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Tag: Indonesia

  • Study reveals Asian dining spending trends

    Study reveals Asian dining spending trends

    One in three millennials in Asia are eating at fine dining restaurants at least once a month – more often than those aged over 30.

    The surprise finding is one of a list of revelations uncovered by a MasterCard survey of Asian dining trends away from home. It featured consumers in 17 Asia Pacific markets: Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, New Zealand, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam.

    The most frequent fine-diners in Asia Pacific are millennials (18-29 year olds) from China – on average they visit more expensive establishments two or three times a month. This is higher than the average for millennials across the region and higher than any other age group.

    When choosing where to eat, consumers in Asia Pacific still prefer to rely on word of mouth and recommendations from friends and family (50 per cent). This was applicable for all consumers, regardless of age group, with even millennials trusting word of mouth recommendations (52 per cent) more than online reviews (38 per cent).

    This is despite the fact that more than a third of millennials (36 per cent) post comments and reviews of their dining experiences online. This is especially true of Chinese (61 per cent) and Thai (52 per cent) millennials, where more than half of the young people polled regularly post reviews after a meal.

    Beyond millennials, people in Thailand (39 per cent) and China (30 per cent) are also the most likely to spend more on dining over the next six months with around one in three indicating they plan to eat at more expensive establishments.

    But while consumers may be enjoying fine dining, they are still cost conscious. Sixty-four per cent of consumers in Asia Pacific regularly check for discounts or dining deals from coupon websites, mobile applications or credit card promotions. Sixty-eight per cent of millennials regularly look out for deals before choosing a place to eat.

    Eric Schneider, regional head, Asia Pacific, with MasterCard Advisors, said Asia has always had a strong dining out culture and so it is not surprising that affluent millennials in the region are ‘foodies,’ with many sharing their dining experiences on social media and posting reviews online.

    “While the survey has shown that people are increasingly moving from the hawker centres and into restaurants, young people are still cost conscious, taking a practical and savvy approach by looking for discounts and deals. Young people also still rely on word of mouth recommendations, despite many posting online reviews of dining spots. As Asia’s economies continue to grow, and with technology and social media revolutionizing the dining experience, people will increasingly demand top quality experiences when dining out,” he said.

    Other findings from the survey included:

    • Overall, consumers in Asia Pacific are not looking to make any significant changes to their dining out plans with 61 per cent of all consumers indicating they will look to eat out at the same frequency in the next six months. Twenty per cent plan to eat out more and 19 per cent plan to eat out less in the next six months.
    • The most popular dining option for consumers in Asia Pacific are mid-range restaurants and cafes, followed by fast food outlets and then hawker centres and food courts.
    • Consumers in the Philippines (44 per cent) are looking to tighten their belts with close to one in two planning to eat at less expensive venues in the next six months. Forty-nine per cent also plan to eat out less regularly.
    • A significant proportion of older consumers are going online to check for dining discounts whether on coupon websites/applications or credit card promotions. More than one-third of consumers aged 55 years old and above (36 per cent) indicated they regularly do so before deciding on a dining option.
    • Consumers in China (58 per cent), Taiwan (44 per cent) and Thailand (44 per cent) are the most likely to book dining deals on coupon sites or coupon applications; while consumers in Bangladesh (1 per cent) and Indonesia (11 per cent) were least likely to do so.
    • Diners in Thailand (60 per cent) and China (57 per cent) are most likely to post comments or reviews on social networking sites like Facebook and Twitter with about one in two respondents in these markets reporting that they regularly post comments online following their dining experience.

    The results are based on interviews with 8698 individuals aged 18 to 64 years-old.

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  • Indonesia’s E-commerce Industry to Double Its Earnings Next Year

    Indonesia’s E-commerce Industry to Double Its Earnings Next Year

    Indonesia’s e-commerce industry is projected to rake in Rp 20 trillion ($1.46 million) next year, double this year’s estimate of Rp 8 trillion to Rp 10 trillion as Internet and smartphone penetration in Southeast Asia’s largest economy continue to rise, according to an industry group.

