Tag: Indonesia

  • Citilink’s first new Airbus A320neo arrives in Indonesia

    Citilink’s first new Airbus A320neo arrives in Indonesia

    Garuda Indonesia’s low-cost subsidiary, Citilink, has begun welcoming a new fleet of Airbus A320 new engine option (neo) aircraft from the Airbus factory in Toulouse, France.

    Citilink has ordered 35 aircraft from the European manufacturer since it developed the new version in 2012. The 180-passenger capacity A320neo will join 45 aircraft of the previous model, the A320 current engine option (ceo), which Citilink already owns.

    The delivery will be completed by 2021. This year, Citilink will receive five aircraft.

    “We will use them for medium-length routes like to Eastern Indonesia, to Jeddah, Saudi Arabia, and to Shanghai,” Citilink acting president director and finance director Mega Satria said during the welcome ceremony at the Garuda Maintenance Facility (GMF) AeroAsia Workshop in Cengkareng, Banten, on Friday.

    According to Airbus data, the A320neo features two engine options, Pratt & Whitney’s PurePower PW1100G-JM and CFM International’s LEAP-1A. Citilink’s aircraft use the latter. Along with improvements to airframe and winglets, fuel efficiency has been increased by 15 percent compared to the A320ceo.

    As of January, Airbus had received 5,069 orders of the new aircraft since it began production in January 2016. German airline Lufthansa was the first to receive one on Jan. 20 last year.

  • Indonesian president arrives in Australia

    Indonesian president arrives in Australia

    Indonesian President Joko Widodo has touched down in Sydney ahead of bilateral talks with Prime Minister Malcolm Turnbull and Australian business leaders.

    The president and First Lady Iriana Widodo arrived on Saturday morning in rainy conditions and clutching umbrellas as they greeted Australian officials on the airport tarmac.

    Improving trade and investment ties is expected to be a key focus of Mr Widodo’s two-day state visit to Australia.

    The Indonesian president will meet with business leaders including representatives from Blackmores, Macquarie Bank and BlueScope Steel in the afternoon.

    He will also hold talks with NSW Premier Gladys Berejiklian before a private dinner at Prime Minister Malcolm Turnbull’s Point Piper mansion, overlooking Sydney Harbour.

    The pair will discuss progress on an Indonesian-Australian free trade deal set to be finalised by the end of the year, perhaps as early as August.

    Indonesian trade officials were in Canberra last week for the fourth round of free trade negotiations since March last year.

    ‘Our relationship with Indonesia is growing deeper by the day but it has not yet reached its full potential,’ Mr Turnbull said in an opinion piece in Sydney Morning Herald, pointing out that Australia trades more with Malaysia, Singapore and Thailand compared to Indonesia.

    AAP understands there are no insurmountable sticking points, unlike Australia’s negotiations with the European Union, where agriculture tariffs cuts are proving tricky.

    Australia Institute research director Rod Campbell hopes the two leaders discuss climate change and coal.

    Indonesia is seeking to dramatically boost coal-fired power generation in coming years despite its pledge to cut carbon emissions to 29 per cent from business- as-usual levels by 2030.

    Mr Widodo was due to visit Australia last year but this was postponed after violent protests erupted in Jakarta over comments its Christian governor made about the Koran.

  • Standard Chartered Looks at Strategic Options for its Indonesia Business

    Standard Chartered Looks at Strategic Options for its Indonesia Business

    Standard Chartered said its troubled principal finance unit toted up a $650 million loss last year, weighing on the bank’s efforts to improve returns. Standard Chartered’s net loss for 2016 narrowed to $478 million from $2.36 billion in 2015, but revenue and profit figures fell short of analysts’ expectations and the stock fell 5%.

    The emerging-markets focused bank said it sharply marked down its private equity stakes in companies in Africa, Asia and India, as it prepares to exit from the principal finance business in the next couple of years. It said its risk committee reviewed processes and controls in the unit last year, amid the losses and probes by U.S. and other authorities into alleged bribery at a portfolio company, power plant builder Maxpower Group Pte. Ltd.

    Standard Chartered said the unit will be stripped out of its underlying results going forward, with any gains or losses treated as restructuring costs. The principal finance unit manages around $5 billion for Standard Chartered and external investors. The bank’s exposure is around $2 billion.

