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Tag: Indonesia

  • Bloomberg TV Indonesia pressed for severance payment

    Bloomberg TV Indonesia pressed for severance payment

    The Legal Aid Center for the Press ( LBH Pers ) and the Manpower Ministry have called on the owner of now defunct station Bloomberg TV Indonesia Rosan Roeslani to pay compensation to its former workers in accordance with the company’s layoff agreement.

    LBH Pers executive director Nawawi Bahrudin said Rosan, who is also chairman of the Chamber of Commerce and Industry ( KADIN ), must comply with the legal agreement.

    “I strongly urge the employer to comply with its legal obligations,” Nawawi told  recently.

    Bloomberg TV Indonesia has failed to pay the compensation by the time stated in the payment agreement attached to the termination of employment letter issued on July 8, 2015.

    Manpower Ministry special staff Dita Indah Sari said as a leader of Indonesia’s industrialists, Rosan should be more sensitive in dealing with labor issues and attentive in treating employees properly.

    “The Manpower Ministry warns the shareholders not to neglect employees’ rights. Otherwise, our legal division will call and examine them,” Dita asserted.

    She added the ministry would continue to supervise the dispute process between the ex- employees of Bloomberg TV Indonesia and the employers until everything was settled, adding that the department’s legal division is ready to help if necessary.

    “I fully support the ex-workers’ struggle,” asserted Dita, a former labor activist who was jailed by President Soeharto’s government.

    The coordinator of ex-Bloomberg TV Indonesia workers Arif Budiman said the former employees had chosen LBH Pers as their representative to submit the lawsuit to the Industrial Relations Court ( PHI ) in the event of a deadlock in the mediation between ex-employees and employers.

    “We urge ex-CEO Adhitya Chandra Wardhana and the owner Rosan Roeslani to cooperate with us and meet the terms of the agreement,” Arif said.

    Bloomberg TV Indonesia owner Rosan Roeslani responded to the demands by saying that his party would settle everything related to the company’s obligation to the workers as soon as possible.

    Rosan established the economic and business focused Bloomberg TV Indonesia, which was operated under holding company PT Idea Karya Indonesia in 2013, and officially closed two years later due to financial concerns.

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  • Indonesia to promote cruise, yacht destinations in Korea

    Indonesia to promote cruise, yacht destinations in Korea

    The Ministry of Tourism will promote Indonesian tourism destinations, especially for cruising and yachting, at the Seatrade Cruise Asia 2016 to be held on May 12-14 in Busan, South Korea.

    During the cruise industry exhibition, the government will introduce Indonesias best cruising and yachting destinations, Deputy of International Marketing Development of the Ministry of Tourism I Gede Pitana stated in a press release here on Thursday.

    The ministry will inform the international companies and yacht owners of the governments step to increase tourist arrivals by simplifying the approval procedure for yachts entering Indonesian waters through the Clearance Approval for Indonesian Territory system.

    “The process to issue an entry permit will take only one hour,” Pitana noted.

    The government is prioritizing 10 yachting destinations, such as Tanjung Kayang Belitung, Tanjung Lesung, Seribu Islands, Mandalika Lombok, Labuhan Bajo, Wakatobi, and Morotai, in which marinas have been built to accommodate yachters.

    For cruise tourism, the five major ports of Belawan in Medan, Tanjung Priok in Jakarta, Tanjung Perak in Surabaya, Benoa in Bali, and Soekarno-Hatta in Makassar will serve as the entry gates to Indonesia.

    Eight marine tourism companies of Indonesia are also participating in the Seatrade Cruise Asia 2016.

    Moreover, the government is promoting its visa-free policy for Korean citizens by advertising its campaigns in the local media and through catalogs placed in Korean high-speed trains.

    The guests at the exhibition will be able to enjoy the performances of Indonesian dancers and several varieties of Indonesian coffee at the Wonderful Indonesia booth at the Seatrade Cruise Asia 2016.

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  • Indonesia’s Muslim cyber warriors take on IS

    Indonesia’s Muslim cyber warriors take on IS

    A group of Indonesian “cyber warriors” sit glued to screens, as they send out messages promoting a moderate form of Islam in the world’s most populous Muslim-majority country.

