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Tag: Indonesia

  • Penshoppe Expands to Indonesia Ahead of Summer 2013 Collection Rollout

    Penshoppe Expands to Indonesia Ahead of Summer 2013 Collection Rollout

    Philippine fashion brand Penshoppe will open its first retail store in Indonesia in December. The expansion takes its casual wear footprint into Southeast Asia’s largest consumer market.

    The overseas entry follows the debut of the retailer’s Summer 2013 collection during the closing day of Philippine Fashion Week on October 28.

    Four Lines for Summer

    Penshoppe structured its runway presentation across four product segments: Dressy: Glitter and Shine, Preppy Casual, Resort, and Active Wear. Each model wore a single assigned outfit during the show rather than cycling through multiple wardrobe changes. That allowed the brand to show a high volume of individual garments.

    Designs in the collection update basic casual apparel with elevated tailoring and evening styling. The pieces are built to transition from daywear to formal settings.

    Entering the Indonesian Market

    Expansion into Indonesia gives Penshoppe direct exposure to an urban middle class with growing discretionary spending on ready-to-wear apparel. Setting up physical shopfloors in Jakarta and surrounding retail hubs places the brand in direct competition with entrenched regional operators and international fast-fashion chains.

    Local retail landlords in Southeast Asia continue to allocate floor space to affordable fashion brands capable of generating consistent foot traffic. For Penshoppe, the commercial test lies in replicating its domestic brand recognition in a market where local tastes and supply chain overheads differ sharply from the Philippines.

    Regional Fast Fashion Pressures

    Apparel retailers across the Association of Southeast Asian Nations face increasing margin pressure from rising logistics expenses and quickening inventory turnover cycles. Competing against established global giants requires domestic brands to maintain sharp pricing. They must also shorten product lead times.

    To capture broader demographics across casual and professional settings, Penshoppe broadened its design categories, leaning on styling lines like preppy basics and activewear.

    What to Track Next

    Runway looks unveiled at the conclusion of the Manila fashion calendar on October 28 established the four-part summer templates scheduled to reach Philippine shop shelves ahead of the warm-weather shopping period.

    Attention now turns to the location and format of the first Indonesian store opening in December, alongside the commercial rollout schedule for Summer 2013 inventory across domestic outlets.

  • SUBCO Unveils 24,000-Kilometre Indo-Pacific Subsea Cable Network for AI Traffic

    SUBCO Unveils 24,000-Kilometre Indo-Pacific Subsea Cable Network for AI Traffic

    Australian digital infrastructure operator SUBCO will build three subsea cable systems spanning 24,000 kilometres across the Indo-Pacific by 2029. The network will carry surging artificial intelligence data traffic.

    Each of the three links will feature 24 fiber pairs connecting Australia, Japan, Guam, the United States, Singapore, and Indonesia.

    Three routes across 24,000 kilometres

    The build program divides into three lines named APX North, APX East-2, and APX West. Together, they create a multi-point transit web across Asian commercial centres and trans-Pacific landing points.

    APX North runs 9,500 kilometres from Sydney to Japan by way of Guam. It is the first hypercable connecting Australia directly to the Guam interconnection hub. It also provides the first direct commercial line between Australia and Japan.

    Connecting Guam and Los Angeles, APX East-2 spans 10,000 kilometres. SUBCO designed the link to carry trans-Pacific traffic between Asian markets and the United States, while routing data into Australia and Japan via APX North.

    Across Southeast Asia, APX West covers 4,600 kilometres between Perth and Singapore. The system includes dedicated branches into Jakarta and Batam in Indonesia.

    Direct links bypass traditional hubs

    On APX North, switched branching units sit along the deep-sea route. This equipment allows operators to direct selected fiber pairs straight between Australia and Japan without landing traffic on Guam. That cuts transit latency for direct users.

    Similar switching architecture runs across APX West in Southeast Asia. Customers can route traffic in and out of Batam and Jakarta to tap local compute clusters, or bypass them entirely when routing directly into Singapore data centres.

    “People have been slow to understand that AI factories are dead without massive subsea connectivity to carry tokens from factory to customers. Hundreds and hundreds of terabits per second,” Slattery said.

    Bandwidth race shifts to artificial intelligence

    Hyperscale cloud operators and Asian enterprise tech groups are realigning their balance sheets toward dedicated AI processing clusters. Those computational facilities require continuous, high-volume data pipes to exchange training datasets and model outputs across regions.

    Retail networks, regional logistics platforms, and financial institutions across Southeast Asia rely on cloud-hosted algorithmic models for daily inventory, pricing, and fraud detection. Any bottleneck in trans-Pacific or Southeast Asian trunk capacity directly caps how fast those platforms process transactions.

    Adding 24-fiber-pair capacity along routes that previously relied on older cables reduces reliance on congested transit corridors through the South China Sea and Luzon Strait. The primary operating risk sits in naval installation logistics. Specialized cable-laying vessels face tight global scheduling constraints.

    Vessel deals and contract milestones

    The three cables form the core of SUBCO’s broader target to lay more than 40,000 kilometres of subsea fiber across the Indo-Pacific in just over three years. The company previously built the 9,800-kilometre Oman Australia Cable, establishing direct connectivity between Perth and Muscat.

    Management is finalizing cable manufacturing contracts and vessel charter agreements. SUBCO targets Contract in Force status for APX North, APX East-2, and APX West by early 2027 ahead of the planned 2029 operational launch.