    Standard Chartered’s smaller full-year loss was the result of a near-halving in bad loans across its businesses. But revenue dropped by 11% to $13.8 billion from $15.4 billion. Standard Chartered blamed the fall on a range of factors including negative revenue in principal finance, dollar strength against emerging market currencies and lower client activity.

    Fourth-quarter revenue was $3.53 billion, up from $3.26 billion in the fourth quarter of 2015. The bank said significant further improvement is needed.

    Chief Executive Bill Winters said the bank is on a stronger foundation after cutting costs and selling around a dozen businesses since he started as CEO in June 2015. He said the bank will look at strategic options this year for its Indonesia business, currently run through two banks.

    Standard Chartered operates under its own name in the country and holds a 44.6% stake in PT Bank Permata. Mr. Winters said the bank is fully committed to Indonesia but wants to operate through a single entity there.

    He said shifts in global trade and potential U.S. protectionist policies posed a threat to the bank, but also opportunity as trade flows realign. “If the U.S. for whatever reasons or through whatever political process makes itself a less desirable trading partner, there are other countries that will want to fill that gap,” Mr. Winters told reporters.

  • Indonesia to hold limited spectrum

    Indonesia to hold limited spectrum

    The Indonesian government plans to hold a limited tender for unused spectrum in the 2.1-GHz and 2.3-GHz bands by the middle of the year.

    Communications and informatics minister Rudiantara has announced that the government expects to issue the terms of the tender process by the end of March, and to announce the winner by mid-year.

    Only existing operators will be entitled to participate in the limited tender, the minister said.

    The 2.1-GHz band is used by operators including Telkomsel, Indosat Ooreedoo, XL Axiata and Hutchison 3 Indonesia for 3G services, while the 2.3-GHz band is used for 4G wireless broadband services in parts of the country.

    Plans to reallocate the unused capacity in the 2.1-GHz band returned by Axis Telecom in 2014 following its merger into XL Axiata have been in the works since 2015, but the process has been delayed by technical and other difficulties.

    According to the report, only half of the unused 30 MHz of capacity in the 2.3-GHz band will be allocated.

    Indonesian operators, facing a spectrum crunch in major cities, have responded enthusiastically to the announcement, and are urging the government to ensure there are no further delays.

  • Proton Iriz enters Indonesia

    Proton Iriz enters Indonesia

    Proton Holdings, via its Indonesian unit, PT PROTON Edar Indonesia (PEI), has launched its latest hatchback vehicle, the Proton Iriz in several cities in the republic.

    In a statement today, Chief Executive Officer Datuk Ahmad Fuaad Kenali said Indonesia is an important market for the national carmaker.

    “Not only have we maintained strong government-to-government relations being ASEAN founding members, but we also share many similarities in terms of people, language, culture as well as the weather,” he said.

    Ahmad Fuaad said Indonesia is the second country after Brunei to import the vehicle.

    He said two variants have been made available to the Indonesian market, namely the 1.3L MT Standard and 1.3L CVT Standard, priced at IDR 175,250,000 and IDR185,283,000, respectively (RM1=IDR 2996.52).

    The PEI is supported by a total of 25 sales and after sales outlets in Indonesia, and locals can get up close and personal with the Proton Iriz in all the sales outlets from Feb 20.

    Since its debut, the Proton Iriz has received many awards and accolades from the automotive industry in Malaysia. Among them, is a 5-Star rating from the Asean New Car Assessment Programme.

    Interested customers can visit any of the dealers at their showrooms across Indonesia or visit the PEI website at www.proton-edar.co.id.

  • Coffee Craft cafe takes culture to Beijing suburbs

    Coffee Craft cafe takes culture to Beijing suburbs

    Beijing’s new Coffee Craft cafe takes coffee culture to the capital’s suburbs.

    It is in the largely residential area of Beixuaguan, in Beijing’s northwest. Covering 400 sqm, the outlet has been designed by United Units Architects, a practice based in both Beijing and London.

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    While primarily a venue for specialty coffee, it also anticipates the hybrid lifestyles of today’s young generation, says Retail Design Blog. It features four specific areas – a bar, a seating area, two meeting rooms and a kitchen space – all separated by partitions crafted from a mix of vertical louvres and wire mesh, allowing for a variety of configurations.