    Daniel Tumiwa, chief of the Indonesian E-commerce Association (idEA), noted that the country’s ever-expanding pool of middle-class consumers has provided a significant boost to its e-commerce sector, estimating that the number of online shoppers could reach 10 million next year. The continued rise of smartphone usages across the country will also bolster growth, he added.

    “The e-commerce industry is already becoming one of the pillars of Indonesia’s economy,” said Daniel, who’s also chief executive of marketplace platform OLX.com.

    Indonesia is forecast to see some 34 million smartphones shipped into the country by the end of this year, up 21 percent from an initial 2015 forecast of 28 million units, according to information technology research firm International Data Corporation (IDC).

    MatahariMall.com CEO Hadi Wenas separately added that online retail has great potential in Indonesia, forecasting the industry to contribute up to 5 percent of the economy by 2020 from the current 0.7 percent.

    “Since it was first introduced in Indonesia, the industry has continued to grow and it will grow bigger going ahead,” he added.

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  • 2015 Indonesia’s blossoming fashion scene

    2015 Indonesia’s blossoming fashion scene

    The year 2015 has been special for Indonesia’s fashion scene — thanks to the rising popularity of local brands.

    Throughout the year, new fashion labels have been popping up, while fashion events have continued to be a paradise for fashion enthusiasts looking for trendy fashion products.

    Fashion observer Diaz Parzada said that this year the country had seen a phenomenal wave of ready-to-wear fashion, which became the main focus of many designers and brands.

    Ready-to-wear has been thriving for the past two years due to its ability to reach a wider audience, and of course, to generate profit.

    “This is a breakthrough as designers are not just people who make clothes but also professional business players that have many doors through which to distribute their works,” said Diaz, who is also the advisor for designer mentoring program Indonesia Fashion Forward and the business development director at the British Council.

    Veteran designers like Biyan Wanaatmadja and Sebastian Gunawan were the first to tap into the ready-to-wear industry, and many young designers are now following their lead.

    Young couturier Tex Saverio, who is known for his high fashion pieces, is one example.

    He launched his second ready-to-wear line, TXID, earlier this year after receiving good responses to his first ready-to-wear line, Tex Saverio Jakarta, and his collaboration with a couple of foreign online ready-to-wear brands.

    “Through ready-to-wear, I want to promote Indonesian fashion to the world. In addition to that, I want to educate the Indonesian market, to teach them that a fashion house should not have only one line,” Tex said.

    Many celebrities and fashion lovers also set up their own fashion ventures this year, offering fashion products at more competitive prices through various online platforms or fashion bazaars.

    However, that online phenomenon has also made the executive director of the Indonesian Fashion Designers Association (IPMI), Tri Handoko, concerned about a paucity of strong design characteristics differing from one brand to another.

    “Most of those new brands offer similar designs; their lookbooks are even similar with no distinct identity visible in their collections,” he said.

    “On one hand, that movement shows support for local fashion, but on the other hand, the creativity level is stagnant to some extent.”

    From left : Obin (JP/Don), Norma Hauri (Courtesy of Jakarta Fashion Week), Major Minor with Eko Nugroho (JP/Don)

    Diaz also voiced the same concern, saying that some designers had shared with him that their designs had been copied by many online fashion sellers.

    “Like it or not, designers have to accept it. But moving forward, they must explore more creative ideas for their new designs while creating powerful campaign strategies to build strong fashion brands,” he said.

    Another highlight of the year came from Muslim fashion, better known nowadays as modest wear.

    Earlier this year international retailers Uniqlo, from Japan, and Sweden’s H&M, launched a campaign to promote modest wear, moves that have been greatly welcomed by Indonesia’s hijab communities.

    Modest wear designer Norma Moi said that 2015 had been a good year for her business and she had recorded a steady increase in demand.