  • Indonesia Cyber Attacks Inflict US$6.2 Billion in Losses This Year

    Indonesia Cyber Attacks Inflict US$6.2 Billion in Losses This Year

    Cyber attacks caused an estimated US$6.2 billion in financial damage across Indonesia during 2026, Bank Indonesia Governor Destry Damayanti announced in Jakarta on Thursday.

    Central bank officials linked the losses directly to automated tools and artificial intelligence. These technologies multiply payment fraud, scam operations, and data theft across consumer networks.

    Surging Risks in Digital Payments

    Destry urged government ministries and commercial agencies to tighten payment security standards and enforce direct consumer protections. The central bank holds the statutory mandate to supervise and develop the country’s payment infrastructure.

    Digital networks expand domestic economic output. Still, the governor warned that interconnected systems leave merchant acquiring channels and retail banking endpoints exposed to automated intrusion. Joint security literacy programs with the Financial Services Authority are planned to train consumers and retail operators.

    ISP Group Pushes Security Bill

    Backing the central bank’s warning, the Indonesian Internet Service Providers Association (APJII) demanded swift passage of the Cyber Security and Resilience Bill. Commercial internet providers require uniform technical standards and legal clarity to defend national digital infrastructure against automated threats, according to APJII Chair Muhammad Arif.

    “Indonesian service providers need legal certainty to grow, not disruptive regulations,” said Arif.

    Monitoring data from APJII tracked 246.4 million connections to dangerous IP addresses between June 13 and August 28, 2026. A separate three-day network scan by the association recorded roughly 68 million distinct cyber attack events targeting domestic routes.

    Direct Pressures on Retail and Finance

    For retail merchants, digital lenders, and e-commerce platforms operating across Southeast Asia’s largest market, these financial losses raise basic operating costs. Acceptance of QR codes and instant transfer rails expanded rapidly over the past three years. Back-end defense budgets frequently lagged that growth.

    Platforms now face higher chargeback rates, elevated verification costs, and direct liability when account credentials leak. Operators that fail to upgrade transaction authentication face friction at checkout. Financial institutions risk regulatory penalties if compromised channels disrupt daily settlement flows.

    Escalating Breach Scale Since 2025

    The US$6.2 billion tally reflects climbing attack sophistication following major infrastructure breaches over the previous eighteen months. Regional lender Bank DKI suffered repeated network intrusions that produced over US$15 million in irregular transactions, showing how attackers breach core accounting ledgers.

    Parliamentary debate on the Cyber Security and Resilience Bill now enters committee reviews. Enterprise software providers and payment processors are tracking whether mandatory incident-reporting rules will carry statutory fines before the legislative session closes.

  • Indonesia Money Supply Hits Rp10.45 Quadrillion as Bank Lending Rises 13.3%

    Indonesia Money Supply Hits Rp10.45 Quadrillion as Bank Lending Rises 13.3%

    Bank lending across Indonesia reached Rp 9,019.3 trillion in August, driving an 8.2 per cent annual expansion in broad money supply to Rp 10.45 quadrillion.

    Total bank credit growth accelerated to 13.3 per cent year on year from 13.0 per cent in July, according to data released by Bank Indonesia.

    Corporate demand accounted for the bulk of new loan volumes. Business borrowing expanded 21.6 per cent from a year earlier, quickening from 20.9 per cent in July, while dedicated investment facilities grew 23.4 per cent over the same period.

    Corporate borrowing outpaces consumer appetite

    Consumer borrowing showed a different trajectory. Household credit growth softened to 5.0 per cent in August, down from 5.3 per cent in July, reflecting tighter household budgeting for discretionary purchases.

    Narrow money supply (M1), which tracks cash and transactional accounts readily available for day-to-day shopping, slowed to 9.0 per cent growth from 10.0 per cent in July to reach Rp 5,943 trillion. Quasi money, composed of less liquid store-of-value funds, gained pace, rising 6.5 per cent to Rp 4,426.2 trillion as foreign-currency demand deposits surged 11.8 per cent.

    For consumer brands and commercial retailers, this widening gap between enterprise borrowing and household debt points to a market where suppliers are funding production capacity faster than shoppers are taking on debt to buy goods. Retailers dependent on big-ticket financed spending face softer footfall conversion, while business-to-business suppliers benefit from funded industrial order books.

    Slump in vehicle financing tests consumer demand

    Auto financing took the sharpest hit among consumer categories. Motor vehicle loans fell 10.3 per cent year on year, extending a prolonged downturn across vehicle dealerships and related equipment supply chains.

    Mortgage lending remained in positive territory, growing 4.2 per cent. Total bank customer deposits reached Rp 9,732.8 trillion, holding steady at 7.7 per cent annual growth, led by a 9.5 per cent rise in consumer savings balances and a 9.4 per cent increase in current accounts.

    Automotive retailers and showroom operators across Southeast Asia have seen similar financing headwinds where high base borrowing costs discourage consumer installment plans. The risk sits squarely with durable-goods distributors holding high-ticket inventory against weakening consumer credit uptake.

    Commercial property and construction lead credit gains

    Property development emerged as a major bright spot for credit distribution. Overall property sector lending climbed 18.3 per cent year on year in August.

    Construction loans surged 49.5 per cent, while direct real estate lending increased 15.8 per cent. The rapid pace of physical build-outs continues to add retail floor space, logistics warehousing, and industrial park capacity across Java and regional hubs.

    Commercial landlords and mall operators are managing this new capacity at a time when tenant leasing decisions require careful assessment of local store profitability and retail basket sizes.

    Small business working capital stays constrained

    Financing for micro, small, and medium enterprises showed mixed signals. Total credit to the sector improved to 2.3 per cent growth from 1.6 per cent in July, supported by a 14.9 per cent rise in investment loans.