    Each space has a distinct feel while seamlessly blending with the other sections.

    The bar comprises wall panels of shiny steel and capsule-shaped copper equivalents on the ceiling, while the seating area features an indoor cactus garden as a focal point. It is framed and encapsulated on one side by slabs of mirror that make it appear double its actual size. Hovering directly above is a large circle made of the same material. A Vespa scooter installation adds a quirky and frivolous touch to the austere aesthetic, says Retail Design Blog.

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    Coffee Craft’s menu features specialty coffee from such countries as Brazil, Colombia, Ethiopia , Guatemala, Indonesia, Kenya and Panama, all marked on a wooden wall plaque with a pinboard world map.

    Coffee-Craft-Cafe-by-United-Units-Architects-Beijing-ChinaCoffee culture is not only catching on in China, but accelerating and diversifying to meet the lifestyle requirements of the country’s growing demographic of savvy consumers, says the blog.

    “Obviously, this trend has manifested itself most vigorously in plush downtown neighbourhoods of the country’s booming first- and second-tier cities. The middle class continues to expand with leaps and bounds – it has doubled from 399 million to 784 million in just a decade – and coffee and modern lifestyle appreciation has grown in equal measure across suburban fringe, and increasingly in surprising contemporary form.”

  • Innisfree to launch in Indonesia

    Innisfree to launch in Indonesia

    Beauty products brand Innisfree is launching in Indonesia with brand curator Time International.

    Part of Korean global beauty company AmorePacific Group, Innisfree offers products made with natural ingredients from Jeju, a volcanic island off the southern coast of the Korean Peninsula.

    Innisfree’s first store will open at Central Park Mall Jakarta on March 24, following its introduction in such markets as China, Hong Kong, India, Malaysia, Singapore, Taiwan, Thailand and Vietnam.

    As well as skincare, Innisfree will offer colour cosmetics in Indonesia, says international business VP Chul Kim.

    Innisfree was launched by AmorePacific Group in 2000, joining its brands Laneige and Sulwhasoo.

    Founded in the 1960s, Time International manages multi-brand retail stores as well as mono-brand boutiques for such brands as Cartier, Chanel, Chopard, Diesel, Fendi, Fossil, Project X, Rolex, Sweet Monster and Tag Heuer.

  • Parkson Retail sales continue to slide

    Parkson Retail sales continue to slide

    Parkson Retail Asia has flipped from a S$2.9 million (US$2 million) net profit a year ago to a net loss of $2.23 million for its second quarter.

    This is despite a 7.4 per cent year-on-year rise in revenue to $111.14 million, with Parkson attributing its red ink to weak same-store sales growth as well as losses by some new stores and businesses.

    For the six months to December 31, the department-store group had a net loss of S$7.42 million, compared to a net profit of $52.36 million for the same period the previous year. Revenue rose 4.2 per cent to $204.48 million.

    Parkson Retail Asia says its performance in Malaysia will remain muted because of “fragile” consumer sentiment, while rising competition will make Vietnam challenging.
    Meanwhile, its business in Indonesia could be affected by the changing retail landscape in Jakarta, it says.

    In Myanmar, its store at FMI Centre in Yangon will be closed in the third quarter for property redevelopment by the landlord, with a replacement store scheduled to open later in the year.

  • Garuda to Launch Jakarta-Moscow Flight in August 2017

    Garuda to Launch Jakarta-Moscow Flight in August 2017

    The Indonesian flag carrier, Garuda Indonesia, will launch its Jakarta-Moscow direct flight route A330-200 aircraft, which is expected to be operational in August this year.

    The inaugural flight plan was established in a memorandum of understanding signed by a representative of the Indonesia Russia Business Council, Mikhail Kuritsyn, and the Director of Garuda Indonesia, Arif Wibowo, in the presence of Russian Ambassador to Indonesia, Mikhail Galuzyn, and Indonesian Ambassador to Russia, Wahid Supriyadi, on Tuesday (Feb 14).

    “We are trying to accelerate the plan to be realized in August. The flight will be available three times a week,” Arif said.

