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Tag: Indonesia

  • Ikea Indonesia loses right to its own name

    Ikea Indonesia loses right to its own name

    Ikea Indonesia has suffered a rude shock: Indonesian trademark laws have left the Swedish furniture giant without the right to its own name in the Southeast Asian nation.

    A decision of the Central Jakarta Court granting Indonesian ownership of the Ikea brand name to a local business back in September 2014, has been upheld in a majority decision by the Supreme Court.

    Commentators and critics of the Indonesian government and the country’s legal system say the court decision should be a warning of “the dangers facing foreign companies” who go to Indonesia.

    The Supreme Court says the name Ikea is legally owned by PT Ratania Equator, a Surabaya company which registered the Ikea trademark as an acronym for ‘Intan Khatulistiwa Esa Abadi’.

    The real Ikea trademarked its name in Indonesia on october 9, 2006 and again on October 27, 2010. But Ratania lodged claim to the name arguing that Ikea had not actively used its trademark in three consecutive years for commercial purposes. Under Indonesian trademark laws, this means its rights to the brand expire.

    That’s why Ratania registered the Ikea trademark on December 20, 2013, and then sued IKEA of Sweden in the Central Jakarta District Court to get it to give up its claims to the trademark.

    The September 2014 ruling ordered Ikea Sweden to stop using its own name. Ikea appealed, which led to the Supreme Court ruling this week in Ratania’s favour.

    Ikea has yet to announce its next step. It seems likely it will have to either buy its name back or begin trading under another name in Indonesia, neither easily palatable options for a company of its international standing.

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  • HappyFresh Indonesia optimistic

    HappyFresh Indonesia optimistic

    Indonesia’s middle- and upper-class consumers are set to propel the trend of online grocery shopping, according to Jakarta-based grocery-shopping app HappyFresh.

    “The outlook has never been more promising,” says CEO Markus Bihler.

    “Opportunities abound in this region with its sophisticated, food-loving consumers, growing wealth and rapid urbanisation. The continued increase in mobile adoption and broadband penetration has helped boost our online grocery sales.”

    Adding to the mix is traffic congestion, particularly in Jakarta and Surabaya, which HappyFresh Indonesia says is a big factor in enticing people to shop for groceries online.

    Bihler says the market for online grocery shopping in Indonesia and other Asian countries could see double-digit growth in market turnover by 2020 to reach S$19 billion (US$13 billion) by 2020. He says it is being driven by the rise of a young, working-class population in urban areas.

    Working mothers outnumber all other HappyFresh customers, with dairy products such as milk and eggs among the top purchases. They are followed by young professionals and expatriates who mainly buy tomatoes, spaghetti and chicken breast.

    Securing $12 million in funding as a start-up last year, led by Singapore’s Vertex Venture and Sinar Mas Digital Venture, HappyFresh allows users in Malaysia and Thailand as well to shop for groceries through an app. In Indonesia, HappyFresh partners with Lotte Mart and Ranch Market.

    “As a differentiator, HappyFresh partners with supermarket retailers, particularly small and medium-sized enterprises that do not have the capacity or ability to invest in technology and reach out to new set of customers,” says Bihler.

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  • Inflight Sales Group captures Garuda Indonesia concession

    Inflight Sales Group captures Garuda Indonesia concession

    Inflight Sales Group (ISG) has reinforced its position in Asia with the addition of the inflight duty-free and duty-paid concession onboard Garuda Indonesia airline.

    The new programme will be launched April 1 under a partnership with parent company PT Garuda Indonesia (Persero) Tbk.

    Together with the current contract with Citilink, a low-cost subsidiary of the same group, ISG has strengthened its footprint in Indonesia and the agreement continues the growth momentum within ISG, said the inflight concessionaire.

