Tag: Indonesia

  • Housing credit interest rate predicted to decline in 2017

    Housing credit interest rate predicted to decline in 2017

    Bank Indonesia predicted that the interest rate of consumer credits including housing credits(KPR) would decline in 2017 as a result of the relaxation of its monetary policy.

    Director of Macro prudential Policy of the Central Bank Dwityapoetra S. Besar, said here on Wednesday relaxation already began in the central bank monetary policy in 2016 though not very significant.

    Currently the KPR interest rates average 10.3 percent per year, he said.

    “If the interest rate on KPR at 10.3 percent , the average lending rate would be 11 percent. That shows the transmission,” he said.

    However, a cutback in KPR interest rate would depend much on the ability of each bank to keep the cost of fund down, he said.

    The central bank has issued a stimulus in monetary policy in a bid to push down bank lending rate with a 150 basis point cut in its benchmark interest rate (BI 7-Day Reverse Repo Rate) to 4.75 percent.

    Meanwhile, the Financial Service Authority (OJK) cut the Minimum Reserve Requirement by 150 basis point to 6.5 percent in December, 2015 to help bank in improving their liquidity.

    Dwitya , however, said banks have yet to face many hurdles in cutting the lending rate . One of the hurdles is potential increase in inflation as a result of the increase in the electricity tariff for 900 VA subscribers.

    “Yes, we have to see that it will depend also on the macro economic condition,” he said.

  • Harbolnas Boosts Online Shop Sales

    Harbolnas Boosts Online Shop Sales

    Hundreds of online stores are taking part in the online shopping national day (Harbolnas) held from December 12 until December 14, 2016. The Harbolnas brings profit not only to customers, but also online shop administrators.

    For example, Bukalapak.com booked a total of 400,000 transactions during the two days of Harbolnas.

    Bukalapak Brand Manager Ambrosia Tyas, said that most of the customers are attracted by the discounts and special offers presented during the Harbolnas. “The number of transactions are five times higher compared to the 2015 Harbolnas,” Ambrosia said on Wednesday, December 14, 2016.

    Not only massive discounts, Bukalapak also provided customers with chances to bargain for their goods. Products highly sought after by customers are smartphones, laptops, and cameras. “Customers are attracted to a different shopping experience,” Ambrosia said.

    In addition to Bukalapak, Lazada Indonesia also recorded massive Rp 143.4 billion revenue on the first day of Harbolnas. Most customers bought fashion items, household appliances, and health and beauty products.

  • Indonesia sees jump in October palm oil exports

    Indonesia sees jump in October palm oil exports

    Indonesia saw the exports of its palm oil products, which include crude palm oil (CPO), biodiesel and oleochemical, increase by 34 percent month-on-month to 2.45 million tons in October, thanks to rising demand from major export destinations.

    In September, the world’s largest producer of palm oil shipped 1.89 million tons of products overseas.

    Indonesian Palm Oil Producers Association (GAPKI) executive director Fadhil Hasan said exports to India had increased by 31.64 percent month-on-month (mom) in October to 608,510 tons, while exports to China were slightly up by 2.17 percent to 316,450 tons.

    Exports to the European Union (EU) market, meanwhile, increased by 75.51 percent mom to 380,150 tons, not long after France revoked their CPO multiple taxes plan.

    “The traders took the chance to buy at cheaper prices, as they were anticipating a possible price hike in November amid increasing demand ahead of Christmas and New Year,” Fadhil said in a statement on Wednesday.

  • Bank Mandiri eyes more disabled employees

    Bank Mandiri eyes more disabled employees

    The family of Rezky Yami Putri, 27, born with an imperfect three-fingered left hand half the size of a normal hand, was skeptical when she landed a job at Indonesia’s largest lender Bank Mandiri.

    They thought she was deceived, because such an achievement would be too good to be true for someone with “my condition”, said Rezky, now a call center officer at the state-owned lender. Her family finally believed her job was legit when she received her first salary last year.

    “Even though it has been a year, it is still like a dream for me, a lengthy dream, which occurs while I am awake,” said the Jakarta resident, who has a bachelor’s degree in public health but has never worked in her field of study.

    “As someone with a disability, we are always underestimated but it turns out that we also can make money for ourselves and for our parents, even though it is not that much,” she added.

    Rezky is among 41 disabled workers employed by Bank Mandiri, which is among over 100 state-owned enterprises in Indonesia, which, following a 2016 law on people with disabilities, are required to have disabled people account for at least 2 percent of their staff.