    He added that since the tourist traffic between the two countries continues to increase, the direct flight plan is expected to support Russias efforts to increase tourist arrivals from Indonesia to more than 100 thousand in 2017.

    The number of Russian tourist arrivals in Indonesia in the first half of 2016 increased by 14 percent, while the number of Indonesians visiting Russia was about 14,000 in 2015.

    Arif stated that the launch of the new flight route marks the beginning of a series of international flight network expansion programs by Garuda Indonesia in 2017.

    In addition to Moscow, Garuda Indonesia will also launch a flight from Jakarta to Los Angeles (USA) via Tokyo, Japan, by mid-2017.

    Meanwhile, Galuzyn noted that the direct flight would further boost the economy and tourism sectors of the two countries.

    “The direct flight has become one of our main priorities in the effort to enhance the number of tourists visiting Russia,” he asserted.

    We are optimistic that the new plan will open a positive opportunity not only for the tourism sector but also for the economic, social, and cultural sectors.

    In 2014, Garuda Indonesia officially joined the SkyTeam global airline alliance, in which the Russian airlines Aeroflot is also a member.

    Through the SkyTeam airline alliance network, all passengers can enjoy the Garuda Indonesia flight network services to more than 1,062 destinations around the world in 177 countries with 17,343 daily flights.

    SkyTeam airline network services currently serve more than 655 million passengers every year.

  • The Trade Desk launches in Indonesia to capitalise on digital ad potential

    The Trade Desk launches in Indonesia to capitalise on digital ad potential

    The Trade Desk has launched into Indonesia, a market it believes has huge potential for growth in programmatic ad trading. The company has launched alongside partnerships secured with Unruly, Grapeshot, Spotify, Tapad and Mobilewalla.

    Matt Harty, SVP of Asia and Australia at The Trade Desk, told The Drum that with Zenith numbers claiming that Indonesia will be in the top 10 ad markets in the world within the next three years, it was important to establish local operations.

    “It’s compelling stuff, there’s a huge growth in middle class and it’s a boat I can’t see us wanting to miss. Boston Consulting figures suggest there will be 141 million Indonesian middle class by 2020, adding 8 or 9 million consumers buy big ticket items each year. I don’t think other markets will see a demand for 9 million new bikes each year, as first time buyers. It couldn’t be more exciting as a market,” he said.

    The office, which will be located in Jakarta’s central business district, will be the sixth for the ad tech company in Asia Pacific region. The office will launch with two members of staff, with the Singapore office still acting as its regional headquarters.

    The timing of the launch has been set to ensure that brands and agency planners have strategies in place ahead of Ramadan, which takes place in late May this year. Harty said that after taking a year to work out the Indonesian market last year, ahead of launch, a key learning was how important it was to plan ahead of the religious holiday.

    “Last year was the first year of real scale doing business in Indonesia, but from Singapore. We were taken by surprise about key things around Indonesian planning, so now we have boots on the street and are very well prepared and we time to be in place for Ramadan,” he added.

    The office marks one of the first new Asian markets for the company since it publicly floated on the stock markets last year. The company hit the headlines after its IPO was widely considered to have been a success.

  • Lippo Malls Indonesia Retail Trust posts 7.6% rise in Q4 DPU

    Lippo Malls Indonesia Retail Trust posts 7.6% rise in Q4 DPU

    Lippo Malls Indonesia Retail Trust (LMIRT) posted a distribution per unit of 0.87 cents for its fourth quarter 2016, an increase of 7.4 per cent from a year ago.

    Its net property income went up 10.9 per cent to S$44.6 million. For the full year ended 2016, LMIRT’s net property income rose 8.4 per cent to S$171.9 million.

    For Q4 2016, total gross revenue went up 9.1 per cent to S$48.7 million year on year, mainly due to positive rental reversion within the existing malls.

    The trust recently completed the acquisition of Lippo Mall Kuta, expanding its portfolio to 27 properties and asset size to S$1.9 billion.

    Viven Sitiabudi, executive director of the Reit manager, said: “With our shopping malls registering a consistently high occupancy rate of 94.3 per cent, we expect a stable stream of rental income going forward.”

