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Tag: Indonesia

  • Telin and iBasis Connect via Multiservice IPX for LTE Roaming

    Telin and iBasis Connect via Multiservice IPX for LTE Roaming

    iBasis, a KPN company, and Telekomunikasi Indonesia International (“Telin”), a subsidiary of PT Telekomunikasi Indonesia Tbk (“Telkom”), today signed a multiservice IPX interconnection for LTE Roaming that will enable mobile operator customers of both companies to provide a consistent, high-quality LTE roaming experience for their subscribers across a global footprint. The agreement also includes GRX, Signaling, SMS and Voice services.

    The global IP interconnection between both companies provides mobile subscribers using Telin and iBasis networks the flexibility to seamlessly transit between 3G and 4G services, guaranteeing high quality of experience while roaming between non-LTE and LTE networks.

    The strategic connection between both global networks over IPX enables multi-service continuity in the transition to all-IP and the provision of LTE Roaming for data and voice services alike. Both companies are committed to bringing to market innovative interconnect services and to rapidly expanding their respective footprint. Telin will leverage iBasis’ global reach of more than 300 LTE destinations.

    “We are pleased to be the IPX network partner of Telin and to work together on providing integrated LTE interworking and interoperability solutions to ensure global mobile user quality of experience,” said iBasis CEO Willem Offerhaus.

    “The collaboration with iBasis means access to an advanced global infrastructure and reach. Selecting a partner with the same focus on global reach and quality, enables Telin to generate new revenues through new roaming service offerings now and in the future,” said Syarif Syarial Ahmad, President Director of Telin.

    The iBasis LTE Roaming Solution
    iBasis offers mobile operators the shortest route to securing LTE roaming revenues and achieving a global LTE roaming footprint. A single point of access provides operators entry to iBasis’ live 4G (LTE) signaling network with Diameter Routing Agents on all continents for maximum service quality and a growing global footprint that includes all active LTE and GSM mobile operators. iBasis provides a full portfolio of LTE signaling, data and voice capabilities combined with the InVision advanced monitoring and reporting tool. The iBasis LTE Roaming solution uses the iBasis multiservice IPX for guaranteed and differentiated quality for all services. iBasis also offers a robust trial environment for testing LTE roaming scenarios and VoLTE.

  • Chinese millennials: the new big spenders

    Chinese millennials: the new big spenders

    Chinese millennials – China’s new rich – are looking to spend double the Asia-Pacific average on luxury items in the next year.

    The millennials – those aged 18 to 29 – are already China’s biggest spenders on luxury goods in Asia Pacific, followed by those in South Korea and Hong Kong.

    According to research from MasterCard, the most popular luxury items are high-end tech gadgets, with 25 per cent of millennials in Asia Pacific planning to buy an item such as a smartphone or tablet computer in the next year. This is followed by designer clothes and leather goods (17 per cent) and jewellery (17 per cent).

    Overall, most millennials in the region take approximately a month to consider and research their luxury purchases. More millennials in Asia Pacific (a quarter) buy on impulse than those aged over 30 (a fifth).

    Meanwhile, over a third of millennials in the region prefer Western brands over regional or local, however there is a marked difference across the region. While more than half of millennial shoppers in China, Vietnam, South Korea and Hong Kong prefer Western brands, the majority in India and Indonesia would rather buy local. The top three reasons for preferring Western brands were reliability of quality, followed by value for money and brand loyalty.

    When choosing where to buy luxury goods from, the majority of millennials still prefer purchasing from local brick and mortar stores (64 per cent), instead of local eCommerce sites (nine per cent). Meanwhile a fifth prefer to buy luxury items in-store when travelling overseas, this is especially true of Chinese millennials, 51 per cent of whom are most likely to buy a luxury item in-store while travelling.

    The results are based on interviews that took place between May and June 2015 with 2272 millennials across 14 Asia Pacific markets.

