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Tag: Indonesia

  • Zilingo hopes to get $50 million more fund

    Zilingo hopes to get $50 million more fund

    Southeast Asian fashion startup Zilingo is set to raise a further US$50 million as it strengthens its operations in Singapore, Indonesia and Thailand and beyond.

    Zilingo was founded in October 2015 by Dhruv Kapoor and Ankiti Bose, who were inspired by the clothing stalls in labyrinthine markets they saw while backpacking across Indonesia and Thailand. Their idea was to connect a fragmented landscape of fashion supply for buyers across Asia.

    Now the company aggregates small fashion retailers in the three Southeast Asian markets on a single platform. With more than 10,000 merchants now on board, the site has evolved into a service attractive to both B2B and B2C customers.

    Users can upload and manage their inventory in any language, using any currency, connecting them through 25 interfaces with logistics, warehousing and payment providers, as well as services like loans, cataloguing and insurance.

    “Nowhere in the world has a horizontal e-commerce company also cracked fashion,” says Bose. “It’s a unique, high-margin category that is highly dependent on fast-moving cycles and has its own nuances. Unlike buying detergent or electronics, fashion is much more about your choice, individuality and trends. It requires a different approach than the rest of e-commerce.”

    Besides selling in Indonesia, Singapore and Thailand, Zilingo ships to four further countries and has supply bases in Bangladesh, Cambodia, China and Vietnam.

    The latest fundraising follows a $54 million round in March.

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  • BreadTalk sets expansion plan for China, Indonesia

    BreadTalk sets expansion plan for China, Indonesia

    BreadTalk Group is expanding through new joint ventures in China and Indonesia.

    Using a wholly owned subsidiary, Shanghai BreadTalk Gourmet, the Singapore-listed food chain operator has formed a joint venture with Ge Ying to operate BreadTalk bakeries in Chongqing, China.

    “This strategic partnership combines BreadTalk Group’s wealth of experience in managing and developing franchisee relationships with Ge Ying’s strong understanding of Chinese consumers’ preferences,” BreadTalk Group said in a statement.

    Ge Ying has been managing the BreadTalk brand of bakeries in Tibet for the last six years. “With proven track records, the group is confident of his team’s capabilities to lead the growth plans for Chongqing, China.”

    BreadTalk Group will hold a 30 per cent stake in the joint venture, which will potentially expand across southwestern China.

    Tan Aik Peng, BreadTalk Group’s bakery division CEO said adopting a joint venture approach rather than a franchising agreement was in line with the group’s long-term direction of increasing directly owned outlets in Mainland China.

    “Our strong product development and innovative brand promotion, coupled with Mr Ge Ying and his team’s proven track record in BreadTalk operational management and strong local knowledge will create a win-win situation for us in Chongqing. Looking ahead, it will serve as a good foundation for us to build a strong southwestern China base in Chongqing, enabling us the opportunity to penetrate further into other southwestern markets like Yunnan and Guiyang provinces.

    “We are fully committed to the Chinese bakery market in which we have full confidence to meet the discerning tastes of the Chinese consumers,” concluded Peng.

    Toast Box expands into Indonesia

    Meanwhile, through its BreadTalk International subsidiary, the company has formed another joint venture in Indonesia.

    It has a 70 per cent stake in BTG – Pura Indah Berkat Venture, with partner Pura Indah Berkat, which operates the Toast Box brand and chain of outlets in Indonesia.

    The first Toast Box outlet is scheduled to open this year in central Jakarta. Currently, PIB manages a Toast Box outlet at Soekarno-Hatta International Airport Terminal 3.

    In a statement announcing the venture, Peng described Indonesia as “a strategic and important market for the company” and that the Toast Box format is “highly relevant” to Indonesian consumers.

    “We are confident that with our insights and experience from operating Toast Box in Singapore and other regions, our consumers will be able to enjoy our quality Nanyang coffee, toast products and local delicacies in Indonesia,” said Tan.

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  • China’s First-Half Coal Imports Surge, Indonesia the Winner

    China’s First-Half Coal Imports Surge, Indonesia the Winner

    China’s seaborne coal imports are on track to have surged by around 14 percent in the first half of the year, with Indonesia emerging as the big winner among exporters.

    Imports are likely to be around 126.6 million metric tons in the first six months of this year, up from 111.3 million tons for the same period in 2017, according to vessel-tracking and port data compiled by Thomson Reuters Supply Chain and Commodity Forecasts.

    It also appears that June may be the strongest month so far this year, with 22.1 million tons discharged, or in the process of discharging, as of Tuesday (26/06).