    “Our target is to hire 120 people and we’ll keep recruiting depending on the availability of the applicants,” Bank Mandiri human capital engagement senior vice president Aminarti Widiati said. The lender started recruiting disabled employees last year.

    Bank Mandiri, which has five branch offices in Jakarta and Semarang, Central Java, employing disabled people currently has a total of 38,376 employees nationwide with 2,505 branch offices spread across the country.

    Disabled people in the lender work on three-year contracts and are reviewed each year. They also have the chance to become permanent employees, Aminarti said.

    Tri Handayani, diagnosed mute when she was only 10 months old, was eager to advance at Bank Mandiri. The back-office worker used to work at a supermarket, checking and replacing price tags on products.

    “This new job makes me feel more enthusiastic about working and being more successful in the future,” said Tri, who graduated
    with a computerized accounting degree.

    To communicate, the 27-year-old tries to speak as much as she can or writes the sentences down if they are too complicated. She is able to understand her interlocutors by reading their lips.

    Her colleague Kuntum Mukminin, 24, who is also deaf-mute, works at the same division at Bank Mandiri in the back office.

    “I might be deaf but I work hard and keep improving myself. I have to do my best to be a success,” said Kuntum, a high school graduate who used to work at a supermarket bakery.

    The Social Affairs Ministry has pledged to oversee the implementation of the 2016 law that requires disabled people account for at least 2 percent of state firms’ staff. There are around 6 million disabled people in Indonesia, according to 2012 ministry data.

    “However, we won’t impose sanctions on companies that cannot meet the minimum requirement because we know that sometimes it cannot be fulfilled because of a lack of competency,” the ministry’s director of social rehabilitation Bambang Sugeng said.

  • Delivery Hero takes control of Foodpanda

    Delivery Hero takes control of Foodpanda

    Control of the Foodpanda business has been sold by parent Rocket Internet, including the remaining Asian operations.

    German-based online food-ordering service Delivery Hero Holding, which is active in 33 countries, has acquired Rocket Internet-backed Emerging Markets Online Food Delivery Holding, parent of the shrinking Foodpanda business.

    Foodpanda, 49 per cent owned by Rocket Internet, has a presence in 22 countries, but shut its Indonesia business in October in the face of growing competition from app-based ride-hailing services that also offer food delivery, such as Go-Jek and Grab Bike. It has also exited Vietnam but remains operational in Singapore, Hong Kong, Thailand, Malaysia, the Philippines and Taiwan.

    In a partial share swap, the deal will see Rocket Internet’s stake in Delivery Hero increase from 30 per cent to 37.7 per cent. The sale will strengthen Delivery Hero’s global leadership position in online food ordering and delivery, with the combined group processing more than 20 million orders a month across 47 countries, says Rocket Internet.

    Bloomberg data shows that both companies together have raised more than $1.5 billion across several funding rounds with investors including Goldman Sachs and Insight Venture Partners.

    “The combination of Foodpanda and Delivery Hero, one of our most important companies, further consolidates key markets,” says Rocket Internet CEO Oliver Samwer. “Delivery Hero is also acquiring new markets.”

  • Angkasa Pura II Launches Airports App

    Angkasa Pura II Launches Airports App

    State-owned airport operator Angkasa Pura (AP) II president director Muhammad Awaluddin said that airports under AP II management are ready to serve passengers in this year’s holiday season. Awaluddin added that three airports have opened new terminals, namely Soekarno-Hatta International Airport in Jakarta, Husen Sastranegara Airport in Bandung, and Sultan Thaha Airport in Jambi.

    “We believed that the new terminals will improve our services for passengers, particularly in terms of capacity during peak seasons, such as this year end,” Awaluddin said on Monday, December 12, 2016, in Jakarta.

    Awaluddin revealed that passengers can now access information on flights, commercial tenants at terminals, and other important information related to airports operated by AP II via an app called Indonesia Airports.

    “The app is our new service, aimed at improving services, and a part of the smart airport campaign,” Awaluddin explained.

    Passengers at the Soekarno-Hatta International Airport can also enjoy superfast Wi Fi connection up to 50 Mbps.

    The number of passengers at 13 AP II airports during the year-end holiday season from December 22, 2016 to 4 January, 2017, is expected to reach 4.18 million, increasing by nine percent compared to that on regular days. Meanwhile, the number of flights is predicted to increase by 4.54 percent from 28,220 to 29,502.

    AP II will continue to intensify coordination with other stakeholders, such as airlines, the customs office, the immigration office, military and police to ensure smooth operation during the holiday season.