    ISG executive director Vimal Rai said: “Winning a competitive partner selection process is always delightful! ISG now stands ready to deliver an exciting and dynamic inflight retail programme for Garuda. We are confident to take it to the next level, commensurate with Garuda’s five-star status as an airline. We, together with the PT Rodamas Wirasakti team in Indonesia, have had a long history of retail partnership with Garuda already, and after a short break, we are happy to be bringing new insights and innovations to the airline’s inflight retail offering.

    ISG managing director Tony Detter added: “While we are expanding in the European market, we continue to see great potential in the Asian market. With the extensive network that Garuda is flying and its forecasted growth, we foresee that there is an opportunity to further expand ancillary revenues through inflight sales.”

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  • Garuda Indonesia Group to Join Singapore Airshow 2016

    Garuda Indonesia Group to Join Singapore Airshow 2016

    As part of its company synergy, the Garuda Indonesia Group will for the first time join Singapore Airshow, Asia’s largest aerospace and defence event. This is Garuda Indonesia’s first participation as a Group, as only one subsidiary, the Garuda Maintenance Facility AeroAsia, had participated in the past.

    M. Arif Wibowo, President & CEO, Garuda Indonesia, feels the presence of the Garuda Indonsia Group at Singapore Airshow 2016 is inline with the company’s “Group Synergy” program, as detailed in its strategic plan 2016.

    “The Garuda Indonesia Group is delighted to present itself as an integrated whole, presenting our business synergies as group action in providing service excellence to all customers, through each member’s strengths and main businesses,” Arif added.

    The presence of Garuda Indonesia Group at the Singapore Airshow follows Group strategy to develop brand image, to elaborate potential business, to enhance business relations with stakeholders, and to boost up the awareness to Garuda Indonesia Group’s strategic role as Indonesia’s trade envoy in international level.

    At the Singapore Airshow 2016, Garuda Indonesia Group – through Garuda Maintenance Facility AeroAsia – looks to several short-term and long-term business contracts, of a value reaching USD 100 milions.

    Singapore Airshow is one of three prestigious airshows in the world, along with Farnborough Airshow and Paris Airshow. During the airshow, Garuda Indonesia Group will hold several partnership and business deal signings, including an announcement of attainment; which expected to promote and stregthen Garuda Indonesia Group’s value in global market.

    Garuda Indonesia currently has 6 subsidiaries with diverse business sectors, comprised of:

    – Garuda Maintenance Facility AeroAsia, specialized in integrated aircraft maintenance, including engine and aircraft components repair service;

    – Citilink, a low cost carrier (LCC) airline projected for budget traveller;

    – Aerowisata, specialized in hospitality, transportation, catering and travel agent service;

    – Gapura, specialized in ground handling service, supported by cargo and warehousing service;

    – Asyst, specialized in IT and consultation service;

    – Abacus – which now has transformed to Sabre Travel Network Indonesia – specialized in technology provider service for global travel and tourism.

    As part of the fleet revitalization program, throughout 2016, the Garuda Indonesia Group will receive 16 new aircraft in total; 1 Boeing 777-300ER, 4 Airbus A330-300, 4 ATR72-600, and also 8 Airbus A320 to be operated by Citilink. By the end of 2016, Garuda Indonesia Group will operate a total of 188 aircraft; 144 aircraft for Garuda Indonesia and 44 aircraft for Citilink.

    To continue the positive growth reached by its “Quick Wins” program in 2015, Garuda Indonesia will execute a “Sky Beyond” strategy in 2016 for short-term company expansion, focusing on three ‘core strategies’ – company group synergy, effectiveness and efficiency, and service enhancement – to accelerate company achievement and performance.

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  • Indonesian bank opens branch in Seoul

    Indonesian bank opens branch in Seoul

    An Indonesian bank, Bank Negara Indonesia (BNI) 46, opened a branch office in Seoul, South Korea, in Wise Tower, on Monday. It was inaugurated by the Ambassador of Indonesia to South Korea, John A Prasetio and Manager of BNI46 Seoul, Wan Andi Aryati. “The banking industry in South Korea is already shaken, but BNI46 still sees market potential,” Wan Andi said in a statement received by ANTARA here Monday. The BNI46 targets the domestic trade market according to her. “BNI Seoul wants to be a bridge to establish cooperation between Indonesia and South Korea by providing loans and other related banking services,” Wan Andi said.