    More findings:

    • Millennials from China intend to spend on average US$4362 on luxury goods over the next year, nearly double that of the Asia Pacific average of US$2584. South Korea (US$2638) and Hong Kong (US$2584) round off the top three.
    • Overall, the majority of millennials in the region will take under a month to research and consider a luxury item before buying it (44 per cent), led by those in India (64 per cent), China (51 per cent), South Korea (48 per cent) and Taiwan (48 per cent).
    • Thai (60 per cent) and Indonesian (50 per cent) millennials are the most impulsive shoppers in the region with at least half buying luxury goods on impulse, above the regional average of 26 per cent.
    • The most careful millennial shoppers are from Vietnam – the majority will only buy a luxury item after two to six months of extensive research (45 per cent), more than the regional average of 20 per cent.
    • Over one-third of millennials across the region prefer western brands to local and Asian brands. More than one in two millennials in China (66 per cent), Vietnam (60 per cent), South Korea (59 per cent) and Hong Kong (52 per cent) would pick a western luxury brand over a local or Asian luxury brand. However, in Indonesia (61 per cent) and India (50 per cent), a large majority of millennials would rather buy luxury goods from a local brand.
    • Most millennials in the region purchase luxury goods in-store rather than online – this is especially so when they are on sale locally (43 per cent) compared to when they are at full price (23 per cent). Only a small percentage of millennials in the region shop for luxury goods on local (nine per cent) and overseas sites (four per cent).
    • Chinese millennials are the most likely to buy luxury goods in-store when travelling overseas (51 per cent), whereas the majority of consumers in India (81 per cent) and Indonesia (50 per cent) buy luxury goods locally in-store at full price.
    • Millennials in Indonesia are the most likely to spend more on luxury goods in the next year than the year before (47 per cent). Across Asia Pacific, most consumers (40 per cent) intend to spend the same amount as they did the year before, 22 per cent plan to spend less while 19 per cent plan to spend more.
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  • Indonesia to Overtake Vietnam as Asia’s Largest Cement Producer

    Indonesia to Overtake Vietnam as Asia’s Largest Cement Producer

    The Indonesian Cement Association is optimistic that Indonesia could grow into Asia’s largest cement producer by 2017, as eight new production plants with a combined capacity of 24 million tonnes are set to begin operations in the next two years.

    After meeting with President Joko Widodo, the Chairman of the Indonesian Cement Association, Widodo Santoso, explained that sales of cement is expected to grow by two percent to 61,08 million tonnes in 2015 – up from 2014 sales figures that stood at 59,9 million tonnes.

    “I am sure that demand will continue to rise as many of the government’s large-scale infrastructure projects are set to commence in February next year – as such, a five percent increase is easily within reach,” said Santoso at the President’s Office on Monday, September 28.

    Santoso said that the growth in demand is accompanied by the increase of Indonesia’s national production output – it is known that Indonesia currently produces around 65 million tonnes of cement annually. In 2015, four new production plants are slated to commence their operations, while four others are set to begin churning out cement in 2016. Combined, all eight plants could produce an additional 24 million tonnes of cement per year.

    “By 2017, we are set to become Asia’s largest cement producer. Previously, the industry was dominated by Vietnam and Thailand – by next year, we should be able to cement Indonesia’s position as an industry leader,” said Santoso.

    The four plants that will begin operations in 2015 are owned by Bosowa Cement, Holcim, Merah Putih Cement, and Pan Asia Cement – all of these plants combined will add some 11-12 million tonnes of cement per year to the market.

    “This additional capacity will allow us to export a minimum of five million tonnes – quite a significant addition that could help Indonesia boost its’ trade balance,” said Santoso.

  • Radisson Medan set to open in Indonesia

    Radisson Medan set to open in Indonesia

    Radisson Medan will be the fifth Carlson Rezidor hotel scheduled to open in Indonesia after Radisson Blu Bali Uluwatu, Radisson Golf & Convention Center Batam, Park Inn by Radisson Lampung and Radisson Jakarta Cengkareng.

    Medan is the fourth largest city in Indonesia, and within a one-hour flight radius of Singapore, Kuala Lumpur and Penang. Given its status as the gateway to the Lake Toba tourism region, which the Ministry of Tourism in Indonesia is focused on developing, Medan is also growing as a tourist destination.

    Radisson Medan is a 219-room hotel located in the heart of downtown Medan, next to the Medan clock tower, along the major thoroughfare of Jl. H. Adam Malik. The hotel offers convenient access to the airport, which is the second largest in Indonesia and is well connected to key domestic markets, acting as a hub for the main Indonesian carriers. Radisson Medan is also close to major shopping malls and golf courses, as well as tourist attractions including the Great Mosque, the Sultan’s Palace and historical buildings. Conference and meetings facilities at Radisson Medan will include meeting rooms and a ballroom and the hotel’s recreational facilities include a swimming pool and a gym. Food and beverage options will include an all-day dining restaurant and a lobby bar.