    The number of passengers is predicted to peak on December 23, 2016, while the counter-flow of passengers is expected to occur on January 1, 2016.

    AP II forecasted that the number of passengers at the 13 airports in 2016 would grow by 11 percent to 93 million passengers when compared to last year. The company expects that the number will exceed 100 million next year.

  • President Jokowi announces Garuda Indonesia`s direct flight to Mumbai

    President Jokowi announces Garuda Indonesia`s direct flight to Mumbai

    National carrier Garuda Indonesia will operate a direct flight from Jakarta to Mumbai, India, President Joko Widodo (Jokowi) has announced.

    The announcement was made during a joint press conference by President Jokowi and Indian Prime Minister Narendra Modi at Hyderabad House here on Monday.

    “I am pleased to announce that Garuda Indonesia, beginning today, will fly directly to Mumbai from Jakarta,” he said.

    The direct flight connecting the two metropolitan cities will help strengthen bilateral cooperation between the two countries, and support economic cooperation as well as people-to-people contact, the president said.

    Garudas maiden Jakarta-Mumbai flight on Monday was a Boeing 737-800 NG with a seating capacity of 156, comprising 12 business class seats and 144 economic class seats.

    The direct flight service is aimed at supporting the Indonesian governments objective of attracting more Indian tourists to Indonesia and strengthening the cultural and historical relations between the two nations.

    Around 270 thousand Indian tourists visited Indonesia last year, and 350 thousand this year, President Director of Garuda Indonesia M Arif Wibowo said in a statement.

    “As the number of Indian tourists continues to increase annually, we are sure that Mumbai is a prospective market for us,” Wibowo stated.

    Indian tourists now have better access to fly to Indonesian tourist destinations such as Bali, Yogyakarta, Surabaya (East Java), and Medan (North Sumatra), from Jakarta, he remarked.

    Garuda Indonesias Jakarta-Mumbai flight GA 862 via Bangkok will operate thrice a week. It will depart Jakarta at 5:55 am local time and arrive in Bangkok at 9:25 am local time. It will depart Bangkok at 10:20 am local time and land in Mumbai at 3 pm local time.

    The Mumbai-Jakarta flight GA 861 will also fly three times a week. It will depart from Mumbai at 5:35 pm local time, and arrive in Bangkok at 9:55 pm local time. It will depart Bangkok at 11:35 pm local time and arrive in Jakarta at 3:05 am local time.

    Garuda operates direct flights from Jakarta to various Asian countries such as Singapore, Malaysia (Kuala Lumpur), Thailand (Bangkok), China (Beijing, Guangzhou, Shanghai), South Korea (Seoul), Japan (Tokyo, Osaka) and Saudi Arabia (Jidda and Madinah).

  • Charging-device producer Anker aims to tap Indonesian market

    Charging-device producer Anker aims to tap Indonesian market

    Anker, a company based in Seattle, the US, and which specializes in USB charging products, has opened an official store in Jakarta, its first in Southeast Asia, in the hope of reaping benefits from the Indonesian market, the largest economy in the region.

    Anker’s regional sales head for Asia Pacific Romeo Luo told that the company had sold more than 300 million products globally this year and hoped to expand its leverage in Indonesia, particularly “with those people who are concerned about quality and safety, not just price.”

    “We are sure that our products can guarantee safety for smartphone users in Indonesia, particularly for high-end brands,” he said in Jakarta on Thursday.

    He said that opening the official store in Indonesia, home to around 250 million people, would be the first step by the brand before penetrating further into other countries in Southeast Asia.

    “I know the speed of the mobile phone sales growth here. The quantity is huge and most of those users will need power banks when stuck in traffic,” he said.

    He said he was confident that the brand could gain popularity in Indonesia, mainly as a result of the lack of similar competitors that exclusively specialized in power-charging products and consumer trends toward accessing social media, which is power consuming.

    Romeo added that by the end of 2017, the firm established in 2011 by former employees of search engine giant Google, expected to open 50 new outlets spread across major cities in Indonesia.

  • MasterCard eyes Indonesians craving exclusivity

    MasterCard eyes Indonesians craving exclusivity

    Global payments and technology company MasterCard is intensifying efforts to tap opportunities in the Indonesian premium market segments by offering a variety of exclusive rewards and services for its premium card holders.

    Among the select opportunities are wine privileges for the holders of MasterCard Platinum cards, access to passenger lounges at 750 airports for MasterCard World card holders and concierge services and exclusive dining for holders of MasterCard World Elite cards.

