MRA Signs Sponsorship Agreement for MRA Bali International Triathlon.

Indonesia's MRA Group has signed on as the main naming sponsors of the Bali International Triathlon set for Sunday, June 29, 2008.

The three-year agreement between Bali International Triathlon (USA) and MRA (Mugi Rekso Abadi Group) means that the more than 34 companies operated by the Indonesian group have entered into a marketing alliance that will showcase their wide range of products via the popular international sporting competition held on Bali's Jimbaran Bay.

The MRA Group
Among MRA's diversified areas of business are:

Media Division
• Cosmopolitan Magazine • Spice Magazine • Cosmo Girl Magazine • Harpers Bazaar • Good Housekeeping • Auto Car • Trax • Bali & Beyond Magazine • FHM • IP Entertainment (Impresarios and Artist Agents) • Men's Fitness Magazine (To be Launched in 2008)

Broadcast Division
• Hard Rock FM • Trax FM Radio • Cosmopolitan FM Radio • I-Radio FM • Media Network Indonesia

Retail & Lifestyle
• Bulgari Jewelry • Bang and Olufsen • Vision Home Entertainment

Food & Beverage Division
• Hard Rock Café • Haagen Dazs Ice Cream

Automotive Division
• Ferrari Maserati • Harley Davidson

Hotel & Property Division
• Bulgari Hotels & Resorts (Indonesia)

MRA Bali International Triathlon
Four Seasons Resort Bali at Jimbaran Bay will serve as "race central" for the MRA Bali International Triathlon on June 29, 2008. The Olympic distance event is the only international-caliber triathlon held in Bali.

Jimbaran lies on the western side of Bali's narrow southern isthmus, located on a sweeping bay that curves from the southern side of the airport to the bushy headland that borders the Four Seasons Resort. The event is comprised of a 1.5-kilometre swim in the warm waters of the bay, a 40-kilometre bike ride from the edge of Jimbaran Bay through hilly paved roads to Nusa Dua looping back to Jimbaran, and a 10-kilometre mostly-flat run on paved roads through Jimbaran and Kedonganan villages ending with a beach finish at the Four Seasons Resort Jimbaran Bay.

In its inaugural year, the event attracted more than 150 athletes from 16 countries. This year, athlete participation is slated to increase significantly with the event also expected to attract a large number of spectators to watch the race and partake in the music and festivities at "race central." On Saturday, June 28th, the day before the race, the Four Seasons Resort will be the meeting venue for the athlete briefings. In the evening, this setting on the Indian Ocean will be the venue for the athletes' high carbohydrate Pre-Race Dinner, designed and prepared exclusively for the occasion by the Four Seasons' world-acclaimed chefs.

To welcome the athletes, The Four Seasons has dedicated all of their 7 elegant Private Estates to providing housing for the participants and their families. Located along the beach and just steps away from the start and finish lines, the Private Estates have been specially priced for race participants.

Official Hotels
The Four Seasons Resort Bali at Jimbaran Bali and Intercontinental Bali Resort are serving as the official hotel partners for the MRA Bali International Triathlon.

A Truly Balinese Event
Spiritualism dominates every aspect of daily life on the Hindu island of Bali with the MRA Bali International Triathlon also includes a bike blessing Prayasita ceremony in addition to a Majaya Jaya ceremony to bless and ensure the spiritual protection of all the participants and to neutralize any demonic forces. A Pemangku priest will conduct the ceremonies, using special offerings including fruit, yellow coconut juice, grains of rice, sandalwood powder and young coconut leaves tied with white thread and Chinese coins. Further adding to the special character of the event, Balinese musicians and sarong-clad race marshals will be stationed along the race course to guard and entertain the racers as they pass through traditional villages.

Gianyar Villas Must Employ Security Guards

The Bali Post reports that commercial villas in Bali's Gianyar regency will now be required to employ at least one security guard per decision issued during a meeting between hotel, villa and homestay owners with the Regional Security Council (MUSPIDA) held in Ubud on Monday, March 24, 2008.

