Tag: Indonesia

  • Indonesia Wants Netflix to Open Office, Pay Tax

    Indonesia Wants Netflix to Open Office, Pay Tax

    If Netflix wants to obtain a but, the company must obey local regulations, such as opening an office and hiring employees. Furthermore, it must also obey tax regulations, which means every transaction with Netflix in Indonesia will be taxed.

    According to Kompas.com, the obligation to have a business license also applies to other over-the-top Internet-based services, such as Google and Facebook.

    These permanent businesses are required to pay corporate income tax and value added tax for every transaction made in Indonesia.

    Netflix’s video-streaming service went live in more than 130 countries, including Indonesia, last Wednesday as chief executive Reed Hastings aimed to counter slowing growth in the US.

    Indonesian users can choose from three monthly subscription plans on Netflix, with the basic plan priced at Rp 109,000 ($8) per month.

  • Singapore-Indonesia Talk Agribusiness Export

    Singapore-Indonesia Talk Agribusiness Export

    Minister of Foreign Affairs Retno Marsudi received her Singaporean counterpart Vivian Balakrishnan at the Foreign Affairs Ministry building in Jakarta today, January 13. This meeting between the two ministers is their second after the ASEAN Summit in Kuala Lumpur in November last year.

    For Mr. Balakrishnan, this is his introductory visit to Indonesia since he was appointed as Singapore’s Foreign Affairs Minister in October 2015. In the meeting, the two ministers talked about a number of important issues.

    “The relationship between Indonesia and Singapore is one of the most intensive bilateral ties due to our geographic proximity and tight work relations,” Minister Retno said in an official statement on Wednesday, January 13.

    The ministers talked about how to enhance economic ties between the two nations. One way is through agribusiness exports.

    “Singapore needs this product, while Indonesia has the capacity. The geographic proximity between the two countries is a potential than can be brought closer,” the minister said.

    Indonesia and Singapore are planning to hold agribusiness collaborations in the fields of cool storage and infrastructure standard.

    The two ministers also discussed about the potential for a partnership in the manpower sector. Minister Retno said that, in the future, Indonesia will enhance the quality of skilled workers – particularly in fields with high demands such as therapists, caregivers, and other.

    The meeting was also spent talking about regional cooperation, ASEAN in particular, and the plan for Singapore’s Prime Minister to visit Indonesia.

    In addition to meeting Minister Retno, Mr. Balakrishnan’s trip to Indonesia also included an honorary visit to President Joko WIdodo and Luhut Pandjaitan, Coordinating Minister of Law and Human Rights.

    Singapore is Indonesia’s second largest trading partner after China. In 2014, the trading value between Indonesia and Singapore reached US$42 billion.

    In terms of investment, Singapore is Indonesia’s biggest investor. In 2014, Singapore’s investment actualization in Indonesia valued at US$5.8 billion. Singapore is also Indonesia’s largest contributor of foreign tourists, with more than 1.5 million Singaporeans visiting Indonesia per year on average.

  • Siemens studies participation in Indonesia`s electricity program

    Siemens studies participation in Indonesia`s electricity program

    German company Siemens Energy Sector is studying the possibility of taking part in the governments program in the electricity sector.

    The government has a program to build power plants with a total capacity of 35,000 megawatts until 2019.

    Member of the board of management of Siemens Lisa Davis met Vice President M. Jusuf Kalla on Tuesday discussing Siemens interest in taking part in carrying out the program.

    Lisa said Siemens has long been venturing in Indonesia taking part in the government development program especially in development of power plants.

    She also expressed interest in cooperating with the state power utility company PLN in building power plants.

    “We discussed a lot of things in the energy sector such as in power generating plant, power transmission facility and distribution of power,” she said.

    She said involvement of Siemens in the 35,000 MW electric program would open many jobs in the country.

    Siemens has produced electrical components and Indonesia is a potential market for the products.

    “We see Indonesia a potential market for our manufactured products. That is the reason for our interest in cooperation with the Indonesian government,” she added.

    German Ambassador Georg Witschel, who accompanied Lisa at the meeting with the vice president, said Germany will also be ready to offer help for Indonesia in the implementation of its programs including in its electricity program.