    Working-capital facilities for small merchants and local distributors contracted 3.1 per cent. The drop in short-term operational credit limits inventory procurement for neighbourhood trade and wholesale stockists.

    The August liquidity figures follow the decision by Bank Indonesia to maintain its benchmark interest rate at 5.75 per cent to protect the rupiah and anchor domestic financial stability.

    All eyes now turn to third-quarter bank earnings and September monetary aggregates to see whether small-business working capital can return to growth ahead of peak year-end retail inventory ordering.

  • FrieslandCampina Takes Majority Stake in Ultrajaya in 7.8B Share Deal

    FrieslandCampina Takes Majority Stake in Ultrajaya in 7.8B Share Deal

    Dutch dairy group FrieslandCampina is taking a majority stake in Indonesian peer PT Ultrajaya Milk Industry, folding its Frisian Flag Indonesia unit into the Jakarta-listed business ahead of a shareholder vote scheduled for 27 October.

    Under the transaction terms, Ultrajaya will assume ownership of FrieslandCampina’s 78.09% holding in Frisian Flag Indonesia in exchange for more than 7.8 billion new shares priced at Rp2,150 ($0.12) each under a rights issue.

    FrieslandCampina’s partners, Blue Waves Group Ventures and PT Bahtera Wiraniaga Internusa, will also transfer their shares in Frisian Flag Indonesia to Ultrajaya. Once completed, FrieslandCampina will launch a mandatory cash tender offer for the remaining minority shares of Ultrajaya.

    Consolidating Two Distribution Giants

    Folding Frisian Flag Indonesia into Ultrajaya unites two of Indonesia’s most entrenched packaged beverage distribution networks. Distribution across an archipelago of 17,000 islands requires cold-chain infrastructure and wholesale relationships that take decades to assemble. The combined business will pair FrieslandCampina’s dairy formulation capacity with Ultrajaya’s dominant position in ambient shelf-stable drinks. That gives the group greater sway over shelf space in traditional warungs and modern supermarket chains alike.

    Rival dairy processors such as Indolakto and Nestlé now face a domestic competitor with combined annual sales past Rp15 trillion. Both corporate units will keep their consumer product brands, production lines, and independent operational teams intact on the ground. Co-founder Sabana Prawirawidjaja will stay in position as president director. The founding Prawirawidjaja family retains a substantial long-term equity holding in the merged business.

    Production Scale and Financial Performance

    Established in 1971, Ultrajaya produces UHT milk, ready-to-drink teas, and traditional health beverages from two main processing plants in West Bandung and Cibitung, West Java. The manufacturer generated Rp8.77 trillion in revenue last year, compared with Rp8.87 trillion during the prior 12-month period. Operating profit jumped 16.7 per cent to Rp1.68 trillion despite the revenue dip. Net profit grew 19 per cent to Rp1.37 trillion on firmer margins.

    For FrieslandCampina, the Indonesian consolidation follows a period of volume weakness across developing territories. The Dutch cooperative booked annual revenue of €13.4 billion ($15.2 billion), up 3.6 per cent. Group operating profit dropped 3.8 per cent to €507 million because of commodity swings and weaker demand across its Middle East, Pakistan, and Africa divisions.

    Long-Term Bet on Packaged Nutrition

    Multinational food manufacturers in Southeast Asia have spent recent quarters reorganising local subsidiaries into joint ventures with domestic champions. The strategy cuts logistics costs and shields balance sheets from regional currency volatility. FrieslandCampina is trading direct control of a single subsidiary for equity control of a listed platform that manufactures its own packaging and commands local raw milk sourcing.

    “FFI will join a broader, more resilient platform serving consumers across the archipelago. Both companies will continue to operate alongside each other as separate businesses, each with its own brands, portfolios, and organisations.”

    Shareholder Approval and Next Steps

    Shareholders must now give formal sign-off. Ultrajaya scheduled an extraordinary general meeting for 27 October, where investors will vote on the proposed transfer of control to FrieslandCampina and the issuance of the 7.8 billion rights shares.

    Regulatory clearance from Indonesia’s Financial Services Authority and competition authorities will determine the timing of the subsequent mandatory cash tender offer for the minority shares.

  • Bank Indonesia Issues 32,457 Domestic Credit Cards in First Month

    Bank Indonesia Issues 32,457 Domestic Credit Cards in First Month

    Indonesian commercial lenders issued and activated 32,457 domestic credit cards in the first four weeks following the system’s retail debut. The figures, confirmed by Bank Indonesia Governor Destry Damayanti in Jakarta on September 24, 2026, track adoption since the retail tier went live on August 17.

    Total spending across the new network reached Rp18.7 billion over 38,800 transactions. Average ticket size stood at Rp482,000, pointing to everyday retail purchases rather than high-value consumer financing.

    Transaction Volume and Merchant Spend

    The card, known locally as Kartu Kredit Indonesia (KKI), operates in its first phase as a virtual credit line linked directly to the national QRIS standard. Shoppers scan standard merchant QR codes at checkouts, drawing down an unsecured credit balance through their standard mobile banking application rather than a deposit account.

    Bank Indonesia Deputy Governor Filianingsih Hendarta reported that nearly 8,000 individual cardholders have executed live purchases across the initial network. The difference between issued cards and active spenders highlights the early onboarding curve as retail customers set up digital limits inside existing mobile banking apps.