    “We are proud to be planting the Radisson flag in Medan. As the economic and commercial hub of northern Indonesia, Medan is an important destination for domestic business travelers,” said Thorsten Kirschke, president, Asia Pacific, Carlson Rezidor Hotel Group. “Radisson Medan is a great addition to our portfolio in Indonesia where we are continuing to grow with our long-term strategic partner, Panorama Group,” he added.

    In 2013, Carlson Rezidor signed a strategic partnership with Panorama Group, an integrated group of companies focusing on tourism, transportation, hospitality and related businesses in Indonesia,to develop Carlson Rezidor hotels in attractive tourist destinations and top-tier Indonesian cities including Bali, Jakarta and Surabaya, as well as emerging destinations such as Bandung, Bintan, Lombok, Makassar and Palembang.

    Radisson Medan is owned by VIGOUR Group, a diversified family business that has interests in agribusiness, hotels, consumer goods and alcoholic beverages. “This is a part of VIGOUR Group’s strategy to enhance our hotel portfolio. Radisson is a globally recognized brand and we are confident that the rebranding, coupled with Carlson Rezidor’s management expertise, will drive hotel performance and deliver a strong return on our investment,” said Philander Jong, member of the family, Commissioner of VIGOUR Group and Director of the group’s hotel arm PT. Aiho Indah.

    Radisson is one of the world’s leading global hotel brands. It delivers vibrant, contemporary and engaging hospitality that is characterized by its unique Yes I Can! service philosophy. Radisson hotels offer an upscale stay experience, backed by its 100% Guest Satisfaction Guarantee and a range of World of Radisson services and amenities, which have been created specifically to be empathetic to the challenges of modern travel.

    In Asia Pacific, there are currently 13 Radisson hotels in operation and 21 more in the pipeline.

  • Partnership with Garuda Indonesia Virtual

    Partnership with Garuda Indonesia Virtual

    Today we are happy to announce that we have established partnership with Garuda Indonesia Virtual (GIV).

    GIV is a VA base in Jakarta, Indonesia providing great simulation experience as one of the biggest VAs within South East Asia Region. The partnership allows VA in Asia to connect more closely and promote flight simulation in Asia by providing more possibilities and activities to our pilots.

    We are all looking forward to having GIV to join our future event.

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  • Garuda Grows despite Plummeting Rupiah

    Garuda Grows despite Plummeting Rupiah

    The flight traffic of state airliner PT Garuda Indonesia Tbk grows after having declined due to the rupiah correction against the US dollar. President director Arif Wibowo said that the carrier notes an increasing number of passengers.

    “The number of our domestic passengers grew 15.4 percent while passengers of international flights rose by 11.3 percent,” Arif said after opening the Garuda Indonesia Travel Fair on Friday, September 25.

    Arif said that the greenback’s gain against the rupiah has affected domestic and international flights. However, he remains confident that the condition will not discourage customers from traveling.

    Next year, said Arif, Garuda plans to add 15 aircraft to its fleet.

    “Five Airbuses, a Boeing 777, and nine ATR 72600s,” he said.

    Additionally, he said that Garuda will also add the number of flights from Shanghai to Denpasar. In the future, Ari hopes that Garuda could extend its wings further and fly to more international cities, especially in Japan, China, and Australia.

    One of the strategies Garuda has taken to address the weak economy is holding a Garuda Indonesia Travel Fair. From this event, Garuda expects to book Rp242 billion in sales in 15 cities.

    “For Jakarta, our sales target is Rp138 billion,” he said.

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  • Best Western Unveils First Hotel in Surabaya, Indonesia

    Best Western Unveils First Hotel in Surabaya, Indonesia

    Best Western International has unveiled its first hotel in Indonesia’s second largest city, Surabaya.

    The new BEST WESTERN Papilio Hotel is a modern midscale hotel conveniently located just 20 minutes’ drive from Juanda International Airport and close to popular attractions including Suroboyo Carnival Night Market and the MAS Mosque.

