Tag: Indonesia

  • Indonesia wants to be world’s fourth-largest ceramics producer

    Indonesia wants to be world’s fourth-largest ceramics producer

    The government aims to fully utilize the national production capacity of ceramics to make Indonesia the fourth-largest ceramics producer worldwide.

    Last year, Indonesia’s ceramics production reached 350 million square meters, or only 60.3 percent of its estimated total capacity of 580 million square meters a year.

    “Hence, we should increase it further. If we can reach 100 percent production capacity, we will be the world’s fourth-largest ceramics producer,” Industry Minister Airlangga Hartarto said on Thursday in a statement.

    Of the total production figure in 2016, about 87 percent were allocated to the domestic market, while the rest was exported to various countries in Asia, Europe and America.

    At that time, Indonesia produced 290 million tableware items, 120 million roof tiles and 5.4 million sanitary wares.

    Airlangga said the country had competitive advantages in the ceramics industry, especially considering its abundant natural resources that could be used for raw materials of ceramics. Moreover, Indonesia’s ceramics consumption is still relatively low compared to its Southeast Asian neighbors.

    “Now, we have to take strategic steps to boost the ceramics industry, by strengthening the industry’s structure, improving the quality of human resources, bringing technological innovations through research and development and developing the infrastructure,” Airlangga went on.

    Hence, the Industry Ministry has proposed to make the ceramics industry one of priorities to get a lower industrial gas price, as it needs a long-term supply of gas so that it can see a production boost in the long run.

  • RoRo shipping service to ply Mindanao-Indonesia route

    RoRo shipping service to ply Mindanao-Indonesia route

    The Philippine and Indonesian governments will launch next month a roll-on, roll-off shipping service that will link Davao and General Santos cities to Bitung City in Indonesia, an official of the Mindanao Development Authority (MinDA) said.

    Presidents Rodrigo Duterte of the Philippines and Joko Widodo of Indonesia have been invited to grace the launch in Davao City after the 30th ASEAN Summit in Manila, MinDA Assistant Secretary Romeo Montenegro said.

    He said the DGB shipping will fill a gap in transport connectivity, at least between the Philippines and the rest of the Brunei-Indonesia-Malaysia-Philippines-East Asean Growth Areas and ASEAN itself.

    If pursued, the shipping service will be the first of its kind in the 50-year old ASEAN grouping and will help boost efforts for economic integration.

    RoRo carries rolling cargoes and do not require cranes for loading or off-loading as they simply roll on and off the vessel, hence the name. The mode is economical, according to the Asian Development Bank, because it has removed cargo handling costs for labor and equipment, as well as cut the transport time.

    In 2012, the Japan International Cooperation Agency recommended in a study to set up a sea link dedicated to freight services between General Santos City in Mindanao and the Indonesian port of Bitung as the much needed maritime connectivity aimed to revive and strengthen trade between Indonesia and the Philippines.

    The Master Plan of ASEAN Connectivity 2025 cited the need for physical, institutional and people-to-people linkages to help achieve economic, political-security and sociocultural pillars of integration under the ASEAN Economic Community.

    Since its launching in 1994, BIMP EAGA cited improvements made in physical connectivity through improved roads and ports. The BIMP-EAGA Vision 2025 document, however, noted that most of the projects became “stand alone projects” showing benefits at the national level that “fail to clearly demonstrate sub-regional impacts.”

    “Only a few projects have accounted for the need to link the two priority economic corridors of BIMP-EAGA, namely the Western Borneo Economic Corridor (WBEC) and the Greater Sulu and Sulawesi Corridor (GSSC),” the document said.

    For the transport sector strategy of BIMP-EAGA, the goal based on BIMP EAGA Vision 2025 is “interconnected, seamless and safe multi-modal transport.”

    According to the BEV 2025 project list for 2017 to 2025, aside from the DGB route, other sea linkages were also eyed in BIMP-EAGA, such as Bitung-Tahuna-Gensan, Brooke’s Point-Sandakan-Kota Kinabalo, Brooke’s Point-Bataraza-Kudat and Brooke’s Point-Brunei.

    For air linkages, there will be flights for the following routes: Puerto Princesa-Kota Kinabalo, Mulu-Bandar Seri Begawan, Davao-Manado, Pontianak-Bandar Seri Begawan and Balikpapan-Bandar Seri Begawan.

    Poor transport connectivity 

    Poor sub-regional transport connectivity, as identified in the BIMP-EAGA Vision 2025 document, is one of its major challenges.

    It added that uneven economic development has led to different priorities, policies and regulations related to the transport sector.