    The BNI46 also provides services for South Korean businessmen who want to invest in Indonesia, she added.
    “We are also targeting the Indonesian labor market in South Korea, which now reaches 40 thousand people. We are committed to providing the best service for the Indonesias foreign exchange heroes,” she said.

    Meanwhile, Ambassador Prasetio stated that the world economy is still in a state of collapse. The stock market and the value of currency in some countries against the US dollar continues to decline.

    “This shows that the global sentiment has not been encouraging. Uniquely, the Indonesian economy is relatively solid in the middle of the uncertainty shocks,” the ambassador said.

    Cooperation in trade and investment between Indonesia and South Korea are still positive. The demand for Indonesian products and South Koreas investment in the country are progressive, according to him.

    “They respond positively on the economic policies of President Jokowi (Joko Widodo). I believe that the presence of BNI46 in Korea is very important to bridge cooperation between the two countries,” the ambassador said.

    Data from the Investment Coordinating Board (BKPM) shows that South Koreas direct investment in the country in the last five years is ranked fourth with a value of more than US$7 billion. Currently, there are 2,700 South Korean companies in Indonesia.

  • e-money transactions reach Rp5.2 trillion

    e-money transactions reach Rp5.2 trillion

    Electronic money (e-money) transactions conducted in the country in 2015 reached Rp5.2 trillion in value, up from Rp4.3 trillion in 2014, Governor of Bank Indonesia(BI) Agus Martowardojo said.

    “In 2009, electronic money transactions were valued at about Rp520 billion only, and now they have reached Rp5.2 trillion,” the central bank governor said while opening the National Non-Cash Movement (GNNT) in Kupang, the provincial capital of East Nusa Tanggara (NTT) here on Saturday.

    Agus said the non-cash transaction system, either using prepaid cards, credit cards or electronic money, is very useful because it makes the financial system more efficient.

    With non-cash transactions, the state could reduce the use of banknotes and coins, making transactions more efficient and saving money on printing currency.

    “We are convinced that the non-cash system would be safer, more practical and more efficient,” Agus said.

    After all, the non-cash payment system can be used widely, such as while purchasing cellular phone minutes, shopping at malls or paying electricity and tap water bills.

    He said the e-commerce and non-cash transactions are predicted to continue to increase.

    “Non-cash payments could also be for online-transactions, resulting in efficient usage of time and economizing,” he added.

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  • Indonesia`s coffee output up 1% last year

    Indonesia`s coffee output up 1% last year

    Vice President M. Jusuf Kalla said Indonesias coffee production only rose one percent to 500 thousand tons last year.

    “Our coffee production has been stagnant. It only reached 500 thousand tons last year, just one percent increase,” he told a meeting convened to develop national coffee here on Saturday.

    Indonesia produces an average of 600 thousand to 700 thousand tons of coffee per year compared to Vietnam, whose coffee output reaches more than 2 million tons, he said.

    As a matter of fact, Vietnam once learned coffee farming from Indonesia, he said.

    He said Lampung province is the countrys largest robusta coffee producer with an annual production of 100 thousand tons per year.

    Also present at the meeting were Agriculture Minister Andi Amran Sulaiman, Lampung Governor M Ridho Ficardo, and a number of officials.

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  • E-commerce expansion primed for Indonesian market

    E-commerce expansion primed for Indonesian market

    As smartphones become more commonplace in Indonesia, apps are enjoying a surge in popularity, suggesting that e-commerce – for both goods and services – is filling market voids and strengthening its economic foothold.

    Online trading and transport apps in particular are generating interest, offering a solid foundation for other start-ups, and attracting international players and financiers to the country.

    However, technology companies will be looking to further improvements in related services, such as logistics, and changes to foreign investment regulations to support continued expansion.