    Bank Distribution and Market Share

    Private lender PT Bank Central Asia accounts for the bulk of early issuance, logging roughly 28,000 cardholders during the opening month. State-owned PT Bank Rakyat Indonesia and private lender PT Bank Permata follow at a distance, each recording around 1,500 active users.

    Five other payment service providers make up the initial implementation cohort: Bank Mandiri, Bank Negara Indonesia, CIMB Niaga, Bank Mega, and Bank Syariah Indonesia. For retail merchants across tier-one cities, the domestic scheme reduces dependence on foreign card networks while plugging directly into existing QR checkout hardware and printed counter placards.

    Sharia Options and Technical Integration

    Participating lenders are structuring distinct product variants to capture specific consumer segments. Bank Syariah Indonesia is developing Sharia-compliant financing structures to offer non-interest credit lines over the central switch.

    Local retailers benefit from standardized merchant discount rates tied to the domestic clearing infrastructure. By channelling unsecured revolving credit through QRIS rails, physical merchants avoid procuring separate point-of-sale terminals to accept credit payments from everyday shoppers.

    E-Commerce and Physical Card Rollout

    The central bank launched the KKI framework initially for government procurement before expanding the architecture to retail consumers on August 17, 2026. The shift forms part of a broader push to retain domestic transaction fees inside the national clearing ecosystem while expanding consumer credit access outside traditional cardholder demographics.

    Bank Indonesia is executing the consumer rollout across three distinct phases. The current phase covers QRIS-linked digital cards inside banking applications. Phase two will expand the network to online e-commerce checkout gateways, while the third phase will introduce physical cards for merchants without digital scanning terminals.

  • Indonesian Retailers Restrict Premium Rice Sales as Paddy Tops Rp8,000

    Indonesian Retailers Restrict Premium Rice Sales as Paddy Tops Rp8,000

    Modern retailers across Indonesia are restricting consumer purchases of premium rice due to severe supply constraints as farm-gate paddy prices surged past Rp8,000 per kilogram.

    Indonesian Retailers and Shopping Mall Tenants Association (HIPPINDO) Secretary General Haryanto Pratantara said in September 2026 that the shortage stems from pricing bottlenecks tied to the government’s highest retail price (HET).

    Modern retail chains strictly comply with state ceilings, but suppliers can no longer afford to deliver stock at mandated prices, prompting many to halt operations or shift to specialty rice.

    The Millers’ Squeeze

    Harvested dry paddy prices climbed from Rp7,000 to more than Rp8,000 per kilogram at the farm gate, wiping out processor margins. The Indonesian Rice Millers and Rice Traders Association reported that seasonal harvest dips sparked aggressive bidding among processing plants for available grain.

    Millers have slashed output because raw input costs exceed the threshold required to mill, pack and distribute grain under the legal ceiling. Plants still running have shifted capacity to unregulated specialty lines to avoid laying off workers.

    Selling premium rice at retail will definitely violate HET and create problems.

    This pivot has concentrated commercial supply in specialty grain lines. Sellers can legally price those items above statutory caps.

    Regulatory Pullback in Specialty Grain

    Agricultural regulators worsened supply pressures by revoking the licenses of 25 fortified rice brands for non-compliance. The action pulled packaged fortified inventory straight off retail shelves.

    National production of fortified specialty rice averages roughly 15,000 tons per month, according to miller association data. Taking two dozen active brands off the market created an immediate deficit in modern grocery aisles. Shoppers can no longer swap basic premium rice for fortified alternatives.

    Urban grocers across Jakarta and surrounding districts have posted customer purchase limits to curb speculative hoarding and protect floor stock.

    Bulog Intervention and Market Imbalance

    Agriculture Minister and National Food Agency head Andi Amran Sulaiman ordered state logistics agency Bulog to release government reserves directly to modern grocers. Amran maintained that public stockpiles can meet consumer demand despite the private milling bottleneck.

    Public reserves stand at 4.6 million tons, up 18 per cent from a year earlier. Yet state grain injections struggle to reach private supermarket checkouts at the volume demanded by daily foot traffic.

    Bulog also handles social assistance distribution, managing an allocation of 997,200 tons of rice aid across 33.24 million households. That welfare program competes directly for the domestic transport and freight capacity needed by commercial grocers.

    Border Controls and Enforcement Targets

    Widening price gaps between local grain and regional markets have drawn illegal shipments toward Indonesian ports. Customs and excise officers recently intercepted 30 containers of smuggled rice and salt alongside imported clothing valued at Rp27.3 billion across Tanjung Priok, Tanjung Perak and the Malacca Strait.

    Finance ministry officials have ordered border units to tighten port checks and block untraced grain from reaching domestic distribution channels. Statistics Indonesia data shows price gains for medium and premium rice grades have continued uninterrupted since February 2026.

    Retail buyers and store operators now await the Ministry of Agriculture’s upcoming review of the HET price matrix. Officials must decide whether to lift statutory retail caps before the fourth quarter closes.

  • Indonesian Court Cuts Gojek Founder Nadiem Makarim’s Prison Sentence to Nine Years

    Indonesian Court Cuts Gojek Founder Nadiem Makarim’s Prison Sentence to Nine Years

    An Indonesian appeals court cut the prison sentence of Gojek co-founder and former education minister Nadiem Makarim to nine years on Thursday. The decision reduces a 10-year term handed down in June.

    Judges also reduced his restitution payment from 809 billion rupiah ($45.23 million) to 548 billion rupiah. However, they upheld his graft conviction over a nationwide school laptop procurement programme that cost the state $125 million.

