IATA: 2009 is the grim year of airlines industry

Airline industry associations (IATA) said the year 2009 is a dismal year, and estimates the airline losses this year will reach 4.7 billion U.S. dollars (3.4 billion euros) because of global economic conditions deteriorating quickly.
The new prediction which presented on IATA annual media event increased sharply compared to IATA estimates that in December of 2.5 billion U.S. dollars.
IATA also increase the estimated total losses of the airline in 2008 from 8.0 billion U.S. dollars to be 8.5 billion U.S. dollars. "The situation in the airline industry at present is bleak," said IATA Director General Giovanni Bisignani.
"The request came down far more quickly than with the economic crisis that has been anticipated even a few months ago," he added.
Demand is estimated to continue declining, with the passenger traffic drop 5.7 percent this year. Although at the end of this year are expected to be improved.
According to IATA, airlines of Asia-Pacific is experiencing the biggest loss this year is worth 1.7 billion U.S. dollars when demand fell 6.8 percent.
European airlines have predicted loss 1.0 billion U.S. dollars. The Middle East airlines lose 900 million U.S. dollars.
Only North American airlines will gain 100 million U.S. dollars, while they benefit from good management capacity and fuel prices lower.

Bank Indonesia encourage not using US Dollar for international transactions.

Sentral bank of Indonesia, Bank Indonesia (BI) to encourage the performer export and import to take advantage of the Bilateral Currency Swap Arrangement (BCSA) facilities and use Renmimbi in international transactions.
"So far, the market is using the U.S. dollar for international transactions. It is expected that in the future can use the Renmimbi facilities. Therefore the demand of U.S dollar could shrink," said BI Governor Boediono, when meet the press , in the BI building, Jakarta, Tuesday (24/3/2009) .
Boediono said in the year 2008, Indonesian exports to China reached 11.5 billion U.S. dollars, while Chinese imports to Indonesia reached 15.2 billion U.S. dollars. "Of that, oil and gas trade, many transactions are dominated by U.S. dollars. Dependence on the U.S. dollar so high," he said.
While for non-oil exports from Indonesia to China in the year 2008 reached 7.77 billion U.S. dollars. And imports from China to Indonesia reached 14.99 billion U.S. dollars. "For non-oil export, the largest commodity is palm oil, paper, chemical products, and coal, " he said.
Furthermore Boediono said will socialized this case with the market. Besides that, according to Boediono, investors from China who will inculcate their capital in the Indonesian can also use this facility. Rather similarly with investors from Indonesia to China. "In the future, if there is investment from China to here as well as vice versa should not depend on the U.S. dollar currency," he said.

Picture source: www.louisyagera.com

Volume export of textile to the Middle East down 25 Percent

The export inquiry of textiles and textile products (TPT) from West Java to Middle East, decline about 25 percent due to global crisis. Most of the industrialist trying to seek for other markets, especially to Asia.
President Director of PT Firman Jaya Dua Saudara, Eddy Soekwanto in Bandung, Sunday (22/3/2009), say, the countries export destination of his company is Dubai, Riyadh, and Jeddah. Volume export of this companies have decreased since November 2008.
"Previously, the volume export is around four container each month, containing 20 tons of textiles for each container, down into three containers. Quantity of TPT companies in the West Java with the main export to the Middle East also declined, the average one fourth," said Eddy.
He said, the decline in market demand to Middle East is considered is not too large compared to the United States and Europe. "If the United States market can be spelled out the horror. Europe is also the same, not better. So, many factories are simply survive," he said.

Nike keep order the shoes from Indonesia

One of the famous shoe manufacturer, Nike, states will not change their investment in Indonesia, and can still hope to develop business in Indonesia.

"Nike will close their four manufacturer, but none of these factories in Indonesia," said Minister of Industry, Fahmi Idris, in Jakarta on Friday (20 / 3). He received a message from representatives of Nike in Indonesia, John Richard, that states will not close their manufacturer in Indonesia.

Nike representatives in Indonesia was already said will reduce production in 2009, in the period 6 to 12 months. "U.S. as origin of Nike still see Indonesia is more secure place to invest and a business climate conducive," he said. Nike says it will stop the order from the manufacturer in four countries. "Indonesia situation considered most conducive compared with other countries," Fahmi Idris said.

So, plan termination order by Nike will not give a bad impact for Indonesia even have the possibility of adding order obtained by Nike factory in Indonesia. Termination orders for 4 Nike factories caused by decreasing shoes order around 20% from the world market. So far Nike has factories in several countries such as Vietnam, China, Thailand, and Indonesia.

National shoe production 1.2 billion pairs and shoes for the sport as much as 800 million and 60% supply by Nike. The national consumption of footwear 235 million pairs, which comes from 40%, or 94 million pairs and the remaining 60% (141 million pairs) came from imports.