    Montenegro said there is greater chance to address connectivity from 2017 to 2025 because a total of $23 billion, compared to only $1 billion in the previous decade, has been earmarked for priority infrastructure projects in the area.

    Over half of the amount goes to projects identified in Mindanao because the island needs more infrastructures. Also, a big ticket project, the Mindanao Railway System is in the pipeline.

    The Duterte administration is giving special focus on infrastructure.

    The DGB, Montenegro added, is strategic for the Philippines, not just for Mindanao because it provides a faster and cheaper access for domestic products to be moved in ASEAN and other parts of the world. Notably, Mindanao is physically separated from the other BIMP members.
    Regular flights needed

    Vicente Lao, chairperson of the Mindanao Business Council Philippine representative to the BIMP-EAGA Business Council private sector forum, said the opening of the route will be good for Mindanao and trading with the Indonesian areas in the ASEAN sub-region.

    “The governments should act together to make it happen. The private sector should come in to take advantage,” he told this week.

    Since regular flights between Davao City and Manado in Indonesia have been suspended since 2008, travelers between the two areas have relied only on chartered flights, he added.

    Lao said the service should be made regular to stop the dependency on chartered flights.
    “It is not dependable. It has to be regular trips to make sure it addresses the needs of the businessmen,” he said via telephone.

    He said this means a big cut in transport cost, too. MinDA said it takes three to five weeks to move products from Davao City to Manado.

    With the DGB RoRo route, the travel time will be cut to three days. PortCalls Asia estimated the savings to be around P75,000 (PUS$1,500) per 20-foot equivalent unit.

    Apart from intra-regional trade, the route can also serve as a cheaper alternative for transshipment of goods in Asia, Montenegro said.

    Davao City will use the privately-owned Kudos Port. In General Santos City, the Makar Wharf will be used and in Sulawesi, the Bitung Port, which was recently identified as an international port of entry to Indonesia.

    Enough goods?

    Trade and Industry Assistant Secretary Arturo Boncato Jr. said the revival of regular Davao-Manado flights should follow the opening of the shipping service.

    He said the new shipping link will be crucial in increasing trading in the BIMP EAGA, which is now considered as a building block of ASEAN.

    “Connectivity plays a critical role in trading and the goal of the ASEAN Economic Community,” he added.

    But Boncato, who is the Philippine senior official to the BIMP-EAGA, said while the easier direction is for the route to be used in the transshipment business in Asia, it should really facilitate and improve intra-regional trading in BIMP-EAGA.

    For his part, Bronx Hebrona, who chairs the Committee on ASEAN and BIMP-EAGA of the Regional Development Council in Region 12, asked: “But now when a ship is available, are there enough goods to be transported?”

    He said there is greater push for BIMP EAGA with President Duterte, who he said was instrumental in expediting the preparations for the DGB route opening.

    “It’s possible. But it’s a wait and see situation. We are waiting for concrete terms,” he added.

    Boncato said loading the vessel is already the easier part. The challenge is how to sustain the shipping service.

    Montenegro said a joint meeting is scheduled next week for the Philippine and Indonesian task forces created to prepare for the opening of the route.

    During the Davao General Santos Bitung Business Forum last month, Philippine Transport Undersecretary Fernando Juan Perez described the route as a “gold mine” saying it opens up a lot of opportunities for exporters from both countries.

    Rosan P. Roeslani, chair of the Indonesian Chamber of Commerce and Industry welcomed the proposed opening of the route, as quoted by Jakarta Post on March 15.

    “It is going to be easier to access the Philippine market through the Bitung Port [in North Sulawesi], especially for products and commodities from Indonesia’s eastern regions,” the source added.

    Institutional, governance problems

    According to the MinDA website, the DGB, as one of three pilot areas for the ASEAN RORO Network Initiative, was initially pushed in 2012 by the private sectors in the three cities.

    Policy restrictions in Indonesia like Bitung Port’s status, however, hampered the launch. In 2014, the Indonesian Ministry of Trade officially identified Bitung Port as an international port, allowing entry of food and beverages, electronics and garments.

    Montenegro told the problem has been addressed by greater private and public sector coordination.

    Under the ASEAN Single Aviation Market, BIMP-EAGA is pushing for the revival of air connectivity within its focus areas to increase not only tourism arrivals but also trade activity within and beyond the sub-region.

    Various airlines have previously serviced the route such as Bouraq Airlines (2002), Merpati Nusantara (2005) and Sriwijaya airlines (2006), which have ceased operations due in part to the companies’ financial and operational losses, according to the MinDA website.

    There were on and off availability of chartered flights after the suspension of regular flights.

    Two of the players included Mid Sea Express, an Indonesian air carrier and Wings Air, a subsidiary of the Indonesian carrier’s Lion Air.