    The former minister had asked the Jakarta high court to dismiss all charges. Judge Catur Iriantoro said the bench rejected the appeal because the original ruling aligned with trial evidence, witness testimony, and established facts.

    Laptop procurement and tender terms

    State contracts to supply Google Chromebooks to primary and secondary schools across Indonesia during Makarim’s tenure form the core of the case. Prosecutors established that tender requirements favored Google’s Chrome operating system. This restricted open commercial competition and blocked rival hardware specifications.

    Judge Subachran Hardi Mulyana confirmed the revised financial penalties during Thursday’s hearing. The court determined that the lower 548 billion rupiah figure reflected Makarim’s direct liability in the allocations.

    “The victim now is not just me, but the credibility of the law enforcement system in Indonesia.”

    Repercussions across the tech and vendor market

    Thursday’s ruling sets a precedent for hardware manufacturers, consumer software distributors, and enterprise technology suppliers chasing public contracts in Southeast Asia. Regional procurement routinely drives sales volume for tech vendors. However, tailored operating system specs now carry severe criminal risks for officials and corporate partners.

    Tech conglomerates in Jakarta face scrutiny over how enterprise and education software bundles enter distribution pipelines. Device makers must now navigate tighter audits and multi-vendor rules when bidding for institutional tenders.

    From ride-hailing pioneer to public office

    Gojek began in 2010 when Makarim built the business from a motorcycle call centre into Indonesia’s top on-demand platform for transport, food delivery, and digital payments. He stepped down from his corporate post in October 2019. Former president Joko Widodo then appointed him to lead the Ministry of Education, Culture, Research, and Technology.

    Widodo’s appointment of Makarim served as a test case for tapping tech entrepreneurs to modernize state systems. That 2021 digitisation push led directly to the Chromebook initiative. The project triggered his arrest, a 10-year sentence in June, and an appeal on July 1.

    The next step at the Supreme Court

    Makarim told reporters outside the courtroom that he rejects the verdict and will take his case to Indonesia’s Supreme Court. His legal team must now file the cassation brief contesting the high court’s reasoning before the statutory deadline expires.

  • Kopi Kenangan CEO and Investors Raise Stakes in Coffee Chain

    Kopi Kenangan CEO and Investors Raise Stakes in Coffee Chain

    Kopi Kenangan co-founder and group chief executive Edward Tirtanata increased his equity holding in the Indonesian coffee chain in September 2026 as part of an ongoing funding round backed by existing investors.

    Tirtanata acquired shares directly from early team members and shareholders to consolidate ownership during the regional expansion of the chain, which was founded in 2017.

    Cap Table Consolidation

    Existing institutional backers joined the transaction to increase their own positions in the beverage operator. Venture firm Alpha JWC Ventures, Tybourne Capital Management and Horizons Ventures participated in the share purchase alongside company leadership.

    The secondary buyout allows early employees and initial angel backers to cash out equity built up since the company started operations in 2017. Bringing those shares back to the core founder and late-stage institutional funds tightens voting control ahead of further capital deployment across Southeast Asian retail locations.

    Regional Retail Pressure

    Grab-and-go coffee formats across Southeast Asia face tighter store-level margins as local competitors and international chains fight for footfall in commercial hubs. Consolidating ownership gives management more latitude to make long-term real estate commitments and manage pricing without friction from early angel investors seeking quick exits.

    For retail landlords and retail competitors in markets like Malaysia and Singapore, better-capitalised flagship operators can sustain commercial rent terms and marketing outlays longer during expansion phases. The backing from long-term capital providers like Horizons and Tybourne keeps the balance sheet steady as outlet networks build density.

    Building Out the Footprint

    Tirtanata co-founded Kopi Kenangan in Jakarta seven years ago to sell espresso drinks tailored to local palates at affordable price points. The brand built an extensive domestic network before introducing grab-and-go outlets outside its home market.

    The latest funding round clears out legacy shareholder blocks while management focuses on store opening targets and regional unit economics across targeted overseas metropolitan markets.

  • China Scraps 61.5 Gigawatts of Overseas Coal Power as Industrial Pipeline Shifts

    China Scraps 61.5 Gigawatts of Overseas Coal Power as Industrial Pipeline Shifts

    China cancelled 61.5 gigawatts of planned overseas coal-fired power capacity over the past five years. The drop eliminates two-thirds of its international pipeline following state restrictions on fossil fuel financing.

    The cutbacks averted an estimated 6.4 billion tonnes of lifetime carbon dioxide emissions across Asia and Africa. The figure comes from joint research by the Centre for Research on Energy and Clean Air and People of Asia for Climate Solutions.

    State-owned Chinese banks and construction groups withdrew from public utility projects worldwide. Host governments and developers cancelled 3.4 gigawatts in Zimbabwe, 1.7 gigawatts in Bangladesh, and 1.4 gigawatts in Indonesia in the twelve months leading to July. Total cancellations across all markets reached 7.1 gigawatts over the past year.

    Where the Cuts Landed

    Public developers accounted for nearly all the dropped capacity. Beijing ordered state-owned enterprises and state policy banks to halt outbound coal development. That directive stranded dozens of early-stage power purchase agreements negotiated during the prior decade.

    Indonesia remains the primary market for Chinese-backed thermal projects, hosting 17.1 gigawatts of operational, planned, or active construction capacity. Vietnam follows with 3.8 gigawatts. Pakistan retains 3.4 gigawatts of China-linked coal generation.

    Project momentum slowed over the last twelve months. While developers terminated 7.1 gigawatts of coal projects, another 3.3 gigawatts broke ground. A further 20.5 gigawatts remained active in planning stages across developing markets.