    The era of the app

    Since launching its mobile app in early 2015, Go-Jek, the Indonesian two-wheeled motorbike taxi service, has seen its market value rise as high as $400m and the number of registered drivers jump from 500 to 200,000.

    Also seeing the opportunity in the market, in May Malaysia’s Grab expanded into Jakarta, launching its GrabBike service, before introducing a car-based service several months later. The company is now active in at least five cities around the country, with plans to expand further in the coming year.

    The scale of the popularity of e-services was evidenced by the major backlash that Ignasius Jonan, minister of transport, faced last December when he attempted to ban transport apps like Go-Jek. Amid a public outcry and #SaveGojek trending on Twitter, the government quickly reversed its decision.

    Voicing his support for ride-hailing apps, President Joko Widodo told local media, “Innovation among the younger generation should not be stifled. Applications such as Go-Jek exist because they are in demand.”

    The growing use of ride-hailing apps signals a wider expansion under way across the country in e-commerce and mobile transactions.

    According to the Indonesian eCommerce Association, the country’s online market is projected to triple between 2014 and 2016 to reach Rp283trn ($20.8bn).

    While online sales represented around 1% of all retail sales in Indonesia in 2015, research firm eMarketer expects this share to grow to 4.4% by 2019, with e-commerce spending forecast to rise from $3.2bn to $10.9bn over the period.

    Major players moving in

    With a population of around 250m, Indonesia’s e-commerce potential has captured the attention of global technology and investment giants.

    In late January US-based e-commerce platform eBay confirmed plans to open an office in Indonesia, following in the footsteps of Twitter, which has had a base in the country since March. The move will see eBay build on its local partnership with state-owned telco Telkom, through which it operates the online shopping portal Blanja.

    For its part, the Chinese internet search company Baidu announced plans to boost investment in Indonesia, where it operates the MoboMarket app store with more than 500,000 products available for download.

    Major new domestic players are also entering the e-commerce scene. MatahariMall.com launched its operations in early September with $500m in backing from Indonesian real estate developer Lippo Group. Describing itself as the Alibaba of Indonesia, the firm said it hopes to become a driving force for e-commerce in the country.

    Hadi Wenas, the company’s CEO, suggested the site was created to mimic a brick-and-mortar shopping experience.

    “Just like an offline supermall, you enter, walk around and shop by floor. Each floor focuses on different categories,” he told media at the launch.

    Leading start-ups in Indonesia are also benefitting from international venture capital interest. Go-Jek, for example, attracted $6m in seed funding in mid-2014, with another $15m raised from US-based Sequoia Capital in April of last year.

    Further investment in the industry is likely to be spurred by the easing of foreign ownership limits in the e-commerce segment. Previously included on the country’s negative investment list, the government recently ruled to allow up to 33% foreign ownership of e-commerce ventures.

    More to be done

    However, some obstacles to sector growth remain. While internet connectivity is rapidly growing, it is coming from a smaller base than other countries in the region.

    The number of internet users in Indonesia reached 73m in 2015, or approximately 29% of the population, according to the Ministry of Communications and IT, significantly less than Malaysia (67.5%), Thailand (55.9%) or the Philippines (43%).

    A fragmented logistics landscape and underdeveloped payment infrastructure also present hurdles to expansion, with just 6% of Indonesians holding credit cards, according to a 2014 report by UBS.

    App developers will need to keep the characteristics of the market in mind when planning expansion. For example, a targeted approach is likely needed to attract Indonesia’s traditionally risk-averse and brand-loyal shoppers. A survey by McKinsey last year found that 63% of Indonesian consumers only buy products from brands they already know, suggesting word of mouth may be an important tool for growing local market share.

    E-commerce solutions are increasingly being used to bridge gaps in Indonesia’s infrastructure, with some start-ups helping firms extend their reach to rural areas.

    Start-ups looking for innovative ways of reaching rural customers are also employing a tactic known as assisted e-commerce, which uses technology to connect local stores with product distributors, helping to minimise geographic challenges and overcome low penetration of credit cards.

