'Bilateral accords to stress Batam air cargo access

JAKARTA (JP): New bilateral air agreements will stipulate that all large air freighters must load and unload at Hang Nadim airport on Batam Island near Singapore, Minister of Transportation Haryanto Dhanutirto said yesterday.

The government wants to turn Hang Nadim airport into an air cargo hub and will make all its bilateral air agreements accordingly, the minister said.

But the rule on air freight loading and unloading at Hang Nadim will only be applied to big cargo jets which do not carry perishable goods.

"If they carry perishable goods, they may fly directly to Manado or Ujung Pandang," Haryanto said.

According to the government's plan, air cargo from Batam will be distributed to other parts of the country by feeder freighter services operated by domestic airlines.

The plan will help develop Batam airport and domestic cargo carriers, he said.

The plan does not affect cargo companies operating in Indonesia because none of them operate big cargo jets.

"They may continue their operations as they do now," he said.

The government has not yet issued a ruling on air cargo services to Batam but its plans for Batam have influenced all negotiations on air cargo services to Indonesia, Haryanto said.

Haryanto said the ministry had rejected an application from the Federal Express cargo company of the United States to fly big cargo jets to the country.

The Hang Nadim airport has been renovated to become an international airport with its runway extended to more than four kilometers for jumbo jets. But its cargo terminal has been dismissed by freight companies as inadequate for international cargo.

Haryanto said the facilities at the airport's cargo terminal would be further developed by the airport authorities or cargo companies.

"The authorities of Batam cargo terminal have to complete the facilities there in four to five years. Otherwise, we shall drop the plan," he said.

The plan to make Batam airport a cargo hub requires a cargo carrier network linking Batam to other parts of the country. Only one scheduled air cargo company, SMAC (Sabang Merauke Air Cargo), flies from Batam to Singapore and Balikpapan daily.

Haryanto said the cargo carrier network linking Batam and other parts of the country would develop gradually.

But the plan has been criticized by businessmen as another new cost to business.

Rene Dotulung from PT Cardig Air, a domestic warehousing and cargo handling company, told The Jakarta Post the plan would be a boon to domestic airlines but would raise industrial enterprises' costs.

"I think the government should pay more attention to our manufacturing industries than to our airlines." Dotulung said. (jsk)