Tag: Indonesia

  • Bank Negara signs MoUs with Indonesian, Thai counterparts

    Bank Negara signs MoUs with Indonesian, Thai counterparts

    Bank Negara Malaysia, Bank Indonesia and the Bank of Thailand (BoT) signed two bilateral memoranda of understanding (MoUs) yesterday to facilitate the use of local currencies for settlements of trade and investments.

    A joint statement said Bank Negara and BOT, respectively, signed MoUs with Bank Indonesia on a framework of cooperation to promote the settlement of bilateral trade and direct investment in their local currencies.

    “Following the successful implementation of a similar arrangement between Bank Negara and BoT earlier this year, these bilateral arrangements will efficiently facilitate economic and financial activities among the three countries,” the statement said.

    “The enabling environment will benefit businesses by reducing transaction costs and enhancing efficiency of trade and investment settlements. Amid the current volatile global financial market conditions, this will offer businesses more options in choosing currencies for trade settlement.”

    The local currency settlement framework is expected to pave the way for wider usage of local currencies in the Asean Economic Community and spur further development of the regional foreign exchange and money markets, in support of wider economic and financial integration.

    The bilateral MoUs were signed by Bank Negara governor Datuk Muhammad Ibrahim, Bank Indonesia governor Agus D.W. Martowardojo, and BoT governor Veerathai Santiprabhob.

    Muhammad said in a separate statement that the arrangements signed yesterday were part of their continuous efforts to provide the institutional and policy framework to promote orderly financial market conditions and support the efficient management of financial risks.

    “In particular, these arrangements will enable exporters and importers in our countries to better manage foreign exchange risks by using local currencies to settle trade and investment activities,” he said.

    “In addition to improving cost efficiencies for businesses, the increased demand for local currency financial products will also contribute towards deepening the region’s financial markets.”

  • Bali`s economy  grows faster than national average

    Bali`s economy grows faster than national average

    Balis economy grew 6.17 percent in the third quarter of this year, exceeding the national average growth of 5.02 percent year-on-year in the third quarter of this year.

    “The growth, however, was slowed than 6.54 percent in the previous quarter,” head of the Bali representative office of Bank Indonesia Causa Iman Karana said here on Saturday.

    Iman Karana attributed the slower growth in the third quarter of this year to poor performance in government, non profit agency and household consumption, and investment, as well as in construction and in mining sector.

    Decline was also recorded in the procurement of electricity, gas and water, in whole sale and retail trade, in information , communication , financial and health services, he said.

    Iman Karana predicted that in the fourth quarter of this year Balis economy would grow 6.06-6.46 percent.

    The tourism sector is expected to grow in the last quarter of this year especially toward the end of the year.

    Winter in Europe would cause more holiday makers from that continent to visit Bali.

  • Hong Kong is the new target for J.Co Indonesia

    Hong Kong is the new target for J.Co Indonesia

    J.Co Donuts & Coffee, the Indonesian ‘lifestyle cafe’ chain has further expanded its Asian footprint, opening its first store in Hong Kong this week.

    The 11 year-old brand now has 250 stores in its home market,Malaysia, Singapore and the Philippines – and now on Hennessy Road in Wan Chai.

    A review in Coconuts Hong Kong describes the new store as “an indecisive person’s worst nightmare”, because customers can either select their own combinations or let the staff suggest donut-coffee pairings, “like wine pairings, but actually acceptable for children and teetotallers”.

    The store has a core range of 24 flavours – and the indecisive can order a box of mini donuts (one of each flavour) to take away fro HKD98. Standard-sized ones sell for HKD15 each, or HKD88 for six.

    In keeping with the brand’s quirky, unique market positioning which sets it apart from US donut store brands, the food comes in celebrity-inspired names, such as strawberry-and-cream cheesy Berry Spears, the nutty, chocolate Jackie Chunk and the fruity Blueberrymore.