    Kudo, for example, which was founded in early 2014, offers online shopping through physical point-of-sale kiosks in public places.

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  • Wing Tai’s Q2 net profit falls 85% to $1.08m

    Wing Tai’s Q2 net profit falls 85% to $1.08m

    Earnings plunged 85 per cent at developer Wing Tai Holdings in the second quarter due to the absence of a one-off gain in the corresponding quarter last year.

    The group had recorded a gain of $21.1 million on the disposal of a property subsidiary in Indonesia in the same period a year ago.

    Net profit this time came in at $1.08 million for the three months to Dec 31 while revenue fell 5 per cent to $120.6 million.

    The decline in turnover was due mainly to progressive sales of units recognised from The Tembusu, additional units sold at Le Nouvel Ardmore in Singapore, The Lakeview in China as well as contribution from Phase 2 of Jesselton Hills in Penang.

    The group’s share of profits from associated and joint venture companies fell by 25 per cent to $15.8 million, largely due to the lower contributions from Wing Tai Properties in Hong Kong.

    Distribution expenses fell 20 per cent to $22.2 million from $27.7 million due to lower rental and depreciation from its Singapore retail outlets. Administrative and other expenses rose 12 per cent to $23.8 million from $21.3 million a year ago due to the closure of Singapore retail outlets.

    Earnings per share tumbled to 0.40 cent from four cents, while net asset value per share rose to $4.09 as of Dec 31 from $4.07 as at June 30.

    No dividend was declared.

    The firm said the effect of the cooling measures will continue to weigh on market sentiment here this year while economic conditions in Malaysia will likely keep sales soft.

    In China, residential sales are expected to improve with the relaxation of home purchase restrictions in certain cities.

    Wing Tai shares closed 0.3 per cent or 0.5 cent up to $1.525 yesterday.

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  • $100m deal for RedMart?

    $100m deal for RedMart?

    A $100 million investment aimed at funding pan-Asian expansion is on the cards for Singapore’s online grocer RedMart.

    Discussions involving the Series C investment are said to be at an advanced stage, reportsTechCrunch, citing two sources. While closure is expected in this first quarter, the grocery company has not issued any public comment on the development.

    Launched in late 2011 by Vikram Lupani, Rajesh Lingappa and Roger Egan, the venture introduced online and on-demand shopping in Singapore. So far, the company has raised $55.1 million from 19 investors. These include, according to Crunchbase, gaming company Garena, SoftBank Ventures Korea, Visionnaire Ventures and Facebook co-founder Eduardo Saverin.

    In August, RedMart raised a $26.7 million bridging round from its investors.

    Potential targets for RedMart’s expansion include Hong Kong and Jakarta, reports DealStreetAsia. However, the firm wants to establish its market leadership in Singapore, where Egan estimates the grocery market to be worth $16 billion a year. The company’s strategy is to maintain its own logistics system and warehouses so as to have greater control of the customer service cycle and enable rapid expansion later into other verticals.

    RedMart’s Asian competitors, HonestBee and HappyFresh, have raised significant equity financing and have adopted a model relying on third-party logistics and delivery services while expanding across South-east Asia and establishing a presence in Hong Kong and Taiwan, says DealStreetAsia.

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  • Uber strategy that will change retail face

    Uber strategy that will change retail face

    Isn’t it fascinating that the world’s largest accommodation provider doesn’t own a room, or that the world’s largest retailer doesn’t own a shop (for the time being) and here we have the world largest taxi company that doesn’t own a taxi.

    So what might some of the lessons of Uber show us as retailers? The past five years have seen the logistics and transport app, Uber, grow from a start up with big ambitions based out of San Francisco into a global disruptive business operating in more than 350 cities, 64 countries and over six continents. Such rapid unheralded growth, underpinned by technology disruption and adaptation and above all challenging the normal or established models and just being disruptive, yet focussed on one central competency.