The meeting was attended by Gianyar's Regent Tjok Ace, the Regency Police Chief Dedy Dhia Dharma, the Chief of Gianyar's tourist office Dewa Nyoman Alit Arinatha, Colonel Adrian Poto of the Gianyar military command, Ubud's Camat Dewa Suardana and numerous tourism accommodation operators

Data provided by Gianyar police shows that 120 commercial villas in the regency are operating without the assistance of security guards.

At the meeting, the Head of the Regency’s Tourism office, Dewa Alit Arinatha, admitted that there have been thefts, murders and crimes of fraud that have affected tourist visitors to Gianyar. According to Arinatha: "A sense of security and well-being is the basic need of every person. This is even more the case for tourist vacationing in Gianyar."

A Guard for Every Villa

The Chief of Police for Gianyar, Drs. Dedy Dharma, said the presence of security guards at every villa is now a requirement. This is needed to prevent crime.

Meanwhile, the Regent of Gianyar, Tjok Ace, called for coordinated action between the local community, business people and the government to create genuine safety in the area. In this regard, Tjok said the hoped all accommodation providers will acquire official safety and security certification which includes the employment of trained security guards.

Australian Winemaker Joins Hatten Wines

Australian-born Don Buchanan has been appointed as Managing Director of Hatten Wines based in Sanur, Bali.

Raised in Melbourne, Buchanan has had a life-time affiliation with the wine industry in Australian and abroad. After completing an Agricultural Science degree in Victoria, Buchanan pursued further studies in Oenology at the world-renowned Roseworthy College Campus in South Australia. During school holidays the young, aspiring winemaker worked at many of Lindeman Wines facilities throughout New South Wales, Victoria and South Australia.

After finishing his degree, Buchanan's first appointment was as assistant winemaker at the Karadoc Winery near Mildura in Victoria. Following several years at that facility, he moved on to gain more practical experience at Lindeman, Leo Buring, Kaiser Stuhl, Krondorf, Buchanan Wines, Arrowfield and Tisdall, & Hopwood.

Among the awards won by Don Buchanan are the Bacchus Trophy; Qantas Trophy; The Red Wine Awards from Jimmy Watson; - and the prestigious "Winemaker of the Year" award.

Most recently, Buchanan established Buchanan Wines Vineyard and Winery in Tasmania specializing in super-premium cool climate wines. He has also created a micro-brewery at Rosevear's Hotel in the Tamar Valley and consulted Boag's Brewery in Tasmania.

With a love for cooking, good food, fine wine, and flying (Buchanan pilots his own 2-seater Ultra Light Plane) - Don and his wife, Judy, are looking forward to using his varied experience to build on the established success of Hatten Wines.

Smooth Sailing Ahead

Indonesia's Meteorology and Geophysics Agency reports that the high seas and nasty weather that have plagued Bali in recent weeks will soon be at an end. As reported by Tempo Interaktif, Furqon, an official of the Agency, said on March 17, 2008, "waves will be at a maximum of 3 meters, and that only in the southern part of the Island."

Furqon went on to explain the wind speeds have reduced and the cyclonic and convergent winds are no longer an influence on the weather for Bali. The forecaster also said that waves with a height of 2-3 meters that have threatened fishing boats and tugs are now limited to the water south of Banten and the Sangihe Taulaud islands in the Halmahera Sea.

Waves of 1.25 – 2 meters will be encountered in the waters off Western Sumatra, the Sunda straits, the southern waters off West Java until western Nusa Tenggara, the Natuna Sea, the waters east of the Riau islands, the Sulawesi Sea, the Maluku Sea, the Seram Sea, the water off northern Papua, and the Arafuru sea. Waves of this height, according to Furgon, are only a problem for local fishing boats.

The signaling that severe weather across Indonesia is on the decline is welcome news. Unusually large waves and high winds have played havoc on Indonesian shipping during the first 3 months of 2008, been blamed for several mishaps at sea and forced fisherman to remain in port. High seas have also disrupted the power grid for Bali and Java, preventing ships carrying coal supplies for state-owned power plants from replenishing fuel stocks.

Stephen McMahon, a Western Australian Property Valuer and Frequent Visitor to Bali Outlines His Ideas on What Must Be Done to Make Bali Sustainable.