    “My profit increase has been in line with the increase in my resources — around 40 to 50 percent,” Norma said.

    The thriving business of modest wear in Indonesia has prompted the government to aim to make the country the center of Islamic fashion by 2020.

    It is not an ambitious goal, so long as designers continued to innovate.

    “We have to keep innovating and always be creative, making our designs interesting and unique, if we want to be the center of Muslim fashion,” she said.

    But to really realize the plan, the government must also participate by providing designers with proper production supplies, such as materials.

    Norma said many designers, including her, still used imported fabrics due to the quality and availability.

    “There are local textile producers that also make fine fabric, but most of them only want to sell to big retailers that buy in bulk. We don’t have the capacity to make our own fabric yet, so we have no choice but to import,” she said.

    “The producers and the government should understand that there’s also us in this fashion business, not only big retailers.”

    Though modest wear recorded a strong performance this year, other designers saw lower sales from the middle of the year forward.

    Tri said that his business was declining as it entered the second semester, blaming the slowing economy as a key factor.

    Another designer, Sapto Djojokartiko, echoed him, saying that he also saw slower sales in his mid-priced pieces.

    “I’m not sure about the cause, but I have prepared some strategies to improve the whole business next year,” he said.

    As 2015 moved toward the end, Indonesia’s fashion scene was shocked by the resignation of seven senior members of Association of Indonesian Fashion Designers and Entrepreneurs (APPMI), including the chairman who is also the president director of Indonesia Fashion Week (IFW), Ali Charisma, Deden Siswanto and Lenny Agustin.

    Different visions to those of the association is reportedly behind their resignations. As a consequence, those who replace the steering committee of IFW have their work cut out for them to ensure the continuation of IFW early next year.

    “The resignation of APPMI leading members should be a cause for reflection for our fashion scene; what form of fashion association fits the situation today? Or is it still important to have such an association? Regarding whether it will impact our fashion scene or not, we have to wait and see,” Diaz said.

    In 2016, Indonesian fashion products are predicted to remain favorites for fashion enthusiasts who have developed more pride in wearing local designs.

    Indonesian designers will continue to wow the international fashion audience next year as some will participate in prestigious fashion events, such as London and Paris Fashion Weeks.

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  • Indonesia’s Tourism Growth Exceeds Target

    Indonesia’s Tourism Growth Exceeds Target

    Tourism Minister Arief Yahya said that the tourism sector had contributed 4.23 percent to Indonesia’s gross domestic product (GDP). The number exceeds the four percent target set by the government. As for labor absorption, the sector managed to absorb 12.16 million laborers from the intial target of 11.3 million.

    “Overall, policies in the tourism development in 2015 were on track and we could achieve our targets,” said Arief Yahya on Wednesday, December 30, 2015.

    Arief estimated that Indonesia’s tourism growth by the end of 2015 could reach 5.81 percent, which is higher compared to other ASEAN countries, such as Malaysia, which experienced negative growth of 9.43 percent from January to June 2015.

    Singapore and Vietnam also suffered negative growth from January to October 2015 with 0.09 percent and 1.27 percent, respectively. Thailand, on the other hand, experienced 22.34 percent growth from January to November 2015.

    “From our major tourist destinations compared with those in neighboring countries, we can see that Indonesia has a large tourism potential, but it hasn’t been fully harnessed,” said Arief.

  • Indonesia’s Muslim women hail female-only motorbike taxis

    Indonesia’s Muslim women hail female-only motorbike taxis

    Female motorbike taxi drivers in headscarves zig-zag through heavy traffic in the Indonesian capital Jakarta, the latest two-wheeled transport service for women making a dent in the male-dominated world of ride-hailing apps in the Muslim nation.

    A flurry of new motorbike taxi options have in the past year appeared in the metropolis of 10 million, led by popular service Go-Jek, giving Indonesia’s growing middle class a greater choice of transport to get through some of the world’s worst traffic jams.