  • Indonesia to attend International Yoga Festival in India

    Indonesia to attend International Yoga Festival in India

    Through its Wonderful Indonesia brand, Indonesia will promote its vast tourism potential at the annual International Yoga Festival, due to be held in the Indian city of Rishikesh on March 1-7, 2017.

    To this end, the Indonesian Tourism Ministrys Deputy for International Marketing I Gde Pitana will be sent to head a delegation attending the event, the ministry noted in a press statement here on Tuesday.

    Pitana said promoting the archipelagos tourism sector in this “City of the Divine” of India is a strategic move, as Indonesia also has several interesting destinations for practicing the art of yoga, and India is a potential market, which has yet to be tapped optimally.

    At present, with its growing number of outbound tourists, India has become an important contributor of foreign visitors to Indonesia, he pointed out.

    Several factors that may have attracted them to visit Indonesia are related to the two nations cultural similarities and the archipelagos diverse tourist destinations. The increasing trend of Indian travelers visiting the archipelago is also driven by Garuda Indonesias Mumbai-Jakarta flight.

    With its diverse tourist destinations, Indonesia has plenty to offer to Indian travelers. Hence, it is necessary to implement various promotional strategies to attract more outbound tourists from the country, Pitana stated.

    “One of our efforts is promoting the Wonderful Indonesia brand in India,” he revealed.

    For the International Yoga Festival, Indonesia is sending a delegation, setting up a pavilion, as well as displaying and distributing the Wonderful Indonesia promotional materials, Pitana remarked.

    The Tourism Ministry is offering support to singer Ayu Laksmi from Balis Svara Semesta (Sound of the Universe) to perform at the worlds largest yoga festival in which yoga lovers from 110 countries are expected to participate.

    Laksmi and Semesta will perform at the opening and closing sessions of this annual event. During the festival, Indra Udayana, an artist and envoy of peace, and yoga instructor Anjasmara will also join the performers.

    “This event is expected to help boost the image of Indonesias tourism industry to offer greater exposure in India. This is indeed a good opportunity to attract more outbound tourists from India and other countries,” he noted.

    Meanwhile, the Tourism Ministrys Deputy Assistant of the Asia Pacific Market Development Vinsensius Jemadu stated that an awareness campaign package of the Wonderful Indonesia brand will be prepared for Indias electronic media.

    “We shall also dispatch a Wonderful Indonesia team and prepare attractive souvenirs for the visitors at the Indonesia Pavilion,” he noted.

    Bali will be highlighted at the event, as it is the main destination offered to Indians who have known the resort island as a popular place for yoga and spas.

    Promoting the Wonderful Indonesia brand in India is expected to strengthen the positive image of the archipelagos tourism sector and to attract more Indian travelers to visit Indonesia, Jemadu remarked.

    The Indonesian Tourism Ministry has noted that the biggest contributors of foreign tourists to Indonesia in 2015 were Singapore, with 1,571,982 visitors; Malaysia, with 1,247,270; China, with 1,141,330; Australia, with 1,051,141; Japan, with 528,465; South Korea, with 359,468; India, with 293,415; the UK, with 280,198; the US, with 263,429; and Taiwan, with 211,528.

    Referring to the countries of origin and number of foreign tourist arrivals during the period between January and October 2016, the five main contributors were Singapore, with 1,177,695 visitors; China, with 1,221,422; Australia, with 1,011,077; Malaysia, with 989,739; and Japan, with 434,352.

    As one of the largest economies of the G-20, India is regarded as a huge potential source of foreign tourists.

    The Ministry of Tourism is targeting 15 million international tourist arrivals in 2017.

  • Indonesia urges Facebook to open local office

    Indonesia urges Facebook to open local office

    The Communications and Information Ministry has urged Facebook to open a proper local office to enable it to adequately tackle complaints about fake news and negative content that spreads through the social media platform.

    Minister Rudiantara conveyed the request during a meeting with the Asia Pacific-based delegation led by Facebook’s head of global policy management, Monika Bickert, on Tuesday, saying that the existence of an official office in Indonesia would enable the firm to better respond to content complaints and improve communication with the government.

    Facebook, which has up to 96 million users in Indonesia, runs a small local representative office, while its regional office is located in Singapore.