    Set in an eye-catching glass and steel building, the hotel offers a choice of spacious guest rooms, all of which come equipped with amenities designed to help guests unwind and stay productive. These include comfortable beds, ergonomic work desks, 32-inch LED TVs and complimentary Wi-Fi.

    Guests can take a cooling dip in the outdoor swimming pool, indulge in a sumptuous massage at the spa, or work up a sweat in the fitness center, while kids can make splash in the children’s pool.

    BEST WESTERN Papilio Hotel also serves up excellent local and international cuisine at the Mariposa Restaurant, and whatever the time of day, guests can relax and enjoy a drink in the lobby lounge and bar.

    And meeting planners will be able to choose from a variety of flexible function spaces, all equipped with the latest audio-visual equipment and served by a dedicated events team.

    “As Indonesia’s second largest city, Surabaya was the logical next step for Best Western International’s Indonesian expansion,” said Ron Pohl, Best Western International’s Senior Vice President of Brand Management.

    “BEST WESTERN Papilio Hotel will be an excellent addition to our rapidly growing portfolio in Indonesia, bringing modern midscale comfort to the rising number of domestic and international travelers Surabaya is now attracting,” he added.

    Olivier Berrivin, Best Western International’s Managing Director of International Operations – Asia, commented; “With its ideal location close to Surabaya’s main business district and attractions, yet away from the worst of the city’s traffic, BEST WESTERN Papilio Hotel truly offers the best of both worlds.

    “In addition to this, the hotel’s vast array of amenities exceeds its midscale status, offering guests an elevated experience at a reasonable price point. I am confident this exceptional hotel will become a firm favorite among travelers to Surabaya,” Mr. Berrivin concluded.

    The launch of BEST WESTERN Papilio Hotel increases Best Western International’s Indonesian portfolio to 15 hotels, spread across eight popular destinations.

    Best Western Unveils First Hotel in Surabaya, Indonesia

    Best Western Unveils First Hotel in Surabaya, Indonesia

    Best Western Unveils First Hotel in Surabaya, IndonesiaBest Western Unveils First Hotel in Surabaya, Indonesia

    Best Western Unveils First Hotel in Surabaya, Indonesia
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  • Indonesia’s Stockbit gets seed funding from Ideosource

    Indonesia’s Stockbit gets seed funding from Ideosource

    Stockbit is a financial analytics platform that helps Indonesian traders understand and share information about the local stock

    market in real-time. Earlier today it announced a seed investment of an undisclosed amount from local VC firm Ideosource.

    The startup was founded in 2012 by Wellson Lo, who previously worked for consulting firm KPMG Singapore and as a trader, and Johny Susanto, a full-stack engineer. Stockbit started out as a social network that attempted to bundle the discussion about Indoneisa’s stocks into one place. “Previously, it was scattered all across Twitter, forums, and blogs,” Wellson explains.

    At the end of 2013, Stockbit added analytics features. The data comes from public sources like the Indonesian Stock Exchange (IDX). The problem with the available data, Wellson says, is that it’s not standardized. Stockbit aggregates this data and makes access to it quicker and more reliable.

    At the same time, Stockbit started to monetize through a freemium subscription model. The price for a one-month subscription is IDR 200,000 (US$13.59). In comparison, professional tools like the Bloomberg Terminal cost US$2,000 per month, the firm says.

    Stockbit’s goal is to make life easier for independent or retail investors by giving them access to high-quality financial data and sophisticated analytics tools at an affordable price. The idea is to create a more level playing field between newcomers and institutional investors, including traders from banks, insurance companies, and pension funds.

    “I found that the information gap between retail investors and institutional investors is very big,” says Wellson. “It’s never going to reach the point where it’s really level, but with better tools to analyze and better collaboration, retail investors can make better trading decisions.”

    To date, Stockbit has 15,000 registered users, while paid subscribers are still in the hundreds. According to Wellson, the figures are a result of the small size of the addressable market.

    “In Indonesia there are only 400,000 registered investors, probably of those [only] 100,000 are retail investors,” he says. “That means more than 10 percent of the addressable market is already using Stockbit.”

    Stockbit targets a narrow market, and that’s the big reason founders faced difficulties raising funds until now. Ideosource’s decision to back the venture is based on a commitment by the Indonesian Financial Services Authority to increase the number of retail investors to five million by 2017.

