e-Toll Discussion

In Jakarta, there is a big discussion concerning e-Toll. The Minister for SOE, Dahlan Iskan, insists that there should be no more than 5 cars in queueing entering the toll gate in the city and he assumed that this will be solved by implementing (you can read it: selling) more e-Toll card.

The e-Toll system is recently developed by State-Owned Bank Mandiri and its network is already extending to minimarkets. The question is: is it true that 5-cars-in-queue target solely the problem of PT. Jasa Marga (the state-owned toll operator) and is it true that by implementing e-Toll there will be no more long queues?

To answer first question, we should see statistics: in Greater Jakarta Area there are new 1.3 million cars and motorbikes per year rolling on the streets, and the growth is estimated 10-12% according to the Greater Jakarta Police. The growth of street development is less than 1% per year. Has the Minister read this numbers?

The second question is correlating closely with the first question: if you have cars streaming to your toll gate and if this "sophisticated" e-Toll card read time is 10 seconds, then you will have 4 minutes for the cars. But if you take into account that every car is approximately 4 meter long, then for 20 cars you have 80 meter distance from the gate to the last car. Just forget it.

Jasa Marga and Mandiri should have taken into account many complaints on existing e-Toll system. They said that even e-Toll read and validation time is not shorter or even longer than manual system by operator! So forget about that 10 seconds. Again, the Minister arguments are weak and even baseless. The Minister has even tried to sell the cards himself by some beautiful artists but it didn't show the expected result. Why? Because the customer knows. And that "heroic" effort by the Minister has even resulted contraproductive additional jam that day because he needs 5-10 minutes to talk with passing drivers.

Jasa Marga seemed to know that problem by offering on board unit installed in the car. With this technology cars passing by with 10 km/h could be detected automatically. However the price should be paid by the customer is Rp. 500.000 per unit (USD 56) and it seems that it would be long way to be implemented since it is very doubtful that the customers are ready for it. In my opinion, the Minister should have jumped into this device, not e-Toll card which has proven its lower-than-expection delivery.

The problem is not e-Toll. The problem is there is not enough good public transportation in Jakarta. Even buses of PPD - another State-Owned transportation company - are old and imported from dumped Japanese buses. The Minister should have known this - not just let PPD acquired by PT. Kereta Api - The State Railway - because they are different!

East Kalimantan has 105 TCF CBM

Coal Bed Methane (CBM) is a new alternative energy source, also in gas-rich Indonesia. According to Dr. Evita Legowo, Director-General Oil and Gas at Indonesian Ministry for Energy and Mineral Resources, the Indonesian government is now looking on implementing of further incentives for companies that develop CBM projects in the country, all in a drive to attract more investment into the sector. The incentive scheme being explored will include a tax facility system in which every oil and gas activity in the country is exempted from import duties for exploration equipments, and value-added tax.

In order to push CBM development, Dr. Legowo explained, the Government has prepared some incentives. Among such are by giving an interesting production sharing for investors, which is 55% for the Government and 45% for the investor. It is the biggest CBM production sharing compares with oil and gas. For petroleum, the production sharing composition is 85% for the Government and 15% for the investor. As for gas, the share is 70% for the Government and 30% for the investor. Evita said that besides production sharing, we are also discussing tax dispensation as another incentive.

Indonesia`s CBM potential is quite large (second worldś largest after China); around 453 TCF, spread in the areas, especially Southern Sumatera and East Kalimantan. For the details: North Sumatera for 52,50 TCF, Ombilin 0,50 TCF, South Sumatera 183 TCF, Bengkulu 3,60 TCF, Jatibarang 0,80 TCF, Kutei 80,40 TCF, Barito 101,60 TCF, Pasir dan Asem-Asem 3 TCF, Tarakan Utara 17,50 TCF, Berau 8,40 TCF and Sulawesi 2 TCF.

East Kalimantan in total has 105 TCF, according to Advanced Resources International (2003). CBM eploration has been done by the State-Owned Pertamina together with Ephindo Sangatta West in Sangatta. Vico should have been also doing eploration in Badak, East Kalimantan. Pertamina has been operational in CBM Sangatta 1, 2, 3, 4 and CBM Tarakan, Bunyu, and also CBM SImanggaris. Benua Etam has also attracted some investors.

In East Kalimantan, Dart Energy Ltd is a partner company of Pertamina. Dart owns 24% interest in Sangatta West CBM block, 50km north of the Bontang LNG facility. The company become joint operator with PT Ephindo (24%) through its JV, Sangatta West CBM Inc. The other 52% interest is held by Pertamina.

Pupuk Kaltim, one of the 5 state-owned fertilizer producers under Pupuk Sriwidjaja Holding has shown interests in CBM supply as well as Badak NGL. Both companies are in Bontang.

LG: 3% marketshare in Indonesian mobile market

According to detik.com, LG Electronics has penetrated 3% of Indonesian mobile phone market. "The share is small, but (at least) we are stable", said David Tjokro, Marketing Director of PT. LG Electronics Indonesia.
The market is very though although Indonesian market with more than 180 million potential mobile subscribers (of 230 million Indonesians) is seen very lucrative. Kim Weon Dae, President Director of PT. LG Electronics Indonesia had talked about 15% market share in 2012 according to pontianakpost.com. They will launch 30 new phones, one of them is the brand new Optimus 3D. This phone has 3D screen, which enable customer to enjoy 3D without any 3D googles. Kim claimed that it is still a unique product which other vendor doesn't have. This year LG ELectronics is targetting 6% share, a significant jump from 3% present market share.
Moreover LG Electronics is trying to "bundle" its mobile products with home appliances like its washing machine. The customer can "detect" her washing machine's problem herself, thanks to LG's Android mobile technology.
Last year LG has sold 22 million phones with sales value 23 trillion rupiahs (2.5 billion USD).