    The services — many inspired by ride-sharing app Uber and accessible on smartphones — are a challenge to traditional motorbike taxis in Indonesia, known as “ojeks”, which are ubiquitous but have drawn criticism with their dishevelled, dangerous drivers and unpredictable pricing.

    Several services with women drivers entered the market in 2015 after years of growing piety in Indonesia, which has the world’s biggest Muslim population, and amid heightened safety concerns following reports of attacks on women by male motorbike taxi drivers.

    Popularly known by its nickname “Ojesy”, it is the service that aims most clearly at devout female passengers, requiring its drivers to be Muslim women wearing headscarves and loose-fitting clothes.

    Ojesy drivers can currently only be hailed by a phone call or through mobile messaging service WhatsApp, but the service is also developing an app that was being tested out this month.

    The service, which began in Indonesia’s second-biggest city Surabaya in March before expanding across the main island of Java, only accepts female passengers or children.

    Calls have been growing for heightened security after reports of women being stalked and harassed by male motorbike taxi drivers, while the rape of a young woman in India by an Uber driver last year also added to safety concerns about ride-hailing services.

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  • Matahari Putra Smart Club concept debuts

    Matahari Putra Smart Club concept debuts

    Matahari Putra Prima, a multi-format modern retailer in Indonesia, has inaugurated its newest retail channel: a wholesale chain called Smart Club.

    The first store has opened at, Tangerang, Banten, with a gross selling area of  8800 sqm. It is designed to serve business customers, including hospitality enterprises (hotel, restaurant and catering), traders, manufacturers, institutions, offices and business professionals.

    “Smart Club has the concept of One Stop Buying, where all customers’ needs can be met in one place for greater efficiency,” explains Matahari.

    “All the products are available under one roof ranging from fresh products, packaged foods and beverage, electronic products, all household’s needs, to office stationery.”

    At the opening of the Smart Club outlet, MPPA also inaugurated the Foodmart Express (FMX) network under the company’s wholesale division, which is a minimarket concept. In the future FMX will be available through the franchise system and company’s internal expansion.

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    The Foodmart Express (FMX) concept focuses on a wide selection of ready-to-eat products. With the store size of between 80 – 150 sqm , FMX is targeting the middle consumer segment to provide top-quality products locally.

    In the near future FMX will open three more outlets in Tangerang.

    Director of Smart Club operations, Emi Nuel, said the banner is expected to become the best choice of a modern wholesale center in Indonesia, with sustainable growth, to become a leader in B2B business and has a large market share in the hospitality sector.

    “From 2016 going forward, we will launch Smart Club centers in several key locations. In addition, we are also positive that FMX concept will be well received by consumers and could have a great step of expansion through franchise system or the company’s internal expansion” he concluded.

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  • Guinness goes alcohol-free in Indonesia

    Guinness goes alcohol-free in Indonesia

    Diageo is still selling its regular brew in large supermarkets and restaurants where sales have not been curbed, but has invested around $1m thus far to launch Guinness Zero and is planning a new facility to produce the drink locally.

    “We already had plans to enter the zero-alcohol beer market,” said Graeme Harlow, managing director of Diageo. “After the ban came in, essentially it made it even more important.”

    UK-based Diageo has around 15 per cent of the Indonesian beer market, which until last year was the world’s fifth-biggest market for Guinness with annual sales of around 400,000 hectolitres.

    Since the ban, sales of Guinness and Diageo’s other alcoholic beverages have fallen 40 per cent year-on-year, said Mr Harlow, as the number of outlets across the archipelago carrying the beer has shrunk from around 70,000 to just 40,000.

    The company blamed the new Indonesia restrictions as it reported a 28 per cent decline in net sales in Southeast Asia for the year that ended in June, even as Asia Pacific sales rose 64 per cent year on year to £2.2bn.