    Wellson says there are government outreach programs that work with schools and companies that encourage more people to consider investing in the capital market.

    Stockbit has several competitors in Indonesia, including Idsaham, Indonesia-Investments, and Infovesta. However, those sites merely aggregate stock information and don’t yet offer analytics tools. Bareksa can be seen as a possible contender, as it offers a variety of financial analytics tools and also aggregates information about the IDX, among other functions. It also recently opened up its online platform for trading mutual funds.

    The Stockbit team plans to spend the fresh capital on building out the product, which includes making mobile apps for Android and iOS, as well as recruitment and marketing.

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  • Mid-flight theft increases in Asia

    Mid-flight theft increases in Asia

    Mid-flight theft-related offences on board airplanes have become more common in several Asian countries over the past two years, including in Indonesia.

    According to daily newspaper Kompas, the latest incident occurred on a Qatar Airways flight from Doha, Qatar, to Jakarta on Sunday evening, around three hours after the airplane took off.

    When the cabin lights were switched off and most of the passengers were asleep, offenders allegedly opened the overhead compartments, removed several bags and began searching through them back at their seats or in the plane’s main aisle. When the Qatar Airways plane landed, four bags were found to have been moved, allegedly by two different people.

    It was reported by tribunnews.com that four Chinese citizens, who were allegedly members of a theft syndicate, were being questioned by the Soekarno-Hatta International Airport Police on Monday.

    “We are still developing our investigation,” said head of airport police Iptu Waluyo.

    According to aviation analyst Gerry Soejatman, airlines are responsible for handling theft cases that occur during their flights.

    “Regarding the case involving Qatar Airways, it would be better if the police were joined by Qatar Embassy officials during questioning. Then the suspects could be extradited to Qatar to face legal proceedings there,” said Gerry.

    Separately, Qatar Airways corporate communications official Koh Wei Ling said that there was no official statement yet regarding the case.

    “We are still waiting for our head office in Doha to issue the official statement,” said Ling.

    Meanwhile, national flag carrier Garuda Indonesia has called on passengers to keep their belongings safe.

    “We always tell the crew to be alert when checking on the cabin, especially when passengers are asleep,” said Garuda Indonesia corporate communications vice president Benny S Butarbutar.

    State-owned airport operator Angkasa Pura (AP) II’s president director Budi Karya Sumadi said that theft-related offences on board airplanes were under the airline’s jurisdiction. But airport security are available to support them in bringing the alleged offenders to airport police.

    In a press release on Tuesday, Garuda Indonesia informed that these offenders usually checked-in without any luggage, stayed for only one day in their destination, owned passports and tickets issued outside Indonesia and allegedly were part of a criminal syndicate. The theft itself usually occurred during the night when passengers were asleep or at the lavatory.

    Currently Garuda is cooperating with other airlines through the Association of Asia Pacific Airlines (AAPA) to share information and conduct preventive actions, including conducting passenger profiling, issuing policies for assist air crew to prevent such incidents and providing security officers in destination cities.

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  • Floating bank brings services to remote islands

    Floating bank brings services to remote islands

    An Indonesian bank has transformed a boat into a mobile bank outlet, providing services to residents living on remote islands of the sprawling archipelago. Officially launched in August by President Joko Widodo, the service is the first of its kind in the south east Asia nation, and is hoping to make banking services more accessible to people living on the country’s many sparsely populated islands.

    The service offered by Bank Rakyat Indonesia (BRI) is in a trial period and currently serving five islands in the Thousand Islands regency, a chain of islands off the coast of the capital Jakarta. The boat takes off every Monday from Jakarta to visit five islands, one each day, and returns on Friday.

    Equipped with three service desks and an ATM, the boat allows islanders, who used to have to travel to Jakarta, a one-stop shop for services such as personal banking and loans. One resident on Pramuka Island, which is about a two-hour boat ride from Jakarta, said it used to take days to complete her business transactions.

    “It takes one day go to the [main]land, and another day to return, and it takes about two to three days if we need to go to the bank. Although this service is provided once in a week, it helps a lot,” said Hudreya.

    Since the arrival of the boat bank, more local businesses have been given small loans to expand – an important change on the islands that mainly rely on the tourism industry. Ferdinand Tahamata, an assistant manager for the bank who has overlooked the operation, said the ultimate goal of the programme is to provide all residents with a bank account and the funds they need.

