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Tag: Indonesia

  • Plaza Indonesia’s ‘Fashion On4’ Showcases Favorite Local Brands

    Plaza Indonesia’s ‘Fashion On4’ Showcases Favorite Local Brands

    “We’re currently re-branding the whole level four as a new hang-out place for young people in the city,” Astri Abyanti, senior marketing communications, public relations and digital marketing manager of Plaza Indonesia, said at the opening of Fashion On4 on Tuesday (16/08).

    “We want to support Indonesia’s growing fashion industry, especially local brands that target young people. That’s why we’ve invited these nine brands to showcase their collections at Fashion On4,” Astri said.

    The nine fashion labels, according to Astri, were selected based on a survey of the shopping mall’s young clientele.

    “These are the brands that [our young clients] would like to see at the mall,” she said.

    Among the brands are Ikat Indonesia, No’om, Populo Batik, Rama Dauhan, Ria Miranda and Sky Inc.

    “(Fashion On4) breathes fresh air into Plaza Indonesia,” fashion designer Rama Dauhan said. “It’s also an opportunity for us to show that Indonesian fashion brands’ creations are on par with international ones.”

    For Fashion On4, Rama showcases his newest collection “Sensatia,” whose main strength is in easy-to-wear pieces embellished with patchwork designs.

    “It’s a great opportunity for us to branch out,” Sky Inc’s designer Amot Sjamsuri Muda said.

    For the new pop-up store, Sky Inc, previously known as Isis, presents an extended summer collection, inspired by “ulos,” a traditional fabric from North Sumatra. The fabric is made into casual dresses, crop tops and oversized jackets showcasing the intricate patterns of the traditional textile.

    Ria Miranda is the only Muslim fashion label among the nine new labels at the pop-up store.

    “I’m so excited to be here,” Ria said. “I hope to get a lot of new customers from this new store.”

    For Fashion On4, the Muslim designer presents her 2016 Fall/Winter collection, Forresta, inspired by her recent visit to Japan.

    “It’s a universal collection that can be worn by Muslim and non-Muslim [women] alike,” she said.

    The collection features simple pieces in a combination of bold colors that can easily be mixed and matched.

    Fashion On4 will be open at the mall until December 2016.

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  • Direct India-Indonesia flights necessary to attract more Indian tourists

    Direct India-Indonesia flights necessary to attract more Indian tourists

    The Indonesian Tourism Ministry believes that direct flight from and to India could increase the number of Indian tourist arrivals in Indonesia.

    “The main challenge is direct flights as the existing ones are just transit flights from and to India,” Dody Prianto, assistant deputy director of the Tourism Ministry, noted here.

    Prianto was in Kolkata, India, for a roadshow to promote “Wonderful Indonesia,” the tourism brand of the country, at a hotel in the city, with the objective of attracting more tourists from India.

    He hoped airlines, such as Garuda Indonesia, would be interested in operating direct flights between India and Indonesia.

    To draw more Indian tourists to Indonesia, the ministry is intensifying tourism promotion to introduce other tourist destinations apart from Bali.

    He mentioned Sumatra as one of the interesting places for Indian tourists to visit as it is located near Singapore, and its culinary dishes bear similarities to those in Indonesia.

    The Tourism Ministry has set a target of attracting at least 350 thousand Indian tourists this year.

    “The target is quite high, but we are optimistic that it can be achieved,” Prianto stated.

    During the first semester of this year, a total of 185,911 Indian tourists had visited Indonesia, he said on the sidelines of a sales million event.

  • Surplus predicted in Indonesia`s rice supply

    Surplus predicted in Indonesia`s rice supply

    The agriculture ministry said the country is expected to have a surplus of 11.38 million tons in supply of milled rice by the end of this year.

    Chief spokesman of the ministry Agung Hendriadi said rice supply is estimated to reach 43.69 million tons as against requirement of 32.3 million tons this year.

    “A surplus , therefore, is expected to reach 11.38 million tons, even there would be an excess of 20 million tons in supply on stocks including early year stock and Bulog stocks and harvest 8.8 million tons,” Agung said.

