balikpapan, Surabaya - Banjarmasin, Surabaya - Batam, Surabaya - Ampenan, Surabaya - Kupang. "Since re-operate on 1 September 2008 until the end of the year, this company has 100,000 passengers fly," said Saul.

Garuda Indonesia and China Airlines increase the cooperation

Garuda Indonesia airlines and Taiwan's China Airlines to increase the passenger and cargo cooperation by signing the memorandum of understanding (MoU) by the President & CEO Garuda Indonesia, Emirsyah Satar, and President of China Airlines, Huang-Hsiang Sun, Thursday (12/2/2009) afternoon at the Conrad Hotel, Bali. The cooperation between Garuda Indonesia-China Airlines is the enhanced codeshare route Jakarta-Taipe from 30 seats to 60 seats and the Taipei-Denpasar route of 45 seats to be 90 seats. All flights are conducted by China Airlines with using the Airbus A330 aircraft and Boeing 737-400. Frequency of both routes are one flight per day.

Besides codeshare, cooperation also approved special prorate agreement (SPA) for the canal routes, either from Taipei with China Airlines' plane, to or from Jakarta and Denpasar with Garuda Indonesia's plane. In this year also will sound out the cooperation for cargo transportation route Surabaya - Taipei through Singapore and / or through Hong Kong. Cooperation is expected in August could have been done.

The cooperation of Garuda Indonesia with China Airlines actually already started since 1991 for the codeshare route Jakarta-Taipei (PP) and in 1995 for the route Denpasar-Taipei. According Emirsyah Satar, the passenger and cargo market route from Taiwan to Indonesia, is very large. "Exceed 650,000 passengers per year," he said. Emir ensure that this cooperation will continue until the time is not certain. "Even if later on Garuda will have their own plane and fly to (Taipei), this cooperation will not be stopped because the market is very big," he added. 

According to Executive Vice President (EVP) Commerce Garuda Indonesia, Agus Priyanto, as the result of this cooperation in year 2008, Garuda Indonesia get the income up to 7 million U.S. dollars. "At this year's projected increase in value to more than 10 million U.S. dollars," he said. Overall, the Garuda Indonesia income from various cooperation with many other airlines in 2008 reached 20 million U.S. dollars. Projected income in 2009 for this same work more than 30 million U.S. dollars.

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Singapore Airline reduced the flights route

Singapore Airlines on their performance report, on Wednesday (11/2/2009), say, until the third quarter last year, they still has a fleet of 101 aircraft. The fleet is consist of 14 aircraft B747-400, 76 aircraft B777, five A340-500 aircraft and six A380-800 aircraft, with an average aircraft age of six years five months.

However, the global economic crisis impact the buying power of the customers, therefore the airline has to reduce and even negate the route service. Flying flights to Manchester, Athens, Osaka, Seoul, Chennai, Bangalore, Penang, and Ho Chi Minh City has been reduced in that quarter. Since February 2009, flights to Amritsar has been abolished.

Meanwhile, the four times a week flight to Riyadh which passing through Dubai has launched on 14 December 2008. Then, the flight to Kuwait through Abu Dhabi will begin on 15 March 2009. Singapore Airlines will also add flights to Dubai, Abu Dhabi, Cairo, and Istanbul.

Tanjung Priok Port should expand such as Rotterdam Port

Vice President Muhammad Jusuf Kalla stated to increase the flow of goods become better and faster, Tanjung Priok Port, Jakarta should developed such as the Port of Rotterdam in the Netherlands. Therefore, the integrated expansion of development of Tanjung Priok not only completed eventually, but also increase the loading speed and flow of goods and increased networking with the other ports.

It was submitted by the Indonesia Vice President Jusuf Kalla after observe the Port of Rotterdam in the Netherlands Sunday (8/2/2009) afternoon local time. During his visit in Netherlands, the Vice President Jusuf Kalla accompanied by the Head of BKPM Lutfie M, Seswapres Siswadi AW. and the Ambassador of Indonesia to the Netherlands JE Habibie. In these visits the Vice President Kalla also accompanied by the Mayor of Rotterdam Achmad abou Thalieb.

"It is certain, Port of Tanjung Priok should be like Port of Rotterdam, not only the area, but the loading speed of the goods, services, and networking. Imagine that this port width 40 km, and become the first and largest port in Europe," said the Vice President. While the Mayor of Rotterdam very pleased can invite the Vice President Kalla going around with the Abel Tasman Ferry boat to see this port facilities. The Governor of DKI Fauzi Bowo which also accompanied Jusuf Kalla said, Pemda DKI have a wide area in Marunda which can be used to realization the intergrated port of Tanjung Priok. "Port of Tanjung Priok have to refer to the Rotterdam port," he said.

Indonesia export growth only 1 per cent

The slow-moving of global economy began to drag the Indonesia economy. The Indonesia export growth this year (2009) is estimated to be slowed compared to last year. At first the export growth were predicted 5 percent, but now estimated only 2.5 percent.  In fact he government already calculated, the export growth only 1 percent.

"That's far lower than the export growth last year, which is reaching 9-10 percent," said Minister of Financial position as well as the Coordinating Minister for Economy Sri Mulyani Indrawati in Commission XI Meeting of the House of Representatives in Jakarta on Thursday (5/2/2009). This meetings is about of the macro-economic assumption changes in 2009 budget.