    “Premium customers currently want payment solutions that provide exclusivity and special access, and can be accepted globally and providing a variety of special services,” MasterCard’s president for Indonesia, Malaysia and Brunei, Safdar Khan, said recently.

    MasterCard is aiming for double-digit growth in debit and credit cards users in Indonesia next year, amid low credit card penetration in the country.

    Data from Bank Indonesia show that, as of September, there were around 123 million active ATM cards and debit cards in Indonesia. The number of credit card holders, meanwhile, reached 17.22 million in October, up 2.85 percent on the year.

    MasterCard has also recently sealed collaboration with domestic lender Bank Negara Indonesia (BNI) Syariah to provide ATM cards for the bank’s customers who go on the haj and umrah. They have cooperated with a private bank in Saudi Arabia to provide special ATMs to better assist Indonesian pilgrims.

    As the country with the largest Muslim population, Indonesia sees nearly 200,000 people go on the haj every year.

  • Garuda Indonesia now flies from Surabaya to Medina

    Garuda Indonesia now flies from Surabaya to Medina

    Garuda Indonesia has opened a new route to connect Surabaya in East Java to Medina in Saudi Arabia in a bid to expand its flight network in the Middle East and tap into the potential umroh (minor haj) market.

    Introduced on Tuesday at Surabaya’s Juanda International Airport, the all economy class flight will be available once a week on Tuesday using Airbus A330-300 that can accommodate 360 passengers.

    “Hopefully we can provide ease and comfort to East Javanese residents and others who are traveling on a pilgrimage since this direct flight will help save time and money,” said Garuda Indonesia Cargo Director Sigit Muhartono in a press release.

    The national flag carrier currently operates two direct international routes from Surabaya, to Singapore and Jeddah.

    Following the opening of the Surabaya-Medina route, Garuda Indonesia now operates a total of 34 flights to the Middle East from major cities in Indonesia.

  • Indonesia, Singapore cooperate in tourism

    Indonesia, Singapore cooperate in tourism

    Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan said Indonesia and Singapore have agreed to cooperate in a number of sectors such as tourism and energy.

    The fields of cooperation include tourism, development of liquefied natural gas (LNG), development of IT Park and sea waste processing into electricity energy.

    “We hope they will all be realized at the end of 2017. In the tourism sector, Singapore agreed to invest in the development of Lake Toba, the Buddhist Borobudur Temple and the Mandalaika,” the coordinating minister said in a written statement in Jakarta on Sunday.

    Indonesia has set itself the target of 20 million foreign tourist arrivals in 2019. The government is making all efforts to achieve the target by building a number of supporting facilities.

    Therefore, in its cooperation with Singapore, Indonesia is planning to build cruise terminals.

    According to the minister, the government is planning to develop the terminals in Tanjung Benoa, Palembang, Medan and Semarang. This is to attract some 300 cruise ships per annum.

    So far, the number of cruisers visiting Indonesia is still small, despite the fact that Indonesia is part of foreign destinations.

    Luhut has the target that in the coming two to three years, at least 150 cruisers will come to Indonesia.

    “On Wednesday, we will hold a meeting to discuss the plan to develop the cruise ship terminals,” he said adding that Singapore also agreed to provide tourist service training assistance.

    Regarding LNG, Luhut added that Singapore agreed to develop power generating plants in isolated islands in Indonesia.

    Singapore is viewed to have the technology for increasing the electrification in Indonesia.

    He also referred to the plan to develop IT parks in the form of data reading centers. On the plan, minister Luhut said he would communicate with the Ministry of Communications and Informatics.

  • Garuda the most loved airline in the world

    Garuda the most loved airline in the world

    The nations flag carrier Garuda Indonesia has received a citation of “The Worlds Most Loved Airline” from the Skytrax, the world airline rating agency.

    Garuda Indonesia President M Arif Wibowo said when receiving the citation here on Thursday that the airline topped other airlines with satisfaction rate of 85 percent.

    “Our greatest thanks for our customers and airline workers,” Arif said, attributing the high appreciation for the airline performance to cooperation of a team of thousands hands in creating the strong brand.

    He said he did not expect to receive the citation as he was not aware of the existence of that category.

    He said the citation would bring bout challenge and at the same time give the airline a motivation to create the highest standard of service.

    CEO of SkyTrax Edward Plaisted said the citation was given based on a survey involving respondents from 40 countries.

    Garuda competed with 420 other airlines included in the survey, Plaisted said.

    “Garuda deserves the citation for highest level of services and satisfaction,” he said.

    The airline provides good facility for both main, business and economic classes with five-star standard, he said.

