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Tag: Indonesia

  • Price of New iPhone 7 in Indonesia Will Be Among Highest Worldwide

    Price of New iPhone 7 in Indonesia Will Be Among Highest Worldwide

    Indonesia is predicted to be the country in Southeast Asia with the second-highest price for Apple’s new iPhone 7, according to a recent price study by iPrice Indonesia, local arm of online shopping startup the iPrice Group.

    The iPhone is manufactured in China, which neighbors Southeast Asia, but according to the iPrice Indonesia study, the iPhone 7 will be significantly more expensive in the region compared to the United States, due to shipment export costs, import duties and taxes, and other fees imposed by governments.

    According to iPrice, the iPhone in Indonesia will be one of the most expensive worldwide.

    “For countries where the iPhone 7 has not yet been officially launched, such as Thailand, Vietnam, Indonesia, Malaysia and the Philippines, the tech savvy have resorted to going abroad in the hope of being the first to own it,” iPrice said in a statement e-mailed to the Jakarta Globe by Andrew Prasatya, the company’s content marketing executive.

    “Unauthorized retailers are purchasing the iPhone 7 from Singapore and Hong Kong [where the iPhone 7 has already been launched] and selling them in their home countries at higher prices, which can go up to 14 percent in Vietnam and 49 percent in Thailand,” iPrice said in the statement.

    Apple has not yet announced the official release date for the iPhone 7 in Indonesia.

    How Expensive Can It Go?

    The study estimates that an iPhone 7 with 128 gigabytes of internal storage will cost about $1,268 when it arrives in Indonesia, making it nearly $500 more expensive than in the United States, from where it originates.

    As for neighboring countries, buyers in Thailand are expected to pay the most, where a new iPhone may cost up to $1,340.

    The cheapest is in Singapore at $897, where the iPhone 7 has been available since last month.

    The study said middle-income Indonesians, with an average salary of $1.80 (or Rp 23,900) per hour, have to work at least 87 days to afford an iPhone 7, assuming that the whole salary is spent on the phone.

    They may likely think twice before purchasing a 128 GB iPhone since the price is equivalent to the latest automatic scooter by Japanese manufacturer Honda. The price would also be equivalent to three-months’ rent of an apartment located in the heart of Jakarta, or 32 bags of rice at 50-kilograms per bag.

    Highly Anticipated

    Still, the iPhone 7 is eagerly awaited in Indonesia. And despite negative reaction around the replacement of audio jack with Apple AirPods, the latest model is in demand because of innovations such as increased storage, a new home button and water-resistance, according to reports from various local media and online tech-focused news portals.

    IPrice said regardless of its fairly high price, the iPhone generally remains popular in Indonesia.

    It referred to industry data showing that about 61.2 million units of the previous generation iPhone 6 and 6s were sold in the country during the first quarter of 2015.

    “In addition to the innovation of the iPhone 7, the iPhone is a status symbol in Indonesia where the owners are perceived as being rich, successful and living in luxury,” iPrice’s statement said.

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  • Indonesia to reach self sufficiency in salt supply

    Indonesia to reach self sufficiency in salt supply

    The government is optimistic the country would be self sufficient in salt supply in 2017, an official said here on Wednesday.

    Agung Kuswandono, the Deputy II in Coordination of Natural Resources and Service at the office of the Coordinating Minister for Maritime Affairs said self sufficiency in salt supply is expected to be reached in 2017.

    Agung said the Marine and Fisheries Ministry has taken various steps to improve the quality of the farmers salt to meet the standards for household consumption and industries.

    He said the country needs around 4.02 million tons of salt including 2.05 million tons of industrial salt and 1.97 million tons of consumption salt.

    The domestic production is around 3.8 million tons a year including 3.1 million tons of farmers salt and 700,000 tons produced by the state -owned salt company PT Garam.

    Based on data from the Indonesian Association of Salt Consuming Industries (AIPGI), in 2015 , the country needs 400,000 tons of salt to preserve fishes a year.

    The process of fish salting generally does not use iodine although iodine is important for human health, Agung said.

    Indonesia imports salt especially from Australia to cover the deficit in domestic supply

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  • Malang Opens Courses for Domestic Workers

    Malang Opens Courses for Domestic Workers

    Dozens of domestic workers attended a course at Sanggar Kegiatan Belajar in Malang City on Tuesday. The course for domestic workers was held by the Institute for Community Research and Development (LPKP) Malang chapter and the International Labour Organization (ILO).