    The Indonesian Captive Power Loophole

    Private capital accounts for nearly the entire remaining construction pipeline. In Indonesia, private Chinese industrial groups continue to construct off-grid captive coal plants. These sites power remote mineral processing facilities and industrial estates.

    These captive stations supply nickel smelters, aluminum refineries, and manufacturing hubs on islands without access to the national electricity grid. Private developers finance them through commercial balance sheets rather than Chinese policy bank loans. The structure bypasses state utilities and sovereign debt guarantees entirely.

    Energy analysts warn that these captive industrial plants undermine regional decarbonization targets. CREA and PACS noted that expanding private coal infrastructure inside overseas enclaves risks violating the spirit of national carbon commitments.

    Renewables Step Into the Grid Void

    Commercial groups in China have redirected balance-sheet capital into overseas clean power generation. Backed ventures have brought 69.4 gigawatts of renewable energy and 3.3 gigawatts of nuclear power into commercial operation worldwide.

    Operational renewable capacity backed by Chinese capital now exceeds the volume of scrapped coal power in markets such as Brazil, Tanzania, and the United Arab Emirates. Equipment exports follow the same pattern. Solar module producers and wind turbine manufacturers continue to secure supply contracts across emerging markets.

    Factory operators and supply chain managers face a direct operational shift. Manufacturers in Southeast Asian export zones face rising pressure from multinational buyers to demonstrate clean power sourcing. That scrutiny makes coal-dependent industrial zones an operational liability for finished-goods exporters.

    Supply Chains and Capital Exposure

    Divergence between state utilities and private industrial estates creates distinct financial risks for factory tenants. Industrial tenants reliant on dedicated coal plants face future carbon border adjustments from European and North American trade partners.

    Landlords and regional sovereign wealth funds are pricing this transition directly into long-term lease terms. Industrial parks offering dedicated green microgrids command higher tenant premiums than legacy processing hubs tied to dedicated coal boilers.

    Beijing established the policy framework five years ago. President Xi Jinping announced at the United Nations General Assembly that China would halt new overseas coal construction and step up support for green energy. That decision followed a six-year expansion between 2014 and 2020 during which Chinese backers announced roughly 160 billion dollars in foreign coal-fired plants under the Belt and Road infrastructure initiative.

    Attention now turns to the 20.5 gigawatts of planned capacity remaining on project ledgers across Southeast Asia. Host governments in Jakarta and Hanoi must now decide whether to formalize regulatory bans on new captive thermal approvals before private developers secure final engineering permits.

  • VinFast Affiliate GSM Launches First Overseas Motorbike Service in Jakarta

    VinFast Affiliate GSM Launches First Overseas Motorbike Service in Jakarta

    Vietnam’s electric taxi operator Green and Smart Mobility (GSM) launched VinFast electric motorbike taxis in Jakarta in September 2026. The rollout is its first two-wheeler passenger service outside Vietnam.

    This expansion deepens the Vingroup affiliate’s presence in Southeast Asia’s largest economy, potentially creating another sales channel for the loss-making EV producer. GSM previously launched electric car services in the Indonesian capital.

    Fleet deployment across Jakarta

    Operating locally as PT XANHSM Green and Smart Mobility Indonesia, the company integrated two-wheeler bookings into its consumer app alongside its Green Car and Green Premium tiers. Local operating centres recruit drivers directly, using VinFast electric scooters built for commercial urban transit.

    Jakarta is the first overseas market for GSM’s two-wheeler taxi model. In Vietnam, the company already runs extensive fleets of electric cars and scooters across major cities, including Ho Chi Minh City and Hanoi.

    Captive demand for VinFast

    Commercial volume from the expansion flows directly to VinFast. The Vietnamese automaker remains loss-making as it scales production. Internal fleet sales through GSM absorb factory output and build brand visibility in new export territories.

    Deploying fleets creates instant street-level exposure in congested Southeast Asian capitals. For vehicle manufacturers entering price-sensitive markets without established dealer networks, a proprietary ride-hailing platform serves as both a test fleet and a live showroom.

    Competition in Indonesian ride-hailing

    Entering Jakarta puts GSM into direct competition with dominant incumbents Grab and GoTo’s Gojek. Both operate massive two-wheeler networks across Indonesia. Established players rely primarily on gig drivers who own their vehicles. GSM instead operates a dedicated fleet structure, controlling vehicle standardisation and battery charging infrastructure.

    High capital costs for vehicle procurement, fleet maintenance and charging support present clear financial risks in a market with strictly regulated motorcycle fares and severe price competition. GSM bets that lower operating and maintenance costs per kilometre will offset the capital outlay of deploying new electric two-wheelers.

    Regional footprint and next steps

    Parent conglomerate Vingroup is pushing to build an international footprint for its transport ecosystem. GSM has expanded rapidly across Southeast Asia and Central Asia, entering Laos and Kazakhstan with fleet operations running exclusively on VinFast hardware.

    Regulatory approvals for broader route operations and expanded driver recruitment across greater Jakarta will determine how quickly GSM scales beyond initial central deployment zones.

  • XLSmart Begins Work on 8,000-Kilometer Subsea Cable Linking Southeast Asia to Japan

    XLSmart Begins Work on 8,000-Kilometer Subsea Cable Linking Southeast Asia to Japan

    Indonesian operator XLSmart has started construction on Candle, an 8,000-kilometer subsea fiber network. The route links Indonesia to Singapore, Malaysia, the Philippines, Taiwan, and Japan. Commercial operations will begin across all six markets in 2028.