    Similarly excesses are also estimated in the supply of other foodstuff including 2.1 million tons of corn grains, 339,400 tons of sugar, 18.5 million tons of cooking oil, 131,800 tons of red onion, 414,400 tons of chili, 1.59 million tons of chicken meat and 1.44 million tons of eggs.

    Meanwhile, deficit is expected in the supply of beef and soybeans.

    Deficit in beef supply is estimated to reach 220,000 tons with supply totaling 441,8000 tons as against consumption of 662,300 tons, and deficit in soybean is around 1.09 million tons with supply totaling only 1.5 million tons as against consumption of 2.59 million tons.

    Agung, however, said in general supply of the 11 strategic commodities is relatively safe until the end of the year.

    “Deficit would be recorded only in the supply of two commodities until the end of the year,” he said.

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  • Korean fashion brands in Zalora pop-up

    Korean fashion brands in Zalora pop-up

    South Korean fashion brands are featuring in an online pop-up store on regional sites of online fashion portal Zalora.

    It’s all part of a concerted bid to expand recognition of Korean fashion bards across the broader Asia-Pacific region.

    Launched in Singapore, the Premium Korean Fashion pop-up shop is open until October in Zalora sites in Singapore, Malaysia, Indonesia, the Philippines, Hong Kong and Taiwan, according to the officials at the Korea Trade-Investment Promotion Agency (Kotra) and the Korea Fashion Association.

    Seventeen South Korean designer brands, which have been recognised for their competitiveness both at home and abroad, are showcasing their products on the pop-up store.

    A launch ceremony was attended by some 80 Southeast Asian fashion journalists and so-called power bloggers. It marks South Korea’s first marketing activity targeting the entire Southeast Asian region.
    At the event, Giulio Xiloyannis said there is growing interest in Korean fashion in Southeast Asia and that the opening of the pop-up store is not only a new attempt but also an important event for Zalora.

    A Kotra official said the trade agency will step up efforts to gain access to major online portals in an effort to make inroads into regional markets.

    “Southeast Asia is emerging as the next eCommerce market after China as youths account for a large portion of its population and regional economies are growing at a fast pace,” Lee Byung-woo, head of Kotra’s office in Kuala Lumpur. “Efforts will be made to help Korean brands gain a foothold there.”

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  • From loss to profit for Parkson Retail Asia

    From loss to profit for Parkson Retail Asia

    Department store Parkson Retail Asia has managed a turnaround with profit before tax (PBT) of S$35 million (US$25.8 million) for the year ended June 30, compared to a pre-tax loss of $40.6 million the previous year.

    Profit was boosted by gain from a partial disposal of equity interest in Parkson Hanoi (PHCL) of $45.6 million. A subsidiary of the group, PHCL is now an associate company.

    On a same-store basis, PBT for the year fell by 46.9 per cent year-on-year to $17.4 million.

    For Malaysia, PBT declined by 28.9 per cent through negative same-store sales of -6.5 per cent and weak local currency; Vietnam had a pre-tax loss of $0.5 million with -2.9 per cent same-store sales; there was a pre-tax loss of $3.2 million in Indonesia; while Myanmar’s results were affected by uncertainty arising from redevelopment plans for the FMI Centre where the store is located.

    For the group’s fourth quarter, same-store sales grew 21.5 per cent in Malaysia, attributed to early festive buying arising from a shift in the Hari Raya calendar as well as the same quarter last year being hit by low sales following the introduction of the Goods & Services Tax.

    New concepts

    New concepts have been initiated, such as introducing Korean apparel, affordable private labels, and specialty shoe stores.

    “We have been consolidating our department store space by identifying non-performing stores with the view to closure upon tenancy expiry,” says Parkson.

    In Myanmar, the group had a 25 per cent decline in same-store sales, affected by plans to close the FMI Centre, while Vietnam had a 4.1 per cent decline for the quarter, with the discretionary retail environment difficult amid an increasingly crowded retail scene.