    The airline has succeeded in taking a big leap forward after it was banned from flying to Europe several years earlier for poor service and performance including air accidents.

    It also began to chalk up operating profit only in the past several years after years of being in the red.

    Garuda also operated a budget subsidiary Citilink, which provided low-cost flights to multiple Indonesian destinations and was spun-off in 2012.

  • Garuda to fly wide body airplanes to Jayapura

    Garuda to fly wide body airplanes to Jayapura

    National carrier Garuda Indonesia will begin operating wide body aircraft such as the Airbus 330 or the Boeing 777 to Jayapura, in the eastern province of Papua, next year.

    The operation of wide body airplanes to Jayapura was part of the airlines efforts to expand its business to the eastern region of the country, President Director of Garuda Indonesia M Arif Wibowo said here on Friday.

    Garuda Indonesia will begin operating the wide body airplanes to Jayapura in January or February next year, Wibowo said.

    The expansion is also aimed at bolstering the tourism sector by luring more international and domestic tourists.

    “We focus on international flights to boost inbound tourism,” Wibowo said, adding that the airline was trying to encourage tourists to visit the countrys eastern regions.

    Wibowo said that the airport at Jayapura was ready to handle wide body airplanes such as the Airbus 330.

    Using a wide body aircraft will increase the passenger load capacity to 222, from 160 at present in a smaller plane.

  • Citibank sets conservative loan growth target

    Citibank sets conservative loan growth target

    Lender Citibank Indonesia expects to book single-digit loan growth next year although it believes lending will pick up speed in the second half of 2017, the company’s top management said on Wednesday.

    “For Citibank, we expect single-digit [lending growth]. It is better to be a bit conservative because we expect that lending will start to pick up in the third quarter,” Citibank’s CEO Batara Sianturi said.

    He said Citibank was confident that the economy would improve next year, partly because it expects the funds released from the tax amnesty to flow into Indonesia’s real sector.

    More liquid assets entering the country’s economy could be used to fund various projects, which would increase demand for loans, he said.

    Batara said the company would focus on pushing loan growth in all segments, which include institutional banking and retail banking.

    The lender’s financial report for the January-to-September period recorded that the bank’s loans decreased by 7.3 percent annually to Rp 39.07 trillion (US$2.9 billion) from Rp 42 trillion year-on-year.

  • BT partners with DCI on Indonesia cloud venture

    BT partners with DCI on Indonesia cloud venture

    BT, DCI Indonesia, and Equinix, a DCI partner, announced that they are working together to provide private cloud infrastructure in Indonesia.

    The companies said by using BT’s private cloud solutions as part of the BT Compute portfolio, enterprises active in Indonesia will now be able to reap the full benefits of the cloud to realise their digital transformation, launch new services more rapidly, mitigate risks, reduce costs and focus on business growth.

    The combination of BT and DCI data center capabilities also enables international businesses expanding into Indonesia to accelerate market entry, as they no longer need to invest time and resources to set up their own data center infrastructure and deploy business critical applications.

    Ron Totton, Southeast Asia managing director, BT, said, “Indonesia is a promising market for BT, where demand for private cloud and data center services is growing fast, especially in sectors such as finance, energy, and the telecom industry.”

    “This collaboration with DCI builds on our Cloud of Clouds portfolio strategy and is aligned to our ambition to be the world’s leading cloud services integrator. This will help give BT customers a competitive advantage in Indonesia and beyond,” Totton said.

    Through this collaboration, BT becomes the first global networked IT services provider to offer private cloud infrastructure in Indonesia. BT will be hosting its Point of Presence in DCI’s data center. By using the BT Private Compute platform, businesses can run a full range of applications, from network and storage to computing and security without having to invest into their own cloud infrastructure.

    DCI Indonesia is the only tier-IV data center service provider in Indonesia providing the most stringent service level agreement of 99.999% uptime through dual configuration infrastructure that ensures redundancy.

    Marina Budiman, president director of DCI, said “DCI is well-positioned to support the BT Private Compute platform.”

    “With DCI’s fault-tolerant infrastructure, strong financial ecosystem and global interconnection through Equinix’s Cloud Exchange, we believe our collaboration will provide BT’s customers with the best-in-class service in Indonesia,” Budiman said .

    Last year, BT was awarded the Siskomdat license, enabling it to offer its portfolio of networked IT services and applications directly to customers in Indonesia.

    DCI Indonesia has zero history of downtime since the first time it serves the market. This exceptional performance comes from solid experience from industry players with more than 20 years of experience in information technology, data center services and infrastructure management.