    Armed with laptops and smartphones, some 500 members of the Nahdlatul Ulama (NU) – one of the world’s biggest Muslim organisations – are seeking to counter the Islamic State group’s extremist messages.

    “We’ll never let Islam be hijacked by fools who embrace hate in their heart,” tweeted Syafi’ Ali, a prominent member of the NU’s online army, a typical message to his tens of thousands of followers.

    They are trying to hit back at IS’s sophisticated Internet operations, which have been credited with attracting huge numbers from around the world to their cause.

    Internet propaganda is believed to have played a key role in drawing some 500 Indonesians to the Middle East to join IS, particularly among those living in cities where it is easier to get online.

    The dangers of the growing IS influence in Indonesia were starkly illustrated in January when militants linked to the jihadists launched a gun and suicide bombing attack in Jakarta, leaving four assailants and four civilians dead.

    It was the first major attack in Indonesia for seven years, following a string of Islamic militant bombings in the early 2000s that killed hundreds.

    As well as firing off tweets, the NU members have sought to dominate cyberspace by establishing websites promoting the group’s moderate views, an Android app and web-based TV channels, whose broadcasts include sermons by moderate preachers.

    The initiative has been building momentum for a while but started to pick up pace a few months ago. A handful of cyber warriors operate from a small office in Jakarta, while the rest work remotely, and the group mostly communicate with one another over the web.

    But it will be an uphill battle and the NU, which has been promoting moderate Islam for decades, conceded they have previously struggled to take on IS’s hate-filled messages.

    “NU has for a while wrestled with this radical propaganda,” said Yahya Cholil Staquf, secretary general of the NU, which claims at least 40 million followers.

    “Every time we defeated them, it didn’t take long for them to regain their strength.”

    The online drive comes as the NU is set to take its campaign to promote their tolerant form of Islam onto the international stage this week, with a two-day meeting from tomorrow of moderate religious leaders from around the world.

    They aim to showcase their particular brand of the Muslim faith, known as “Islam Nusantara”, to counter the IS jihadists’ radical interpretation of Islam.

    Meaning “Islam of the Archipelago” – Indonesia is the world’s biggest archipelago, comprising over 17,000 islands – it is accepting of diversity and stresses non-violence.

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  • AirAsia Indonesia to end Bali-Kota Kinabalu services

    AirAsia Indonesia to end Bali-Kota Kinabalu services

    AirAsia Indonesia will end its thrice weekly Bali-Kota Kinabalu services, effective June 23.

    In a statement, AirAsia Bhd chief executive officer, Aireen Omar, said this was due to the stagnant market growth and insufficient revenues to offset the costs.

    “The operational costs have also increased quite substantially for AirAsia’s operations at Terminal 1 Kota Kinabalu International Airport,” she said.

    Following the termination of the services, the low-cost carrier said it would offer three options for the affected customers.

    The passengers could reschedule their journey with the latest flight on June 21, 2016, depending the availability of seats, it said.

    “They could also opt for creditshells which can be used as payment towards any AirAsia tickets or products and they are valid for six months or 180 days from the date of issuance,” it said.

    AirAsia said it would also offer a full refund of the amount equivalent to customer’s booking.

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  • New Zealand Eyes More Investment in Indonesia

    New Zealand Eyes More Investment in Indonesia

    Franky Sibarani, Chairman of the Indonesia Investment Coordinating Board (BKPM) met with Indonesian Ambassador to New Zealand Joze Tavares in Auckland last Wednesday, May 4, 2016. The meeting was held to coordinate New Zealand’s plan to increase its investment in Indonesia.

    “To attract more investment, the BKPM will [cooperate] with the Indonesian honorary consul in Auckland, which is also the President of the ASEAN Business Consul,” Franky said after the meeting.

    Franky added that the BKPM will continue to coordinate with Indonesian representative in New Zealand to follow up potential investments.

    Jose Tavarez welcomed the Indonesian government initiative to market possible investments in New Zealand.

    “New Zealand has large potential related to the development of renewable energy, specifically geothermal [energy],” Tavares said.

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  • Bali’s exports to Europe decline

    Bali’s exports to Europe decline

    Balis exports of various handicraft and small industrial products to European countries declined in the first three moths this year because the economic growth in Europe has not yet recovered well.

    “Importers from Europe still demanded for various handicraft, garments and furniture products but the volume was not as big as that last year,” exporter Made Parwata said here on Saturday.