    Indonesia was more positive with 7.3 per cent growth in same-store sales, mainly because of early festive buying as a result of a shift in the Lebaran calendar.

    Overall, gross sales proceeds (GSP) and revenue for the quarter grew by 9.8 per cent and 10.9 per cent respectively to $232.1 million and $93.9 million. However, GSP and revenue declined by 10.2 and 9.4 per cent respectively to $967.7 million and $388.4 million.

    The group’s pre-tax loss for the quarter was $13.4 million. Contributing factors included impairment on fixed assets for two loss-making stores of $5.4 million, impairment on prepaid rental and rental deposit of $3.3 million, provision on deposit for a managed store in Ho Chi Minh City of $2.2 million, and the initial loss-making periods associated with new stores and businesses.

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  • Raja Ampat launches tourism and conservation website

    Raja Ampat launches tourism and conservation website

    The government of Raja Ampat, West Papua, has launched a website on tourism and conservation to support tourism services in the region.

    The government is striving to boost innovation, Head of the Public Service Regional Office Technical Implementation Unit (BLUD UPTD) Water Conservation Area Raja Ampat Adrianus Kaiba noted in a press release received by Antara in Manokwari on Thursday.

    A technical institute, since its establishment in 2015 and under the coordination of the Department of Marine and Fisheries Raja Ampat, has been given the authority to manage water conservation in the area.

    He remarked that it was committed to improving services. Launching a website is rated as a step forward to improve the quality of services offered to both domestic and foreign tourists.

    “As a conservation area, we felt it was important to manage conservation in a professional and sustainable manner for the preservation of nature in this area,” he pointed out.

    He emphasized that the website was launched by Raja Ampat Regent Faris Abdul Umlati at Kampung Saonek, South Waigeo District, Wednesday (Aug. 17). It is part of a series of celebration activities to commemorate the 71st anniversary of the countrys independence.

    Kaiba said any information on water conservation in Raja Ampat can be updated on www.kkpr4.net, which is developed by BLUD UPTD.

    Meanwhile, Umlati highlighted that the website provides information on various conservation initiatives, scientific research, as well as water conservation activities being carried out in Raja Ampat in a sustainable manner.

    He believes the website will help domestic and foreign tourists obtain information regarding Raja Ampat, mainly related to water conservation.

    Moreover, Umlati remarked that the website is important to ensure that the areas biodiversity is always maintained and can be enjoyed by future generations.

    The Raja Ampat Islands are located at the northwestern tip of West Papua Province. They are located right in the heart of the coral triangle and are the worlds center of marine biodiversity.

    The results of ecological studies by The Nature Conservancy and Conservation International showed that Raja Ampat is home to 75 percent of the coral reefs in the world, with 553 species of coral and 1,437 species of reef fish.

    The waters in the area have abundant resources to provide sustenance and a means of livelihood for more than 40 thousand people spread across 135 villages in Raja Ampat.

    Local communities in Raja Ampat have cultural links and strong traditional ownership rights over the land and sea territory.

    Local authorities, through the BLUD UPTD Water Conservation Area, continue to ensure that water conservation is being carried out effectively, efficiently, and professionally.

    This step is being taken to ensure preservation of the natural resources and to improve the experience of tourists visiting the area to enjoy its natural beauty.

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  • Tokopedia Tops Indonesia`s E-Commerce Website List

    Tokopedia Tops Indonesia`s E-Commerce Website List

    Seven years after its establishment, start-up company Tokopedia continues to strengthen its foothold in Indonesia’s e-commerce market. Tokopedia CEO William Tanuwijaya said that there are currently one million registered sellers in Tokopedia.

    “Over 16.5 million items are delivered monthly to buyers in Tokopedia,” William told Tempo, Wednesday, August 17, 2016. “The items are sent [to various regions] from Sabang to Merauke. The volume reaches trillions of rupiah per month,” William said during Tokopedia’s 7th birthday party at Pullman Hotel Central Park, Jakarta.