  • Komodo Island named Indonesia`s main marine tourist destination

    Komodo Island named Indonesia`s main marine tourist destination

    The Ministry of Tourism has mapped Komodo Island as one of the 12 major marine tourist destinations in Indonesia.

    The other destinations included in the list are Wakatobi in Southeast Sulawesi, Derawan in East Kalimantan, Raja Ampat in Papua, Nias in North Sumatra, Mentawai in West Sumatra, Ujung Kulon in West Java, Anak Krakatau in Sunda Strait, Tomini in Central Sulawesi, and Bali and Lombok in West Nusa Tenggara.

    “The twelve islands are included in the blueprint of the marine tourism development plan for natural resources and creative economy in promoting the brand Wonderful Indonesia,” Welly Rame Rohimone, acting head of the provincial tourism and creative economy office, stated here on Tuesday.

    Komodo Island, the natural habitat of the Komodo dragon (Varanus kommodoensis), has been selected as one of the new seven Wonders of Nature. The tourist area is ideal for diving and cruise tourism.

    “East Nusa Tenggara will be developed as Indonesias tourism gateway besides Bali, West Nusa Tenggara, and ten other islands,” Rohimone noted.

    The Komodo dragon in Komodo National Park can be found on the islands of Rica, Padar, and Komodo.

    “Sail Indonesia, being held since 2009, has also been organized in East Nusa Tenggara in 2013 under the name of Sail Komodo,” he emphasized.

    Komodo Island, with a land area of 390 square kilometers, has a population of over two thousand.

    The island has a beach with sand that appears pink as it contains a mixture of white sand and red sand, formed from pieces of Foraminifera.

  • CNBC to launch channel in Indonesia

    CNBC to launch channel in Indonesia

    Financial news channel CNBC has struck a deal with PT Trans Media Corpora to launch a CNBC-branded channel in Indonesia.

    CNBC Indonesia is to enter Southeast Asia’s largest economy later this year, and will be a Bahasa-language service.

    Mark Hoffman, chairman of CNBC, said that the deal with Trans Media underpins the broadcaster’s emerging markets strategy.

    “We are pleased to bring CNBC’s unique and robust content proposition to millions of Indonesians in their local language, further opening the world of international business and finance to a growing economic powerhouse,” Hoffman said.

    Chairul Tanjung, founder and chairman of PT Trans Media Corpora’s parent company, CT Corp, said: “The primary objectives of the CNBC Indonesia venture are to facilitate global business conversations in Bahasa Indonesia, to educate our growing middle class, and to facilitate better information flow for decision making. This will help realise the full potential of the capital markets and businesses, accelerating the economic development of Indonesia.”

    CNBC’s announced launch comes just three months after rival Bloomberg closed its Indonesian joint venture after running into financial difficulties. Bloomberg is still looking for a new local partner to revive its Indonesian ambitions, Mumbrella understands.

  • Snapcart docket scanning concept wins funding

    Snapcart docket scanning concept wins funding

    An Indonesia-based startup that runs a service offering consumers rewards in exchange for scans of their shopping receipts has received US$1.675 million in funding just four months after launching.

    New investors in Snapcart, Wavemaker Partners and Singapore Press Holding’s SPH Media Fund, along with existing backers SMDV (Sinar Mas Digital Ventures) and Ardent Capital, launched the funding round – described as “pre-Series A” – as the company started exploring expansion options in Southeast Asia, reports Techcrunch.

    Snapcart’s business is two-fold: one one side it allows customers to scan their store receipts in exchange for cashback and rewards; on the other side, information from the receipts is compiled and used to provide clients, such as consulting agencies, with reports and information about consumer spending and shopping habits – valuable, because it is not easy to track offline commerce.

    Snapcart CEO and founder Reynazran Royono says the company has scaled faster than initially anticipated, with the funding round being wrapped up a few months ahead of schedule.

    He says the new capital will be used to develop more products, including engagement videos and analytical dashboard tools that will enable client brands to view customer behaviour in real time. There are more than 35 Snapcart clients including L’Oreal, Nestle, Procter & Gamble and Unilever.

    “The amount of data we’re receiving is humongous,” says Royono, who previously worked as a consultant for Procter & Gamble and Boston Consulting.

    So far, Snapcart for Android has clocked 150,000 downloads and has 85,000 monthly active users in Indonesia. An IOS app is about to be released.