    “Domestic workers are trained to work effectively according to the applicable standards,” said Irfan Afandi, ILO promote project coordinator for East Java.

    Similar courses are also opened in South Sulawesi’s Lampung and Jakarta. East Java, along with Makassar and Lampung, is renowned for its supply of domestic workers. Whereas Jakarta is the destination market of the domestic workers.

    Community-based courses for domestic workers have been trialled in Malang, East Java. Education will be held in certain communities, comprising participants hailed from several areas in Malang. The courses for domestic workers are aimed at improving their skills, particularly ability to use home appliances.

    The first phase of the courses will include household management and cooking. Domestic workers will be given theoritical and practical training. The courses will last six months, with two meetings in a week.

    Improved skills are expected to put domestic workers in better position to seek employment rights, such as to negotiate employment contract, standardized and timely payment of wages, defined office hours, and request for breaks and holidays. Irfan said that according to ministerial regulations, domestic workers include nannies, drivers, gardeners, as well as caregivers for elderly persons and people who have disabilities.

    “A domestic worker would not be able do all things by themselves,” he said. After attending the courses, domestic workers will be given a certificate which would enable them to seek better pay and recognition as professional workers. Moreover, improved skills of domestic workers are expected to protect them from violence, sexual abuse, child exploitation and human trafficking.

    Data from ILO shows that Indonesia has 2.6 million domestic workers. Most of whom are hired to work in private homes, live in their employer’s home and are not given employee leaves nor holidays.

    Course participant Yuliati said she is interested to attend the course for domestic workers to get more experience. According to her, she had been learning to do domestic work by herself. “I’m paid Rp30,000 a day, without employment contract,” she said.

  • Vietnam, Indonesia to lead Southeast Asian eCommerce

    Vietnam, Indonesia to lead Southeast Asian eCommerce

    Vietnam and Indonesia are tipped to become the largest Southeast Asian eCommerce markets within the next five years.

    Stunning growth in both markets is predicted in a report by global research company Frost & Sullivan which expects the broader region’s eCommerce market to double within five years.

    By 2020, the total revenue from B2C eCommerce in the six largest Southeast Asian countries, including Viet Nam is expected to grow at nearly 18 per cent, from US$11.2 billion in 2015 to $25.2 billion.

    Growth will be driven by an astounding rate of digital adoption, young and tech-savvy consumers, and increasing disposable incomes.

    Vietnam already has

    There are 127 million SIMs in circulation in Vietnam and nearly 40 million active internet users.

    “eCommerce players are beginning to compete beyond price points and logistics and moving into new areas such as Online-to-Offline (O2O) e-commerce and loyalty programmes,” says Cris Duy Tran, lead consultant in eCommerce and digital transformation at Frost & Sullivan Asia-Pacific.

    But he says eCommerce companies face significant challenges across the markets with many existing players struggling to achieve profitability. He singled out the failure of Foodpanda in VIetnam and Groupon in Thailand and the Philippines. Low levels of credit card ownership and distribution challenges also made it difficult to run online businesses profitably.

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  • DHL, UN hold airport disaster preparedness workshops in Indonesia

    DHL, UN hold airport disaster preparedness workshops in Indonesia

    Germany’s Deutsche Post DHL Group and the United Nations Development Programme (UNDP) are once again conducting their joint preventative training, known as Get Airports Ready for Disaster (GARD), at Bali’s Ngurah Rai International Airport, Lombok International Airport and Selaparang Airport in Lombok.  Indonesia was the pilot country when the program was implemented globally in 2009 — in Makassar and Palu.

    Deutsche Post DHL Group and United Nations Development Programme Hold Airport Disaster Preparedness Workshops in Bali and Lombok. L-R: Teguh Pratomo (MoT); Medi Herlianto (BNPB); Christian Usfinit (UNDP); Welani Widjaja, Managing Director, DHL Global Forwarding Indonesia; Chris Weeks, Director of Humanitarian Affairs, Deutsche Post DHL Group.