    He said that importers from Spain still maintained stable demand and delivery was still smooth.

    Other European importers were those from Italy, France and Germany. These countries are included as the big ten importers of Balis products.

    However, the Central Bureau of Statistics (BPS) data showed that imports of these products by France, Spain, Italy and Germany declined from US$19 million in the January-March 2015 to US$17 million in the same period this year.

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  • Indonesia to take part in Beijing Tourism Expo

    Indonesia to take part in Beijing Tourism Expo

    The Indonesian government will participate in the Beijing International Tourism Expo (BITE) to be held on May 20-22 to realize its target of attracting two million Chinese tourists this year.

    The Indonesian Tourism Ministry would be one of the main sponsors of the expo, Deputy Tourism Minister in charge of International Tourism Marketing Development I Gede Pitana stated here, Friday.

    The ministry was optimistic that Indonesia would be able to attract Chinese tourists during the long holiday from October 1 to 7 this year, he noted.

    China has become Indonesias main tourist contributor, according to Tourism Minister Arief Yahya.

    Last year, some 987 participants from 81 countries took part in BITE, which was visited by some 120 thousand people.

    BITE has been organized annually for the past 13 years, and Indonesia has taken part in the expo twice.

    Other countries expected to participate in BITE this year are the United States, the Maldives, Seychelles, Thailand, Sri Lanka, Japan, Taiwan, South Korea, Malaysia, India, and some European countries, among others.

    Indonesia has set a target of attracting 20 million foreign tourists by 2019, from 9.7 million last year.

    This year, Indonesia hopes to lure some 12 million foreign tourists.

  • BI Urged to Stimulate Housing Market

    BI Urged to Stimulate Housing Market

    Indonesia Property Watch (IPW) CEO Ali Tranghanda asked Bank Indonesia to issue a more progressive regulation on Loan to Value (LTV) in order to tackle issues with a slowdown in the national housing market recovery.

    “For the middle-lower segment, particularly houses with loan liquidity facility (FLPP), the LTV can be fully provided so that the down payment is set to 0 percent,” Ali said in a press release on Friday, May 6, 2016.

    For the middle segment, Ali suggested that the LTV should be set to 90 percent, so that the down payment would stand at 10 percent. Meanwhile, Ali said that BI should strictly govern the LTV for upper segments, “because the upper segment is a subject to massive speculations, although it has impacts on the housing market,” Ali added.

    According to Ali, policies that can hamper the cash flow of middle-lower segments includes the requirement for developers to market homes that are under construction.

    “BI is expected to stimulate the housing market movement,” Ali added.

    Ali explained that the relaxed policy could be implemented until the housing market fully recovered. Given with the current market condition, Ali said that BI should not burden the housing sector with strict regulations.

    The national housing market has so far not shown signs of recovery. After a growth in sales figure in the fourth quarter 2015, the trend did not continue in the first quarter of this year. The IPW reported that the housing market in the first quarter plummeted by 23.1 percent compared to the previous quarter, or was down by 54.09 percent compared to the first quarter of last year.

    Data from the IPW revealed that almost all regions experienced a decline in sales, and the middle segment remained the largest market share at 52.19 percent. Meanwhile, the upper and lower segments accounted for 28.27 percent and 19.54 percent of the housing market share, respectively. Earlier in the fourth quarter 2015, the upper segment dominated the market share.

  • Apkasi to prepare online app system to ease investors

    Apkasi to prepare online app system to ease investors

    The All Indonesia District Administrations Association (Apkasi) will set up an online application system to make it easier for those seeking to invest in the countrys regions, its chairman Mardani H Maming said here on Saturday.

    “The online application system will help investors wishing to know about potential of any region,” he said, adding the system is planned to be launched in 2017.

    Mardani, who is also the district head of Tanah Bumbu, South Kalimantan province, stated that he hoped the new system would make importers able to buy commodities directly from producers.

    Also, the same system could be used as a mechanism for distributing subsidy to regions in need, he explained.

    Citing an example, he said a region that did not produce rice could obtain the produce from other regions to ensure it remained well stocked.

    Apkasi organized Investment and Trade International Summit 2016 at JIExpo Kemayoran in Central Jakarta from May 5-7 in an effort to attract investment.