    TechCrunch.com says Snapcart is expected to push beyond its initial focus on FMCG into other verticals, and the company is looking at other options that could involve small retails.

    Snapcart is also investigating regional expansion, adding former Procter & Gamble market research director Mayeth Condicion as chief data officer and co-founder. Condicion is based in Manila, which will be Snapcart’s first international expansion and soon home to its data analytics team. Jakarta will remain its technology hub.

    Meanwhile, the company is thinking of a second funding round about the middle of this year so it can push ahead with its expansion plans. Snapcart aims to achieve one million user downloads in less than 12 months.

  • CNBC, Trans Media partnership; Government to study Netflix impact

    CNBC, Trans Media partnership; Government to study Netflix impact

    CNBC and Trans Media will launch CNBC Indonesia

    CNBC and the media company own by tycoon Chaerul Tanjung will launch new media services CNBC Indonesia, a dedicated business, financial TV and digital news service in Bahasa.  The partnership agreement was signed in Jakarta by Mark Hoffman, chairman of CNBC and Chairul Tanjung, founder & chairman of Trans Media Corpora’s parent company, CT Corp. Specific launch dates for the digital and TV services are expected to be announced later this year.

    According to Hoffman, the collaboration with Trans Media is a strong addition to the suite of strategic partnerships underpinning CNBC’s emerging markets strategy.

    “We are pleased to bring CNBC’s unique and robust content proposition to millions of Indonesians in their local language, further opening the world of international business and finance to a growing economic powerhouse,” said Hoffman.

    “The primary objectives of the CNBC Indonesia venture are to facilitate global business conversations in Bahasa Indonesia, to educate our growing middle class, and to facilitate better information flow for decision making. This will help realize the full potential of the capital markets and businesses, accelerating the economic development of Indonesia,” added Tanjung.

    Netflix’s presence might affect existing players

    Communication and InformationTechnology Minister Rudiantara said, Netflix’s presence might affect existing playres in the entertainment industry and other online businesses. Hence, his ministry would seek advice from the Culture and Education Ministry to look into the content available on Netflix to gauge its impact on society.

    “If the disadvantages outweigh the advantages, then something must be done to fix that. We have to study the Netflix entrance carefully as we do not want to hinder technology for the sake of the public,” he stated.

    However, Rudiantara was confident that the country’s internet infrastructure would be ready, especially mobile broadband networks to support a service like Netflix.

    Netflix’s listed Indonesian rates are Rp 109,000 per month for its basic service, Rp 139,000 a month for its standard service and Rp 169,000 a month for its premium service.

    Netflix was founded in 1997 with headquarter in in Los Gatos, California. In, 2007, the company grabbed headlines as it delivered its billionth DVD in the United States. The on-demand streaming service was later often cited by media as one of the factors that led to the bankruptcy of video rental chain Blockbuster.

    Currently, Netflix is already available in 60 countries worldwide and aims to cover 200 countries by the end of 2016.

  • PT Trans Media Corpora & CNBC to Launch “CNBC Indonesia”

    PT Trans Media Corpora & CNBC to Launch “CNBC Indonesia”

    PT Trans Media Corpora and CNBC have agreed a strategic partnership that will culminate in the launch of CNBC Indonesia.

    The service, which will be based in Bahasa, Indonesia, will bring CNBC’s unrivalled content to the growing business community in South East Asia’s largest economy and the world’s fourth most populous country.

    The partnership was signed in Jakarta by CNBC Chief, Mark Hoffman and Chairul Tanjung, Founder & Chairman of PT Trans Media Corpora’s parent company, CT Corp.

    Hoffman Said; “This collaboration with Trans Media is a strong addition to the suite of strategic partnerships underpinning CNBC’s emerging markets strategy. We are pleased to bring CNBC’s unique and robust content proposition to millions of Indonesians in their local language, further opening the world of international business and finance to a growing economic powerhouse.”

    “The primary objectives of the CNBC Indonesia venture are to facilitate global business conversations in Bahasa Indonesia, to educate our growing middle class, and to facilitate better information flow for decision making. This will help realize the full potential of the capital markets and businesses, accelerating the economic development of Indonesia,” added Tanjung.