    Guinness Zero, marketed with the tagline, “bold taste, zero alcohol”, is aimed at much the same consumers as the regular Guinness brew — for instance, men looking for a “masculine” drink while avoiding alcohol in a society where drinking is often taboo, said Mr Harlow.

    Diageo has introduced alcohol-free drinks under other names elsewhere, as Kaliber in the UK and Malta in Nigeria, but its aim in Indonesia is to keep the Guinness label prominent in popular minimarkets.

    “We wanted it to be Guinness-branded and we wanted the product to be distinctively Guinness,” Mr Harlow said. He said there are no plans to roll out Guinness Zero beyond Indonesia.

    Diageo’s shift brings it into line with Indonesia’s other major beer producer, Multi Bintang — majority-owned by Dutch brewer Heineken — which already sells two popular alcohol-free drinks.

    The UK group is aiming to capture 10 per cent of Indonesia’s 150,000 hectolitre non-alcoholic beer market within two years, from around 7 per cent now, said Mr Harlow.

    The most immediate hurdle for the world’s largest distiller is the high production cost of the zero-alcohol alternative, which sells for half the price of a can of regular Guinness at Rp9,000 ($0.65).

    Diageo is importing Guinness Zero from Ireland, paying around 10 per cent in duties as well as expensive transportation costs, until it has its new production facility on the island of Bali up and running in a few months.

    But it also faces a hard sell countering Multi Bintang’s Bintang Zero, which with its light and lemony flavour is the country’s favoured zero-alcohol beer.

    Local consumers like Abi Dwi Natadipura, 20, say the distinctive bitter Guinness flavour of hops, malt and barley remain an acquired taste for Indonesians.

    “I have seen Guinness Zero in cans but I’ve never tried it,” he said, while shopping at the Circle K minimart in central Jakarta. “I guess the taste would be more or less the same as regular Guinness — and I’m not interested.”

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  • International passenger arrivals at Bali up 45 percent

    International passenger arrivals at Bali up 45 percent

    Balis Ngurah Rai Airport recorded a 45 percent increase in international passenger arrivals three days prior to the Christmas and New Years holidays.

    “The number of international passengers rose to 13,938, or 45 percent, compared to the same period last year,” Trikora Harjo, the general manager of PT Angkasa Pura I, the operator of the airport, stated here on Wednesday.

    The passengers from various countries arrived aboard 73 flights at the Goddess Island.

    Harjo has forecast that the number would continue to increase ahead of the New Years Eve celebrations.

    Domestic passenger arrivals also increased to 15,663, or almost two percent, compared to the same period last year and also in comparison to the 11,987 passengers who have departed from Bali.

    The number of both domestic and international passenger arrivals has already begun increasing two days ago.

    To anticipate the hike in passenger arrivals, the airport authorities have set up monitoring posts in cooperation with the police, the TNI (military), and other security agencies.

    In anticipation of the increase in arrivals, domestic airline companies Citilink and Lion Air have also applied to operate 180 additional flights to accommodate the departing passengers after the holidays.

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  • Garuda Indonesia Wins Transportation Safety Award

    Garuda Indonesia Wins Transportation Safety Award

    Indonesian flag carrier Garuda Indonesia has received a Transportation Safety Award (TSA) from the Transportation Ministry. Transportation Minister Ignasius Jonan said that the award is given to encourage transportation companies to improve passenger safety.

    Jonan said that safety is an important issue in the transportation service business. “Transportation business sells two things: time and safety,” Jonan said on Tuesday, December 22, 2015.

    Punctuality, according to Jonan, mostly depends on natural factors including the weather. Meanwhile, safety is something that can be controlled by men. Therefore, Jonan encourages transport service operators to improve its safety aspects.

    In addition to Garuda Indonesia, the Transportation Ministry also awarded PT Kereta Api Indonesia Area Operation I Jakarta in second place, and state-owned bus operatir Damri in third place.