Balidiscovery.com coverage on desires by Bali officials to impose an additional charge on visiting tourist [See: Bali Seeking More Airport Fees from Visiting Tourists] prompted a thoughtful response from a Bali Update readers who spreads his time between Bali and Perth, Western Australia.

Stephen McMahon is a licensed property valuer with over 40 years of experience in Australia and Southeast Asia that includes 20 years of regular visits to Bali. Along the way, he has developed a strong interest in the areas of heritage, environmental issues, planning and service infrastructure.

Opinion – Stephen McMahon

Here's what Stephen wrote Bali Update to say:

”Thanks for your recent article on this issue.

As a regular visitor to Bali over many years and as an experienced developer and professional consultant, I would like to contribute to this debate.

Firstly, let's recognize that many of the environmental issues and poor infrastructure (in Bali) are a result of many years of neglect and that neglect has been generated by the lack of funding not desire.

It does not serve Bali or any of its representatives, publicly disputing issues of raising funds from tourist on any basis.

Bali is in desperate need of a long term solution and short term action to address serious environment and infrastructure issues and must, over the next few years, take some real progressive decisions.

The main issues facing this Island is not increasing tourism and economic investment but catering for the demand of it and the expansion of its local population that is both sustainable and one which considers long term impact and benefit.

To summarize, some of the main issues and challenges are clearly:

• Rubbish and waste disposal.

• Tip site clean ups.

• Drainage - particularly in commercial areas.

• Sewerage treatment and reticulation planning and implementation.

• Power supplies.

• Road maintenance and traffic regulation.

• Provision of water supply to regional and village environments.

• Health matters in respect to local inhabitants and facilities that cater for local people.

These are in the main, public works that would not only clean the island and protect its environment but also provide much needed training and employment - a possible resolution for increasing street gangs and violent youth, born out of boredom and increasing breakdown of social values that also threaten the island's economy as much as environmental destruction.

Additional airport fees (imposed) on a tourist is a Band-Aid solution and would seen as a penalty for visiting the island, whether on arrival ,or worse, on departure when tourist have little left.

Despite popular local belief that all tourist are rich, the majority of tourist are basic family units and such cost are multiple for a family and impact on holiday decision making.

The fact that there is already political challenge as to charging the fee on a State-owned enterprise, raises the obvious (conclusion) that it won't happen and Bali cannot wait for too many more years to address these issues before tourism is seriously damaged by health, social and environment issues.

Of the many issues facing Bali, there is probably none less (pressing) than the silent but continuing stream of migration from Java, without limitation, that further tax the island's already antiquated infra-structure.

Electricity supply is (another) point in case where the whole Grid system is incapable of regulated supply, yet the demands placed upon it by just local migration is a rapid recipe for disaster.

Bali host worldwide seminars for all manner of things including policing in the region, environmental issues affecting the globe, carbon emissions reduction, economic reform in Indonesia and so on - and they are all well presented and are applauded but it is time that Bali became a little more self-indulgent and invested in its own think tank on the means to raise capital and how to direct it for social reform for its people and the replacement, renewal and upgrading of infrastructure to protect this island's culture, tourist industry and environment for the next 100 years.

It is no longer acceptable to keep cleaning and repairing hand-dug rockwork drains that are choked with refuge and disease beds in themselves, to allow even a greater volume of pollutants and raw sewerage to poison the oceans that surround Bali.

It is no longer acceptable for concentrated large commercial developments and tourist hotels to install septic waste disposal systems in an already and tragic toxic water table in the main Kuta area and that of Denpasar.

It is no longer acceptable for the way rubbish is collected and disposed of in sensitive mangrove areas or nearby residential areas that breed disease.

It is no longer acceptable for the children of Bali to suffer from sores from the lack of clean water and is also not acceptable that the Balinese people have to compete for health care cost, not designed for their affordability.

The issue is as always funding, but the solution is in the resolution of obtaining it, not in the dispute of a one source solution from a target sector.

If I could be so bold, a Rp 10,000 fee on departures would most likely end up dissipated by overheads and charges of some description and the capital raised would not get anywhere near the funds needed to resolve some or any of these issues.