    Indonesia is located on the Pacific Ring of Fire where several continental plates collide. As a result, the chain of islands is at frequent risk of earthquakes, tsunamis and active volcanoes. Additionally, Bali and Lombok are categorized as high risk areas in the Indonesian Disaster Risk Index (2013). Airports in both provinces experienced operations shutdown due to volcanic eruptions from nearby Mount Rinjani.

    The multi-day workshop involves over 50 participants — including representatives from the airport operating company, aviation safety experts, national and regional Disaster Management Planning Agencies, Indonesian Red Cross, immigration authorities, the military and the police force — who will be trained to handle the high volume of incoming relief goods and increasing number of passengers during the aftermath of natural disasters.

    “Following natural disasters, airports become vital hubs for the processing of incoming relief supplies,” says Christof Ehrhart, Head of Corporate Communications and Responsibility at Deutsche Post DHL Group. “With sound processes in place at the airport and with the relevant agencies, relief goods and aid can be channeled through airports to reach the affected communities quickly and efficiently. This program continues to help improve disaster management in this geologically high-risk region.”

    “Often airports are unprepared to manage large disasters or humanitarian crisis and as a result, assistance gets slower in getting to those most affected. GARD is working specifically with all partners on the ground to solve any potential bottlenecks that could impede fast response to save lives. I praise the Indonesian government for its commitment to preparedness and the airport authorities for their risk informed management,” says United Nations Resident Coordinator in Indonesia, Douglas Broderick.

    The training includes evaluation of the airports’ capacities for processing high volumes of passengers and cargo and warehousing relief supplies. Location-specific disaster plans are drawn up as well.

    Since 2009, GARD trainings have been held in eight airports in Indonesia, namely Sultan Hassanuddin Airport in Makassar (2009), Mutiara Airport in Palu (2009), Ngurah Rai Airport (old airport) in Denpasar (2011), El Tari Airport in Kupang (2011), Polonia Airport in Medan (2012), Sultan Iskandarsyah Airport inBanda Aceh (2012), Fatmawati Airport in Bengkulu (2012) and Minangkabau Airport in Padang (2013).

  • Property Report Congress Indonesia 2016 to debut in Jakarta

    Property Report Congress Indonesia 2016 to debut in Jakarta

    With Indonesia’s affluent middleclass and millionaire population growing rapidly amidst a temporary slowdown in the property market, there is great interest from local and regional industry players and experts on how Indonesia’s property sector can face its current challenges and how it will evolve in the future.

    Some of these experts will be at the inaugural Property Report Congress Indonesia 2016 , the acclaimed conference series hosted by Property Report, Asia’s leading luxury real estate, architecture and design media platform.

    The wholeday event will bring together experts from Indonesia and around the region to discuss the current state of the Indonesian real estate market. It will be held on 13 October, from 08:00 to 16:00 at the Fairmont Jakarta, supported by official property portal Rumah.com , Indonesia’s leading property website.

    Confirmed speakers include the who’s who of the industry and the government, including conference chairman Todd Lauchlan, country head of Jones Lang LaSalle Indonesia.

    The opening keynote address will be given by Hendra Hartono, chief executive officer of Leads Property Services Indonesia and chairman of the Indonesia Property Awards 2016 judging panel. Hartono has been tapped to give a 2016 market overview and lead a panel discussion called “What it takes to develop a luxury project.”

    Mr Bambang Brodjonegoro, the Minister of National Development Planning of Indonesia, will talk about how Indonesia’s government is supporting the real estate industry in his keynote speech.

    Panel moderators at the Jakarta leg of the conference series include: Mina Ondang, director, Cushman & Wakefield (“How the MRT could transform Jakarta real estate”); Mink Tan, chief designer/registered architect, MINKKE Architects (“The rise of stateoftheart architecture in Indonesia”); and Paulius Kuncinas, regional editor, Oxford Business Group (“What tax and the law can do improve the Indonesian real estate market”). In addition to the panel sessions, there will be a workshop on “The content marketing sweet spot and how to find it,” to be facilitated by digital strategist Ian Payton, founder of Hashtagcontent.com. Paynton

    has shared his content marketing insights at the previous Property Report Congress events in Vietnam,Myanmar and Malaysia.