    Tahamata, the assistant manager of the Micro-business Department at the BRI Jelamber branch in Jakarta, said: “We’ll continue the operation until we think we’ve garnered enough support from the people, which means everyone on the island has a bank account and can gain access to the capital they need, then we’ll establish a branch on the thousand island regency to serve the people here. Then our boat can move on to other parts, like eastern Indonesia, or the other islands.”

  • Instagram users top 400 million as Japan and Indonesia growth soars

    Instagram users top 400 million as Japan and Indonesia growth soars

    Instagram has rocketed past the 400-million-user mark, with more than 80 million pictures shared daily at the Facebook-owned service.

    The number of people sharing pictures and videos each month using Instagram soared from 300 million at the start of this year and tops the number of people using Twitter monthly by nearly 100 million.

    “While milestones like this are important, what really excites us is the way that visual communication makes the world feel a little bit smaller to every one of us,” Instagram said in a blog post.

    “Instagrammers continue to capture incredible photos and videos from all corners of the Earth (and even the solar system).”

    More than half of the last 100 million people to join Instagram live in Europe or Asia, with Brazil, Japan, and Indonesia seeing the strongest growth, according to the service.

    The list of high-profile new Instagram users who quickly won legions of followers included David Beckham, Caitlyn Jenner and footballer Toni Kroos.

    Earlier this month, Instagram unveiled plans to expand its offerings to advertisers, opening up possibilities for global marketing efforts on the photo-sharing network.

    The expansion is intended to allow advertisers to launch global campaigns in a variety of formats, including video ads of up to 30 seconds.

    Instagram, which was acquired by Facebook in 2012, has had only limited advertising opportunities up to now.

    In 2013, it began with a small number of “sponsored” posts by well-known brands such as Michael Kors and Adidas.

    The new system could help Instagram generate considerably more revenue.

    Instagram also introduced a service called Marquee, a “premium” advertising product aimed at driving mass awareness in a short time-frame for events like movie premieres and new product launches.

    Industry tracker eMarketer estimates that Instagram’s worldwide ad revenue this year will grow rapidly, hitting $600 million.

    Instagram is seen as a potential growth segment for Facebook, which has nearly 1.5 billion users.

    Last month, Instagram broke its square mold with an update that adds portrait and landscape formats to the image-sharing smartphone application, which also opened up new possibilities for advertisers.

    Meanwhile, Twitter continues to search for a new leader since Dick Costolo announced on June 12 he was stepping down, with co-founder Jack Dorsey holding the job on an interim basis since July 1.

    The unusually long search has some investors and analysts worried over the future of Twitter, which has failed to ignite the kind of growth that many had anticipated when it launched its public offering in 2013.

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  • Apple retailer iBox to focus on regional markets

    Apple retailer iBox to focus on regional markets

    iBox, one of Indonesia’s largest resellers of Apple products, plans to open six more retail stores by the end of 2015, mostly focusing on regional areas that are potential markets for Apple products.

    Cities on the retailer’s sights include Yogyakarta, Balikpapan and Manado, showing its effort to try and capture markets outside of major cities, particularly in Java.

    Herman Wong, director of iBox in Indonesia, elaborated that the retailer would increase the number of its nationwide retail stores to 48, from the current number of 42 to extend its reach within regional markets.

    He described the relative market for Apple products in Indonesia as still very segmented within the upper middle- to high-income bracket demographic, adding that a lack of proper awareness on the usage and capabilities of Apple’s hardware and software is what kept the giant US brand from settling in that segment.

    “For upper middle-income people in regional cities, their purchasing power would be slightly better than those of larger cities due to the lower costs of living and of goods in general,” he told on Tuesday.

    Herman also said that because Apple’s principal products, such as the iPhone and the iPad, were majorly based on data and Internet usage, and with many parts of Indonesia lacking adequate data infrastructure, Apple’ s national penetration remained very minimal.

    “Many Apple users in Indonesia are still concentrated within Java, particularly in major cities, where data infrastructure is more developed than in other areas. One way to expand awareness about Apple products is to also open training centers and provide training sessions on how to use the software and hardware,” he added.

    iBox distributes up to 40 to 45 percent of all Apple products in Indonesia. PT Data Citra Mandiri, a subsidiary of publicly listed cellphone distributor PT Erajaya Swasembada, is responsible for operating and supplying iBox stores.