    Consortium partners backing the system include Meta, SoftBank, Telekom Malaysia through its TM Technology Services unit, the Philippines’ Globe Telecom, and Japan’s IPS Inc. NEC Corporation will supply the marine transmission equipment. It will deploy 24 fiber pairs along the seabed.

    The Route Through Batam

    Candle lands in Indonesia at Tanjung Bemban on Batam island. That puts the cable directly opposite Singapore’s main data exchanges. Batam serves as a spillover hub for data centers and cross-border transit links while Singapore limits domestic power allocations.

    Crews have finished initial marine work and landing preparations at the site. The route gives carriers a fresh corridor for cloud, enterprise, and artificial intelligence traffic between Southeast Asian cities and East Asia.

    PT XLSMART Telecom Sejahtera Tbk is handling local operations and Indonesian regulatory filings. This is one of the operator’s major capital programs following the merger of PT XL Axiata Tbk and PT Smartfren Telecom Tbk.

    Wholesale Capacity and Route Diversity

    For regional enterprises and cloud platforms, Candle adds physical diversity away from congested legacy routes. Extra subsea lines protect against cable cuts and geopolitical friction across the South China Sea and Luzon Strait.

    Wholesale buyers gain dedicated capacity instead of leasing space on older multi-party systems. The link also expands Meta and SoftBank’s owned transmission assets between Southeast Asian hubs and Japanese internet exchanges.

    Enterprise demand across Jakarta, Manila, and Kuala Lumpur continues to drive direct subsea investment into domestic carriers. XLSmart Director and Chief Enterprise Business Officer Andrijanto Muljono said: “Candle represents a strategic investment to prepare for Indonesia’s long-term connectivity needs.”

    Consortium Lineup and Build Steps

    Planning for Candle began in late 2025 with founding members Meta, SoftBank, IPS, Telekom Malaysia, XLSmart, and NEC. Globe Telecom joined the group in April 2026 as an equity investor and the landing partner for the Philippines.

    Each landing partner oversees shore-end work, territorial water permits, and domestic terminal stations. Teams have moved from desktop studies to physical landing milestones, while NEC manufactures the cable.

    With 24 fiber pairs, Candle ranks among the highest-capacity regional systems in Asian waters. Most older subsea infrastructure in the corridor operates on 8 to 16 fiber pairs.

    Regulatory Hurdles and Timelines

    Permit applications are advancing across all six landing jurisdictions. Marine surveys, cable-laying contracts, and deep-water work must clear national maritime agencies before installation vessels lay the main trunk lines.

    On Batam, the landing station must connect directly with domestic terrestrial backbones across Java and Sumatra to carry traffic inland. Consortium engineers will run dry testing and wet plant commissioning through late 2027 before opening the system to commercial traffic in 2028.

  • Indonesia and India Sign Five-Year Telecom Pact Spanning 5G and 6G Research

    Indonesia and India Sign Five-Year Telecom Pact Spanning 5G and 6G Research

    Indonesia and India signed a five-year telecommunications cooperation pact in Jakarta. The deal covers 5G development, exploratory 6G networks, and quantum technology.

    It binds Southeast Asia’s largest digital economy with South Asia’s biggest mobile market. Both sides agreed to shared technical standards and commercial joint ventures through 2031.

    Communication ministers Meutya Hafid of Indonesia and Jyotiraditya M. Scindia of India signed the memorandum of understanding. The text formalizes bilateral commitments made by Indonesian President Prabowo Subianto and Indian Prime Minister Narendra Modi.

    Joint Research in Advanced Networks

    Under the framework, both governments will direct resources into collaborative research for existing and next-generation networks. Dedicated teams will target 4G optimization, 5G enterprise tools, and early architecture for 6G cellular systems.

    Work also extends to quantum technology and advanced wireless communications. Academic institutions and industrial labs in both nations will run shared programs. The goal is to build regional intellectual property and reduce dependence on Western or Chinese equipment vendors.

    Public-private partnerships form the core of the deal. Both ministries will coordinate projects linking Indian software and engineering suppliers with Indonesian operators expanding island coverage.

    Disaster Resilience and Emergency Systems

    Network continuity during natural catastrophes is a dedicated pillar of the accord. Both countries manage vast island and coastal territories exposed to seismic and climate risks. Infrastructure survivability remains an operational priority.

    Engineers from both administrations will design emergency communication frameworks and risk-reduction protocols. These systems must keep voice, messaging, and data running when cables or base stations suffer regional failures.

    Technical training will support the infrastructure upgrades. The agreement sets up upskilling and reskilling programs for engineers, public officials, and emergency telecom staff.

    Commercial Joint Ventures and the Annual Dialogue

    Enterprise suppliers gain a direct conduit for business-to-business partnerships. Indian system integrators and Indonesian infrastructure providers can now pitch joint projects with ministerial backing.

    Governance will run through the new Indonesian-Indian Telco Dialogue. This bilateral panel will meet annually, alternating between Jakarta and New Delhi. Members will track milestones, clear operational hurdles, and establish upcoming technical priorities.

    Indonesia aims to ensure that digital transformation empowers its people to master, develop, and create future technologies. Cooperation with India serves as a strategic avenue to strengthen these capabilities.

    Market Implications for Regional Carriers

    Indonesian carriers gain an alternative technology pipeline as they weigh 5G rollout expenses against tight average revenue per user. India built an indigenous 4G and 5G technology stack over the past four years. Indian vendors now want to export those network components across Southeast Asia.