    William said Tokopedia has successfully become Indonesia’s most popular e-commerce website. Per SimilarWeb data, Tokopedia (9th in Indonesia) ranks above Twitter and Wikipedia. Data from Appnie also show that Tokopedia app is used most often compared to other e-commerce websites, such as Lazada (16), Bukalapak (17), Blibli (22), Elevenia (18), or Mataharimall.com (20). Its total active users are twice of other e-commerce website users.

    William said Tokopedia was started with a dream of providing an equal opportunity for all Indonesians. “Today is Tokopedia’s seventh year in realizing the dream,” William said.

    Willian said consumer behaviour has changed in the past few years. “Two years ago, mobile visitors were 56 percent and contributed to 29 percent of purchase. Yet, in the first half of 2016, 79.55 percent of visit were mobile and the transaction volume hit 73.5 percent,” he said. Today, a total of 1.3 billion pages are opened monthly in Tokopedia.

    Tokopedia is currently making efforts to help vendors by establishing cooperation with banks to distribute loans of up to Rp18 billion per vendor.

    “Our mission is to ensure all Indonesia a digital access to economic equality,” William said.

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  • Honda hoping for 20% industrywide sales jump on Indonesian tax amnesty

    Honda hoping for 20% industrywide sales jump on Indonesian tax amnesty

    Indonesia’s tax amnesty could boost industrywide car sales by a fifth as people spend their newly declared wealth on big-ticket items, according to the local unit of Honda Motor Co.

    “The car ownership ratio in Indonesia is relatively low and there’s enough room for producers to sell more,” Jonfis Fandy, head of sales and marketing at PT Honda Prospect Motor, said in an interview Friday at the Gaikindo Indonesia International Motor Show.

    “If the tax amnesty program proves to be a success, we could see an increase of as much as 20 percent next year,” he said as people crowded around the latest models at the annual expo in Jakarta.

    Indonesia’s central bank estimates the reprieve, which runs through March 2017, could lure as much as 560 trillion rupiah ($43 billion) of undeclared income back to the country from overseas.

    If the amnesty lives up to those projections, it will lift economic growth and enable the government to continue with an ambitious infrastructure program.

    With a population of 256 million, Indonesia is Honda’s third-biggest overseas market after the U.S. and China.

    Honda, which is No. 2 in the Indonesian car market behind Toyota Motor Corp., posted 35 percent sales growth in the first half, official data show, compared with 1.2 percent expansion for the industry as a whole.

    Some of Honda’s fastest expansion is occurring in outlying areas of the archipelago, such as Sulawesi in eastern Indonesia, Fandy said. If the 20 percent growth estimate comes to pass in 2017, that would be the sharpest growth since 2012.

    Total car sales will rise to 1.05 million units in 2016 from 1.01 million last year, Yohannes Nangoi, chairman of Indonesia’s automotive industry association, known as Gaikindo, told reporters on Aug. 11.

    PT Astra International, which manufactures and distributes Toyota cars in Indonesia, recorded a 4.1 percent expansion in sales in the first half, Gaikindo figures show. Toyota controls 33 percent of the market, with Honda at 21 percent.

    “The comeback of the Indonesian market is extremely good for Japanese automakers” struggling with a shrinking home market, said Koji Endo, a Tokyo-based analyst at SBI Securities Co. “Honda may benefit the most as it has a big share in the motorcycle market there and people tend to step up to vehicles of the same brand.”

    Southeast Asia’s largest economy beat estimates to expand 5.18 percent in the second quarter from 4.92 percent in the previous three months. Bank Indonesia is forecasting full-year growth of 5.4 percent, including an estimated 0.3 percentage point increase from the amnesty.

    While the tax reprieve could boost automotive sales, it’s too early to tell how successful it will be and if Honda’s projection is achievable, said Isnaputra Iskandar, an analyst at PT Maybank Kim Eng Securities in Jakarta. Iskandar raised Astra International to a buy this month, citing the improving economy and a recent rule reducing the minimum level for hire-purchase deposits for vehicle purchases. Honda’s Indonesian unit isn’t listed.