    Mardani informed that a number of investment and trade related transactions were made during the event, including in plantation, animal husbandry, infrastructure and tourism sectors.

    “Memorandums of understanding have also been signed with foreign parties, including those from Japan and China,” he said.

    In the speech marking the events conclusion on Saturday, President Joko Widodo urged the regional governments in the country to develop their respective regions potential.

    He called on them to focus on a certain area for efficiency and to also ease control.

    He cited the example of a region that only provided golfing facilities and grew as a result.

    “It is not impossible for regions here to develop only sugar or fish. If they do so, these will become known as sugar or fish regions,” he said.

    He also asked the regional governments to speed up the licensing process.

    “If BKPM (capital investment coordinating board) could finish the process of giving eight licenses within an hour, the regional governments must also be able to do the same,” he stated.

    The government is continuing to make efforts to improve ease of doing business in the country, he said.

    “Several years ago, we were ranked 120th in ease of doing business index. Last year, we were at 109th out of 189 countries, far below the list topper Singapore, or Malaysia at 18th and Thailand at 49th,” he elaborated.

    He said he has ordered the Coordinating Minister for Economic Affairs to ensure that the country achieves the 40th rank this year, he said.

    “Breakthroughs must be made to achieve it. This is our common task. It is not impossible to achieve it, but we need to work hard. We must not be at ranks lower than 100 or so forever,” he urged.

    The president again reminded that Indonesia has now entered a competitive era, and said, “If we are unable to change ourselves, we will be run over. We must win the competition if we wish to become a victorious nation.”

  • BreadTalk to open in Myanmar next year

    BreadTalk to open in Myanmar next year

    Myanmar’s growing group of middle-class consumers can now look forward to Singapore bakery giant BreadTalk’s pastries and baked goods as the home-grown bakery brand will soon be available in Myanmar.

    It signed a franchise agreement with Myanmar Bakery on Tuesday (May 3), which will allow Myanmar Bakery to hold the master franchise to operate BreadTalk outlets in Myanmar.

    The first outlet is expected to open in Yangon by early 2017 in one of the shopping centres owned by the Shwe Taung Group. Myanmar Bakery is part of Myanmar conglomerate Shwe Taung Group, which owns an extensive network of real estate businesses in Myanmar.

    The deal marks the first food and beverage venture in Myanmar for the Shwe Taung Group and is also BreadTalk’s maiden foray into Myanmar.

    “With a growing middle class and rising retail consumption, there are immense growth opportunities for BreadTalk in Myanmar,” said Mr Tan Aik Peng, chief executive officer of BreadTalk’s Bakery division.

    “The Singapore team is working closely with the Shwe Taung Group to understand the Myanmar market and we promise an exciting line up with BreadTalk’s first boutique bakery in Yangon.”

    He added that BreadTalk was confident that they will “introduce a new lifestyle of bread appreciation” to Myanmar’s burgeoning middle class.

    BreadTalk operates close to 800 outlets across Singapore, China, Hong Kong, Indonesia and Thailand.

    The Shwe Taung group of companies is a conglomerate involved in real estate, construction and engineering, infrastructure, hotels, entertainment, trading and investment. It also operates the Junction Centre group of shopping centres, which include malls in Yangon and in Naypyitaw, the country’s administrative capital.

    The group is also behind the upcoming Junction City, which is an integrated development in downtown Yangon which will comprise a lifestyle shopping mall, an office tower and a five-star luxury hotel scheduled to open in the first quarter of 2017.

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  • Applecrumby & Fish wins $300k funding boost

    Applecrumby & Fish wins $300k funding boost

    An online boutique that offers all-natural and organic baby products, Applecrumby & Fish has obtained a fresh round of seed funding worth $300,000 from Silicon Valley’s VC 500 Startups.

    The Malaysian company aims to use the money to establish itself as the top-of-mind site for safe baby essentials, reports Tech in Asia. Founded by husband and wife Sean and Jesmine Tan in Kuala Lumpur in late 2012, Applecrumby & Fish started out with 900 products. These have increased tenfold, and free same-day delivery is offered in its home market.

    Like other parents, the Tans resorted to importing their preferred baby products. After having their first child in 2011 they fell in love with organic brands not easily available in Malaysia.