Local politicians may be better placed to argue the case for Bali in Jakarta as a sustainable tourist destination of Regional and, indeed, world significance. And, if the Central Government wishes to maintain the cash flow that it takes annually (from Bali), then it must re-invest in this island and that may even take the form of providing a one-for-one matching rupiah raised by Bali for Infrastructure and social reform investment.

At the end of the day, the redevelopment of this island to protect itself and its future should be the responsibility of the whole of Bali and whilst tourism can and, by the way, does support this island in many other ways than just tourism spending, they are not the solution to all manner of things. It is a future disaster for the Balinese at any level to think in those terms.

Capital raising needs structure and it can come from not only tourist but local inhabitants that can afford to contribute as well as business both domiciled in Bali and those company's and businesses that are based outside of the island but that enjoy its rewards."

Dengue Cases Among Western Australian Visitors to Bali on the Rise. Some Practical Tips for a Healthy Bali Holiday.

A three to four-fold increase in the number of cases of Western Australian (WA) travelers stricken by Dengue Fever shortly after a Bali holiday has caused the Acting Director of Communicable Disease Control in WA, Dr. Gary Dowse, to issue warnings against mosquito bites when visiting the holiday island.

According to Dr. Dowse, 54 WA travelers contracted the malarial disease in 2007 with a further 16 cases reported in January 2008. 60% of the WA infections of Dengue Fever were linked to Indonesian travel with 76% of those cases linked to Bali visits.

Other cases reported in WA have been tied to visits to Thailand, Singapore, India, Vietnam, and the Philippines.

Things You Need to Know

• Symptoms - Dengue is a mosquito-borne illness that will manifest itself 3-14 days after being bitten by an infected insect. Symptoms vary, but include severe headache, aching joints and muscle, pain behind the eye, nausea and rashes.

• Treatment -Those who receive medical treatment almost universally recover completely from Dengue. A rare, but highly dangerous, form of the disease is Dengue Hemorrhagic Fever can lead to profuse bleeding necessitating transfusions.

• Precautions

- Those people visiting areas where dengue infections are being reported should avoid outdoor exposure in areas of "high mosquito activity," particularly at dawn and dusk.

- Stay in mosquito-proof accommodation. Sleep under a mosquito net, if there are mosquitoes seen in your sleeping area.

- Wear trousers and long-sleeved clothing when outside in mosquito-ridden areas.

- Use repellents containing diethyl toulamide or picaridin which are available in both lotion and gel forms. A popular local brand readily available in Bali is Autan.

- Children and infants need special care in terms of protective clothing and protected sleeping areas. Make sure repellents are rated safe for use by children.

Adam Air predicted in coverage

The worst fears for Indonesia's Adam Air predicted in coverage on Balidiscovery.com have come to past. The Indonesian Department of Transportation has banned all airplanes operated by PT Adam Sky Connection Airlines - the owners of Adam Air, from performing any commercial flights. With their operating permit suspended, Adam Air has been given 3 months to revamp its operation or face the permanent suspension of the air operating certificate (AOC) held by the carrier.

The Director General of Civil Aviation, Budhi Mulyawan Suyitno, told the Bali Post on Tuesday, March 18, 2008, "the banning of all flights by Adam Air are stipulated in a decision from the Directorate of Air Communications number AU/1724/DSKU/0862."

Budhi announced that the grounding of Adam Air took effect from Wednesday, March 19th at one minute past midnight. According to the Aviation Regulator, the decision to ground the Airline was made after a number of deficiencies were discovered in operation areas, manpower regulation and aircraft maintenance. According to Budhi, the preliminary investigation of a recent non-fatal crash of an Adam Air flight in Batam uncovered a number of significant deficiencies, including pilots who were apparently witless on how to handle an in-flight emergency situation.

The Government determined that Adam Air had failed to perform the required training and supervision functions in the implementation of standard-operating-procedures for their fleet of Boeing 737s. Because of this, shortly before the grounding, the Government assumed control of the Airline's check pilot proficiency program for pilots and instructors employed by Adam Air.

In reviewing Adam Air's maintenance programs the Government also found that several spare parts lacked required air worthiness certification.