    Scoring process for the award was conducted by an independent team by considering several criteria, including organizational aspect, which contributes a 15 percent to the total score; Human Resource (40 percent); facility (35 percent); and safety management support (10 percent).

  • Internet Retailing Expo Indonesia

    Internet Retailing Expo Indonesia

    The 2-day conference and exhibition focuses on both learning and the evaluation of technologies, products and services to help retailers in establishing and growing their online strategies.

    Ever wonder why many would consider Indonesia as a good prospect to do business especially in online retailing? Interestingly, Indonesia has one of the highest number of Internet users. The number is expected to hit 3 billion users in 2015 and may possibly overtake Japan to be in the top five.

    In the retail business, the sales had amounted to USD $114.29 billion in which 0.6% (USD $2.6 billion) are online sales. It is predicted that in 2015, it will reach USD$3.56 billion. With that, Rudiantara, the Minister of Communications and Information, has expected for e-commerce to account for 8% of the country’s total retail business in the next 10 years.

    This is where Internet Retailing Expo (IRX) comes in. IRX is the leading multichannel event in the retail calendar and takes place every March in the UK. It welcomes retailers and technology providers from across multichannel landscape. In addition, it allows retailers to learn from the best on how to connect profitably with their customers and take lessons from case studies.

    startup_ecommerce_pixabayStartupStockPhotos

    Following the success of IRX in the UK, it will be launching its first edition in Asia; IRX Indonesia in 2016. The 2-day conference and exhibition focuses on both learning and the evaluation of technologies, products and services to help retailers in establishing and growing their online strategies.

    With an expected attendance of 500 delegates, retailers can look forward to meeting with many senior-level decision makers from various companies, and expanding their networking contacts. Also, there are 40+ confirmed speakers for the event, such as from Lazada Indonesia, GO-JEK, Indosat, PT Garuda Indonesia and The Body Shop, who will cover a range of topics during the event.

    A start-up pavilion will be set up which is dedicated to companies at the forefront of innovation. This allows companies to showcase their new products or services that may interest retailers; an excellent chance to meet with potential buyers. This platform is ideal for technical managers to explain how their products work to an audience of buyers and influencers. Technology categories include payment technologies, security, apps, LBS, embedded & in-store technologies.

    If you are a retailer, you can join our retailer partnership programme and attend the conference (+ expo) for free inclusive of networking breaks and lunch.  Or if you wish to be a sponsor/exhibitor, you can download our sponsorship prospectus to learn more about the business opportunities.

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  • China’s JNBY fashion brand debuts store in Pacific Place

    China’s JNBY fashion brand debuts store in Pacific Place

    JNBY, a big Chinese fashion retailer, now has its shingle hanging at Pacific Place mall.

    The brand has more than 700 stores, mostly in China, but some in Europe, Asia and Canada. Its store here is being heralded by SightClassic LLC, the Seattle retailing company that runs the location, as JNBY’s first in the U.S.

    But it’s more complicated than that: The brand had a pop-up store in New York’s SoHo in 2009, which according to media reports, a few months later turned into something more permanent. That experiment failed: It closed after two years, according to retail website Racked.

    Perhaps it’ll fare better in Seattle, where the recent visit of Chinese President Xi Jinping highlighted growing economic ties with the Asian superpower.

    SightClassic says it’s JNBY’s “fully authorized distributor” in the U.S., and that it operates an online JNBY store on Amazon. On Thursday, however, the website featured no products for sale.

     

     

  • Rupiah strengthens to Rp13,774 against dollar

    Rupiah strengthens to Rp13,774 against dollar

    The Indonesian rupiah closed stronger at Rp13,774 per dollar in the Jakarta interbank market on Monday evening, up 143 points from the previous close of Rp13,917 per dollar.

    The rupiah strengthened against the US dollar as uncertainty about the money market eased following the Federal Reserves decision to raise its rate, Chief Researcher of NH Korindo Securities Indonesia, Reza Priyambada, said here on Monday.