    By securing Indian technical support, Jakarta hedges its supplier exposure and speeds up rural connectivity targets. The key test will be whether state-backed research yields commercial hardware deployments across Indonesia’s dispersed telecom footprint.

    The initial term runs for five years, with renewal contingent on written consent from both ministries ahead of the 2031 expiration date.

  • Indonesia Moves E-Commerce Seller Tax Collection Forward to October 1

    Indonesia Moves E-Commerce Seller Tax Collection Forward to October 1

    Indonesia will require major e-commerce platforms to collect income taxes directly from merchant sales starting October 1. The decision pulls the policy forward by one month across a 71 billion dollar digital retail sector.

    Four major marketplaces fall under the mandate: ByteDance-controlled Tokopedia, Sea Limited’s Shopee, Alibaba-backed Lazada and local operator Blibli.

    Tax Collection Brought Forward After Cabinet Switch

    The accelerated rollout follows the removal of former finance minister Purbaya Yudhi Sadewa. President Prabowo Subianto appointed veteran technocrat Suahasil Nazara to lead the ministry in his place. Suahasil becomes Prabowo’s third finance minister in less than two years.

    Tax authorities designated the four platform operators as official withholding agents in July. Platforms were initially scheduled to deduct taxes from seller earnings in August. Implementation was abruptly put on hold.

    Bimo Wijayanto, head of the finance ministry’s tax department, confirmed the October 1 start date to domestic media. Regulatory preparations and technical systems between the state and platforms are complete, he said.

    God willing, we will immediately activate the regulation and implementation. They are ready, we are ready. There’s no drama.

    Reversal of the August Implementation Delay

    This decision unwinds a delay granted on August 5. Purbaya had postponed the withholding rule to November 1 to protect consumer purchasing power and domestic merchants. At the time, the tax office pledged to refund any levies collected prematurely.

    Internal policy friction preceded the leadership change. Prior to his dismissal, Purbaya clashed with senior ministry officials, including Bimo, over the transfer and reassignment of hundreds of department personnel.

    With Suahasil installed at the ministry, the tax office moved quickly. Officials decided to secure digital commerce revenues immediately rather than wait for November.

    Operational Pressure Shifts to Platform Merchants

    Shifting the withholding burden to marketplaces forces hundreds of thousands of independent merchants into direct compliance. Until now, tracking revenue from decentralized digital storefronts relied on self-reporting by shop owners. That system left large volumes of domestic transactions outside the formal tax net.

    For platform operators, the rule demands automated calculations and real-time deductions from merchant payouts. Tokopedia and Shopee process the vast majority of consumer volume in the country. Tokopedia, which combined its Indonesian operations with TikTok Shop and retains GoTo as a minority shareholder, now shares market exposure with Shopee if small vendors migrate sales to unmonitored social channels.

    Gross margins for small merchants selling consumer goods, fashion and electronics will narrow once deductions begin. Established brands operating under corporate tax structures face little disruption. Micro-sellers running on thin markups will have to raise retail prices or absorb the levy.

    Southeast Asia’s Largest Digital Economy

    Indonesia is the central growth engine for digital commerce in Southeast Asia. Industry estimates from Google, Temasek and Bain & Co valued the country’s e-commerce gross merchandise value at 71 billion dollars in 2025. Projections show that figure reaching 140 billion dollars by 2030.

    Tax administrators view expanding digital retail as an essential revenue source for state spending priorities under Prabowo. Traditional retail faces sluggish household demand. Closing tax gaps between physical stores and digital storefronts has become an urgent fiscal target.

    Marketplace platforms are currently issuing technical guidelines and updating seller dashboards ahead of the October 1 launch. Merchant groups will monitor vendor reactions across all four designated portals as automated deductions go live.

  • Lemonilo Launches Brownies Cruunchy Shoor for IDR 2,000

    Lemonilo Launches Brownies Cruunchy Shoor for IDR 2,000

    Indonesian healthy snack brand Lemonilo introduced Brownies Cruunchy Shoor in September 2026. The dark chocolate snack is priced at IDR 2,000, making it affordable and accessible for children.

    The product combines the bold taste of dark chocolate with a crunchy texture, targeting the snacking habits of Generation Alpha as a pocket-friendly treat.

    Expanding the Gluten-Free Bakery Line

    Alongside the rollout, Lemonilo launched Brownies Crispy Lemon Cheese as a new flavour, complementing its existing cheese option.

    Cassava flour replaces wheat across the Crispy range to keep recipes gluten-free. Lemonilo formulated the items without artificial preservatives, synthetic dyes, or artificial sweeteners. The company is pitching the lineup as a cleaner choice for higher-margin convenience store shelves.

    The Warung Price War

    Dropping to IDR 2,000 is an aggressive volume play for a brand built on premium, health-oriented noodles and baked goods. Established giants Mayora Indah, Wings Group, and Garudafood dominate Indonesia’s entry-tier snack shelves. They defend that IDR 1,000 to IDR 2,000 price window through massive distribution networks.

    Protecting margins at this price point will depend on packaging scale and tight supply chains. Cassava and clean-label ingredients cost more than standard palm oil and refined flour. Single-coin pricing leaves no room to absorb cost spikes without shrinking pack sizes.

    Building Out Beyond Noodles

    The dual launch pushes Lemonilo further beyond its core instant noodle business. It introduced the original Brownies Cruunchy line on TikTok Shop in August 2025 before securing offline store space. Earlier that year, the brand shipped stock to Qatar to test export demand for halal snacks.

    Wholesale performance over the coming quarters will show whether the IDR 2,000 price point can deliver sustainable margins in Indonesia’s tier-two and tier-three cities.