    Jaime Rivera, Asia regional director at Crystal Lagoons, official sponsor of the Indonesia Property Awards 2016, in turn will talk about waterbased technology and how it can increase interest in property developments in the region. A worldrecord holder for the largest manmade lagoon, Crystal Lagoons’ first project in ASEAN was in Bali.

    Conference delegates will have a chance to meet and learn from Asia’s industry leaders who are redefining the Indonesian property landscape. Panelists will be coming from Jakarta and overseas. As always, the opening and closing remarks will be given by Liam Aran Barnes, brand director and editor in chief of Property Report. “We’re bringing our conference series to Jakarta at a time when the Indonesian government is looking for various means to implement programmes to boost the sluggish domestic market ,” Barnes said. “This is

    one of the ways that our publication can support Indonesia’s property sector apart from the annual Indonesia Property Awards.” Since debuting in Singapore in October 2015, five successful Property Report Congress events have been held in Manila, Ho Chi Minh City, Yangon, Kuala Lumpur and most recently in Bangkok, which welcomed the series’ biggest audience in 2016 of about 140 delegates, speakers and media.

    Property Report Congress has been described as “a great networking event and platform for people in the real estate industry to come together and share ideas,” according to Bertil De Kleynen, sector director for Architecture, Interiors & Landscape at Atkins Global, and featured speaker at the Ho Chi Minh City conference.

    Organised by PropertyGuru, Asia’s leading online property portal group, the Property Report Congress will be followed by the annual Indonesia Property Awards 2016 blacktie gala dinner in the evening, from 18:00 to 22:30, which will be attended by 300 of the country’s top real estate developers, executives and industry professionals.

    For registration and enquiries, email conference director at Amy@propertyguruinternational.com or visit

    the official website: https://www.AsiaPropertyAwards.com/Congress/

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  • Uniqlo Canada takes it slowly

    Uniqlo Canada takes it slowly

    After the Japanese apparel retailer decided to open its first shop in Canada, Uniqlo Canada COO Yasuhiro Hayashi visited Toronto every month for nearly a year.

    During each visit he would spend the week taking notes on what people were wearing.

    “I didn’t expect that everyone was so unique and multicultural,” says Hayashi, who previously helped launch Uniqlo in Singapore and Indonesia. “That was very surprising in a very positive way. We don’t have a specific target customer – that’s our uniqueness. We say we are made for all.”

    Finally, the company is opening its first store in Canada on Friday, a 28,000-sqft (27,989 sqm) space in the Toronto Eaton Centre, between fast-fashion rival H&M and the newly arrived luxury retailer Nordstrom. A second store opening is planned at Yorkdale Shopping Centre in north Toronto on October 20.

    Even with more than 1000 stores worldwide, Hayashi says Uniqlo may not have the same name recognition in Canada as some of its international rivals before they entered the country. It is a challenges that needs to be overcome if it wants to continue expanding in Canada, but Hayashi says there is no rush.

    “We want to be very cautious,” he says. “Of course, I don’t want to give a name, but some other brands have had ambitious plans that didn’t work out. We want to make sure we serve the customers well and fine-tune the merchandise mix as well.”

    US retailer Target last year abruptly announced it was shutting down all its 133 Canadian stores only two years after arriving. Since then, several international retailers such as Muji, Nordstrom and Saks Fifth Avenue have taken a slower approach to opening locations in Canada.

    Hayashi says Uniqlo’s Toronto stores will largely be the same as its other locations, with a few nuanced differences for Canadian shoppers. Customers can expect more than usual plaid and flannel shirts. Most sizing will be for a North American fit, but there will also be some smaller sizes to reflect Toronto’s multicultural population.

    Uniqlo will also sell house slippers, commonplace in its stores in Asia.

  • Electricity consumption up 7.85 percent: PLN

    Electricity consumption up 7.85 percent: PLN

    The countries electricity consumption in the first half of 2016 reached 107.2 Terra What hour (TWh), up 7.85 percent from 99.4 TWh in the same period in 2015, state-owned electricity company PLN said.

    Senior Public Relations Manager of PLN Agung Murdifi said in a release here on Sunday that the consumption growth raised electricity sales revenue during the six months of 2016 by Rp3.2 trillion, or 3.15 percent, to Rp104,7 trillion over the same period in 2015 which amounted to Rp101,5 trillion.