    The final figure may be slightly higher, at around 25.9 million tons: The data is filtered only to show ships that have already discharged, are discharging or awaiting unloading, and more cargoes may be handled in the final days of June.

    The strongest month so far this year for China’s coal imports from the seaborne market was March’s 23.2 million tons, according to the data.

    A look at the breakdown of where China is sourcing its coal reveals a surprise packet – Indonesia.

    China has imported about 15.3 million tons more coal from the seaborne market in the first half of 2018 compared with last year. On a net basis, it’s all from the Southeast Asian country.

    Imports from Indonesia were around 61.8 million tons in the first half, up from 46.3 million for the same period in 2017.

    Low Sulphur

    The strength of shipments from Indonesia may raise some eyebrows among those who believe China is trying to lower air pollution from burning coal, partly by using less and partly by switching to higher-quality coal.

    Indonesia’s exports are predominantly lower-grade coal, typically with an energy value of 4,200 kilocalories per kilogram (kcal/kg) or less.

    However, Indonesia’s coal is also typically low in sulphur. That makes it useful for Chinese coastal power plants to blend with higher-sulphur domestic supplies or imports.

    This allows them to lower emissions of sulphur dioxide and nitrogen oxide, albeit at a small penalty to the efficiency of the boiler.

    It’s also worth noting that Indonesian coal trades at a substantial discount to higher-quality thermal coal from main regional rival Australia.

    Indonesian 4,200 kcal/kg coal, as assessed by Argus Media, was at $48.71 a ton in the week ended June 22. The weekly index for 6,000 kcal/kg coal at Australia’s Newcastle Port was $116.27.

    The discount of the Indonesian grade to Newcastle has widened substantially over the past year, going from 50 percent at the end of June 2017 to the current 58 percent.

    While this is encouraging additional cargoes from Indonesia, it also means that Australian exporters are enjoying higher prices, even if their volumes are more or less the same.

    China imported 42.84 million tons from Australia in the first six months of the year, fractionally higher than the 42.62 million tons in the same period in 2017, according to the vessel-tracking data.

    Russia Up, United States Down 

    While Indonesia and Australia dominate supply to China, it’s worth noting that Russia also managed to lift deliveries, with imports rising 27 percent to 10.3 million tons in the first half.

    China’s imports from the United States, which are predominantly coking coal used in steel-making, dropped in the first half to 2.09 million tons, a decline of 38 percent.

    This occurred well before any potential impact of proposed Chinese tariffs on coal from the United States, which may be imposed as part of the escalating trade dispute between the world’s two largest economies.

    The decline so far this year in imports from the United States is more likely related to Australian coking coal being more competitive – and available, given the absence this year of major weather-related outages.

    Overall, China’s increased appetite for imported coal appears to be contributing to higher prices, with the Newcastle index up 12 percent so far, hitting a six-year high of $118.09 a ton in the week ended June 17.

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  • Chevron Renewal of Indonesia’s Rokan Block Not Assured

    Chevron Renewal of Indonesia’s Rokan Block Not Assured

    United States energy giant Chevron must compete if it wants to continue operating Indonesia’s Rokan block, the country’s biggest source of crude oil, after its contract expires in 2021, Energy and Mineral Resources Minister Ignasius Jonan said on Wednesday (27/06).

    Chevron asked the Indonesian government earlier this year to extend its operating contract for Rokan beyond 2021 and since then has been in discussions with government officials on the issue.

    “I just talked to Chevron’s new chief executive and told him that it is up to him. If they propose to continue to operate the Rokan block the economics have to be justifiable,” Jonan said in the sidelines of the World Gas Conference in Washington.

    “And they may face some competition as well, from foreign operators and from Pertamina,” he said, referring to Indonesia’s state-owned energy company.

    Michael Wirth, who has been with Chevron since 1982, became chief executive in February.

    A Chevron spokesman did not immediately respond to a request for comment.

    Indonesia has earned a reputation for favoring Pertamina to take over expiring oil and gas contracts in the past, stoking concern among foreign energy investors about the security of their projects.

    Jonan, who said he is eager to earn the trust of investors to boost development of Indonesia’s natural resources, said the days of playing favorites were “in the past.”

    “The only maxim we stick to is the economics. There is no favoritism about the origin of the company, there is no political play. The answer is no and no. It is the economics. That applies to everyone, foreign companies, local companies, and government companies,” he said.

    Jonan said Indonesia was also in discussions with Chevron about another project it is operating, Indonesia Deepwater Development, a natural gas production effort in East Kalimantan, after Chevron cut $6 billion in spending plans there.