    As a natural-born disruptor of the transport sector, of course Uber has naturally asked how do we build at transporting people? After all, Uber is not narrowly interested in transportation; instead, the company is building a logistics platform that captures and predicts supply & demand so well that it can be applied to many other commercial domains. However at the heart of the Uber offer is one common foundation offer – one great “glue” that transcends and links all their offers globally.

    We live in an on-demand economy, where consumer’s ‘need it now’ tendencies dictate the retail strategies of retailers around the world. Smart or “fit” businesses are partnering their offers in collaborative models as distinct from attempting to “be all things and to simply attempt to acquire”

    The horizontal integration model, in a world increasing without boundaries is becoming yesterday’s approach. Today’s Uber-like approach is to disrupt and collaborate with other specialists enabling global growth and far greater efficiencies in all forms of the business operations.

    So where does Uber sit in the future of the retail sector in Australia and how is partner collaboration showing the way forward?

    Last October Uber launched Uber Rush in Chicago, New York and San Francisco. An on-demand delivery service for retailers, and while it’s launch coincided with partnerships with some big name retailers such as Rent The Runway and Nordstrom, the potential this service offers to small retail businesses is huge.

    Entering this on-demand delivery market aligns Uber alongside logistics giant Amazon.com and in particular Amazon’s program Flex, which pays independent drivers to deliver orders locally.

    However it also aligns independent brick and mortar retailers alongside the big e-commerce giants. While in the past it may have seen like a long lost dream to small independent retailers to be able to compete on the same level as the e-commerce giants who own their own complex logistics models allowing for same day and next day delivery, Uber Rush makes this dream a reality at very little cost. Retailers signed up to Uber Rush are given their own merchant platform to book the cars or bike couriers live as the orders come in, and all they pay for is the trips they use.

    According to Jo Bertram, regional general manager for the UK, Ireland and Nordics at Uber at a WIRED retail conference in London last year, the goal of Uber Rush is to make getting anything in your city more convenient, affordable and reliable than picking it up yourself.

    UberRush is particularly exciting for small independent retailers, allowing them to cater to today’s consumer’s ‘need it now’ tendencies’, boost customer loyalty and satisfaction, and ultimately provide customers with the same cost effective and efficient shopping experience when shopping local that they would get online. This platform also provides the small retailers the opportunity to grow and scale by reaching customers further away than they may have been able to before.

    Research by Uber suggests 60 per cent of customers would pay more to get same day delivery. Add this to today’s consumer journey to a brand or retailer often beginning and ending on mobile, the potential growth and adoption of this service all around the world is huge.

    Retailers who understand this disruptive positioning coupled with smart partnering and who don’t define the market by geography, rather by customer catchments are trailblazing the new frontier of retail.

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  • MatahariMall.com Embraces Foreign E-Commerce Investment in Indonesia

    MatahariMall.com Embraces Foreign E-Commerce Investment in Indonesia

    When asked for his views on the issue, Hadi Wenas, the chief executive officer of MatahariMall.com, told reporters on Wednesday (10/02): “We are very optimistic. It will be business as usual for us, we are not afraid, not shocked or confused.”

    For foreigners, Indonesia is an attractive market for investment, particularly in the e-commerce sector, according to Indonesian E-commerce Association (idEA).

    The association estimated that the number of online shoppers in Indonesia could reach 10 million this year as the country’s middle class continues to grow. The e-commerce business is projected to rake in Rp 20 trillion ($1.49 billion) this year, double from last year’s estimated Rp 10 trillion.

    At the office launch of MatahariMall.com, Wenas noted that the same practice is common in Brazil, Russia, China and India, where local e-commerce firms are able to succeed in the market, supported by global investors, without the companies losing their identity.

    “With the support of Lippo Group, the biggest retail group in Indonesia, and the team we currently have, we are super solid now. Look at our campaign breakthrough. Foreigners won’t match our local taste in our ‘Lu mau apa?’ [(‘What do you want?’)] campaign,” Wenas said, referring to the company’s catch phrase.