    “The Increased consumption is in line with the increase in the number of subscribers to 62.6 million in June 2016 or additional 1.4 million customers from 61.2 million subscribers at the end of 2015,” he said.

    The Increase in the number of customers, he added, also raised the national electrification ratio of 88.3 percent in December 2015 to 89.5 percent in June 2016.

    Agung said operating expenses rose by Rp1.9 trillion (1.66 percent) to Rp119,7 trillion over the same period in 2015 which amounted to Rp117.8 trillion.

    Meanwhile, fuel expenses (BBM) fell by Rp8.4 trillion to Rp10.4 trillion, due to the decline of fuel consumption by 0.6 million kiloliters to 2.2 million kiloliters until June 2016.

    Realization of electricity subsidies in the first half of 2016 reached Rp26.6 trillion, down by Rp891 billion compared to the same period in 2015 amounting to Rp27.5 trillion.

    Agung added that in the first half of 2016 the EBITDA (earnings before interest, taxes, depreciation and amortization) was recorded at Rp30,2 trillion, up 3.3 trillion compared to the same period in 2015 which amounted to Rp26.9 trillion.

    “Net profit in the first half of this year reached Rp7,9 trillion,” he said.

    However, public accounting firm Tanudiredja, Wibisana, Rintis & Partners still awarded the PLN the qualified opinion rating for its June 2016 financial report.

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  • Mandiri prepares syndicated loans of Rp4 trillion

    Mandiri prepares syndicated loans of Rp4 trillion

    State lender Bank Mandiri is preparing a syndicated loan of Rp4 trillion to build five airports in Indonesia in the fourth quarter of 2016, the banks corporate banking director, Royke Tumilaar, said.

    Bank Mandiri will lead the syndication of loans to state airport operator PT Angkasapura I which will develop the five airports, Royke stated here on Monday.

    “Syndicated loans worth Rp4 trillion will be extended for the purpose. The Kulonprogo airport in Yogyakarta will be among these five airports,” he added.

    The loans will be used to build new airports and expand the existing ones. The five airports include Ahmad Yani in Semarang, Syamsudin Noor in Banjarmasin and Kulonprogo in Yogyakarta. Also, the Terminal 3 at the Juanda Airport in Surabaya and Sultan Hasanuddin Airport in Makassar are to be developed with these loans.

    Other debtors that will be involved include Sarana Multi Infrastruktur (SMI), PT Bank Central Asia Tbk (BCA), PT Indonesia Infrastructure Finance (IIF) and PT Bank Rakyat Indonesia Tbk (BRI).

    Royke further syndicated loans will also be given in the fourth quarter of 2016 for the construction of toll roads in and around Jakarta.

    “We hope the process can be started in the fourth quarter of 2016, the construction of a new airport in Kulonprogo also begins by then,” he noted.

    Overall, the demand for loans to finance infrastructure development in the second semester of 2016 continued to increase, he noted.

    The state bank has also prepared loans worth Rs 20 trillion for the construction of power plants in the fourth quarter, he disclosed.

    As per the bank’s target, the credit extended to infrastructure development will grow 20 percent year on year by the end of this year.

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  • Indonesia raids Google office after warning on tax audit refusal

    Indonesia raids Google office after warning on tax audit refusal

    Google’s Jakarta office was raided by Indonesian authorities after they warned the company for refusing a tax audit.

    Officers visited Google’s office in central Jakarta “many times” in the past two weeks to collect data and repeatedly sought meetings with senior company officials, Muhammad Haniv, the head of special taxpayers at the Finance Ministry, said in a phone interview Thursday. Google has “paid all applicable taxes in Indonesia,” Taj Meadows, a spokesman, said by e-mail, adding the company is cooperating with the government.

    “Everyone must comply, whoever they may be,” Haniv said. “If you refuse to be audited, then we will keep chasing you.” The government had earlier written to the company warning it for refusing a tax audit, which can result in criminal punishment, he said.

    President Joko Widodo’s government is following in the footsteps of European authorities in pushing Google to pay more taxes as it steps up efforts to earn more revenue from internet companies. He’s under pressure to do so as this year’s state revenue is set to suffer an estimated 218 trillion rupiah ($17 billion) shortfall, while earnings from a tax amnesty program are set to miss his target.

