Sumatra governors agree to start airline company
Sumatra governors agree to start airline company
Apriadi Gunawan, The Jakarta Post, Medan
The governors of nine provinces on the island of Sumatra
signed here on Friday a Memorandum of Understanding (MoU)
outlining regional economic cooperation that will result in a
number of initiatives, including the creation of an airline to be
named Sumatera Airlines.
The deal was signed at a meeting opened on Thursday evening at
the Tiara Hotel here.
The governors of Nanggroe Aceh Darussalam; North, West and
South Sumatra; Lampung; Jambi; Bangka-Belitung; Riau; and
Bengkulu, agreed in the MoU that the airline would be funded by
all provinces, with assistance expected from the private
industries operating in the provinces.
Before the signing, South Sumatra governor Rosihan Arsyad told
reporters that Sumatera Airlines would probably need total
capital investment of Rp 860 billion (US$86 million).
"The money will mainly be derived from the provinces' regional
budgets. It is hoped that the airline company will be in
operation by 2005," he said.
During a media conference prior to the signing, North Sumatra
governor T. Rizal Nurdin said that plans for the airline company
were not just a dream.
"The plan was based on the fact that Sumatra has been lacking
air transportation. Hopefully, in the future, all areas of the
island can be reached by air. This is what has motivated us to
establish the airline," he said.
Governor Rosihan denied speculation that prestige was behind
the initiative.
"Sumatrans have been heavily reliant on ground and sea
transportation. Whenever government officials want to fly, they
also depend on the existing airlines and have to travel via
Jakarta.
"If the North Sumatra governor wants to go to Jambi for an
official meeting, he should first fly to Jakarta and then take
another flight to Jambi. That has been happening so far."
He said that Sumatera Airlines would prioritize inter-
provincial flights.
"But flights to other cities outside the island will be
possible," he added.
The governors also agreed to establish other enterprises, such
as a shipping line, as well as database and information networks.
The South Sumatra administration will coordinate the airline
project and Jambi will be in charge of the shipping line,
according to the MoU.
The development of road, railway and electricity networks is
also covered in the agreement.