    Regarding the availability of newer Apple products in Indonesia, Herman mentioned that the Apple Watch smartwatch, which was released in April, may be available in iBox stores by December. However, he could not confirm the release dates for the recently announced iPad Pro or iPhone 6S.

    Erajaya Swasembada marketing and communications manager Djatmiko Wardoyo said the strong US dollar and weak domestic economic conditions had not significantly impacted sales owing to the fact that the market for Apple products remained segmented into the upper middle- to higher-income bracket buying for the “brand” value.

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  • Zalora Indonesia plans to expand marketplace to boost sales

    Zalora Indonesia plans to expand marketplace to boost sales

    Zalora’s Marketplace initiative was launched last year to give an online platform to independent designers and sellers, who can create their own branded storefront within the retailer’s site.

    The company currently manages 500 small medium enterprises (SMEs) and aims to increase these numbers significantly in the coming years.

    Managing director of Zalora Indonesia Anthony Fung, Marketplace is become a promising business in Indonesia following the government’s plans to boost SMEs or startup companies in the country.

    Speaking at a press conference, Fung said, the company was looking at ways to boost the customer base through mobile phone users.

    “We have seen a big shift in consumer behavior. We are investing a lot of money in marketing and add more people to do mobile apps,” he told reporters at a press conference at Zalora’s office in Jakarta.

    The company said, a lot of its customers actually access the e-commerce platform using their smart mobile phones. Hence, the company will invest more to maintain mobile apps. According to the Zalora’s head of marketing, Jo Bjordal, mobile users in Indonesia are below 1 per cent of total retail users while in China the figure is 8 per cent. In five to10 years from now, he said, Indonesian mobile users will reach that level (8 per cent).

    In Asia, Zalora has drawn up marketing campaigns and promotions to boost sales in the upcoming festive season. Zalora plans to hold several events to boost their sales in coming months in Indonesia and Southeast Asian countries. In Indonesia, Zalora will hold a month-long discount called Zalora Great Sale starting October 6.  Zalora will hold 11/11 Online Revolution on November 11 in collaboration with China’s Alibaba, Cyber Monday, Black Friday, Christmas sale November 27 to December 25, and National Online Shopping Day on December 12.

    Bjordal said, last year, during the Zalora Great Sale programme, the orders saw a 10-fold increase in one day compared to regular days.

    Zalora is a part of Global Fashion Group–which counts AB Kinnevik and Rocket Internet as lead investors–that operates through five leading fashion e-commerce companies, India’s Jabong, Latin America’s Dafiti, Russia’s Lamoda, Namshi in the Middle East, and Zalora in South East Asia and Australia.

    “We have a footprint around the world today. We are the number one fashion e-commerce platform in emerging markets. Zalora now has presence in Indonesia, Singapore, Malaysia, Thailand, Philippines, Vietnam and Hong Kong,”  Fung stated.

    Zalora started its Indonesian operation in 2012.

    So far, Fung said, Zalora offers 1,200 brands in Indonesia and there were plans to increase this number to 3,000 over the next six months.

    He noted it was easier now to add brands as consumers were now familiar with Zalora brands.

    The company revealed that 70 per cent of Zalora customers were female in the 18-40 years bracket.

    Warehouse and Brands

    Zalora Indonesia, which set up its new warehouse in Cibitung, Bekasi, West Java province in April this year, claims the warehouse can store up to 2 million products, making it possibly the largest such facility in the country. Zalora has a physical store in Kota Kasablanka and also in HK and Philipines.

    Zalora partners with over 1,000 local and international brands. Zalora plans to invest in the merchandising market and acquire local brands in Indonesia. Zalora will continue to be aggressive in brand acquisition, Anthony Fung said.

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  • Uber Says Special Interests Challenge Push Onto Indonesia Roads

    Uber Says Special Interests Challenge Push Onto Indonesia Roads

    Uber Technologies Inc. plans to set up an Indonesian entity to deal with challenges from authorities to its push into one of Asia’s largest markets.

    The ride-hailing company has had cars seized in Jakarta this month and drivers questioned by police, Michael Brown, Uber’s regional manager for Southeast Asia, said in an interview. The company needs to register to pay tax, Jakarta Governor Basuki Purnama said in a televised briefing on Friday, after saying it doesn’t have the right permits.