    Honda sold 109,662 cars in Indonesia in the first half and is targeting 180,000 for the full year, said Fandy, who oversaw an almost quadrupling of sales in the 10 years through 2015. The company has the capacity to produce 200,000 cars a year at its manufacturing plant in Karawang, east of Jakarta, and has the flexibility to increase that to 240,000, he said.

    “Indonesia is among the few countries in the world with a bright future for the automotive industry,” Fandy said.

  • Newcomers try to tap into Indonesia’s niche motorcycle market

    Newcomers try to tap into Indonesia’s niche motorcycle market

    New players in the premium motorcycle business are optimistic that they can tap into the Indonesia market despite the sluggish sales the country has been experiencing.

    Garansindo Euro Sports, the sole distributor of Italian luxury motorcycle maker Ducati and French Peugeot Scooters, lined up several new models at the Gaikindo Indonesia International Auto Show (GIIAS) in Serpong, Banten, in an attempt to entice people in the middle- and upper-income brackets.

    Garansindo became Ducati’s sole distributor in the country in January, taking over from PT Supermoto Indonesia, while Peugeot Scooters made its Indonesian debut in 2015.

    “People tend to buy new vehicles in August, plus economic conditions seem better now,” Garansindo managing director Dhani Yahya told The Jakarta Post on Monday.

    Indonesia’s economy rose to 5.18 percent on an annual basis in June from a yearly rate of 4.91 percent in March, fueling optimism that recovery is under way. However, the country’s motorcycle sales dropped 27.6 percent year-on-year in July, with 305,153 units sold, a more than 40 percent slump from the previous month.

    Astra Honda Motor (AHM), the country’s leading motorcycle manufacturer, said, however, that the domestic market for premium bikes was still promising and expected its marketing of its big bike model BR250RR to strengthen its grip in that segment.

    At the country’s biggest auto expo, Ducati rolled out four new motorcycles in the 959 Panigale, Hyperstrada, Hypermotard 939 and Xdiavel S models, priced at Rp 658 million (US$50,008), Rp 570 million, Rp 515 million and Rp 988 million, respectively.

    Apart from the new models, Dhani said that it was banking on the Ducati Scrambler Sixty2, which made its Indonesian debut in April, to meet demand for entry-level premium motorcycles.

    The Scrambler Sixty2, named after the year when Ducati first produced its Scrambler model, is equipped with a 400 cc air-cooled engine and is priced at Rp 219 million, discounted to Rp 199 million for GIIAS visitors.

    “We see the price as affordable for middle-income people between 30 and 40 years old, such as managers and entrepreneurs wanting to upgrade their style,” Dhani said.

    In May, Garansindo opened up its flagship store in the elite Kemang, South Jakarta, said to be Ducati’s largest dealership after its outlet in New Delhi, India.

    The 3,000 square-meter flagship store is also equipped with Ducati’s one-stop service, spare parts provider and certified used-bike-reseller in the country.

    Garansindo also relies on the Peugeot Django 150 model to tap into Indonesia’s growing premium scooter market. At the expo, Garansindo showcased three kinds of Django 150: the Django Sport, Django Evasion and Django Allure, priced at Rp 40 million, Rp 41 million and Rp 43 million, respectively.

    Indian motorcycle manufacturer Royal Enfield, which entered Indonesia in January, used the GIIAS opening last week to introduce its new Himalayan motorcycle. The brand currently has four types of motorcycle sold in Indonesia — Bullet, Classic, Rumbler and Continental GT — with prices ranging from Rp 64 million to Rp 172 million.

    “We are currently focusing more on introducing the brand and encouraging people to try and feel the riding experience using our products,” said Distributor Motor Indonesia managing director Ade Sulistioputra, whose company is the sole distributor of Royal Enfield in the country.

    Meanwhile, Russian heavy sidecar motorcycle manufacturer IMZ-Ural, which made its Indonesian debut at the expo, is upbeat that it can expand its market in Indonesia after achieving overseas success in several regions such as the US, Australia, Europe and South America.