    Specific launch dates for the digital and TV services are expected to be announced later this year.

  • Lion group to receive 44 aircraft

    Lion group to receive 44 aircraft

    Lion Group will procure 44 aircraft this year for the airlines under its operations, including Lion Air, Wings Air, and Batik Air, Edward Sirait, its president director, stated here on Monday.

    He noted that the aircraft fleet is being expanded to increase capacity in view of the growth this year, which is expected to reach 15 percent.

    Edward remarked that 14 aircraft will be for Lion Air, 18 for Wings Air, and 12 for Batik Air.

    “The number will be adjusted based on the market demand in line with the transportation ministrys forecast that the number of passengers will increase by 15 percent,” he claimed.

    He affirmed that all the new aircraft for Lion Air are Boeing, while Batik Air will receive Boeing and Airbus aircraft, and Wings Air would get ATR aircraft.

    He stated that the aircraft were procured through operating lease and financial lease schemes.

    He noted that the new aircraft will be used to serve new routes, especially for direct flights such as on the Balikpapan-Bandung, Tarakan-Semarang, and Banjarmasin-Denpasar routes.

    He remarked that Lion Group will also start flight services for minor Hajj pilgrims, with direct flights to Madinah using the wide-bodied Boeing 747 and Airbus 330.

    “Other airlines only offer flights to Jeddah, from where the passengers have to undertake a six-hour land journey. We have prepared direct flights to Madinah, so that the passengers could immediately proceed to carry out their religious rites,” he added.

    Lion Group currently has two Boeing 747 and three Airbus 330 aircraft.

  • Understanding CapitaLand Limited From An Investor’s Perspective

    Understanding CapitaLand Limited From An Investor’s Perspective

    CapitaLand Limited (SGX: C31) is one of Asia’s largest real estate companies with a presence in Singapore, China, Indonesia, Malaysia and Vietnam. It is listed on the Singapore Exchange with a market capitalization of over S$13 billion.

    The company has a diversified suite of real estate businesses. This includes the development of residential and commercial properties, as well as the ownership and management of retail malls, offices, and hospitality properties. In addition, CapitaLand has a number of Singapore-listed trusts under its umbrella and these include:

    • CapitaLand Mall Trust (SGX: C38U), a real estate investment trust (REIT) that owns and manages mainly retail malls in Singapore.
    • CapitaLand Commercial Trust (SGX: C61U), a REIT with a portfolio of predominantly Singapore commercial/retail buildings.
    • Ascott Residence Trust (SGX: A68U), a REIT that holds hospitality-related properties (such as serviced residences) in the U.S., Europe, Asia, and Australia.
    • CapitaLand Retail China Trust (SGX: AU8U), a China-focused REIT that owns a portfolio of retail malls in the country.

    2015 was a year in which the Singapore stock market, as represented by the Straits Times Index (SGX: ^STI), fell by 14%. CapitaLand, however, bucked the trend with a gain, albeit a meagre one of just 1.4%.

    Let’s analyze the company’s financials to understand if it may be a potential investing opportunity now. For this we will be using four metrics, namely the price to earnings (P/E) ratio, price to book (P/B) ratio, net debt to equity ratio, and dividend yield.

    CapitaLand has a trailing 12 months (TTM) earnings per share of S$0.288, according to S&P Capital IQ. With the company’s current share price of S$3.14, this implies a P/E ratio of 11. This is on par with the P/E ratio of the SPDR STI ETF (SGX: ES3) – an exchange-traded fund tracking the Straits Times Index – which stands at 11.

    As at the end of the third-quarter of 2015, CapitaLand has a net asset value per share of S$4.14. This would mean that the company has a P/B ratio of 0.76 at its current share price. What this means is that investors are able to buy the company’s assets, net of all liabilities, at a discount at the moment. Investors might thus be able to get a margin of safety with CapitaLand.

    Moving on, CapitaLand had net debt (total borrowings minus cash) of S$12.5 billion and equity of S$24.5 billion as of 30 September 2015. This would imply a net debt to equity ratio of 51%, which is on the high side, in my opinion.

    Lastly, the company has a dividend yield of 2.9% based on its 2014 annual dividend of S$0.09 per share. It’s worth noting that CapitaLand’s ordinary dividend has been growing over the past few years, rising in 1 cent per share increments in each year from S$0.06 per share in 2011 to S$0.09 in 2014.