    Indonesia May Block Websites of Tech Companies Avoiding Tax

    Indonesia has been asking internet companies to set up permanent local entities for tax purposes since as early as April. It’s also promising lower rates compared to the 30 percent corporate income tax and 25 percent value-added tax that would otherwise apply to Google’s sales of advertisement to local companies, according to Haniv.

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  • Indonesia To Participate In Manila Fame Expo

    Indonesia To Participate In Manila Fame Expo

    Several Indonesians will be among the master craftsmen from selected ASEAN countries to participate in Manilas premier design and lifestyle event in Pasay City, the Philippines, from October 20 to 22, 2016.

    The ASEAN Master Craft Design Festival, titled Manila FAME, which is being held at the World Trade Center and the Philippine Trade Training Center, will feature an exhibition called ASEAN Crafts to the World that will unveil the first collection of crafts developed through the project “Improving the Current Status of ASEAN Mastercraft Designers”, Alma Argayoso, the Philippine Embassys Trade Representative to Indonesia, said here recently.

    Another highlight of the festival is an exhibition that will feature the works of the first group of ASEAN Master Craftsmen Lim Masulin from Indonesia, Roselyn Long Lah from Malaysia, Al Valenciano from the Philippines, Tuong Phi Duc from Vietnam and Rush Pleansuk from Thailand.

    Lim Masulin, the featured artist from Indonesia is an entrepreneur, inventor and avid connector of the creative industry. He is best known as managing partner of Poiema Creative Group with brands like BYO Living, Chamero Couture and others.

    Indonesias craftsmanship will be highlighted in this years Manila FAME as it will feature not only Lim Masulin but also Indonesian architect Cosmas Gozali, who will curate the ASEAN Master Craftsmen exhibition.

    Fourteen Indonesian companies are also set to participate in the expo with the support of the Ministry of Small and Medium Enterprises (SMESCO), Argayoso added.

    The project is organized by the ASEAN Handicraft Promotion and Development Association (AHPADA) and funded by the ASEAN – Republic of Korea Future Oriented Cooperation Program.

    “The project aims to strengthen and enhance the use of design in reinforcing cultural identity in design development, merchandising, packaging, and marketing of ASEAN products by supporting and sustaining the Master Craftsmen in the region,” according to Argayoso.

    The group will showcase home furnishings, gifts and housewares, garden accessories, and fashion merchandise.

    Meanwhile, the Master Craftsmen from the second set of ASEAN countries – Brunei, Cambodia, Laos PDR, Myanmar, and Singapore will observe the exhibition and prepare for the projects next phase which will then feature their collection of crafts.

  • Sarinah Celebrates National Batik Day

    Sarinah Celebrates National Batik Day

    Renowned retailer of traditional Indonesian products, Sarinah will celebrate National Batik Day on Sunday, 2nd October 2016 which will commence from 6:30 A.M. – 10 A.M. at its Thamrin department store location. As a leading state-owned enterprise with immense pride in its local heritage, Sarinah has also partnered with the Indonesian Batik Foundation as well as the Indonesian Scout Movement. Furthermore, Sarinah is also working alongside the Ministry of Law and Human Rights and will thus makes available a bazaar showcasing a range of locally-made products.

    During the “Batikmu, Batikku, Batik Kita Beda, Tapi Kita Indonesia” (Your Batik, My Batik, Our Batik is Different, But We are Indonesia) event, Sarinah’s Board of Directors will be joined by 1,000 members from the Indonesian Scout Movement for a wall signing ceremony which reiterates both parties’ dedication to preserving batik as an ancient Indonesian artform. In keeping with its role as a modern retailer, Sarinah will additionally host a fashion show featuring budding Batik fashion designers from Indonesia. This opportunity will enable guests and visitors to gain better understanding of the wide array of batik clothing styles and its position in the country’s increasingly trend-savvy society. To further provide an all encompassing shopping experience, Sarinah is set to further provide live entertainment for visitors.

    Sarinah’s participation in celebrating National Batik Day is an effort that demonstrates the company’s unsurpassed commitment to maintain traditional crafts and heritage as part of its business operations. As such, Sarinah exemplifies its standing as highly-regarded retail of modern and traditional products as well as its role as the Home of Indonesian Heritage.