Like nails in a coffin sealing the Airline's fate, within a single month Adam Air crashed a plane in Batam; saw a 50% investor in the Company suddenly withdraw financial support; was forced to return aircraft to leasing companies when charter payments were missed; and was eventually grounded by a Government order. To some extent the grounding order by the Indonesian government was rendered moot by an almost simultaneous announcement from the Airline that they would suspend services due to their inability to meet an insurance premium payments.

At its commercial height's, Adam Air operated 7 flights a day to Bali's Ngurah Rai International Airport.

More Bad News to Come?

The world of troubles befalling Adam Air precede the anticipated issuance in late March 2007 of official findings surrounding the loss of an aircraft with all 202 souls on board that occurred near Sulawesi on New Year's Day 2007.

Indonesia's Adam Air facing debt crisis

Indonesia's low cost airline, Adam Air, could be facing closure after two of its largest shareholders withdrew their support.

The government says its operating permit will be cancelled in three weeks if the company can't meet its financial and safety obligations.

A plane crash last year, in which all 102 passengers and crew died, and another minor accident last week have soured the public's view of Adam Air.

Radio Australia's Karon Snowdon says now the company's president, Adam Suherman, has told local media the company is in default of debt repayments and won't be able to pay its insurance bill due on Thursday.

The Bhakti Investment consortium wants to sell down its 50 per cent shareholding acquired last year, placing Adam Air in crisis, according to Tom Ballantyne from Orient Aviation Magazine.

"Well it does deserve its tainted reputation as do other airlines in Indonesia ... it certainly is not a surprise that this has happened to Adam Air," he said.

Indonesia's beleaguered low-cost carrier Adam Air

Indonesia's beleaguered low-cost carrier Adam Air has been grounded over safety concerns, the head of air transportation said Tuesday.

The carrier has had a string of accidents over the last two years and is on the verge of bankruptcy after two of its largest shareholders announced plans to pull out. It has recently sliced its number of routes from 52 to 12.

The carrier began operations in 2003 and at its peak had 22 aircraft that flew across Indonesia and daily to Singapore and Malaysia. But accidents and financial problems have recently plagued the airline, one of a surge in carriers in Indonesia over the last 10 years.

Last year, one of its jetliners plunged into the sea from 10,000 feet (3,000 meters), killing all 102 people on board. Another plane broke in half on a hard landing. And last week, a Boeing 737-400 skidded off a runway, injuring five people and badly damaging the aircraft.

Budhi Mulyawan Suyitno, director general for air transportation, said the airline would stop flying as of Wednesday.

"It is no longer allowed to operate any of its aircraft," he said, adding that the Transport Ministry had found its operating and maintenance standards inadequate and training of personnel substandard.

An investigation into last week's accident showed "the pilot had no idea what to do in an emergency situation," he said.

He said Adam Air's operating license would initially be suspended for three months and would be withdrawn for good if there were no improvements by then.

Founder Adam Suherman, whose family owns a 50 percent stake in the company, said he was not surprised by the decision.

It came less than 24 hours after Global Transport Service and Bright Star Perkasa — the two companies that together control the remaining 50 percent stake — said they were selling their shares back to the owner. They cited financial mismanagement.

Suherman said this week that Adam Air had defaulted on debt payments to plane leasing companies.

The conflict with the other shareholders had affected the moral of the pilots, Suherman said: "That in turn would affect their performance. It is very dangerous."

Dozens of airlines emerged after Indonesia deregulated its aviation industry in the 1990s, raising concerns that growth has outpaced the supply of trained aviation professionals, regulatory oversight and ground infrastructure.

The government carried out a review of all 20 carriers following a series of accidents last year, including one involving the national carrier Garuda that killed 21. It concluded that none of the airlines met all safety requirements.

The EU has slapped a ban on all Indonesian airlines and the United States warned its citizens that they do not meet international standards.

In the week leading up to Easter – Bali is booming!

Indonesian airline Adam Air seems to be in serious trouble, both in the air and on the ground. In a single week the Indonesian low cost carrier had a bad landing, got an “or else” warning from the Minister of Transportation and may have lost financial support from its major investor. Can things get worse? Probably. The final report on Adam Air’s January 1, 2007 crash that killed 102 people is due in the coming two weeks.