    In his April 2016 dissertation titled “Trade Governance Model in the BIMP EAGA,” Soehardi, an Indonesian doctorate student at the University of Southeastern Philippines in Davao City, found that connectivity management in transport infrastructure is an important consideration among traders.

    “The current condition of BIMP EAGA trade governance is marred with institutional and governance problems,” he wrote in his conclusion.

    He added that it created difficulties and cumbersome engagements with small and medium traders in BIMP-EAGA corridors.

    He identified six attributes with “availability of ships/planes as the major indicator.” The others include sufficient cargo ships and airplanes to ferry goods from one country to another and  that a sufficiently equipped port of entry as a good indicator of trade governance.

    No connectivity, no tourists

    Retired government employee Virna Gomez of Davao City said that as a traveler she looks for destinations that do not only have commercial appeal.

    “There are also those who look for historical and cultural purposes. This is the kind that we can see in Indonesia, for example,” she said.

    For her, the idea of connecting Davao and General Santos to Bitung is welcome news, especially for cargo shipping. She said it would open up opportunities for local people to trade in the sub-region. She would also be interested to explore the tourist attractions there. She, however, hoped that a comfortable passenger shipping service should be offered side by side with the cargo ships.

    “It would be an entirely different set of expectations from passengers,” she added.

    But she said the prospects of local tourists like her to go to Indonesia will not depend only on the availability of flights or shipping services.

    “We will be encouraged to travel if there are budget fares available such as the promotional peso-fare package (offered by a Philippine airline), she said.

    She said that for tourists it all redounds to affordability of travel cost and availability of hotels that cater to backpackers.

    “We must also have more of those hotels so that we also draw tourists from Indonesia to our shores,” she added.

    Unlike archipelagic Indonesia, she said, Malaysia seems to be a more attractive destination because you can take a bus or a train in going from one destination to another.

    “But I like to go to Bali and Yogyakarta, given the chance,” she said.

    Gomez, who in 2010 set up a small travel agency to keep herself busy, said she rarely get bookings for travel to Indonesia or Malaysia.

    ’Get acts together’

    Businesswoman Mary Ann Montemayor said this should not be a cause for discouragement.

    She said the nature of BIMP EAGA is really “going slow” and small, not grand, so hard work is needed to push ahead.

    But Montemayor, who sat at the BIMP EAGA Tourism Council from 1998 to 2008, said private and public sectors should get their acts together.

    “By all means, the impasse should be broken. It’s impossible to do trading without connectivity,” she added.

    Any aggressive marketing, she said, could help tourism and trade but it should be backed by physical connectivity.

    Assistance has been extended to micro, small and medium enterprises to help them compete in the ASEAN market. But Montemayor said connectivity will their chances.

    She said the ease of travel due to the Davao-Manado flights enabled business to pick up, although not as fast as expected.

    “When it happened, the flights were already suspended,” she said.

    She argued that it’s not entirely for the lack of attractions but that other destinations just had the edge in the competition.

    “The challenge is how to build up the market and prove to the airlines that it’s worth the risk,” she said in the sidelines of an ASEAN meeting in Davao last month.

    Like home

    Joanna Ruth Paloma, an English teacher at Bukidnon State University, recalled fond memories of her visit Manado in June 2012. She was then a member of a 40-person delegation of the university chorale who performed there for the Philippine Independence Day celebration organized by the Philippine Consulate.

    The group flew with Wings Air, an Indonesian airline serving the route with a 70-seater aircraft.

    Joanna said they traveled to another city and country but felt like she was home. “I felt like we were closely related in culture and language (separated only by the seas).”

    Indonesian food, she added, is familiar although a lot spicier. The style of the houses and buildings was also similar. In 2012, she compared Manado to Cagayan de Oro City. She said Manado folks were hospitable and were fond of Philippine tourists.

    She was saddened that there are no more regular flights serving the route.

    “I hope it will be revived. It’s good to connect with our neighbors. There were differences but there must be more similarities. It’s worth exploring,” she added.

  • Lazada Indonesia aligns business model with Alibaba

    Lazada Indonesia aligns business model with Alibaba

    The Indonesian unit of Lazada said it plans to focus on adding small merchants to its online marketplace, emulating the strategy of Alibaba Group Holding, the Chinese e-commerce company that acquired it last year.

    Florian Holm, Lazada Indonesia’s co-chief executive, told reporters on Wednesday the company will launch a campaign in April which will also mark the first anniversary of its acquisition by Alibaba to attract more small businesses online. It already partners some 15,000 third-party sellers in Indonesia. Holm said Lazada also plans to enable some merchants to sell products to shoppers in China through Alibaba’s Taobao e-commerce platform.