    J.Co Donuts & Coffee also offers an extensive coffee menu, frappes and even a ‘Hot Tiramisu’ drink.

     

  • Foreign tourist arrivals in Bali reach 4.07 mln

    Foreign tourist arrivals in Bali reach 4.07 mln

    The tourist resort province of Bali, which had received 4.07 million foreign tourist arrivals up to October, is expected to have attracted more than 4.4 million more tourists by the end of the year.

    “Foreign tourist arrivals account for 40 percent of the national target of about 15 million tourists,” said the Head of the Bali Provincial Tourism Office, A.A. Yuniartha Gede Putra, here on Friday.

    He added that the foreign tourist arrivals in Bali are expected to go up to 5.5 million in 2017.

    Putra said foreign tourists in Bali mainly came from ten countries, namely Australia, China, Japan, Britain, France, India, Malaysia, the United States, Germany and South Korea.

    “Given the uniqueness of Balinese art and culture, it attracts tourists from various countries around the world,” Putra noted.

    He noted that he promoted the region in various countries to lure more travelers to Bali. The Ministry of Tourism also made similar efforts.

    Besides, steps were taken to improve cultural tourism as Bali has a regional identity.

    He urged everyone to ensure that the local tourism department works well so that tourists in Bali feel safe and comfortable as they enjoy their holidays.

    Referring to Australian governments travel advisory, tourism observer Putu Gede Perma claimed it will not affect tourist visits to Bali.

    “Based on our observations and the results of the academic studies on the impact of this travel advisory, we have deduced that the advisory did not have any impact on the number of Australian tourists visiting Bali,” Putu Gede Perma informed here on Thursday.

    Australian tourists were of the view that bomb attacks can happen anywhere in the world and were not unique to Bali, he stated.

    “They will not delay or cancel their planned trips to Bali,” remarked Gede.

    Gede, who is also an academician at the Ganesha Education University, hoped that Australian tourists would not blindly follow their governments recommendation.

    “We found that Australian tourists had continued to come to Bali, irrespective of how serious the advisory was,” he recalled, adding that the situation was unlike what had happened more than a decade ago when Bali was crippled by bomb attacks.

    “Yes, it did affect tourism. After the Bali 1 and Bali 2 bombings, a travel advisory had significantly reduced the influx of Australian tourists,” he conceded.

    He called upon the police and military officers to remain alert to terror threats, particularly after the arrest of terrorists in South Tangerang, Banten, by the polices anti-terror squad, Densus 88, on Wednesday (Dec 21).

    “Bali will always remain a target. Security officers and the people should, therefore, continue to maintain security and order. We should be watchful of suspicious visitors,” the tourism observer stressed.

  • Ethiopian Airlines to enter Indonesian aviation market in 2017

    Ethiopian Airlines to enter Indonesian aviation market in 2017

    Africa’s largest airline group, Ethiopian Airlines, on Wednesday announced its plans start scheduled flight services to Jakarta, the Indonesian, in June 2017. According to a statement released on behalf of Ethiopian Airlines by Jedidah Promotions, a travel consulting group, the African aviation giant, will be using the ultra-modern Boeing 787-800 to link up its numerous customers with Jakarta, which is Indonesia’s economic, cultural and political center.
    Indonesia, which is made up over more than 13,000 islands is the 4th most populous country in the world and, with this new service, Ethiopian Airlines will be rendering service to all five of the most populous countries on earth. Ethiopian is a multi-award winning airline, registering an average growth of 25 percent in the past seven years.
     “As the fastest growing airline in Africa, Ethiopian is pleased to offer the opportunity to business people as well as tourists to explore Jakarta’s potential both for investment and leisure. This move will further increase our presence in Asia, connecting Africa to the Asia region and in turn strengthening the tourism and trade ties between the peoples of Africa and Asia,” said Tewolde GebreMariam, who is the Group CEO of Ethiopian Airlines.
    According to him, Ethiopian Airlines is working very hard to connect Africa with the major trading centers of the world and Jakarta, Indonesia is one of them. “Moreover, pilgrims and the West African community residing in Indonesia will be enjoying hassle-free connections to Ethiopian’s vast African network via its hub at Addis Ababa,” said GebreMariam.
    Ethiopian is touted by its management as a global carrier that operates the youngest and the most modern fleet on the African continent, with an average aircraft age of less than 5 years, serving more than 90 international destinations across 5 continents through over 240 daily departures.