There’s also news of an Indonesian expedition to climb seven mountains on seven continents to help celebrate Visit Indonesian Year 2008; a call to cut hotel & restaurant taxes by 50% with a denial from VP Kalla that he ever supported such a move; moves to improve security at villas in Gianyar (Ubud); the jailing of a former warder at Bali’s main prison on drug charges; and an update on lobbying efforts to have 3 Bali sites named to UNESCO’s list of World Heritage Sites.

We’ve also got reactions to the reduction in sentences for three of the “Bali Nine”; the final results of the Salon Culinaire Competition held last week in Bali; the return of a familiar face with the appointment of Jean-Charles Le Coz to the Nikko Bali Resort as General Manager and a report on the need for more direct flights between Bali and Moscow.

What better place to celebrate St. Patrick’s Day on the Indonesian Emerald Isle than joining the gang tonight at Gracie Kelley’s Pub at the Bali Dynasty Resort.

And, to be sure, there’s much for the Irish to celebrate this year. Why, with a McCain, Clinton and O’Bama running for the U.S. Presidency - it’s seems an absolute certainty that someone with an Irish surname will be sitting in the White House come this time 2009!

A World of Woe for Adam Air from Regulators and a Major Shareholder

Following the latest safety incident involving an Adam Air flight that slid off the runway at Batam's Hang Nadim Airport on March 10, 2008, the Indonesian Department of Civil Aviation has threatened to "freeze" the airlines Air Operating Certificate if the carrier's management is unable to quickly correct its safety management shortcomings.

Several passengers suffered injuries in the Batam mishap, but no fatalities were reported.

The Minister of Transportation, Jusman Syafii Djamal, told Bisnis Indonesia that if improvements are not made soon, he will lower their safety rating of Adam Air to "category III" – the lowest safety rating which could lead to a closure of the airline.

In reviewing the latest mishap of Adam Air the Minister directed his safety inspectors to focus on the pilot's role in the bad landing who reportedly landed his aircraft with less than 1,000 meters of visibility.

Adam Air currently operates a fleet of 23 aircraft composed entirely of Boeing 737 aircraft.

Findings on January 1, 2007 Crash Expected Soon
Members of the National Transportation Safety Committee have announced that the final results of their investigation into January 1, 2007 crash of an Adam Air flight will be released sometime in the next two weeks. That crash, which saw an airplane disappear into the ocean near South Sulawesi, claimed the lives of 102 passengers and crew.

The plane's location was not determined until many days after the plane was reported lost and the black box recorder was only recovered and read 9 months after the crash.

In compiling the final crash report Indonesian authorities have received assistance from the U.S. National Transportation Safety Board.

Deeper Troubles Ahead for Adam Air?
Amidst the threat of a government crackdown, it now appears that Adam Air problems have now worsened with the carrier facing a severe cash crunch due to the "resignation" of a 50% partner in the business - PT Bhakti Investama.

Bhkati Investama, which owns its investment in the airline through Global Transport Services, have told the press that they have seen little improvement in the airline's safety performance and operational transparency.

Press reports state that lack of new cash injections by Global Transport are causing payments to suppliers to be missed and precipitating demands from aircraft leasing companies for their planes to be returned.

Bhakti's decision to cease financial support to Adam Air may also be connected with recent announcements by the investment bank to create a new full-service airline Eagle Air operating 25 planes on regional and Asian routes.

Bhakti Investment is a large investment bank with substantial interests in the Indonesian media.

Airline Denies Imminent Shutdown
The Head of Corporate Communications for Adam Air, Danke Drajat, has issued a statement denying the airline is on the verge of a shutdown due to financial difficulties. Drajat did, however, confirm that only 14 of the airlines's 23 aircraft are currently operating, with the remaineder undergoing "routine" inspections. Speaking to Bisnis Indonesia, he said: "If there are those who say we (Adam Air) will stop operations next week, that is only gossip. The turth is that we have indeed reduced flight frequencies to several destinations because several of our planes our undergoing routine inspections."

He denied that reports that some agents have stopped selling Adam Air tickets from March 16th.

Jean-Charles Le Coz Heads Nikko Bali Resort

Jean-Charles Le Coz has been named General Manager of the Nikko Bali Resort & Spa. The well-respected hotelier who has headed several properties in Bali in the past is replacing Thierry Joho, who has been assigned to the opening team at Hotel Nikko Shanghai in China.