    “We are learning from Alibaba and trying to apply its learnings in how we can foster more entrepreneurship,” Holm said. “We want to help all the people out there who have great business ideas … because in e-commerce you can try with minimal cost.”

    Lazada operates in six Southeast Asian countries, and entered Indonesia in 2012 as an online retailer buying merchandise from electronic and fashion companies to sell on its website. It began selling products from third-party merchants the following year, and according to Holm these now account for more than 80% of products sold on the platform, and up to 30% of products shipped from Lazada’s three warehouses in the country.

    Lazada was one of the largest e-commerce operations in Indonesia, but Alibaba’s $1 billion acquisition came at a time when it was facing increasingly stiff competition from local rivals like SoftBank-backed Tokopedia, Lippo Group’s MatahariMall.com, and Bukalapak, which is funded by a local media mogul.

    Small businesses play a large role in the Indonesian economy due to the lack of modern retail outlets outside major cities, and this is fueling the exponential growth of e-commerce, which is estimated to rise from $1.7 billion in 2015 to $46 billion in 2025.

    The Lazada acquisition has prompted speculation about the possible rollout in Indonesia of Alipay, Alibaba’s affiliated payment service. Holm said adding payment options is always a priority at Lazada, but said there is “no further news” on Alipay.

  • Latest iPhone series to enter Indonesian market

    Latest iPhone series to enter Indonesian market

    United States technology giant Apple Inc. has secured official approval to once again sell its signature iPhone mobile phone series in Indonesia after fulfilling a requirement to use a minimum of 30 percent local components in smartphones distributed throughout the country, locally known as TKDN.

    The Industry Ministry’s director for metals, machinery, transportations and electronics, I Gusti Putu Suryawirawan, confirmed on Sunday that the ministry had granted the approval after Apple agreed to build supporting infrastructure to fulfill the requirement.

    Meanwhile, Apple’s official partner, telecommunications company Smartfren, has announced that the company will open up pre-order services for Apple’s iPhone 7 and 7 Plus on March 24, according to company spokesman Yondi Hartanto.

    “The products will arrive in customers’ hands after they create pre-orders. We don’t want to discuss the .exact date, but it’s usually no longer than a week after the pre-order,” Yondi said on Sunday via telephone.

    As the only telecommunications firm officially partnering with Apple, the company will help sell the products with completed data packages, Yondi said, adding that Apple had also partnered with some electronics distributors.

    Pre-orders for the iPhone 7 and 7 Plus for Smartfren can be organized through the company’s official website or through its 13 galleries spread across several big cities in Indonesia, he added.

  • NetSol to Deploy Mobile Origination/Approval for Indonesian Company

    NetSol to Deploy Mobile Origination/Approval for Indonesian Company

    NetSol Technologies signed an agreement for its mobile origination (point of sale) system with PT Mizuho Balimor Finance (MBF) in Indonesia.

    NetSol was named MBF’s preferred vendor in the region. The contract includes product license, a five-year maintenance agreement and agreed customizations rates for both applications.

    MBF is an Indonesian multi-finance companies specializing in the auto financing domain.

    The application being deployed will be used by field teams (salesman/dealers) to initiate credit applications and provide quick approval and turnaround to customers seeking finance and lease products from MBF.

    “Our solution will increase operational efficiencies for PT. Mizuho Balimor Finance and bring concrete results in terms of costs and reduced contract conversion times. Mizuho Balimor is a pioneering company which turned towards the latest, next-generation technologies for future growth and progression. We are glad to work with them and implement our ground-breaking solution,” said Najeeb Ghauri, founder, chairman and CEO of NetSol Technologies. “We look forward to further creating business value for them and fostering this relationship in the coming years.”

    NetSol Technologies is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and financing industry.

  • Indonesia’s Bonded Logistic Centers Facilitated to Reduce Logistic Cost

    Indonesia’s Bonded Logistic Centers Facilitated to Reduce Logistic Cost

    The government will provide facility for Bonded Logistic Centers (PLB) to improve efficiency and reduce logistic cost for industry, support provision of basic materials and facilitate exports and basic material imports.

    “The gist is to cut logistic cost,” Trade Minister Enggartiasto Lukita said on the sidelines of commissioning a PLB at the Grahadi State Building here on Wednesday night. In the commissioning ceremony almost midnight, the minister and East Java Governor Soekarwo witnessed the signing of a number of agreements in the trade sector.

