Indonesian pen pushers take to the skies

September 25, 2013 8:58 am

Indonesian pen pushers take to the skies

By Ben Bland in Tangerang, Indonesia

Indonesian civil servants are swapping their desks for flight decks under an innovative scheme designed to plug the country’s acute shortage of pilots. With a rapidly expanding middle class, a population of 250m people and thousands of islands, Indonesia has one of the world’s fastest-growing aviation industries. But the supply of pilots has failed to keep pace. That is good news for the likes of Mohammad If Gobel, who has been able to ditch his desk job in Indonesia’s transportation ministry and realise a boyhood dream to take to the skies. Mr Gobel is one of 22 civil servants chosen to take part in the scheme.“My boss recommended me for this scheme and I’m honoured to be training to be a pilot,” says the 33-year-old, smiling broadly, in the canteen at the ageing government flying school in Tangerang, about an hour’s drive from the capital, Jakarta.

While airlines such as Lion Air have been expanding at breakneck speed, becoming one of the biggest customers for Airbus and Boeing aircraft, Indonesia is woefully short of pilots.

“We need 700-800 new pilots every year but until now, the private schools have only been producing around 200 and the government schools 120-150,” says Yudhi Sari Sitomoul, head of the transportation ministry’s human resources development centre.

The domestic aviation market nearly doubled between 2008 and 2012, jumping from 37m to 73m passengers per year, and is forecast to continue growing at a double-digit annual rate.

Arif Wibowo, chief executive of Citilink, the low cost carrier launched last year by Garuda Indonesia, the national airline, says that “the lack of pilots is one of the main challenges facing the industry”.

Having started with nine aircraft in May 2012, Citilink has already added another 20 planes. With too few Indonesian pilots to fly his expanding fleet, Mr Wibowo says he is grateful for the economic crisis in Europe, which has created a pool of aviators willing to work for lower salaries in emerging markets.

But the government is keen to wean Indonesia off its reliance on foreign pilots, which officials say can only be a stopgap measure given the scale of the country’s future needs.

With most new pilots keen to fly airliners rather than training planes the government scheme is designed to produce pilot instructors who can themselves educate a new generation of aviators.

We need 700-800 new pilots every year but until now, the private schools have only been producing around 200 and the government schools 120-150

– Yudhi Sari Sitomoul, head of the transportation ministry’s human resources development centre

More than 100 civil servants applied for the programme but only 22 passed the gruelling, air force-style aptitude and physical exercises, which included being spun around in a chair and then made to complete agility tests.

“I didn’t find the examinations too difficult but learning about how the aircraft engines work in our ground classes is tough,” says Eko Susantyo, a former aeronautical information trainer who, at 24, is the youngest member of the group.

Mr Gobel, Mr Susantyo and their fellow trainees, only one of whom is a woman, had to agree to work as government flight instructors for five years in exchange for their 14 months of free training, during which they will draw their regular salaries. They will also remain on the same salary trajectories.

Their accelerated course, which would normally take 18 months, began in June and they will soon commence flight training after completing ground school.

Before they jump into the cockpit of one of the school’s 40 Cessna and Socata aircraft for the first time they will pass under a sign that reads: “the sky is a vast place but there is no room for error”.

It is a poignant warning in a country with a bad record of aviation safety, from maintenance issues to poor training and recreational drug use among pilots.

Although the government and the airlines have been working to address these problems, several Indonesian carriers including Lion Air remain banned from flying into European airspace because they fail to meet EU requirements.

Dressed in a military-style uniform of dark blue trousers and light blue shirts, with caps tucked under their lapels, Mr Gobel and his colleagues insist they will do their part to ensure higher standards in future, which will be vital if the industry is to continue thriving.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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