Picture source : www.eukicks.com

30 Percent of Indonesia Labor Textile threatened terminatted

Textile and product textile export market (TPT), which is still bleak due to the global financial crisis will force the textile industry perform termination of employment of its employees. Of about 1.2 million workers in the textile industry in Indonesia, about 30 percent of potentially terminatted in the next period of April to July, said Jadin Jamaludin C, Chairman of the Industrial Sector and Small and Medium Handycraft Indonesia Textile Association (API) Center, on Wednesday (18 / 3). According Jadin, the termination peak on textile industry will occur in the future in April.

"The government dot not care about textile industry. Where are the policies that alleviate our sincere? For any banking business, the loan interest rate is not revealed. Neighboring countries such as Malaysia is also have a crisis, but banks already lower the interest rates and government has roll on the subsidies. Here, the the interest even increased, "he said.

In fact, if the government and urged the bank intends lower interest rates and easy installments, is only the a small problem of textile industry. The biggest problem now is that the export destination countries tighten regulations on imported products. The tighten for example, that do not want to do activities that used to be done, such as product design and quality control activities. They are also as much as possible back in time to pay. This is a loss making textile industry, because one impack is late to give on the employees salary.

Create a more Jadin passionate, foreign countries is actually very dependent on Indonesia. Nearly 100 foreign textile and product textile brands sold in a shopping mall and shopping center is made in Indonesia. For example, Triumph, Lea, Levis, Hammer, Arrow, and Kenzo.  "So, Indonesia make and  labeled with famous brands, then export. After that, the export destination countries, send it back to Indonesia to buy by us. Indonesia is similar to sewer," said Jadin.

In other words, Indonesia has failed to market itself in their own domain. When the current government annouced to use the domestic products, even to issue a presidential instruction, Jadin mention that already late and just make him laugh. The government have always late to think and act.

The termination threat in the textile industry is now wide yawn and keep it going but no real action from the government. In Jogjakarta, the situation is the same. "From an 20,000-employment in the textile industry, 30 percent of threatened being terminatted," he said. Also mentioned, of Jogjakarta textile and product textile  is 1 percent of the total national figure. Textile industry, most or about 60 percent are in Bandung, West Java.

Pic. source : www.its-raining-men.com

Indonesia Department of Transportation : MD 90 eligible to fly

A series of audits by the Ministry of Transportation of the McDonnell Douglas-90 (MD-90) aircraft, from Wednesday (11 / 3) to Saturday (14/3) in Jakarta and Bandung, declare that the MD 90 plane still eligible to fly if treated properly. Currently only airline Lion Air company to operate the MD 90 plane, which amounted to five. All MD 90 aircraft is produced between 1996 and 1998.

"Of the five aircraft, we recommend the two aircraft may have operated, that is, the MD 90 aircraft with registration number PK-LIK and PK-LIP," said Director General of Air Transportation Department Herry Bhakti, while meet the press in the grounding MD 90 owned PT Lion Mentari Airlines. Herry also said, MD 90 aircraft registration PK-LIO which emergency landing at the Hang Nadim Airport, Batam on Monday (23/2), allow to fly after repair the front wheel. Improvements are estimated to spend three months. The MD 90 aircraft with the registration PK-LIM is currently undergoing treatment at the Husein Sastranegara Aiport when audit performed.

Audit is based on the civil aviation safety regulation part 21 and part 25 also staff  maintenance instruction 8300 inspector handbooks.

"We not only see the proper aircraft, but also the system in the airlines concerned. Coincidentaly all MD-90 operated by the same company, "said Herry.

Gradually Department of Transportation will audit the flight thoroughly. Audit of MD 90 is one of the Department of Transportation efforts to reduce the accident flight. "The bad weather is not our concern. We do what can be done, not only check the physical plane, but also train the technicians, "said Herry.

General Director of Lion Air, Edward Sirait said since the beginning Lion Air receive of the audit to all the MD 90 aircraft. "We just follow the regulations and regulators demand," said Sirait.

World Bank : the current economic crisis is serious and dangerous

World Bank President Robert Zoellick in London, England, on Thursday (12 / 3) said, the current economic crisis is serious and dangerous. The world economy likely contraction 1-2 percent in 2009. Banking turmoil and the market fears continues to be the cause factors.

"We have never seen numbers like that since World War II, which means that since 1930. So, now this is a time of serious and dangerous, "said Zoellick to the British daily, The Daily Mail, Thursday.

He said that after seeing the Japanese who fall into recession. World, which is the Japanese export market, loss of buying power  descend Japanese export products such as cars and electronics. Toyota and Sony incentive reduce the production planning, even cut of the jobs.

Unemployment numbers in the U.S. continues to increase, also in Australia is the highest in the last four years. Output of the industrial sector in China decreasing starting early 2009. News the company loss and also assets owned by the state continues to add pop bad perception of economic problems and this is happen in almost all corners of the world.

Norwegian Central Bank Governor Svein Gjedrem in Oslo, Wednesday, the fund manager owned by the state pensioners have loss 71.5 billion U.S. dollars due plummet of value of investments in shares and securities in the money market and capital market.

FIFA President Sepp Blatter in Manchester, England, on Thursday, said, "tsunami" will hit the financial rivalry football.