    “The euphoria due to the US central banks decision has revived investors demand for assets of risky countries. The fact that Indonesia has regained its investment grade rating is one of the factors prompting investors to reinvest in the country and, accordingly, the rupiah is strengthening,” he said.

    Investors are also optimistic about Indonesias economic outlook in 2016 as a result of aggressive capital expenditure and monetary stimuli aimed at pushing economic growth, he said.

    Economist Leo Rinaldy of Mandiri Sekuritas, meanwhile, said the Federal Reserves plan to raise its rate gradually in 2016 has received positive responses from money market investors.

    He said the investors also believed that Indonesias macroeconomic fundamentals will be better next year.

    However, the domestic economic performance, which is far from expectation, and the Fed rate which may increase at a faster pace to more than 1.25 percent in 2016, may send out signals of a negative sentiment about the rupiahs exchange rate, he said.

    “The Fed rate hike will entail a risk if it does not meet market expectation,” he said.

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  • Scandal-hit Toshiba cuts 6800 jobs, sells Indonesia plant, sees annual loss of $4.5 billion

    Scandal-hit Toshiba cuts 6800 jobs, sells Indonesia plant, sees annual loss of $4.5 billion

    Scandal-plagued Japanese manufacturer Toshiba Corp. is cutting 6,800 jobs after projecting a net loss of 550 billion yen ($4.5 billion) for the fiscal year through March 2016.Toshiba said Monday it will slash the jobs in its personal computer, video product and consumer electronic businesses.

    The job cuts equal about 3 per cent of Toshiba’s overall employees. It is also selling its TV plant in Indonesia.Toshiba, which also makes nuclear power plants, has repeatedly apologized after acknowledging it had systematically doctored its books over several years to inflate profits by 152 billion yen ($1.3 billion).Officials have said that mangers set unrealistic earnings targets, under the banner of creating a big “challenge,” and subordinates faked results.

    The scandal at one of the nation’s top brands highlights how Japan is still struggling to improve corporate governance, despite efforts to beef up independent oversight of companies.Toshiba said the job cuts in Japan will be by early retirement, but a significant number of overseas jobs will also be involved and steps will vary by each nation. It did not immediately have a detailed regional breakdown.Earlier this year, Toshiba said it is selling facilities for making computer chips related to image sensors to Sony Corp.Toshiba is also in trouble because it operates and is decommissioning, with Hitachi and other companies, the Fukushima Dai-ichi nuclear power plant, which went into meltdowns after the March 2011 tsunami.

    Toshiba said it had not yet fully calculated the impact of the nuclear disaster on its books.The latest earnings projection means Toshiba is sinking into its second straight year of red ink, after racking up a nearly 38 billion yen ($312 million) loss for the fiscal year that ended in March.Japanese media reports said the loss forecast for this fiscal year would be a record for Toshiba, surpassing the massive losses during the Lehman financial crisis.

  • Google launches an equity-free accelerator programme in Indonesia

    Google launches an equity-free accelerator programme in Indonesia

    Google has launched a new accelerator programme that will provide funding, mentorship and training to mobile startups in Brazil, India and Indonesia, three growing markets of the world.

    Up to $50,000 will be given in equity-free funding, said Roy Glasberg, Google’s global lead for its Launchpad programmes. The company will look for those startups that can have a clear impact on their home markets, while not having to worry about return on investment.

    Here’s what startups can expect, apart from the funding. Google will fly the founders down to its head-office in Mountain View, California, for a two-week bootcamp, starting January. They will meet with mentors, who comprise both people working in Google and the wider startup community, and will be given individualised tasks in areas like marketing and strategy, user experience design and others. Once this is done, they will return to their home countries, where Google will provide them space to work, and continued access to mentors and its own developer platforms.

    The new accelerator will be part of Google’s existing Launchpad programme that was started in 2013. The company plans to bring about 50 of the most promising startups each year in the accelerator programme, and do hands-off mentoring to another 200 that will not go through the bootcamp. Startups that show more promise in the latter group will be made part of the full accelerator program.