Born in France, Le Coz expressed an interest in the hospitality industry from an early age. After earning a degree in Hospitality Management at the Ecole Hôtelière de Lausanne in Switzerland, he joined the Hotel L'Horset Opéra, Paris followed by assignments in Geneva, Paris, Phuket, Jakarta and Lausanne.

Not a new comer to Bali, he has held managerial and consultant positions in several resorts including assignments at Novotel Benoa Bali, Harris Resort Kuta and the Bali Hai Resort.

Le Coz is conversant in 4 languages and is married and a father of 2 children.

Hotels & Restaurants Call for 50% Cut in 10% VAT Tax.

The Jakarta Post reports that the Indonesian Hotel & Restaurant Association (PHRI) has called on the Government to cut by 50% the current 10% value-added-tax (VAT) added to hotel and restaurant bills as a step to increase tourism flows.

PHRI Chairperson, Yani Sukamdani said: “Hotels and restaurant owners are forced to raise their rates due to the surging price of commodities. This condition has put us in a more difficult position to lure customers.”

Warning that current tourism targets might be hampered if the tourism sector did not receive the requested tax cut, Sukamdani pointed to other countries in the region who have reduced taxes.

According to the PHRI Chairperson, Malaysian only charges a 5% VAT and Singapore only 4% VAT which renders Indonesia non-competitive in its taxation practice.

Indonesia’s Minister of Culture and Tourism, Jero Wacik, has set a nation-wide goal of 7 million tourists generating US$6.4 billion in foreign exchange for Visit Indonesian Year 2008. Last year Indonesia managed to attract 5.5 million visitors who spent US$4.8 billion. The latest targets, if achieved, represent a +27.3% increase in foreign visitors and a +33% increase foreign exchange earnings.

Sukamdani’s comments were made following a meeting with Vice President Jusuf Kalla who the PHRI Chairperson says supports the call for the tax reduction and more spending on tourism promotion.

VP Denies He Supports Tax Cut
However, in a subsequent article in Bisnis Indonesia, the Indonesian Vice-President was quick to deny press reports that he personally supports a 50% cut in the hotel and restaurant VAT tax and a reduction of import duties that range as high as 300% to 50%.

In denying the reports, Kalla said: ”Business people are always asking for something. That’s the way they work. But, if there is no tax how can we build and repair the roads in front of the hotels and restaurants? The taxes will remain as they are.”

Salon Culinaire 2008 Competition Results Names Bali Cooking Star

Nusa Dua Beach Hotel and Spa was named as the “Best Culinary Team” for the fourth consecutive time at the Salon Culinaire 2008 competition held in conjunction FHT 2009 – Food, Hotel, Tourism Exhibition in Bali, February 28 – March 1, 2008. The prestigious culinary competition is held biennially in order to enhance the standards of culinary fare on the Island. A number of highly regarded chefs who are members of the World Association of Chefs’ Societies (WACS) flew into Bali to judge the latest competition organized by Bali Culinary Professionals (BCP) at the Bali International Convention Center (BICC), Nusa Dua.

Winning 2nd place in the Best Culinary Organization division was the team from Bulgari Resort-Hotel Jimbaran while 3rd went to cooks from Ritz-Carlton Bali Resort & Spa.

Other category winners during the Salon Culinaire 2008 include:

• Best Culinary Artist - I Gusti Agung Alit Subawa, Nusa Dua Beach Hotel & Spa

• Best Team Hot Cooking - Sabar Haryono and Kadek Suarmini, The Westin Resort, Nusa Dua

• Best Individual Hot Cooking - A.A. Astika, Nusa Dua Beach Hotel and Spa

. Best Pastry Chef Team - I Made Sutisna and Ketut Candranata, Ritz-Carlton Bali Resort & Spa

• The Asian Pastry Cup - 1st place The Ritz-Carlton Bali Resort & Spa; 2nd place The Nikko Bali Resort; 3rd place The Laguna Resort & Spa.