    “We both agreed to go and find the best way to work on this block for both sides,” he said, adding tat the negotiations now “will go down to the technical level.”

    Jonan said he had not yet used his authority to adjust fiscal terms for oil and gas blocks to encourage investment, but was ready to do so in any cases where investment returns were projected to be below 15 percent.

    Jonan said he is “seriously considering offering fiscal adjustments to a number of smaller blocks” in Indonesia, but he did not name the blocks or the companies involved.

    Gold, Copper, Coal

    Jonan also said he met this week with Freeport McMoRan chief executive Richard Adkerson to discuss the company’s Grasberg gold and copper mine in Papua. The Phoenix-based company has been in tricky negotiations with Indonesia to secure long-term operating rights at the mine after the government introduced rules last year forcing it to divest its controlling interest.

    Jonan said the two agreed that Freeport needs freedom to operate the mine in the way it sees fit in the near term, but that the government insists on having a voice.

    “We agreed that, operations-wise, Freeport has to be in charge at the moment. Honestly, we don’t have the expertise,” he said. “But if you talk about control, it is a very delicate word in terms of management. I would like to say we both control.”

    Jonan added that Indonesia, which produces and exports large amounts of coal, currently viewed the fuel as critical to keeping electricity costs down for its population.

    “We have a serious concern about global warming and are trying to reduce the use of coal as the primary energy for our power plants,” he said. “But we go with the affordability for the public.”

    He said Indonesia would find it difficult to reach its target of generating 23 percent of its power from renewable sources by 2025 – as pledged under the 2015 Paris agreement on climate change – but remained hopeful it could reach somewhere above 20 percent by that time.

  • New Stock Exchange Boss Faces High Expectations

    New Stock Exchange Boss Faces High Expectations

    Indonesia’s Financial Services Authority, or OJK, has approved Inarno Djajadi as new president director of the Indonesia Stock Exchange.

    The appointment will be effective after the bourse’s general shareholders meeting on June 29. Inarno, who will serve during the 2018-21 period, replaces Tito Sulistyo who was holding in office in 2015-18.

    Issuers, investors and analysts have high expectations toward the new Indonesia Stock Exchange (IDX) leadership.

    “It [the stock exchange] needs more derivative products and exchange traded funds [ETF] to deepen the capital market. So far, derivative trading on IDX has not been doing too well,” said Investa Saran Mandiri director Hans Kwee.

    Hans said the new IDX director should begin to think of a new regulation that would allow securities companies or third parties to act as liquidity buffers on the market to prevent issuers, who have just held an initial public offering, from seeing their stock prices fall steeply.

    “If our capital market is good and growing, then entrepreneurs and investors will have the confidence to make IDX the place to raise funds or to invest,” he said.

    Isakayoga, director of the Indonesian Issuers Association (AEI) said the bourse needs to reduce its annual listing fees.

    “Do not calculate the annual fee based on market capitalization, but based on total assets. Today, the higher the stock price, the higher the listing fee will be, as if the issuer was penalized for it. Instead, he should be rewarded,” said Isakayoga.

    According to the Indonesian Securities Analysts Association (AAEI), which members serve more than 1.3 million individual investors, the new IDX director should focus on good corporate governance.

    “Issuers on IDX need to be more transparent, especially to analysts. There are still many companies that are difficult to get in touch with,” said AAEI chairman Edwin Sebayang.

    Inarno has extensive expertise in capital markets. The Gadjah Mada University graduate began his career as a treasurer at local lender Uppindo Bank in 1989. Since then, his career has been centered on brokerage firms and the stock market. In 1991-97, he was serving as director of Aspac Upindo Sekuritas, after which he moved to Mitra Duta Sekuritas, Widari Securities, Madani Securities, Maybank Kim Eng Securities and CIMB Sekuritas Indonesia. He served as chief executive of the Stock Market Clearing House (KPEI) in 2003-09.

    Aside from Inarno, OJK also appointed six other directors.

    President director: Inarno Djajadi

    Listing director: IGD N. Yetna Setia

    Trade director: Laksono Widito Widodo

    Monitoring transaction director: Kristian Sihar Manullang

    IT director: Fithro Hadi

    Human resources and finance director: Risa Effennita Rustam

    Development director: Hasan Fawzi

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  • Indonesia Gov’t Cuts Tax for Small and Medium Enterprises

    Indonesia Gov’t Cuts Tax for Small and Medium Enterprises

    Indonesia will cut the final income tax rate for small and medium-sized enterprises by half, to 0.5 percent of their annual sales, in a move to help businesses manage their cash flow and expansion.