    The Jakarta Globe and MatahariMall.com are both affiliated with the Lippo Group.

  • Tweetwars: the social challenge in Twitter ‘capital’, Indonesia

    Tweetwars: the social challenge in Twitter ‘capital’, Indonesia

    Indonesia has long been the Twitter capital of the world, but rival apps and rancorous political debate are driving users away, illustrating the challenges the microblogging service faces even in markets once considered strongholds.

    While Twitter doesn’t break down country figures, Global Web Index data shows Indonesia remains joint first with Mexico in active users among the 34 countries the UK-based metrics company monitors – and significantly ahead in terms of penetration, at 74 per cent of all Internet users.

    But that masks a deeper shift, analysts and users say, as changing tastes, culture and politics push Indonesians to rival services.

    The proportion of active Twitter users in Indonesia has dipped 10 percentage points in the past two years, to about one third of Internet users, the Global Web Index data show.

    “Unless Twitter makes changes or there’s some new exciting things on Twitter that can’t be found on other platforms then I don’t think people are coming back to Twitter,” said Enda Nasution, a blogger and entrepreneur who has nearly 200,000 followers on his Twitter account.

    A Twitter spokesman declined to comment on the data, saying he had not seen it, but said younger people in major markets like Indonesia and India were eager users. He said the company was expanding in Indonesia and working with airlines, banks and celebrities to add services and content.

    He noted Indonesia was one of the top markets for Facebook’s recent acquisition Periscope, which allows users to stream live video.

    Twitter on Wednesday reported its first quarter since going public with no growth in users, and announced changes to its global service.

    Among younger users – active Twitter users in the 16-24 year age range – Indonesia lags Spain, Mexico and the UK. JakPat, an Indonesian survey company, found last month that teenagers were less likely to use Twitter regularly than those aged 26 and above, and were switching to other apps such as Facebook and its photosharing sibling Instagram.

    But there’s also a push factor: Indonesians are leery of Twitter’s core appeal; its default public feed, where everything a user posts is visible to everyone on the network. What was once an attraction in Indonesia’s sociable culture became a liability in 2014’s fractious presidential election.

    FISTICUFFS

    As politicians saw the power of Twitter to mobilise support, the network was flooded by digital armies of volunteers and automated accounts, or bots, spawning what Shafiq Pontoh, chief strategic officer at Jakarta-based social media consultancy Provetic, described as a “tsunami” of “black campaigns, hoaxes, prejudice, racism, spam, harassment, anonymous accounts and political action to frame topics, issues (and) spin doctoring.” “Twitter,” he said, “became an uncomfortable place to be.”

    This antagonism hit rock bottom when two Twitter users took a dispute over government car-making policies offline and slugged it out near a sports stadium. Cellphone footage of their fist-fight was broadcast on TV. “After that it felt like that if you don’t want to get into trouble, people would retreat and find a more comfortable space online,” said Nasution, the entrepreneur.

    Those online spaces include Facebook’s WhatsApp and Messenger apps, South Korean Kakao’s Path, Japan’s Naver Corp’s LINE and BlackBerry’s Messenger.

    Mr Nasution said students he has spoken to use WhatsApp to communicate with their lecturer, and LINE to chat with each other. Or Facebook and Path, says student Jeremiah Mandey, who joined Twitter in 2010. “I used Twitter to interact with friends, but now I use it to get news,” he said.

    MISSING A CULTURAL BEAT

    Government departments, companies and even President Joko Widodo have embraced Twitter as a public announcement service. The Jakarta police traffic feed, alerting commuters to jams, accidents, potholes and protests, has over 5 million followers.

    This provides a service, but is too passive for younger people, says Aulia Masna, an editor. “People are on social media to have fun and be entertained,” he says. “Twitter in Indonesia is better known as the place for news, debate and politics. So it attracts the more serious, older crowd.”