    The report mentioned that the first batch of startups include Brazil’s ProDeaf, that translates spoken language into sign language, and Jojonomic, a fintech startup from Indonesia.

  • Time to swoop on Garuda Indonesia

    Time to swoop on Garuda Indonesia

    For Indonesia’s national carrier, 2015 has been a year to forget. Shares of PT Garuda Indonesia are heading for their biggest-ever annual drop, overseas debt costs are rising and flights have gotten disrupted by forest fires and an erupting volcano.

    Timothy Ross, a top-ranked airline analyst at Credit Suisse Group AG, says this is the perfect time to buy.

    The impact of ash clouds from Mount Rinjani and haze from burning peat forests is temporary, according to Ross, the most accurate analyst for at least four Asian airline stocks tracked by Bloomberg, including Garuda. Bears who dragged down the stock by 45% this year are looking past Garuda’s market-share gains from budget rivals PT Lion Mentari Airlines and AirAsia Bhd, said Ross, who predicts the company will return to a profit this year.

    “There are fundamental changes in the company, and the stock price has dropped by half, so when you take the two together it makes me a little more positive,” said Ross, who projects Garuda will rebound 22% over the next 12 months. The Singapore-based analyst turned bullish on the shares last month for the first time in two years.

    After tumbling three times faster than the benchmark Jakarta Composite Index this year, Garuda is valued at 0.7 times net assets, the cheapest level among the 25 largest Asian airlines tracked by Bloomberg. While the rupiah’s 12% drop in 2015 has made the company’s foreign-currency liabilities more expensive, Garuda’s debt-to-equity ratio is about half that of its regional rivals. Six other analysts have buy recommendations, giving it a perfect 5 rating on a Bloomberg scale, compared with an average of 4 for its Asian peers.

    Garuda rose 1.3% at 1:25pm local time, while the Jakarta Composite slid 1.5%.

    While analysts are bullish, the nation’s top-performing fund manager in the fourth quarter isn’t buying because he sees risks related to the rupiah and oil prices.

    “The airline industry in general is too volatile and highly dependent on the exchange rate as well as oil,” said Indra Mawira, an investment manager at Panin Asset Management, whose Panin Dana Ultima fund returned 13.4% this quarter. “Although Garuda has structured itself as a better company, I still think it’s hard to make money out of it unless you’re trading the shares with a one to three-month horizon.”

    Garuda president director Arif Wibowo, who took over in December 2014, says some of the benefits of falling energy prices have failed to show up in the company’s fuel bill because the airline has been expanding capacity. Garuda will add 23 planes to its fleet in 2016, in addition to the 18 scheduled for this year, he said in an interview on Dec 8, adding that the carrier will also reduce its fuel hedging.

    New York crude has tumbled more than 30% this year, reducing the price of jet fuel and helping spark a 17% gain in the Bloomberg Asia Pacific Airlines Index.

    Garuda is luring customers after Lion Air’s cancellation record deteriorated in 2015 and an AirAsia jet crashed a year ago en route to Singapore from Surabaya, Indonesia, killing 162 people. While Indonesia has more than three times the global average rate of fatal air crashes, Garuda’s safety record is improving. The European Union lifted a flight ban on the airline in 2009 and the carrier’s last fatal accident was in 2007.

    Analysts estimate Garuda’s net income this year will be US$34.8mil, its first annual profit in three years. While 71% of the company’s US$2.2bil total short and long-term liabilities are denominated in currencies other than the rupiah, Garuda’s debt-to-equity ratio of 139% is well below the 236% average of its regional rivals.

    Investor concern about Indonesia’s air safety record is overblown when it comes to Garuda, Credit Suisse’s Ross said.

    “Those things impact share prices and customer behavior only for maybe a couple of months,” he said. “It tends to be put in the rear-view mirror pretty quickly.”

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