    President Joko “Jokowi” Widodo announced the cut at the East Java Expo in Surabaya, East Java, on Friday.

    The new regulation will be effective on July 1.

    Today, businesses with annual revenue of less than Rp 4.8 billion ($340,000) pay a 1 percent tax on their total sales. Other businesses pay 25 percent of their profit as income tax and set aside 10 percent of sales for value added tax.

    While the current arrangement only demands simple accounting, small and medium-sized enterprises say it also means they have to pay income tax when they are at loss, which disrupts their cash flow.

    “The new regulation is intended to encourage SMEs to be more active in economic activities by providing a fairer taxpaying scheme,” Directorate General of Taxation spokesman Hestu Yoga Saksama said in a statement.

    To lower their tax bill, SMEs must file an application to the tax office. Individual taxpayers can enjoy the lower tax rate for seven years, corporate taxpayers for four years and limited liability companies for three years.

    “The cut from 1 percent to 0.5 percent is expected to facilitate SMEs in maintaining their cash flow, which can then be used as additional capital for their businesses,” said Yustinus Prastowo, executive director at think tank Center for Indonesia Taxation Analysis.

    The cut will cost the government around Rp 2.5 trillion a year, which according to Yustinus should be seen as an investment, as the policy is expected to increase the tax base.

    Tax office data show that tax revenue from SMEs last year amounted to Rp 106.3 trillion — only 60 percent of the government’s target. It was also nearly Rp 12 trillion lower than in the previous year.

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  • Indonesia to host franchise event next month

    Indonesia to host franchise event next month

    Prospective franchisees and investors will have the opportunity to meet with international franchisors at a VF Franchise Consulting event in Jakarta from July 18–19.

    VF’s CEO Sean T Ngo said foreign brands are eying the Indonesia franchise market because of its size and potential.

    “Not only is food & beverage fast-growing, it is also a market that is very high potential for education and services franchises,” he said.

    The invitation-only event, co-hosted by local partner IFBM, includes personal meetings with senior franchise executives of seven participating brands, which include F&B franchises Little Caesars, Texas Roadhouse, Brotzeit and Pronto; Hong Kong-based educational businesses The Edge Learning Centre and First Code Academy; and hygiene/disinfection firm Sureclean.

    According to Ngo, there are already more than 1200 active Indonesia franchise companies operating, including both local and international groups. He noted that Indonesia continues to have one of the fastest-growing franchise industries in Southeast Asia.

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  • Indonesia Posts $1.52b Trade Deficit in May on Higher Oil Prices

    Indonesia Posts $1.52b Trade Deficit in May on Higher Oil Prices

    Indonesia’s trade deficit narrowed to $1.52 billion in May, but was worse than expected, due to higher oil prices, the country’s statistics agency said on Monday.

    That compared to a revised $1.63 billion deficit posted in April, which was the largest in four years. A poll by Reuters was for a deficit of $380 million in May.

    Imports grew by 28.12 percent from a year earlier, after jumping by 35 percent in the previous month. Analysts had expected imports to grow 13.88 percent.

    “This increase [in imports] was due to higher oil prices,” Suhariyanto, the statistics agency’s chief said.

    Global oil prices rose in recent months due to supply concerns for some major producers.

    Total imports in May were valued at $17.64 billion.

    Exports from Southeast Asia’s largest economy grew by 12.47 percent annually in May, a higher-than-expected rate, with shipments of metals boosting the total exports to $16.12 billion.

  • Indonesia’s Growing Thirst for Coffee Drains Premium Bean Supplies

    Indonesia’s Growing Thirst for Coffee Drains Premium Bean Supplies

    For decades, Indonesia has supplied coffee roasters worldwide with prized beans that give a distinctive taste to brews favored by connoisseurs. Most locals, however, preferred tea.

    But now, as younger generations switch to coffee and hundreds of independent coffee shops and roasters pop up across the archipelago, Indonesia’s consumption of beans is rising. That’s left less coffee for export and forced up prices for foreign buyers.

    A small harvest in Sumatra has eaten further into tightening supplies of that region’s unique arabica beans, which are sought for the heavy, earthy notes they give to roasted blends.

    Sumatran beans are a key component in Starbucks Corp’s Christmas Blend, which has been sold for more than 30 years.

    Sumatra’s lower production caused some exporters to delay and even default on deliveries, sources at importing companies said, forcing some US importers to pay more to secure supplies.

    Inventories in the United States have dwindled, with many importers saying they have enough to meet contracts with roasters but nothing left for the spot market.