    In looking at the four metrics, the negatives appear to outweigh the positives. While CapitaLand’s low P/B ratio may give investors some margin of safety, its high net debt to equity ratio could add some risk. Moreover, CapitaLand’s P/E ratio and dividend yield are not very attractive.

    To sum it up, the four metrics seem to suggest that CapitaLand may not be a potential investing opportunity for investors currently. That being said, a deeper look will still be required before any firm investing conclusion can be reached – the four metrics only represent a useful starting point for further research.

     

  • Bank Mega, official Barcelona bank in Indonesia

    Bank Mega, official Barcelona bank in Indonesia

    FC Barcelona and Bank Mega signed a Regional Partnership Agreement last December to officially confirm the latter as FCB’s Official Bank in Indonesia. The representatives of the Club at the signing ceremony included Manel Arroyo, Vice Chairman, Francesco Calvo, Chief Revenue Officer and Xavier Asensi Brufau, Managing Director – Asia Pacific, while Bank Mega was represented by Kostaman Thayib, President Director and Dodit Wiweko Probojakti, Managing Director of Cards and Loan.

    The agreement makes Bank Mega Barça’s first ever banking partner in Indonesia. Holders of Mega Barça cards will have various advantages, such as the chance to win tickets for Barça games at Camp Nou, extra rewards for purchases at FCB’s official Asian online store, the chance to win exclusive FCB gifts and more. Savings Account customers that meet specific requirements will also receive special FCB souvenirs. The program will be launched in the first quarter of 2016.

    About Bank Mega

    Bank Mega is one of the largest card issuers in Indonesia under CT Corpora holding company. Bank Mega has a network of 345 branches across Indonesia.

    The bank strengthens the synergy of companies under the management of PT CT Corpora, such as Carrefour and Metro, as well as improving credit card services, a factor that distinguishes Bank Mega from the competition.

    “Bank Mega is the perfect bank to be the Official FC Barcelona Bank in Indonesia” said Manel Arroyo. “We are delighted to form this partnership and reach our massive fan base in Indonesia and show our appreciation to the fans through various partnership programs. Bank Mega is one of the top three credit card issuers in Indonesia, and it has strong synergy with retail companies under CT Corpora. We are confident that this partnership will be beneficial to Barça fans. We look forward to a long and mutually beneficial relationship with Bank Mega.”

    “This partnership is based on Bank Mega and FC Barcelona’s intention to provide benefits for the over 26 million Barça fans in Indonesia” added Kostaman Thayib, President Director of Bank Mega. “This partnership brings co-branded products that could enhance the fans’ identity as part of the Barça family and provide different benefits with exclusive programs from Bank Mega’s various products and services, including co-brand payment cards. Ultimately, the fans will have the money-can’t-buy opportunity to meet Barça players in person.”

    Mr Thayib also mentioned that the partnership will launch co-branded Mega – Barça cards, which will be specially designed for FC Barcelona fans in Indonesia.

     

  • Credit Suisse: Tough Days for Retailers Next Year as Weak Rupiah and Spending Linger

    Credit Suisse: Tough Days for Retailers Next Year as Weak Rupiah and Spending Linger

    Indonesian retailers could see tough days persisting next year as they wade through a storm of weak rupiah and waning consumer demands, analysts at Credit Suisse Securities Indonesia says.

    Retailers in the country have grappled with volatility in the rupiah this year — with an 11 percent decline to 13,872 against the US dollar year-to-date — which are hiking costs of imports as well as interest from dollar-denominated debt against the backdrop of a slower economy.

    Credit Suisse Securities Indonesia is now underweight on local retailers next year, especially those with high imported content such as fashion and lifestyle retailer Mitra Adiperkasa and household store operator Ace Hardware. Credit Suisse Securities Indonesia is the the sixth-biggest broker in total value in November taking some 4 percent of the trading, data from the local bourse authority showed.

    “I’m worried about retailers with a lot of imported content because the rupiah has weakened a lot, so their merchandise is becoming more expensive for the local population to buy,” Jahanzeb Naseer, head of research for Indonesia at Credit Suisse Securities Indonesia, told reporters in Jakarta on Monday.