    “The minister Rudiantara asked Facebook to step up its service agreement in Indonesia and suggested that a good way to ensure better quality service was to open up an official office here,” said the ministry’s director general for applied informatics, Semuel Abrijani Pangerapan.

    “This way, it will be able to familiarize itself with the Indonesian perspective and cultural context.”

    The Facebook logo is displayed on an iPad in Philadelphia. Facebook is taking new measures to curb the spread of fake news on its huge and influential social network, focusing on the “worst of the worst” offenders and partnering with outside fact-checkers to sort honest news reports from made-up stories that play to people’s passions and preconceived notions.(AP/Matt Rourke)

    Semuel added that while Facebook would be responsible for content management, the legal process in relation to the content itself would be carried out by the police and relevant institutions.

    Posts promoting terrorism, for example, will require consultation and assessment by the National Counterterrorism Agency (BNPT).

    Both the public and the ministry’s monitoring team are able to flag inappropriate content.

    Fake news, including those related to the racially charged Jakarta gubernatorial election, and overall air of discrimination exhibited by members of the public online, has been plaguing the Indonesian internet recently.

    In the past few months, the government has stepped up its battle against the distribution of false information. The police is committed to prosecuting any party behind the spread of the “cancer of democracy.”

    To address the fake news and negative content issues, the ministry is set to hold a meeting with Twitter on Feb. 20.

    The ministry’s spokesperson, Noor Iza, noted the importance of setting up an official local office, comparing how Twitter, which also has a sizeable number of users in Indonesia, and Facebook manage problems.

    “Twitter’s responses toward the complaints and the negative content management are a lot quicker than Facebook because they have an official office here. Therefore, it has an established understanding on what impacts the country negatively,” she said.

    The government views that the take down response time for hoax news is ideally less than 24 hours, but the quicker, the better.

    From late 2016 to the beginning of 2017, the ministry has received 1,572 complaints in relation to the negative content on social media, including hoax news on Facebook and Instagram, with 197 occurring in the first two months of this year.

    The ministry said it was only able to respond to around 60 percent of all complaints in that period.

    Complaints about Twitter’s content in the same period reached 3,252, with those related to pornography topping the list.

  • Bank Mandiri`s net profit falls by 32.1 percent

    Bank Mandiri`s net profit falls by 32.1 percent

    State lender Bank Mandiri saw its net profit plunging by up to 32.1 percent to Rp13.8 trillion in 2016 from Rp20.3 trillion in 2015. The net profit fell, as the bank set aside its operating income to raise its provisions for loan loss coverage, following the rising ratio of non-performing loans (NPLs) to total gross loans, Bank Mandiri President Director Kartika Wirjoatmodjo said in a press briefing here on Tuesday.

    The provisions for loan loss coverage ratio against NPLs rose to 125 percent, as the ratio of NPLs to total gross loans increased by 1.4 percent to 4 percent in 2016 from 2.6 percent in 2015, he added.

    “We put much of the income into the provisions. Before we put it in the provisions, our pre-provision operational profit (PPOP) stood at Rp43.3 trillion,” he stated.

    With the NPLs rising 4 percent, Bank Mandiri has set aside Rp24.6 trillion of its funds for loan loss provisions, he noted.

    After all, the bank recorded positive growth for all of last year, he remarked.

    In 2016, the bank channeled credits worth Rp662 trillion, up 11.2 percent from a year earlier, while third-party fund placement in the bank reached Rp762.5 trillion, up 12.7 percent from the previous year.

  • Sriwijaya Air Opens Direct Flight to Eastern Indonesia

    Sriwijaya Air Opens Direct Flight to Eastern Indonesia

    Sriwijaya Air this year expands its market share to eastern Indonesia by opening a direct flight from Surabaya to Jayapura in Papua. Sriwijaya Air commercial director Toto Nursatyo said that eastern regions of Indonesia have a huge potential even more so because the government has planned to step up development in the regions.

    He added that Sriwijaya also pointed to a trend in Indonesia’s aviation industry which has grown 15 percent in the past few years, way above other countries with less than 5 percent growth. The airline plans to serve 4 flights a week in Surabaya-Jayapura route with a load factor target of 85 percent. The ticket for a flight will cost starting from Rp1.4 million.