    Major roasters Starbucks and Keurig Green Mountain are the biggest buyers of Sumatran arabicas, importers say, and smaller companies appeared to be facing the biggest challenges sourcing those beans.

    A Starbucks spokeswoman said the company has not been impacted by the region’s tight supplies this year. Keurig did not respond to requests for comment.

    Java Sales Rise in Java

    Coffee consumption in Indonesia has nearly doubled in the past 10 years, as many young Indonesians were influenced by coffee habits in countries such as Australia and the United States where a lot of them went to study.

    “We’re seeing very strong coffee expansion in many markets but Indonesia is very much a market where demand is growing heavily,” said Michael Schaefer, global lead of Food and Beverage at Euromonitor International.

    While major producing countries such as Brazil, Vietnam, Colombia and Indonesia have historically exported their best coffee, rising interest in premium beans from local coffee shops is changing this, Schaefer said.

    Many new roasters are offering farmers significantly higher prices for their arabica beans, said Pranoto Soenarto, vice president of the Association of Indonesia Coffee Exporters and Industries.

    “Farmers are wooed,” Pranoto said. “They will keep their beans for these micro-roasters, who only buy in small amounts.”

    Irvan Helmi, co-founder of local roaster and cafe Anomali in Jakarta, said local buyers’ close proximity to farmers enabled them to pay higher prices while selling directly to consumers at better profit margins.

    Wildan Mustofa, an arabica coffee farmer with a mill in Pangalengan, West Java, said his domestic sales are rising fast.

    “The local purchases grow by almost 100 percent every year,” said Wildan, while helping workers spread out coffee cherries to be dried under the sun.

    Output, Export Down

    Compounding the shortage of beans for overseas buyers is a fall in output.

    Indonesia’s annual coffee bean output has fallen by around 8 percent over the past five years, Indonesian Agriculture Ministry data shows. Farmers say unpredictable weather, poor crop maintenance and switching to other crops is responsible for lower yields.

    Exports from the world’s fourth largest-coffee growing nation have dropped by around 20 percent over the past five years, according to data from the US Department of Agriculture (USDA).

    The country’s tight supplies are already reflected in first-quarter 2018 shipping data, with coffee exports down 26 percent from the same period in 2017, Indonesia’s Statistics Agency data show.

    Sought After Sumatran Arabicas

    In Sumatra, a large and mountainous island west of the capital Jakarta, limited availability of arabica coffee sent prices to a record high in April.

    Arabica is a higher quality bean that is typically roasted and brewed. Its cousin robusta, known for its more bitter taste, is processed into instant coffee or used as a lower cost component in roasted blends. Robusta makes up nearly 90 percent of Indonesia’s coffee harvest.

    The arabica grown in Sumatra is unique, in part due to the unusual bean drying process employed there. While farmers in other countries have tried to replicate it, importers said results are unreliable and only on a small scale.

    “Competition to buy coffee from producers has been pretty fierce,” said Robert Babington Smith, a senior trader for California-based importer InterContinental Coffee Trading Inc.

    Prices of unprocessed or partially dried Sumatran arabicas purchased at farms rose to a record $5.90 per kilogram in April, while arabica beans already in US warehouses fetched premiums of$2.20/lb or more over the global benchmark price, nearly double last year’s price, Babington Smith said.

    Babington Smith said one his suppliers defaulted on a planned delivery due to that exporter’s lack of funds to purchase the increasingly expensive coffee.

    Another importer said five of his containers were defaulted on after his company refused to pay more than the contracted price.

    “We get calls every day from roasters asking if we have any Sumatrans, spot or on the water,” the importer said.

  • Australia’s IAG to sell Thai, Indonesia units to Tokio Marine for $390 million

    Australia’s IAG to sell Thai, Indonesia units to Tokio Marine for $390 million

    Insurance Australia Group (IAG) said on Tuesday it will sell its Thai and Indonesian operations to Japanese insurer Tokio Marine Holdings or A$525 million ($390 million).

    The Japanese company’s unit, Tokio Marine & Nichido Fire Insurance, will buy IAG’s 98.6 percent stake in Thailand’s Safety Insurance and 80 percent of PT Asuransi Parolamas in Indonesia.

    “We believe Tokio Marine is an ideal owner given its experience in the region, and that this is a good outcome for the associated employees, customers and other stakeholders,” IAG Chief Executive Peter Harmer said in a statement.

    IAG said in February it was reviewing its Asian operations as it faced a lack of buying opportunities to boost growth in a competitive region attractive for its low penetration rates.