Global economic crisis, nickname for the decline of economic activities, as well as impact to African Continent. Exports of natural production from Africa was descend rapidly. On the other hand aid from developed countries to the poorest countries, most in Africa, also drop and this situation threatens the poorest people in Africa.

In the middle of the scowl, only Jamie Dimon, JPMorgan Chase & Chair Co. in Washington, United States, on Wednesday, said the recovery has been begun. He said one of the reasons is bond market starting to active, which means that investors are willing to buy debt letter.

However, the Governor of Central Bank of the United States Ben Bernanke, on Thursday in Washington, asserts that the U.S. banking system facing worst crisis since 1930-an. The banking system paralyzed with a series of bankruptcy that makes banks reluctant to provide credit and economic stalemate.

MD 90 aircraft operated by Lion Air disallows flying

Indonesia Ministry of Transportation temporarily prohibit all MD-90 aircraft operated by Mentari Lion Airlines in serving commercial airlines. All the airplanes  will be reviewed by the Directorate of Air Proper and Aircraft, Dept. of Transportation.
"We will check the aircraft associated with the treatment. What is still feasible or not, if not will be grounded. The inspection will be done during the three-four days," said Director General of Air Transportation Dept. of Transportation Herry Bakti S Gumay in Jakarta on Tuesday (10 / 3 ).
Grounding is associated with trip over of Lion Air aircraft PK LIL MD90 with flight number 937 at the Soekarno-Hatta Airport, Cengkareng, on Monday (9/3). Two weeks earlier, other MD90 also failed landed at Hang Nadim Airport, Batam.
Besides the aircraft, Herry Bakti said, the pilot who operating the aircraft was also will be grounded for a month.

Rice export will not in big volume

For this year 2009, the government is not too confident to export rice in big volume. According to the plan, the government will only export around 100,000 tons.
"We will not too confident exporting in large amounts. As starting around 100.000 tons first, not exported in millions tons," said Minister of Agriculture Anton Apriyanto in the fifth World Islamic Economic Forum in the Ritz Carlton Hotel, Jakarta, Tuesday (3 March).
According to him, Indonesia has a region that is too broad and thus requires a solid stock of rice. "We will not be playing with this stock," he said.
Anton said, Indonesia should do the export of rice because of increased production will start in the third quarter and will reach its peak in the IV quarter.
"We also had achievement of exporting 50,000 tons in 2005, and hopefully will increase this year," he said.

Sriwijaya Air open 3 flight routes in eastern Indonesia

One of the Indonesia airline company - Sriwijaya Air - now starting to open the commercial flights in eastern Indonesia. North Sulawesi, Papua and North Maluku became the target of the route this month.
Head of PR Sriwijaya Air Ruth Hanna Simatupang said, in order to expand the network services, Sriwijaya Air will re-open the route Jakarta-Surabaya-Manado route, and new route such as, Jakarta-Makassar-Manokwari-Sorong and Jakarta-Makassar-Ternate. "These routes will be opened at the end of March 2009," Hanna said in Jakarta on Tuesday (3 March 2009).
The purpose of opening a new route and also the additional route is merely to serve the Sriwijaya Air customer in Indonesia could able to travel to whole Indonesia with the aircraft. "It is expected that the efforts and commitment will be more place Sriwijaya in the hearts of the customers," said Hanna.
In addition, the purpose of Sriwijaya Air to open a route in eastern Indonesia is to help the implementation of the national transportation system program "to unity" all cities in Indonesia.

Manufacturing and agricultural export drop up to 70%

The global crisis had impact the Indonesia export of manufacturing and agricultural products which descend rapidly to 70%. This occurred during the period of the last three months, since December 2008 until February 2009. Usually, the value of export manufacturing and agricultural products reached U.S. $ 9 billion to U.S. $ 11 billion per month. "But, now the value is decrease about 70%," said Secretary General of Association of Indonesian Exporters (GPEI) Toto Dirgantoro. The export performance decline sharply because buying power in a number of countries are weakening. Some of the country's most sluggish market is the United States, Europe and Japan.

The decling of export performance of manufacturing and agricultural products is very far from the average decline in Indonesian exports. In the last quarter 2008, total exports of Indonesia drop only 20%. This decline also influence the export activities i.e loading and unloading at the port. Many companies with main business of export services has consecutive closed. "The decline in exports will continue until the first quarter or first quarter of this year.

A lot of manufacturers products that fall in the export market. But, the most is the textiles and textile products (TPT) and footwear. Meanwhile, agricultural product is rubber and crude palm oil (CPO). In fact, if there is no crisis occurs, most of the exporters believe, this year the exports will grow 12% -14% compared to a year 2008 which reach 120 billion U.S.%.

The Association of Indonesia Textile (API) recognizes the export performance of the textile and product textile (TPT) began to wane. "But, the exact data would be available in May," said G. Ernovian Ismy, the API Secretary Executive.  So far, there are some companies that are still receiving TPT export orders to May 2009. "But, we are concerned after this May. The TPT producers do not get more orders," said Ernovian.