    “We are very sensitive to the needs of parents who are looking for the best they can afford for their baby, at fair prices,” says Sean.

    Applecrumby & Fish sells skincare products, toiletries, food, supplements, gear and toys. Its brands include Bellamy’s, Drypers, Enfa, Gerber, MamyPoko, Putto, Spectra, Stephen Joseph and Quinny, and there are plans to add other brands not unavailable online.

    Its new funding will help it develop an in-house brand for baby products, starting with wipes and nappies. The company also wants to boost its content marketing and gear up for its launch in Indonesia as well as Brunei.

    As well as those markets, it ships to Singapore, Thailand and the Philippines.

    Applecrumby & Fish was among startups in the annual 10-week Distro Dojo program in Malaysia. Led by 500 Startups, the program focuses on customer acquisition, growth and distribution.

    Applecrumby & Fish graduated at the top of the program last month, increasing its site traffic by more than 200 per cent and tripling its revenue in less than four weeks.

    Meanwhile, the Tans aim to disrupt the diaper and wipes industry of South-East Asia with their inhouse brand, says Digital News Asia.

    “We have done our research and there is nothing quite like our brand in the market, not at our kind of non-premium pricing but with premium quality,” says Jesmine, who is also COO.

    She says the company has had 300 per cent year-on-year growth in terms of revenue, and aims to hit RM6 million (US$1.5 million) by the end of this year.

    Before launching Applecrumby & Fish, the Tans were property investors who also freelanced as interior designers. Despite Applecrumby & Fish sounding similar to US retail giant Abercrombie & Fitch, the name stems from their daughter’s first word at the age of six month, “apple”.

    “She would walk and crawl, dropping crumbs of food everywhere she went, hence crumby, while her favourite food was steamed fish,” says Jesmine.

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  • Indonesian ride-hailing firm Go-Jek needs more funds in market fight-CEO

    Indonesian ride-hailing firm Go-Jek needs more funds in market fight-CEO

    Indonesian online ride-hailing service Go-Jek is in talks with potential investors to raise fresh funds to expand the business, as the heavy subsidies it gives to drivers to keep rates competitive are unsustainable in the long run, its chief executive said on Friday.

    Go-Jek, a play on the local word for motorbike taxis, has become popular among commuters on the traffic-clogged streets of Jakarta as its phone app removes much of the hassle of finding a driver and negotiating fares.

    Go-Jek, which has a network of more than 200,000 motorbike taxi drivers, is battling aggressively with other ride-hailing apps such as Grab and Uber [UBER.UL], driving rates lower to gain market share in the country of 250 million people.

    But Go-Jek cannot afford to continue relying on subsidies as “you end up where you run out of money”, Go-Jek founder Nadiem Makarim told on the sidelines of an e-commerce industry conference in Jakarta.

    Raising funds from investors to expand the business is part of the solution, the Harvard Business School graduate said, adding that several venture capital and private equity firms have expressed an interest in Go-Jek because of its size and potential.

    Founded in 2010, Go-Jek has since increased its services to food deliveries, cleaning and even massages. The company, which already operates in big Indonesian cities like Bandung and Surabaya, also plans to broaden its reach and add more drivers.

    Its ambition, however, has been met with regulatory obstacles and strong resistance from established taxi operators such as PT Blue Bird Tbk and PT Express Transindo Utama Tbk.

    Taxi drivers’ protests turned violent in the Indonesian capital last month, when they called for ride-hailing apps to be banned. Government ministers had also said the tech firms should be subject to the same regulatory and tax requirements as conventional public transportation companies.

    Yet Go-Jek’s Makarim told a packed conference that regulations and demonstrations were not his “biggest headaches”.

    “For me, the number-one challenge is building something to scale,” he said. “It’s the technology part that I think is the hardest, it’s what keeps me up at night.”

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  • Indonesia AirAsia to Go Public

    Indonesia AirAsia to Go Public

    Budget airliner PT Indonesia AirAsia—the subsidiary of Malaysian AirAsia Berhad—is preparing to hold an initial public offering on the Indonesia Stock Exchange in late 2017 or early 2018. Before going public, the airline will seek to improve its finances.

    “We are improving our financial performance. We cannot say yet what the improvements are,” president director Sunu Widyatmoko told yesterday.