    Separate to the Tokio Marine deal, IAG said it has also agreed to sell its 73.07 percent stake in Vietnam-based AAA Assurance Corp. It did not give more details on the deal.

    IAG said it would record an after-tax profit of at least A$200 million in its fiscal 2019 results from the combined transactions, after certain deductions.

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  • Indonesian Stocks Slump 2.5% as Trade Resumes After Idul Fitri

    Indonesian Stocks Slump 2.5% as Trade Resumes After Idul Fitri

    Indonesian shares slumped 2.5 percent on Wednesday (20/06), their sharpest intraday fall in nearly two months, after trade resumed following a long holiday for Idul Fitri celebrations.

    Global equity markets saw a selloff during the Idul Fitri holiday and Indonesia is expected to play catch-up, driven by stocks with high foreign ownership such as Bank Central Asia and Bank Mandiri, according to a Trimegah Securities note. Indonesian financial markets were closed from June 11 to 19.

    Financials were the biggest losers with Bank Central Asia declining 3.8 percent and Bank Mandiri shedding 6.5 percent.

    An index of the country’s 45 most liquid stocks slid 3.6 percent to its lowest in nearly one month.

    Among other Southeast Asian stock markets, the Philippines was down for a fifth straight session while Thailand rose after five consecutive sessions of declines ahead of central bank policy meetings.

    The Bank of Thailand is expected is expected to leave its policy interest rate near a record low, while a slim majority of economist expect the Bangko Sentral ng Pilipinas to raise rates.

    Energy and financial stocks were among the biggest boost in Thailand with PTT climbing 0.5 percent and Bangkok Dusit Medical Services rising 3.3 percent.

    Malaysian shares were higher after seven straight sessions of falls with Axiata Group gaining 1 percent and Genting adding 1.8 percent. The consumer price index rose 1.8 percent last month from a year earlier, meeting market expectations, on stronger fuel and transport prices and rising demand for food, government data showed.

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  • Most Southeast Asian markets fall as trade tensions escalate

    Most Southeast Asian markets fall as trade tensions escalate

    Most Southeast Asian stock markets declined on Tuesday, in line with broader Asia, as U.S. President Donald Trump threatened new tariffs on Chinese goods in an escalating trade war between the world’s top two economies.

    Trump warned on Monday that Washington would impose a further 10 percent tariff on $200 billion of Chinese goods after Beijing’s decision to raise tariffs on $50 billion in U.S. goods, which was in retaliation for U.S. tariffs announced on Friday.

    Trump said if China increases its tariffs again in response to the latest U.S. move, “we will meet that action by pursuing additional tariffs on another $200 billion of goods.”

    “This is causing a little bit of uncertainty in the market. It is very worrisome for investors and they are staying on the sidelines and avoiding risky assets such as equities,” said Lexter Azurin, a senior equity analyst at Manila-based AB Capital Securities.

    MSCI’s broadest index of Asia-Pacific shares outside Japan hit its lowest since February as safe-haven assets such as gold and the Japanese yen gained.

    Philippine shares fell as much as 2.2 percent to their lowest since March 27, 2017, weighed down by industrials and financials. SM Investments Corp declined 3.2 percent, while BDO Unibank Inc shed 2.9 percent.

    A slim majority of economists believe the Philippine central bank will raise interest rates on Wednesday, but opinions are sharply divided, with the weak peso likely to be the factor that will tilt the scale.

    Thai shares fell nearly 1 percent to their lowest since Sept. 28, 2017 and were on track for a fifth straight session of decline.

    On Wednesday, the central bank is expected to leave its policy interest rate near a record low to encourage more broadly-based economic growth at a time when inflation remains low, according to all 21 economists surveyed in a Reuters Poll.

    Vietnam shares fell 2.8 percent to their lowest in nearly three weeks, with Petrovietnam Gas Joint Stock Corp declining to its lowest in six months, while Vietnam Technological and Commercial Joint Stock Bank dropped 6.8 percent.

    Malaysian shares were down for a seventh straight session, while Singapore shares rose on the back of gains in financials.

    Indonesian financial markets are closed through Tuesday for Eid Al-Fitr.

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  • Queensland strawberries shine in Asia

    Queensland strawberries shine in Asia

    A delegation of Queensland strawberry growers and industry representatives recently returned from Hong Kong and Indonesia.

    The delegation visited 17 different retail outlets, from high-end supermarket chains such as Great Food Hall in Hong Kong and Ranch Market in Jakarta, right through to suburban wet markets and local street stores.