    Ural Indonesia CEO Michael Sofyan said the company targeted premium motorcycle buyers in the country as its segment, hoping that Ural’s unique design, which was initially tailored for Russian military officers, would lure them into purchasing its products.

    “We are trying to reach big bike communities first,” Michael told the Post.

    Fifty-nine-year old Affandi Permana, a visitor at Ural’s booth at the expo, said that he was very eager to purchase the maker’s military-styled Gear-Up model, which is priced at Rp 405 million. “The Gear-Up model represents masculinity,” Affandi said.

  • Indonesia launches master plan to breathe new life into Islamic finance sector

    Indonesia launches master plan to breathe new life into Islamic finance sector

    The Indonesian government has launched a national master plan to develop its Islamic finance industry, the latest effort aimed at awakening what is still a niche sector in the world’s most populous Muslim country, Reuters news service reported.

    Islamic finance was introduced in Southeast Asia’s largest economy more than two decades ago but it has managed only modest gains in the country of 250 million, despite multiple regulatory efforts and grassroots initiatives.

    Indonesian Islamic banks hold roughly 5 percent of total banking assets, compared with more than 20 percent in neighbouring Malaysia and about a third of total banking assets in several Gulf countries. The government aims to drive its planned breakthrough via a range of initiatives, from mobilising Islamic charitable funds to modernising investments made by Indonesia’s pilgrims’ fund.

    “This could finally awaken Islamic finance in Indonesia to allow the country to claim its true potential,” managing director of IFAAS Farrukh Raza said, an Islamic finance consultancy which designed the 10-year master plan. “We found that government efforts are very comprehensive but also very scattered. Regulations are there but there is no coordination, promotion is fragmented and those expenses are not always bearing fruit.”

    The initiatives include a government policy to increase use of Islamic bonds, or sukuk, by issuing debt instruments related to infrastructure development, agriculture and education. Under the policy, the government would increase its use of Islamic debt instruments to as much as 50 per cent of total issuance in 10 years time, Raza said.

    Currently, Islamic instruments represent around 13 percent of total outstanding government debt, according to Thomson Reuters data. Indonesia’s pilgrims’ fund would also see the establishment of a dedicated asset management arm to implement a more rigorous investment policy and attract external fund managers.

    The fund receives an estimated $800 million every year from Indonesians wishing to make the Hajj pilgrimage to Saudi Arabia, with new applicants facing a quota backlog of around 15 years, Raza said. “The industry is overconcentrated in retail but there is little in terms of wholesale banking. That is one of the big show-stoppers,” said Raza.

    The establishment of a national coordination committee, possibly chaired by Indonesia’s President Jokowi, Raza said, would help ensure implementation of longer-term objectives, potentially seeing Islamic finance take as much as a 20 per cent share of the financial sector in 10 years time. An additional layer of more complex measures, such as the merger of several state-owned Islamic banks, could help raise that figure to 30 per cent, Raza added.

  • Wonderful Indonesia promoted in Qatar

    Wonderful Indonesia promoted in Qatar

    The Indonesian Embassy in Doha, Qatar, has promoted the countrys tourism brand “Wonderful Indonesia” by introducing its culinary richness to mark the 40th anniversary of the two countries diplomatic ties.

    The event to promote Indonesias traditional snacks featuring the culinary richness of different ethnic groups was attended by representatives of the diplomatic corps in Doha, the embassys spokesperson Boy Dharmawan informed ANTARA News here Friday.

    Several snacks served to the guests were Ketan Srikaya, sweet custard with sticky rice; gethuk cake, traditional snack made from cassava; onde-onde, glutinous rice flour balls; wajik sticky rice; jalangkote, fried pie filled with chicken; Lemper, steamed sticky rice cake with beef or chicken; and apem, rice flour cakes, he remarked.

    “The cakes served are delicious,” Thai Ambassadors wife Benj Chaiyindeepum said when asked to comment on the taste of the served snacks.

    Benj was one of the 16 spouses of ambassadors of different countries in Qatars capital city who attended the event, he added.