    Uber is in discussions to submit an application to become a registered onshore entity as asked by Jakarta authorities, Brown said on Monday. The company is obeying Indonesian law, is tax compliant and is working with the government to “get aligned” with everything it is asking for, he said.

    “We see some things here that are new and challenging,” Brown said, referring to “special interests” working against the San Francisco-based company that he declined to identify. “We don’t like that.”

    Indonesia’s President Joko Widodo is trying to attract investment and tackle corruption to spur an economy growing at its weakest pace since 2009, yet U-turns on policies from taxes to foreign worker permits have left investors confused. Foreign direct investment has stagnated and the rupiah is Asia’s second-worst performing currency this year.

    Cars Confiscated

    Some of Uber’s junior employees have been taken to police stations for hours of questioning, Brown said. Police confiscated 30 Uber cars but didn’t detain drivers, said Jakarta police spokesman Muhammad Iqbal.

    The smartphone application allows users to order rides from private drivers. It is offering fares at discounts of as much as 50 percent compared to taxi operators in greater Jakarta, home to an estimated 30 million people and some of the world’s worst traffic. Its competition includes taxi companies such as PT Blue Bird and PT Express Transindo Utama.

    Uber has run into strident opposition from taxi drivers in the U.S. and abroad as it has expanded to build its business, valued at $50 billion.

    Uber has sent a message to customers in Jakarta, asking them to take to Twitter to tell the authorities why they need it.

    “Uber can say what it wants,” said Adrianto Djokosoetono, the head of the country’s land transport association and a director at Blue Bird, Indonesia’s largest provider of taxis, car rentals and chartered buses. “They are in a tricky situation having to follow the laws so they have to ask for public support.”

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  • Lulu Group to enter Indonesia

    Lulu Group to enter Indonesia

    Plans $500mn investment in the country over the next five years

    The first LuLu Hypermarket in Indonesia will be opened in Jakarta by the year-end as the group has announced plans to invest $500mn in the country over the next five years.  The announcement came during the visit of Indonesian President, Joko Widodo to Abu Dhabi. He visited LuLu Hypermarket along with a high-level delegation at Khalidiyah Mall in Abu Dhabi. “With an initial investment of $300mn in the first phase, we plan to open some 15 hypermarkets by the end of 2017 and a central logistics and warehousing facility in Jakarta.

    These projects are likely to generate more than 5,000 job opportunities for Indonesians and help train them at all levels” said MA Yusuffali, LuLu Group managing director. The fact that we are going to Indonesia with our Halal Hypermarket concept, is giving us the encouragement to look for a wider market segment there” Yusuffali said. Apart from Jakarta, LuLu intends to open hypermarkets in Bandung, Solo, Semarang, Surabaya and Yogyakarta. “We also plan to set up contract farming to ensure continuous supply of high-quality products and support the Indonesian agriculture sector,” Yusuffali added.

    The Indonesian president is on a five-day state visit to Saudi Arabia, the United Arab Emirates and Qatar, to boost the country’s ties with the three countries, particularly on investment, trade and Indonesian migrant worker protection.

    Coordinating Minister of Economy Darmin Nasution, Trade Minister Thomas Lembong, Minister of National Development Plans Sofyan Djalil, State Secretariat Minister Pratikno, head of the Investment Coordinating Board Franky Sibarani and Cabinet Secretary Pramono Anung were also part of Widodo’s delegation.  The Indonesian president was given a rousing welcome at the LuLu Hypermarket by Yusuffali; Saifee Rupawala, CEO; Salim MA, director; Rajmohan Nair, director – LuLu (Far East Operations); and a large number of Indonesian expatriates.

    President Widodo and the accompanying delegation were taken to a guided tour of the hypermarket by Yusuffali who briefed him about specialties of the retail store. The president later said his visit to LuLu Hypermarket was to see Indonesian products mainly agricultural products and asked Yusuffali to import more products from villages and towns in Indonesia.  A LuLu release said Widodo inquired about the prices as well of the various Indonesian products imported to Abu Dhabi.

    The LuLu chain currently operates some 117 stores across the UAE, Oman, Bahrain, Kuwait, Qatar, Saudi Arabia, Yemen, Egypt, and India.

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