    While encouraged by the opportunity they saw to ship fruit into these markets, the delegates also gained an impression of the competitive environment they are entering.

    “Hong Kong is a very competitive market with strawberries from the US available in every market type,” said Luigi Coco, chairman of the Queensland Strawberry Growers Association and a strawberry grower from Elimbah. “US strawberries are also available in Jakarta with locally-grown Indonesia strawberries also available.”

    The delegation coincided with a number of trials involving Queensland strawberry exports.

    Coco, from A&E Coco and Sons, Charmaine Davey from Berry Patch Marketing, and Brendon and Ashleigh Hoyle from Ashbern Farms all collaborated to trial shipments to both Hong Kong and Jakarta.

    “Within 24 hours of picking the strawberries on our farm, they can arrive at the importer’s distribution centre in Hong Kong” said Brendon Hoyle. “The Hong Kong cold chain is very sophisticated and strong relationships between these businesses and the retail and food service industry has been established”.

    The supply chain to Jakarta is slightly more complex than Hong Kong, with no direct flights from Brisbane currently available. There is also a requirement for pest treatment.

    Despite these challenges, Queensland strawberries were exported and available for purchase by consumers.

    “It was a highlight seeing strawberries from our farm being sold and purchased in Ranch Market in Jakarta,” said Davey. “The colour and size of the Queensland-bred strawberry varieties, including Red Rhapsody, are very attractive to the consumer.”

    Jennifer Rowling, the development officer for Queensland Strawberry Growers, and Clinton McGrath and Bronwyn Ford, both from the Queensland Department of Agriculture and Fisheries, were also part of the delegation.

    The travel was part of a project funded by the Queensland government’s Growing Queensland Food Exports programme, which was also supported by the Queensland Strawberry Growers Association.

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  • These 6 Countries Are Booming in E-commerce

    These 6 Countries Are Booming in E-commerce

    Among the 28 largest internet companies in the world, 11 are e-commerce businesses. Per Statista, Global retail e-commerce sales are forecasted to reach $2.77 trillion this year. Consider that 62 percent of the world’s 7.2 billion population already owns a mobile phone, and by 2019, over 5 billion people will have access to the internet through their smartphones.

    Yet while global e-commerce is undoubtedly thriving, it’s true potential remains untapped, especially when looking at the growth potential for these six booming e-commerce markets.

    China

    China’s 2017 retail e-commerce sales reached $1.2 trillion. From the rise of two of the top 10 internet companies in the world in JD.com and Alibaba, to socially adopted mega-shopping holidays like “Singles’ Day”—China’s large economy is turning more digital by the day. This is underscored by its high consumer confidence index (CCI), currently sitting at 122 as of January 2018. E-commerce accounts for 23 percent of China’s overall retail sales, and there’s a lot of room for growth. China boasts a forecasted compound annual growth rate (CAGR) over 17 percent. This is on par with many underdeveloped markets expecting to see major e-commerce strides in the near future.

    United States

    While e-commerce only makes up 10 percent of the overall U.S. retail economy, that market is expected to reach $5.3 trillion in 2018. U.S. e-commerce sales generated over $431 million in revenue in 2017. With a healthy 96 percent of Americans shopping online, it’s projected to be a $535 billion market by 2019.

    United Kingdom

    Over 19 percent of retail sales come from online purchase in the U.K. With an annual e-commerce revenue exceeding $121 billion, it’s the third biggest market in the world behind China and the U.S. As of March 2017, 87 percent of U.K. consumers had made an online purchase in the last year.

     Japan

    Japan was projected to generate over $111 billion dollars in retail e-commerce sales in 2017. Japan’s relatively small country size, single language, urban population and widespread tech adoption (91 percent) all contribute to its ideal e-commerce environment. E-commerce sales in Japan make up less than eight percent of all retail sales, leaving plenty of room for future growth.

     Germany

    Ninety-three percent of German consumers shopped online in 2016, according to research from Mintel. German e-commerce revenue accounted for nearly eight percent of overall retail sales in 2017 at roughly $77 billion. Growth ahead looks steady with 2018 and 2019 projected to haul in $82.5 and $87.5 billion, respectively. These numbers look even more encouraging when you consider under half of German retailers offer their goods online, leaving inevitable room for growth in the coming decade.

    South Korea

    South Korea’s e-commerce boom has largely resulted from widespread mobile phone adoption and an overall tech-savvy culture. Having the fastest Wi-Fi in the world probably helps too. Their e-commerce sales accounted for 9.8 percent of its total retail sales in 2017 at $46.6 billion annual revenue. E-commerce revenues project to hit $50.5 billion in 2018.