  • Foodpanda is selling its Indonesia business and rethinking the rest of Southeast Asia

    Foodpanda is selling its Indonesia business and rethinking the rest of Southeast Asia

    Foodpanda, the food delivery startup backed by Rocket Internet, is selling its operations in Indonesia and evaluating its presence in the rest of Southeast Asia as part of a push towards profitability.

    Multiple sources close to the company told that its business in Indonesia, the world’s fourth-most populous country, is available to potential acquirers for less than $1 million — and an all-cash deal isn’t even a requirement. Foodpanda, which is active in 500 cities across five continents worldwide, has slashed the asking price for its Indonesia operations to basically zero after more than a year of unsuccessfully trying to offload it, one source added.

    The intention mirrors the sale of its business in Vietnam last year. The company reportedly tried to offload its India business earlier this year without success.

    Foodpanda provided the following statement which, if you strip out the grandiose terms, does hint at transactional activity up ahead:

    Foodpanda has grown very fast in Southeast Asia over the last couple of months and strengthened its market leading position in the region. Driven by our increased dominance in the region we have experienced interest from a variety of different parties to partner or to invest which we are evaluating now.

    Indonesia may be Southeast Asia’s largest economy but it has proven to be a challenge due to factors including competition and local market conditions. Go-Jek, a motorbike taxi-on demand company that this month raised $550 million, is the primary thorn in Foodpanda’s side. The company offers food delivery as one of its many services, and it is able to price that business competitively thanks to its massive fleet of 200,000 drivers and revenue from other services. Grab also offers services like food delivery, while Uber is tipped to follow suit.

    One source close to Foodpanda added that Jakarta’s challenging traffic congestion and a lack of infrastructure have added complexities.

    Reviewing regional presence

    Foodpanda is actively seeking to cash out of Indonesia, but that may not be its only exit from Southeast Asia.  We understand from a source that the company is reevaluating its entire business across the region, and it has already made tentative efforts to sell in some countries. The company expanded in Asia via a series of acquisitions, which, in many cases, ironically leaves it without obvious suitors.

    News of its reassessment of Southeast Asia comes just weeks after Foodpanda co-founder and CEO Ralf Wenzel claimed that the company is profitable in two of its markets — Europe and the Middle East — but not Asia.

    Wenzel told Reuters his company is “focused on improving market share” in Asia, which has included asset exchanges with competitors, in order to turn its finances positive there.

     “Over the next couple of months we will turn break-even and then profitable in the first Southeast Asian countries,” Wenzel added.

    While the Foodpanda CEO claimed profitability in Asia is “just a matter of scale,” our sources said that discarding under-performing units — which Wenzel did not mention — is a very key part of the plan.

    Challenging investment climate

    Foodpanda raised $210 million last year — including a $100 million injection from Goldman Sachs and a separate $110 million round — but the climate for investment is tougher now. One source close to Rocket Internet told us that the venture builder is not optimistic about landing capital for many of its older, more capital-intensive businesses, including Foodpanda.

    That’s evidenced by a recent round of capital for Global Fashion Group (GFG), a collection of Rocket Internet-backed fashion marketplaces worldwide. GFG raised $330 million but the capital came from a collection of trusted Rocket Internet entities and at a huge mark down. The group’s valuation plummeted from $3.4 billion at its last raise to $1.1 billion.

    Sources speaking at the time told us that GFG CEO Romain Voog met with more than 90 investors, but came home empty-handed.

    GFG had already preempted that challenge by discarding some of its unprofitable business units in Southeast Asia — does that sound familiar?! — which included the sale of Zalora Thailand and Lazada Vietnam for low prices and triggered high-level execs to leave. Rocket Internet isn’t alone to struggle in Southeast Asia, though. Groupon sold its Indonesia business to fitness membership startup KFit, a fairly unorthodox acquirer, after it had already exited other Asian markets.

    Now it looks like Foodpanda is following a similar approach. While Southeast Asia is often noted for its 600 million cumulative population and growth potential, today its nascent digital economy is challenging for many online retail companies.