    He did say that the IPO proceeds will be used to increase AirAsia’s number of fleet and flights.

    Based on the financial statements of AirAsia Berhad, which owns 49 percent stake in Indonesia AirAsia, the subsidiary posted negative performances last year with revenues dropping 37 percent to Rp5.02 trillion.

    The main reason for the income decline was a decrease in passengers’ volume by 22 percent.

    In December 2015, Indonesia AirAsia recorded a loss of Rp885.2 billion and a net loss of Rp2.33 trillion. It was an even bigger loss compared to 2014, when the company noted a loss of Rp635.8 billion and a net loss of Rp883.5 billion.

    The airliner also recorded a foreign exchange loss of Rp1.27 trillion last year, which prompted its Malaysian parent company to inject an additional capital of Rp2.05 trillion in quarter three, in the form of perpetual capital securities.

    Sunu said that another cause for last year’s major loss was the Flight QZ8501 disaster. The plane crashed while en route from Surabaya to Singapore, claiming the lives of 155 passengers and seven crew members.

    AirAsia Berhad CEO Tony Fernandes said the two main reasons why Indonesia AirAsia needs to become a listed company is to improve transparency and corporate management, and to allow Indonesian investors to own the airliner’s shares.

    Fernandes also said in Jakarta earlier this week that Indonesia AirAsia had gone through rough times last year, but the company now aims to leave that past behind and focus on business expansion.

    In mid-2015, Indonesia AirAsia is one of 13 airlines ordered by the Transportation Ministry to raise capital due to its negative equity. At that time, Indonesia AirAsia’s equity was minus Rp1.32 trillion, with liabilities amounting to Rp6.15 trillion and an assets value total of Rp4.83 trillion.

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  • Citi Indonesia posts Rp 633 billion profit

    Citi Indonesia posts Rp 633 billion profit

    Citi Indonesia recorded Rp633 billion ( US$48 million ) in net profits in the first quarter this year, a 12 percent rise from Rp 567 billion in the same period last year.

    The profit growth was driven by a 10 percent increase in net interest income, as also reflected in the bank’s total assets as of March this year that reached Rp76.5 trillion, a 6 percent year-on-year ( yoy ) surge from the corresponding period last year.

    Citi Indonesia chief executive officer Batara Sianturi said,”We enjoyed higher quality of assets in the first quarter this year with our net non-performing loan [NPL] ratio staying as low as 1.15 percent,” adding that the bank’s loan loss provision ( CKPN ) had also improved by 25 percent to Rp 131 billion.

    Citi Indonesia also fared well, as seen in the third-party funds that reached Rp 51.2 trillion, a 4 percent increase yoy with the current account and savings account ( CASA ) taking the lion’s share of 71 percent and therefore contributing to the sustained net interest income.

    The bank also set aside a minimum capital requirement of 28.86 percent as of March, the company said in a statement.

    The bank’s financing ratio for small and medium enterprises account for 9 percent of the total credit as of March this year.

    “We will continue supporting Indonesia’s economic growth by implementing fund disbursements in accordance with the government’s priority programs, including in the infrastructure sector and other industries that bolster exports and loans being channeled to small and medium enterprises.”

    Last year, Citi Indonesia garnered Rp 1.5 trillion in net profits with an asset increase of 14.6 percent yoy.

    In the digital arena, the bank also developed innovations and services by launching four smart branches focusing on digital banking solutions.

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  • Garuda Indonesia Urged to Strengthen Domestic Market

    Garuda Indonesia Urged to Strengthen Domestic Market

    Indonesian Tourism Minister Arief Yahya has told national carrier PT Garuda Indonesia to continue strengthening domestic market due to its huge potentials.

    “Our domestic market is very strong. Last year, there were 255 million visits by domestic tourists. This year, the target is 260 million visits. If that amount is multiplied by Rp. 1 million, it means Rp260 trillion circulated,” Arief said in Jakarta on Friday (29/4).

    Arief added that once the domestic market is strengthened, it would be easy to develop international market.

    In comparison with domestic market of neighboring countries, Aried added, Indonesia is much bigger. He cited Singapore, which does not have domestic market or domestic market in Malaysia that is not too big.

    The Minister added that that the Government is gearing up to meet the target of 20 million tourists visiting Indonesia in 2019.

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