    Countries to Watch

    These six countries may be the powerhouses, but e-commerce is growing globally. In India, where just 2.2 of total retail sales comes from e-commerce, a massive population and widespread mobile phone adoption make it a sleeping giant. In fact, India ranks just behind Malaysia for CAGR from 2016-2021, at 23 percent. Other Southeast Asian island countries like Indonesia, the Philippines, and Vietnam forecast for 20.7, 18.3, 17.2 percent, respectively. And don’t count out large countries like Brazil and Russia, the latter of which boasts the largest number of internet users in Europe.

    Why Borders Don’t Matter

    Aside from country-specific trends, the main thing to take away is that the world is going online to shop for the things they need. According to a Nielsen report, 57 percent of online shoppers purchased from an overseas retailer in the last six months. Only one continent—North America—saw less than a majority (45 percent) of shoppers making an overseas purchase.

    Global e-commerce is on pace to truly be global, as consumers become more comfortable looking to e-stores abroad for more product selection, better prices, or more availability. This borderless e-commerce system will handsomely reward the companies that learn how to build an ecommerce website with appeal to a global audience and personalized experiences.

  • GenieTech closes agreement with Indonesian retail giant

    GenieTech closes agreement with Indonesian retail giant

    company Genie Technologies Inc. (GenieTech) bagged a deal for the rollout of its omnichannel solutions to the retail distribution system of Indonesian firm Kanmo Group in a bid to provide quality customer experience.

    “Our team is more than excited for this project. From our end, we look forward to supporting Kanmo Group’s vision and digital journey through this partnership,” said Mahesh Gopinath, COO of GenieTech.

    Claiming their nondisclosure agreement with Kanmo, the company did not divulge any amount when pressed on the project cost.

    GenieTech said that their new client is a retail giant in Indonesia, the most populous Muslim nation in the world.

    This project is aimed at accelerating the latter’s productivity by upgrading its current platform in integrating retail tools and application using Retail Pro Prism that gives control and flexibility in tailor-fitting the product to the business needs, processes and brand.

    Kanmo Group Omnichannel Director Bhavin Patel said their company recognizes the booming e-commerce market in Southeast Asia.

    This development is encouraging for online retail players like them to build an omnichannel that puts seamless customer experience at the center, whether live or offline.

    “To truly yield from our omnichannel strategy, the group has to look just beyond engaging customers through offline and online means. When you look at the customer behavior in Southeast Asia, you will know that people love creating ‘basket’ online. However, they still prefer doing the actual purchase in physical stores instead,” the executive said.

    “We want to enable our customers to walk in stores where they can collect and check out the basket they created by communicating with either a salesperson or through a POS [point-of-sale] system that runs in real time,” he added.

    Through Retail Pro Prism, Kanmo’s current platform will be replenished to have a real-time interface with customers, as well as their employees, helping them to react instantly to their business needs.

    It also allows a quick access to precise data from across the enterprise need to enhance decision-making process.  Another feature the group requires for its omnichannel boost is the flexibility to integrate all systems in one platform.

    Patel said they have been using Retail Pro solutions for the function, yet they needed an upgrade to meet their new level of customization.

    “Our vision was a bit higher than what Retail Pro Prism can do so, we knew there would be loads of customization needed to be done,” he said.

    “GenieTech, as our implementing partner for this project, fully understands this perspective. They already know how we work and understands our expectations when we came in.”

    The Retail Pro Prism rollout for the group has already gone live. The upgrade was made in just six months to seven months, as opposed to the usual process that generally takes about five years.

    Currently, it is undergoing system stabilization. The solution’s impact on Kanmo’s business is now being monitored.

    “As a business, this project is dedicated to bringing more convenience and better experience to our customers,” Patel said. “GenieTech and other partners helped us in this endeavor and made it right for our customers.”

    GenieTech was established in 1999, mainly offering a retail management software solution for the retail industry in the Philippines.

    It is now recognized as a highly specialized information technology firm providing world-class business solutions, consulting and support services to a number of small, mid-sized and large enterprises from various industries in Southeast Asia.

    Kanmo Group was formed in 2005 as the retail subsidiary of the K .Aloomall Group focusing on retail distribution in Indonesia and the Indian subcontinent.

    Within 13 years of operations, it now operates nearly 200 stores in Indonesia with a market leadership position in the kids and baby segment serving tens of thousands of customers monthly.

    In 2017 Kanmo expanded its retail footprint in footwear by acquiring sole distributorship of the global brand Havaianas and launch of the concept footwear store for kids, Wilio.

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