Central Statistics Agency recorded the cumulative export value of period January-December 2008 reached 136.76 billion U.S. dollars. If the export growth predicted is only 2.5 percent, then the export value in 2009 is estimated to be only 3.42 billion U.S. dollars. However, if export growth only 1 percent, the value of exports in 2009 will grow only 1.37 billion U.S. dollars.

According to Sri Mulyani, the slow-moving of export growth in 2009  had calculated based on the realization of export, which continues to go down, starting in October 2008 until January 2009.  "We can expect the estimated exports in January 2009 based on the realization of exports through the Port of Tanjung Priok. We have monitor that our foreign trade volume is decreasing, both volume and value, "she said.

Due to declining export growth, the government must revised the target of economic growth in 2009.  In Budget 2009 the Indonesian economy will grow 6.2 percent. However, at the end of January 2009, the government revised a maximum of 5 percent. But a week after that, the government revised again the target of economic growth to be 4.7 percent.

Coffee exporters complain, the USA buyer directly buying from coffee farmers.

The Indonesia's coffee exporters feel disapointed due to the buyers from United States of America (USA),  cut the distribution channels when purchase coffee from Indonesia. "At this time most of the buyer from the USA. prefer to purchase coffee directly to the company's coffee plantations," said Rachim Kartabrata, Executive Secretary Association of Indonesian Coffee Exporters (AEKI), Monday (2/2/209).

In fact, all this time the coffee distribution from Indonesia to the USA should through a third person or distributor who had clasiffied as a Registered Exporter. Exporters also ask the government to set up of buy-selling coffee mechanisms. Exporters asked the government to urged the USA importer to follow the Ministry of Trade Regulations (Permendag) Number 27 Year 2008 about Export Coffee Regulations.

These rules require that the export of coffee only through the company that has been recognized as a Registered Exporter Coffee (Coffee-ET). This regulation is apply to all types of coffee, including Arabica and Robusta coffee.

Currently, the price level in the coffee farmers around IDR 13,000 per kg. Meanwhile, the current price of Robusta coffee in the domestic market is IDR 20,000 per kg, and the price of Arabica coffee around IDR 27,000 per kg. Instead of to meet the exporters inquiry, the Department of Trade even quibble the exporters should assist the U.S. buyers when buying coffee from farmers.

According to the Export Director of Agriculture Ministry of Trade and Plantations Yamanah AC, the government does not prohibit the mechanism purchasing by coffee buyers from abroad directly to the farmers. "Perhaps the purchase need to  accompanied by the registered exporter, if it can," said Yamanah. Furthermore, the direct purchase is benefit to the farmers.

Image source : www.sweetmarias.com

A Big Thank You...Top EC Droppers for January

Here are the list of my top EC droppers for January 2009. Thank you for your continues support of Quantum Indonesia Translogistic in January 2009.

Dropper                                       # of drops

A Simple Life                                      31
Mommy's Little Corner                        31
The Modern Mom                              31
Mutual Love                                       31
moms.....check nyo                            31
Authority Directory                            31
Life's sweets and spices                         31
Snapshotcap                                      30
ThingkingOutLoudBlog.com               30
The Path to the Pegasus Letter              30

Also thank you for everyone who continues to visit Quantum Indonesia  Translogistic and hope to see you again on my list for February 2009 Top EC droppers!

Global Airtransport Industry loss around 2.5 Billion U.S. Dollar

The International Air Transport Association, or IATA estimates members of the airline industry are losses around 5 billion U.S. dollars in the year 2008. As for the year 2009 estimated loss of 2.5 billion U.S. dollars.
Currently, IATA has 230 airline from 120 countries and has a total market share 93 percent, both from the flight with schedule or not schedule in the world. "Keep fasten seat belt and be ready to the flaming," the warning Giovanni Bisignani IATA Director General in Geneva, Switzerland, Friday (30/01/2009).

Losses in 2009 is calculated based on the price of fuel 60 U.S. dollars per barrel. IATA also estimate the number of passengers decreased by 3 percent and cargo traffic fell down 5 percent. Industry revenue is estimated to decrease 35 billion U.S. dollars from 536 billion U.S. dollars into 501 billion U.S. dollars in 2009.

The second largest airline of Japan, All Nippon Airways (ANA), also announced the first loss in six years. The causes, business travel to the U.S. and Europe had fallen dramatically in line with the global crisis. ANA estimated 9 billion yen loss, or 100 million U.S. dollars. Last year, net profit ANA reach 64.1 billion yen.

Malaysia Airlines also cut the fuel surcharge for international flight routes to 73 percent. This action is intended to encompass passengers. Elimination will reduce the cost of a ticket to China to 100 U.S. dollars. Flights to and from Australia and New Zealand experienced a decrease in the cost of an additional 210 U.S. dollars, the flight to the Middle East is cheaper to 150 U.S. dollars. Malaysia Commercial Director Rashid Khan said fuel costs remain the biggest and the additional cost of fuel is only about 30 percent cover the cost of fuel.

Russian airline, S7, states to cancel orders of 15 Boeing 787 Dreamliner aircraft worth 2.4 billion U.S. dollars. Cancellation was due to impact of global crisis. S7 says still interested in the 787 Dreamliner, Boeing aircraft rivals Airbus A350, and to assess to hire.

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