    The company spokesman said Twitter opened a Jakarta office last year and added staff, in part to expand its user base beyond the capital. The recruits included a government relations expert. It was also working with local bank BNI to allow customers to transact via Twitter. “We see great potential in Indonesia, it’s one of the top markets,” he said, adding Mr Joko was due to visit Twitter’s headquarters in San Francisco next week.

    Simon Kemp, regional managing partner of social media marketing agency We Are Social, said Twitter should focus more on understanding how people in places like Indonesia use their service before tweaking things.

    “People are still looking at these things as a technology base,” he said, “while it’s the cultural driver that determines what you use and when you use it.”

  • Indonesia warns messaging apps to drop same-sex emoticons

    Indonesia warns messaging apps to drop same-sex emoticons

    Indonesia’s government has demanded that instant messaging apps remove stickers featuring same-sex couples, in the latest high-profile attempt to discourage visible homosexuality in the socially conservative country.

    The government move comes after a social media backlash against the popular smartphone messaging app Line for having stickers, which are an elaborate type of emoticon, with gay themes in its online store.

    Information and Communication Ministry spokesman Ismail Cawidu said Thursday that social media and messaging platforms should drop stickers expressing support for the LGBT community, a common abbreviation for lesbian, gay, bisexual and transgender.

    “Social media must respect the culture and local wisdom of the country where they have large numbers of users,” he said.

    Homosexuality is not illegal in Indonesia, but is a sensitive issue in the Muslim-majority nation of more than 250 million people. At the same time, most of Indonesian society, which follows a moderate form of Islam, is tolerant, with gay and transsexual entertainers often appearing on television shows.

    Line on Tuesday said it had removed all LGBT-related stickers from its local store after receiving complaints from Indonesian users. Twitter and Facebook had exploded with criticism of Line and its competitor WhatsApp for containing gay content.

    Ismail said the government would tell WhatsApp to do the same as Line.

    Last month, Research, Technology and Higher Education Minister Muhammad Nasir said openly gay students should be banned from the University of Indonesia’s campuses. His statements followed controversy over news a sexuality research center planned to offer counselling services for students.

    Nasir’s statement sparked public controversy in Indonesia for weeks, with objections from human rights groups but support from the Indonesian Ulema Council, an influential board of Muslims clerics.

    Gay rights advocate King Oey urged the government to respect international treaties signed by Indonesia protecting the rights of minorities and women.

    “Gays and lesbians are not illegal in Indonesia,” Oey said. “We urge people who are concerned with human rights to not sit by silently.”

    In 2014, lawmakers in Aceh, a conservative Indonesian province, passed a law that punishes gay sex by public caning and subjects non-Muslims to the region’s strict interpretation of Islamic sharia law.

  • Parkson Retail Asia profit down 71.6% in Q2

    Parkson Retail Asia profit down 71.6% in Q2

    Department store operator Parkson Retail Asia has posted a second quarter net profit of $2.9 million, down 71.6 per cent from the same period a year ago.

    Revenue in the three months to Dec 31 fell 12 per cent to $103.5 million, driven by a 7.3 per cent fall in same store sales growth in Malaysia and 5.2 per cent fall in same store sales growth in Myanmar.

    Some new stores were also in their first year of operations, which is an initial loss-making period, the group said.

    Earnings per share stood at 0.43 cents, down from 1.51 cents a year ago.

    Net asset value per share was 27 cents as at Dec 31, up from 22 cents as at June 30 last year.

    “The Malaysia operations for the next reporting quarter may encounter muted consumer sentiment, however, this drag will be buffered by progressive normalisation of sales post-GST (Goods and Services Tax ),” the group said in a statement to shareholders after market close on Feb 3.

    It said that it expects Vietnam’s retail environment to improve in the second half, while demand from Indonesia’s middle class will remain robust.

    “The Myanmar operations may be affected by the possible closure of FMI Centre, where the store is located, for re-development. However, the landlord has not confirm on the timing for the redevelopment,” the group added.

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