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  • Digital Revolution to Add $150b to Indonesia’s Economy by 2025

    Digital Revolution to Add $150b to Indonesia’s Economy by 2025

    Digitalization is expected to boost productivity, especially in five major sectors: manufacturing, retail, transportation, mining and agriculture.

    “Just as an example, a digital procurement system can predict demand for equipment in a factory and suggest replacements when necessary. Predictive maintenance can reduce machine downtime by 25 percent to 70 percent,” Tan said.

    According to McKinsey’s estimation, the manufacturing sector in Indonesia can earn an additional $34 billion from digitalizing its operations over the next decade, while mining and agriculture can see up to $15 billion and $11 billion in additional output respectively.

    Better stock and route management enabled by technologies like Google Maps can provide an extra $24 billion to Indonesia’s retail industry and $16 billion to the transportation sector. Other sectors like telco and media, healthcare, utilities and finance can boost their earnings by up to $21 billion, McKinsey claims.

    To unlock these potentials, Indonesia needs to improve its information technology infrastructure, broadband affordability and regulatory support.

    The study shows that Indonesia — although it has the second cheapest internet among the 20 countries studied — still struggles with poor connection, narrow bandwidth and slow speed. Overall, Indonesian is ranked 18 on a list that includes Malaysia, Singapore and other Asean states — all ranked above it.

    “E-commerce in Indonesia is growing rapidly but is constrained by limited access to technology, lack of tech-savviness and not enough credit cards,” Agung Nugroho, an e-commerce expert, said as quoted by McKinsey.

    According to McKinsey, Indonesian businesses should create cross-channel business models to encourage online and offline sales.

    Other strategies include establishing a two-fold cyber protection system, leveraging big data to drive real-time access across value chains and focusing on a customer-centric experience — coming up with innovative products and services to keep customers loyal.

    The study also suggests that digitalization can happen quicker if companies build strong and dedicated technology departments that integrate operations in all divisions of their businesses.

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  • Sharia Finance Sees Promising Future

    Sharia Finance Sees Promising Future

    The Financial Services Authority (OJK) says that the sharia finance still sees promising future despite the slowing down of global economic growth.

    “I’m optimistic on the promising future of the sharia finance industry. However, there will be many challenges and uncertainty,” said Sarjito, OJK Deputy Commissioner for Capital Market Supervision, Thursday, September 29, 2016.

    The challenges and uncertainty include the difficulty in expanding the business in a different jurisdiction that gets hit by local regulations and also the interpretation of sharia itself.

    Sarjito continued, the other challenge is the weak of the sharia finance management and its governance. “The last one is the lack of human resources that are competent enough and having the adequate capacity in sharia finance,” he said.

    The sharia finance industry in Indonesia has shown an unbelievable progress. Based on the report of the Indonesian Islamic Finance, the asset of the sharia finance industry has a 10% growth, and reached Rp617 billion in 2015.

    The number has exceeded the conventional finance asset’s growth. The same trend is also seen in other countries that are also developing the sharia finance.

  • Indonesia receives awards at South Africa Tourism Fair

    Indonesia receives awards at South Africa Tourism Fair

    Indonesia won two prestigious awards at the largest tourism market and exhibition, entitled “the Gateway Show”, in Johannesburg South Africa, which ran from September 23-25, 2016.

    Deputy Assistant of European, Middle East, America and Africa Market Development at the Ministry of Tourism, Nia Niscaya, said, here on Friday, that the two awards included the Best International Destination, building a booth modelled after a Phinisi traditional ship.

    The other award received by Indonesia was The Highest Award; the Spirit of Gateway 2016.

    “This award is expected to open the eyes of the international public, especially in Africa, about Indonesias tourism potentials,” Nia said.

    Also, Gateway Show organizers praised the Indonesian promotions team for its work at the exhibition, in which they presented a variety of attractions and delicious culinary treats.

    At the Gateway Show, the Wonderful Indonesia booth showcased Indonesia’s unique foods and coffee, offering samples to visitors.

    The sellers who participated in the Wonderful Indonesia Team were Nusa Dua Beach Hotel Bali, Holiday Inn Bandung, Maya Resort Bali, Bhara Tours Bandung, Singapore Airlines and a local travel agency, Afronesia Tours dan the Facets.

    The Gateway Show is an international tourism market and fair, participated in by industries, media, and visited by South Africans.

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