    The cooperation agreements were signed between Director of PT Indra Jaya Swastika (IJS) and the Indonesian Textile Association, the Indonesian Footwear Association, the Indonesian Association of Timber and Furniture, on the utilization of PLBs. PLBs are a concrete form of the follow up of the third Economic Policy Package, the Trade Minister said.

    He said currently there are 32 units of PLB located in various areas including Surabaya, Karawang, Cikarang, Cibitung, Purwakarta, Cilegon, Cakung, Bandung, Denpasar, Balikpapan, Aceh , etc. “PLBs support various industrial sectors including oil and gas, mining, textile, chemical, food, cosmetic and automotive sectors,” he said.

    He said in 2016, the country’s trade had a surplus of US$8.8 billion or an increase from US$7.5 billion in 2015. In 2017, the government hopes to post an economic growth of 5.5 percent – 5.8 percent , up from 5.1 percent in 2016 with target at 6.1 percent set for 2018. The minister said he was optimistic the 2017 targets would be reached with a series of breakthroughs in the trade sector.

    Meanwhile, PT Indra Jaya Swastika, a logistic company, said it supports the East Java administration in its program to improve industrial competitiveness. “PLB IJS comes to support various industries mainly shoe making industry, food industry and small and medium industries,” its president director Utami Prasetiawati said.

  • Indonesia’s Lippo & Korea’s Lotte form e-commerce JV

    Indonesia’s Lippo & Korea’s Lotte form e-commerce JV

    Indonesia’s Salim Group is planning a major foray into e-commerce this year in partnership with South Korea’s Lotte.

    Indo Lotte Makmur, a 50-50 JV by the two conglomerates, will launch the iLotte online shopping platform as soon as July, putting US$88 million into the project initially. The service will be geared primarily toward women in their 20s and 30s, and feature name-brand cosmetics sold in South Korea as well as offerings from Lotte’s online mall.

    A robust infrastructure built up over the course of years will let Salim achieve economies of scale for the e-commerce business, says Indo Lotte CFO Dani Sumarsono, who is overseeing online business at Indonesia’s largest conglomerate.

    “E-commerce is not only about digital technology but about moving physical products,” he says. “We have been investing in infrastructure for a long time.”

    Indo Lotte president, a former executive at Lotte’s e-commerce business in South Korea, says Salim has a lot of infrastructure, while Lotte can bring know-how and technology.

    Indonesia’s e-commerce market is expected to grow to $46 billion in 2025 from just $1.7 billion a decade earlier, according to research by Google and Singapore’s Temasek Holdings. Under this scenario, Indonesia would make up more than half of the total Southeast Asian e-commerce market and would follow China and India as the third-largest national market in Asia, excluding Japan. A doubling of internet users, from 92 million to 215 million, is seen as the driver of this expansion.

    Expensive market

    With chronic congestion of its major cities and a lack of basic infrastructure on its islands, Indonesia is an expensive market to service. Logistics costs are 27 per cent of GDP, compared with 20 per cent in Thailand and 13 per cent in Malaysia, according to the World Bank.

    However, Salim’s 13,000-plus Indomaret convenience stores across Indonesia can be used as places to pay for and pick up goods ordered online. Meanwhile, a shipping unit that delivers instant noodles made by group member Indofood Sukses Makmur to more than 30,000 small towns nationwide can help bolster efficiency.

    Salim has also created a JV with Tokyo-based startup Liquid to explore payments using fingerprint authentication, with credit-card ownership of less than one in every 10 adults in Indonesia. Liquid’s system allowing pre-registered shoppers to pay via fingerprint scanner has been deployed at Japanese convenience stores. The JV will test the system for 500,000 Salim employees initially and targets commercial application within the year.

    Meanwhile, another Indonesian conglomerate, Lippo Group, is developing an electronic payment service for use on MatahariMall.com, which Lippo launched in 2015.

  • MK Restaurants plans US$11m expansion

    MK Restaurants plans US$11m expansion

    Thailand’s MK Restaurants Group plans to invest about Bt400 million (US$11.3 million) a year over the next five years to expand in Thailand as well as its overseas markets, including Singapore.

    Chairman/CEO Rit Thirakomen says the group will open 15 MK branches in Thailand this year, together with 25 Yayoi and five Miyazaki Japanese restaurants. Three or four franchised restaurants will be added to each overseas market.
    “We are also open for acquisition deals with select companies in food, services and retailing, so they will be able to use our infrastructure and logistics,” says Thirakomen.

    MK Restaurants Group’s sales rose 4 per cent to Bt15.49 billion last year, but its profit spurted 13 per cent to Bt2.1 billion. It projects growth at 5 to 9 per cent annually for five years.

    The group’s first MK Live flagship restaurant was officially unveiled at The Emquartier shopping mall in Bangkok yesterday, targeting health-conscious and “lifestyle” consumers. It has 135 seats.