• Bocuse d'Or - 1st place Bulgari Resort-Hotel Jimbaran 2nd place The Laguna Resort & Spa 3rd place The Ritz-Carlton Bali Resort & Spa

Bulgari Resort-Hotel Jimbaran as the winner of the Indonesian Bocuse d'Or will represent Indonesia at the first edition of Bocuse d'Or Asia 2008, to be held at Gourmet World Shanghai in Pudong China May 29-31, 2008. The China finals of the international competition will showcase gourmet artisans from 12 nations.

Bali Jailer Jailed for Drug Possession

Tempo Interaktif reports that the former head of prison guards at Bali’s Kerobokan prison, Sudrajat, has been sentenced to 4 years prison and fined Rp. 5 million (US$534) for the possession of illegal armaments and narcotics.

In handing down its sentence on Tuesday, March 11, 2008, the Denpasar Court took into favorable consideration the former prison guard’s young age and good behavior during the course of the trial. At the same time, the Court said Sudrajat’s betrayal of trust as a prison officials weighed heavily against his favor.

Despite Sudrajat’s explanation that the fifty 22 caliber bullets found in his possession were remnants from a target practice session, the Courts ruled him guilty of possession illegal armaments. The Court also rejected Sudrajat’s mitigating claim of drug addiction and found him guilty of possession 2.03 grams of sabu-sabu (a methamphetamine crystal drug.

Following the verdict of the Court, Sudrajat and his lawyer indicated they were considering the possibility of appealing the verdict.

Connection from Russian

Bisnis Indonesia reports that the Indonesian Association of Tour and Travel Agents (ASITA) is urging the government to provide direct air access between Russian and Indonesia to increase the flow of Russian tourists.

Ben Sukma, the Chairman of ASITA told the press that the Indonesian government’s target of 100,000 Russian tourists in 2008 will be difficult to achieve without direct air connections between the two countries. Sukma explained: “The main stumbling block to increasing Russian tourist visitors is (a lack of ) air access. Unlike our competing destination Thailand, whose national carrier (Thai Airways) have direct flights to Moscow we have no direct air link. In the past Aeroflot flew directly to Bali, but no more. We have to fix this.”

Russian tourist presently visiting Bali use flights provided by Transeuro, Singapore Airlines and Thai Airways - who all operated indirect services to the Island.

In 2007 a total of 36,933 Russian tourists visited Bali, according to statistics provided by the Bali immigration office.

Blood Transfusions in Bali

Republic on Line reports that continuing demands for blood transfusions in Bali are causing Bali’s blood bank to run low on blood and plasma stocks.

Dr. Gusti Lanang Rudiartha, the Red Cross coordinator for Bali, said, “we are having problems finding volunteer blood donors when, in fact, there are a large number of hospitals seeking blood each month.”

In comments made to the press on Wednesday, March 12, 2008, Rudiartha told the press that a number of steps have been taken to persuade the public to become blood donors, including appeals via local banjars or community associations. The Red Cross official, who also serves as a Director of the Sanglah General Hospital in Denpasar, explained further: “We already tried to undertake blood drives via organizations, government bodies and companies involving hundreds of people. But we have only managed to secure 20 to 30 bags of blood.”

The Sanglah General Hospital needs 100-200 bags of blood each month, which does not include the demand from other hospital in Bali which requires another 80 bags of blood each month.

To maintain adequate supplies the Bali blood bank normally requires the families of patients seeking more than two bags of blood to recruit additional donors from among family and friends for blood replacement.

What’s The Problem?
Rudiartha complained that many local residents are frightened or reluctant to donate blood, despite the lack of any known negative effects linked to donating blood.

”Becoming a blood donor is similar to having a free check-up for diseases detectable in the blood such as sexually transmitted diseases, hepatitis, HIV/AIDS and other illnesses,” he explained. The Doctor also pointed to other benefits derived from donating blood, such as the added stimulation of the body’s metabolism as the body works to replace donated blood, a process that many blood donors claims increases the personal feeling of good health and a welcomed slight loss in weight resulting from regular blood donations.

The Bali Red Cross provided 1,617 bags of blood to the Island’s residents in 2007.

Visiting Bali? Donate Blood
If you’d to give the gift of life during your coming visit to Bali, visit the friendly folk at the Sanglah General Hospital Blood Bank - telephone ++62-(0)361-227911