    “The government is also expecting a lot of machinery and infrastructure-related imports next year that they may put pressure on consumption imports.”

    Consumer spending on discretionary items, such as electronic devices and apparel, is also unlikely to improve until the second half of next year due to higher prices, according to Naseer.

    Credit Suisse forecasts the rupiah to weaken by between 6 and 8 percent next year due to pressure from the US Federal Reserve’s monetary tightening as well as a possible rate cut by Bank Indonesia.

    Meanwhile, it sees the economy growing by 5.2 percent next year — roughly in line with the government’s 5.3 percent target — on the back of accelerated government spending as well as a potential rate cut of 75 basis points by Bank Indonesia.

  • Bee forces flight delay in Indonesia

    Bee forces flight delay in Indonesia

    An errant bee delayed the takeoff of a flight operated by Indonesia’s Garuda Indonesia, the flag carrier’s spokesman said Wednesday.

    Benny Butarbutar, the company’s vice president of corporate communications, told Kyodo News that the pilot of Flight GA197 decided to delay the flight for four hours Tuesday after finding some problems in one of the aircraft’s engines.

    The plane was scheduled to take off at 10.10am from Kualanamu international airport in the North Sumatra provincial capital of Medan bound for the capital Jakarta.

    “Based on a thorough investigation, the problem in the aircraft’s electronic engine control was caused by a bee entering the aircraft’s pitot tube located on the outer part of the cockpit, delaying the departure,” Mr Butarbutar said. The pitot tube measures airspeed.

    The incident, he added, “was beyond Garuda’s control and caused more by the airport’s situation and condition.”

    The problem was discovered just as the plane was about to take off, he said.

    “Considering safety aspects, Garuda Indonesia decided to delay the flight, and after a one-hour repair process, the aircraft was declared serviceable and ready to operate,” Mr Butarbutar said, adding that the incident was the first of its kind for Garuda.

  • AirAsia X promotes KL-Jeddah route to Indonesians via charter contract

    AirAsia X promotes KL-Jeddah route to Indonesians via charter contract

    AirAsia X Bhd (AAX) has signed an agreement to charter aircraft from sister company PT Indonesia AirAsia (IAA) for 24 return flights between Jakarta and Kuala Lumpur for US$648,000 (RM2.82mil).

    The long-haul, low-cost airline told Bursa Malaysia that the two companies had on Jan 4 signed the charter agreement which summed up to 8,640 seats as a dedicated fly-through connectivity with its current Kuala Lumpur – Jeddah – Kuala Lumpur operations.

    It said the transaction was aimed at promoting the Kuala Lumpur – Jeddah route to Indonesian passengers via the charter and to generate positive returns for AAX.

    “The charter between AAX and IAA shall commence on the date of the agreement and will expire on Feb 29, 2016 or at the end of the extension period as may be agreed by AAX and IAA,” the airline said.

    AirAsia Investment Ltd, a wholly owned subsidiary of AirAsia Bhd, and PT Fersindo each hold 49% and 51% equity interest respectively in IAA. IAA is deemed to be a related party to AAX as AirAsia Bhd’s directors and major shareholders, Datuk Kamarudin Meranun and Tan Sri Tony Fernandes, are also the directors and major shareholders in AirAsia X.

    Last month Indonesia AirAsia launched the inaugural Jakarta-Jeddah flight, which is scheduled to depart twice a week.

    AAX shares closed unchanged at 18 sen on Monday with 6.75 million shares being transacted.

  • Indonesia revising 2018 Asian Games mascot after criticism

    Indonesia revising 2018 Asian Games mascot after criticism

    Indonesia is revising the mascot for the 2018 Asian Games after criticism that the newly unveiled bird-of-paradise looks more like a chicken.

    Gatot Dewa Broto, a senior official at the Ministry of Youth and Sport, said today that the revision should be finalised over the next two to four months.

    The mascot, called Drawa, was launched December 27 and is named after Cendrawasih, the local name of an iconic bird which is only found in Indonesia’s eastern most Papua province, New Guinea, and eastern Australia.

    However, many online critics have said the design makes it look more like a chicken than a bird-of-paradise, while others have said the mascot is out of date or just not suitable for such a major event.