    MK’s other brands are Hakata Ramen, Le Petit coffee shop and bakery, Le Siam Thai Restaurant, Miyazaki Teppanyaki, MK Restaurants, MK Gold Restaurants, Na Siam Thai Restaurant and Yayoi Japanese Restaurant. As well as 600 outlets in Thailand, the group has 40 franchised outlets in Indonesia, Japan and Vietnam.

    It has also set up a JV in Singapore to run its restaurants there, including MK, Miyazaki and Yayoi.

    Rit says that under its third-generation management team, MK Restaurant Group has outlined a major expansion plan for this year to cash in on the burgeoning Thai food industry, predicted by Kasikorn Research Centre to grow at 2 to 4 per cent to about Bt390 billion this year.

    Assistant marketing director Tantawan Thirakomen says MK Live is a suki (hot pot) restaurant designed to attract teenagers, young adults and families.

    “The store is decorated to reflect a vegetable greenhouse, with natural decorative items – wood, trees and rocks – as well as hydroponic vegetables displayed on the walls,” she says.

    A feature is its Live Showcase open kitchen where customers can see the chefs working on their meals, including dim sum and meatballs. Also on the menu are lobsters from Canada, scallops from the US and Wagyu beef from Japan.

  • Six Startups with the Largest Funding in Indonesia

    Six Startups with the Largest Funding in Indonesia

    The emergence of many start-up companies lately has become an interesting phenomenon, many of them were built with fantastic funding figure.

    Well, following are six startup companies with the largest funding or investment value in Indonesia.

     1.Go-Jek

    Go-Jek is a startup of ride-hailing application (in Indonesia this is called online transportation); the company founded by Nadiem Makarim has a staggering funding of $550 million (or IDR7.2 trillion) in last August 2016.

    2. Lamudi

    In February 2016, Lamudi, global property portal, received funds amounting to $31.4 million to boost its business. Supported by Rocket Internet, Lamudi has strong position to dominate the property market in Indonesia. In 13 other countries wherein Lamudi is operating, the startup position is also strong because it is supported by a sophisticated quality portal and user-friendly.

    3. Tokopedia

    Tokopedia last year received an injection of investment worth $147 million (or equivalent to IDR1.9 trillion), thus the startup initiated by Wiliam Tanuwijaya and Leontinus Edison has gathered a total investment of $247.7 million. With the funding it is expected Tokopedia will become the biggest Android-based shopping app in Indonesia.

    4. Elevenia

    Launched in early 2014 with funding of $18.3 million is enough to make Elevenia has an important position in the e-commerce world. This platform received 20,000 transactions per day and has more than four million listings.

    5. MatahariMall

    Funds amounting to $100 million (or IDR1.3 trillion) have made a startup backed by Lippo Group as one of the kings in the e-commerce field. Plus, the support from Mitsui investment also increasingly strengthens MatahariMall and makes MM one of startups with unicorn status.

    6. Oto

    Oto.com is a platform that connects customers with the automobile manufacturers and distributors. The customers can look for prices, specifications, drawings and others about their desired car via the website. This startup has received a funding of $25 million in 2016 ago.

  • Muslim Indonesia Joins Global Craft Beer Revolution

    Muslim Indonesia Joins Global Craft Beer Revolution

    Defying an escalating anti-alcohol movement and conservative bureaucrats in the world’s most populous Muslim-majority country, Indonesia’s only craft brewer is tapping into demand for better quality booze among the country’s small number of drinkers.

    Despite the fact about 90% of Indonesia’s population is Muslim, and in theory banned from drinking, most practise a moderate form of Islam and alcohol is available in cities and holiday destinations, with local brewers producing mostly Pilsner lagers.

    Unimpressed by the generic, mass-produced drinks on offer, local businessman Bona Budhisurya and his brother-in-law Jacob Suryanata decided to come up with an alternative, and in 2011 introduced Stark craft beer with a wheat and dark wheat variety.

    “We had been abroad and drank a lot of good quality beer,” said Budhisurya, a member of Indonesia’s Christian and ethnic Chinese minorities, adding that on his return to Indonesia he found that “there was no quality beer here”.

    By producing such brews – generally defined as beverages created in small, independent breweries – they have made Indonesia an unlikely new addition to the global craft beer revolution.

    The trend has seen micro-breweries spring up worldwide as consumers sick of flat, flavourless ales and gassy lagers seek out something with more character. Major beer-consuming countries – such as Britain and the United States – have seen explosive growth in the sector.

