Romeo Montenegro, director for investment promotion and public affairs of Mindanao Development Authority (MinDA) disclosed on Friday that the Davao-General Santos-Bitung sea linkage is expected to attract airline companies in the Philippines to open direct flights to Indonesia.
In an interview during the Davao-General Santos-Bitung, Indonesia Business Forum at the SMX Convention Center Davao, Montenegro named Pacific Airlines as one which is now revisiting a previous study to determine the viability of Davao-Manado flights.
“The situation now is different 10 years ago,” said Montenegro as he recalled the air connectivity between Davao and Manado which began on the late 1990’s and lasted only until early 2000’s because of the low demand coming from the two areas.
The director added, the Davao/Gensan-Bitung shipping route launching on April 30 can be a “very good signal” for the airline companies because of expected increase of trade between Philippines and Indonesia.
Montenegro identified the advantages of the connectivity to be launched between the two countries.
“First is the increase of Philippine investment, second, the implementation of ASEAN Integration which results to piloting of Mutual Recognition Engagements (MREs) among product and professionals especially in the tourism professions,” he said.
He recalled when PAL was still serving the Manado-Davao flights, students from Indonesia would fly to Davao City only to take up master’s degree because education is more affordable in the Philippines.
Meanwhile, technical-vocational graduates from Mindanao had direct access to job opportunities in Indonesia because of the said air linkages.
Aside from that, Montenegro also said Indonesians sought medical services in the Philippines for the same reason that it is more affordable than those in Jakarta.
BIMP-EAGA senior official Arturo Boncato, Jr. said a consultation between the air sector is being done because there will be a need for the businessmen to fly straight to Davao or Gensan.
“The best way to do that is by flying straight out of Sulawesi to Mindanao, so this is an opportunity for our air linkage partners to see and look at or maybe charter first (new) flights,” he added.
Boncato further expressed his optimism on the Davao-Gensan-Bitung route as it favors exporters from both countries who will enjoy a shorter travel period for commodities and cheaper shipment costs.
Under the current Davao-Manila-Jakarta-Bitung sea route, goods from Davao take about three to five weeks before reaching the destination while it will only take 1.5 days for the Davao-Gensan-Bitung route.
MinDa Chief Sec. Datu Abul Khary Alonto stressed that all these developments are geared towards supporting and sustaining our agriculture and agri-based industries, which remain as the prominent drivers of Mindanao’s economy.
“Every step that we take towards Mindanao’s economic growth is always geared towards the advancement of our agri-based sector and their beneficiaries,” he stressed.
Philippine Inter-agency task Force on ASEAN RORO Chief and Transportation undersecretary Fernando Juan Perez described the route as a “gold mine” because it opens up a lot of opportunities for exporters from both countries.
“Hopefully, the business sector will see that this trade route is a gold mine. There is so much opportunity and they should take advantage of opening up this route,” he said.
He added that he saw huge interests from the business leaders from both countries.
“This route is going to fly, but we need the help of the businessman to sustain it. We need the help of the businessmen,” he said.