    This year has marked a different approach for Rocket Internet in Asia. This summer, it finally offloaded Jabong, its fashion marketplace in India, to rival Myntra in a $70 million deal this summer, while Alibaba bought a majority stake in Amazon-like Lazada for $1 billion in April. Despite a seemingly decent outcome on the face of it, many Lazada investors were left disappointed, and the company itself ran out of money thanks to spiraling loses.

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  • Singtel sale slide offset by Indonesia, Thai mobile affiliates

    Singtel sale slide offset by Indonesia, Thai mobile affiliates

    Singapore Telecommunications announced a net profit of S$944 million for its first quarter ended June, up 0.3 per cent on the year, mainly due to stronger contributions from its mobile affiliates in Indonesia.

    Singtel’s sales fell 7.1 per cent on the year to S$3.9 billion. Singapore consumer revenue declined by 8.5 per cent to S$558 million. The growth in mobile data use could not fully offset the revenue decline in roaming and voice services in the city-state. The company’s operating revenue in Australia also fell by 15 per cent due to higher mobile service credits from device repayment plans and a weaker Australian dollar.

    Weaker equipment sales also dragged revenue down for both countries. “Equipment sales both in Singapore and Australia showed a decline and that reflects lower re-contracting volumes. There was also a higher take-up of SIM-only plans where they don’t buy the handset from us,” said Chua Sock Koong, group chief executive of Singtel, in a media briefing on Thursday.

    Contributions from Singtel’s other mobile affiliates helped to offset its losses. Indonesian mobile operator Telekomunikasi Indonesia’s profit after tax jumped 31.1 per cent on the year to US$244 million (S$327.78 million), supported by strong growth in voice, data and digital businesses. Thailand’s Advanced Info Service also generated higher contribution for the quarter, a 5.1 per cent increase to US$98 million after tax on the year.

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  • UOB Indonesia and ITB join up to train SME bankers

    UOB Indonesia and ITB join up to train SME bankers

    UOB Indonesia and Bandung Institute of Technology (ITB) have joined forces to educate bankers with small and medium-sized enterprises (SMEs), a banker from UOB Indonesia has said.

    “A lot of these SMEs don’t have the right networks for distributors and suppliers and bookkeeping is essential,” UOB Indonesia business banking head Lawrence Loh said in Jakarta on Friday.

    The program, called the SME Bankers’ Executive Certification Program, was launched in March and already has 23 graduates, Loh said.

    The collaboration between the two institutions will inaugurate five new SME business centers in several cities across Indonesia such as Jakarta, Semarang and Surabaya next year, ITB school of business and management consultancy director Leo Aldianto said.

    “We have to help small businesses upgrade their level to medium,” Leo said.

  • President to open Lake Toba Charm Carnival

    President to open Lake Toba Charm Carnival

    President Joko Widodo (Jokowi) is scheduled to open Lake Toba Charm Independence Carnival in Balige, North Sumatra, on Sunday as part of the efforts to promote tourist destinations in the region.

    “The carnival will be conducted in such a way that it will reflect the cheer and joy of the people. It will also serve as a means to promote Lake Toba,” chief of the events organizing committee Premita Fifi said here Saturday.

    The carnival will be held on August 20 and 21. First Lady Iriana Joko Widodo and a number of ministers, ambassadors, actors and actresses will attend the event.

    Shortly after opening the carnival in Balige on Sunday, President Joko Widodo is scheduled to walk three and a half kilometers along the road on the side of the lake to Parapat.

    The carnival will feature not only Batak arts and culture from North Sumatra but also those from the rest of the country.

    “Hundreds of decorated cars will travel from Balige to Parapat. Likewise, scores of decorated boats will accompany them on Lake Toba,” she said.

    The carnival is part of efforts to promote Parapat and Lake Toba as national and international tourist destinations, Premita said.

    “Admittedly, Lake Toba Charm as a world tourist destination has begun to become overcast. This event is expected to attract more domestic and foreign tourists in the future,” she said.

    Lake Toba is among 10 domestic tourist destinations which are quite popular, particularly in Sumatra, she said.

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