    Since its launch, Stark has expanded to include six varieties, including lychee- and mango-flavoured beers and an Indonesian Pale Ale, a less bitter alternative to Indian Pale Ale. But setting up a brewery is a risky move nowadays in Indonesia.

    Although most Indonesians are moderate Muslims and alcohol has long been available, growing opposition from politicians pushing a more conservative brand of Islam has created an uncertain climate.

    The government banned beer sales in the country’s ubiquitous minimarts in 2015, leading to sharp profit falls for major brewers, and Muslim political parties have proposed legislation to prohibit booze consumption entirely, although it seems unlikely this will pass.

    Trouble brewing

    It is hard to get permission to brew alcohol and only a handful of companies – such as Multi Bintang which produces popular local lager Bintang, and is majority-controlled by Dutch brewer Heineken – possess licences that they have had for decades.

    Budhisurya – who studied in the US for several years – eventually managed to obtain a licence in Hindu-majority Bali, a popular holiday island where drinking is more common, and Stark set up its brewery near the town of Singaraja.

    The site has a staff of about 50, including a head brewer hired from Australian beer maker Little Creatures. The company says brewing in Bali gives them an edge as they have easy access to clean water, unlike some other brewers whose operations are near Jakarta where water is often polluted and must undergo a long filtering process.

    “We have a principle – if the water is not good, we can’t make the beer,” told Albert Kurniawan, operations manager at Stark’s brewery,  from the red-brick building.

    Budhisurya said that the biggest challenge has been dealing with the official Food and Drug Monitoring Agency, which must approve alcoholic beverages before their release. He said the official time to get approval from the agency, which is staffed by conservative bureaucrats, is about four months, but in reality it takes six months to a year.

    Still, Stark has persevered and carved out a small niche by mainly selling to bars and some supermarkets favoured by a growing number of Indonesian consumers. Stark says its beers offer a quality alternative to pricey imported ales. It is so far proving a modest success, with about 3,000 to 5,000, 24-bottle cases sold every month, mostly in Jakarta and Bali.

    Due to religious considerations and high taxes that push up prices, relatively few Indonesians drink – alcohol consumption in 2015 was an average of just 1.4 litres per person, according to BMI Research. But the market is still potentially huge in a country of 255 million people, and Stark sees a bright future.

    “It does not matter whether it is local or imported – we are a craft beer, which means quality,” Budhisurya said.

  • Delfi to exit venture with Meiji in Indonesia

    Delfi to exit venture with Meiji in Indonesia

    Singapore-based confectioner Delfi today announced plans to pull out of PT Ceres Meiji Indotama (CMI) – a confectionery manufacturing joint venture in Indonesia with Japanese pharma-to-food group Meiji Holdings.

    Delfi said the proposed sale of its 50% stake in CMI for US$8.3m will allow Delfi to “re-deploy financial and human resources to focus on growing our business, both in Indonesia and our regional markets”.

    Following completion of the sale, which is subject to various regulatory approvals, Delfi said CMI will cease to be an associated company and the joint venture agreement with Meiji will be terminated.

    Delfi said its involvement in CMI, a confectionery manufacturer and retailer, “has spanned more than 15 years and over that period, it played an instrumental role in developing the business of CMI and the Meiji brand in Indonesia”.

    However, following “an extensive review” Delfi said it believed CMI “is best suited to continue growing under the stewardship of Meiji”. The proposal to terminate the joint venture is the result of a “mutual and amicable agreement”, Delfi said.

    The proceeds of the sale “will further strengthen the financial position of the company and allow it to focus its resources on existing investments”, Delfi said. “Despite the sale… the relationship between Delfi and Meiji remains strong and Delfi’s subsidiary in Indonesia, PT Nirwana Lestari, will continue to distribute CMI’s products.”

  • Pertamina allocates US$190 million for Mahakam exploration

    Pertamina allocates US$190 million for Mahakam exploration

    State-run oil and gas company Pertamina has allocated US$190 million for exploration of Mahakam Block in East Kalimantan.

    “The fund has been prepared, but it would not be that easy to process it. We are still calculating the tax and we could not give the fund yet to the blocks operator Total E&P Indonesie,” Pertaminas upstream director Syamsul Alam said here, Thursday.

    PT Pertamina Hulu Mahakam (PHM), a subsidiary of PT Pertamina, has been appointed to operate the block to maintain production in the gas field.

    Pertaminas Corporate Vice President Wianda Pusponegoro said in a statement earlier this week, that the special task force for upstream oil and gas business (SKK Migas) has agreed on the bridging agreement (BA) scheme and funding agreement (FA) on Mahakam Block, signed by Pertamina, Total E&P Indonesia, and Inpex Corporation.

    “The agreement has clarified stakeholders commitment to smooth the transition of operators from Total to PHM. PHM has entered the Mahakam Block in 2017 under the BA and FA,” Syamsul said.

    The bridging agreement has regulated Total operations as the previous operator of Mahakam fields, for the interest of PHM.

    While the funding agreement would arrange the PHM funding mechanism on Total operation in accordance to the binding agreement.

    The agreements were signed on March 3, after an intensive discussion involving PHM, Total and Inpex.

    “PHM and Total would open a joint account,” she said.

    Totals contract ends on Dec. 31 this year, after operating the Mahakam field for 50 years.

    As an operator, Total has a 50 percent “participation right” while the remaining 50 percent is owned by Impex Corporation Ltd.

    Total is expected to produce 1,430 million standard cubic feet of gas per day and 53,000 barrels of oil per day in 2017.

  • Elia Massa Manik appointed as new Pertamina president director

    Elia Massa Manik appointed as new Pertamina president director

    State Enterprises Minister Rini Soemarno appointed Elia Massa Manik as the new president director of state oil and gas company Pertamina to replace Dwi Soetjipto who was relieved of his duties on February 3, 2017.

    Manik, who is appointed to the post of Pertamina president director based on State Enterprises Ministers Decree No. SK-52/MBU/03/2017, earlier held the post of president director of state-owned plantation holding company PT Perkebunan Nusantara (PTPN) III.

    The state enterprises ministers deputy for financial service business Gatot Trihargo presented the decree to Manik at the State Enterprises Ministry here on Thursday in the presence of Pertamina Chief Commissioner Tantri Abeng.

    Trihargo said Maniks appointment to the post of Pertaminas president director was based on his capacity to lead the company owing to his experience in bringing about transformation in several companies.

    “Elia Massa has experience in the fields of energy, banking, and agroindustry. His track record as the CEO of several companies is praiseworthy,” he noted.

    Abeng said Pertamina requires professionals, such as Manik, who can build solid teamwork in the company.

    Manik was born in Medan, North Sumatra, on May 1, 1965.

    He graduated from the school of civil engineering and environmental planning at the Bandung Institute of Technology and Master Business Management of the Asian Institute of Management in Makati, the Philippines.

    Manik began his career with state-owned enterprises when he was appointed as the CEO of PT Kertas Basuki Rahmat for the 2010-2011 period and the CEO of PT Elnusa Tbk, a subsidiary of Pertamina, for the 2011-2014 period. In addition, he was the former senior executive vice president of state lender Bank BNI for the 2015-2016 period.

    On April 13, 2016, he was appointed as the president director of state plantation holding company PTPN III, and since September 1, 2016, he has been the chief commissioner of PTPN IV.

  • India,Indonesia to enhance ties in cyber security,intelligence

    India,Indonesia to enhance ties in cyber security,intelligence

    India and Indonesia today decided to enhance cooperation in cyber security and intelligence sharing.

    This was decided at a meeting between Minister of State for Home Kiren Rijiju and visiting Indonesian Minister for Security Gen Wiranto here.

    “The bilateral meeting with Indonesian Minister for Security and Coordination was very fruitful. The meeting focused on cyber security and intelligence sharing,” Rijiju said.

    The delegation level meeting was attended by senior officials of Ministry of Home Affairs and Indonesian Ministry of Security and Coordination.

  • Indonesia holds investment week in Singapore

    Indonesia holds investment week in Singapore

    The government is holding an event to attract foreign investors called “Indonesia Investment Week Singapore Chapter 2017,” which started on Monday and will end on Wednesday.

    It is the first Indonesian Investment Week organized outside Indonesia.

    The event at Marina Bay Sands will feature various activities, including an exhibition, a business forum and one-on-one meetings with businesspeople, said Zaidin A. Zaiti, the president director of PT Eksibit Internasional, which organized the event.

    “The event is expected to welcome more than 5,000 international business people in Singapore,” Zaidin said on Tuesday, adding that it was expected to speed up infrastructure development in Indonesia.

    Indonesian Ambassador to Singapore Ngurah Swajaya said the two countries would soon commemorate their 50th year of diplomatic relations and the Indonesian Embassy would organize various events to mark the occasion.

    “The Indonesian Embassy in Singapore welcomes Indonesia Investment Week with the hope that it will be integrated into events to commemorate the 50th anniversary,” Ngurah said.

    Ngurah said the event was supported by a number of institutions including the National Economy and Industrial Commission, the Trade Ministry’s Export Development Directorate General, the Cooperatives and Small and Medium Enterprises Ministry, the Investment Coordinating Board, Agriculture Ministry and Industry Ministry.