    The company is the fastest growing Airline in Africa and, in its seven decades of operation, Ethiopian has become one of the continent’s leading carriers, unrivalled in efficiency and operational success.

    Ethiopian commands the lion’s share of the pan-African passenger and cargo network, operating the youngest and most modern fleet to 95 international destinations across five continents. 
    Its fleet includes ultra-modern and environmentally friendly aircraft such as Airbus A350, Boeing 787, Boeing 777-300ER, Boeing 777-200LR, Boeing 777-200 Freighter and Bombardier Q-400 double cabin. It is also the first airline in Africa to own and operate these categories of aircraft.
    Ethiopian is currently implementing a 15-year strategic plan called Vision 2025, which it projects to see it become the leading aviation group in Africa with seven business centers, including the Ethiopian Domestic and Regional Airline, the Ethiopian International Passenger Airline, Ethiopian Cargo and the Ethiopian MRO.
    Others are the Ethiopian In-flight Catering Services, and the Ethiopian Aviation Academy and the Ethiopian Ground Service.
  • Toby’s Estate Indonesia Launches with North Jakarta Flagship

    Toby’s Estate Indonesia Launches with North Jakarta Flagship

    The 15-year-old Australian-born specialty coffee powerhouse Toby’s Estate has expanded its roasting and retail presence to Indonesia, opening a flagship location in Jakarta on Dec. 10.

    Founded by Toby Smith in Sydney in 2001, the company has since expanded to New York and the Philippines, with each market receiving its own roasting division and brand under the Toby’s Estate umbrella. The company has primary Australian retail outposts in Chippendale, Brisbane and Melbourne, and the New York division has four current locations, with at least one more on the way.

    The Jakarta location is naturally the company’s second within a producing region, with Indonesia being the fourth largest producer in the world. Offering a range of single-origin coffees from throughout the world, Toby’s does source from Smith’s own Toby’s Estate farm — Finca Santa Teresa in Panama — while the Jakarta location has opened with at least one single-origin coffee from Mandheling, Indonesia.

    Toby's Estate Indonesia photo.

    In addition to a full food menu with items such as buttermilk fried chicken and Brioche French Toast — along with other Aussie café staples such as avocado toast — the Toby’s team pulled no punches on gear, with a Mavam setup and a Kees van der Westen Spirit helping to power the espresso program.

    Toby’s Estate Indonesia is now open at Pik Avenue Ground Floor, #E2 in North Jakarta.

  • Four big banks support Bank Indonesia’s National Payment Gateway

    Four big banks support Bank Indonesia’s National Payment Gateway

    In order to support Bank Indonesia’s (BI) plan for an integrated payment system called National Payment Gateway (NPG), four banks inked an agreement on interoperability and interconnectivity of debit cards and electronic money on Wednesday.

    The agreement was signed by state-owned lender Bank Rakyat Indonesia (BRI), Bank Mandiri, Bank Negara Indonesia (BNI) and the country’s largest private lender Bank Central Asia (BCA) that act as acquirers and represent 75 percent of debit transactions in the country.

    Besides the four banks, three switching companies, namely Artajasa Pembayaran Elektronis, Rintis Sejahtera and Alto Network also support BI’s plan to implement NPG.

    “NPG is expected to solve problems and increase efficiency of Indonesia’s payment system nowadays. Currently, the payment system infrastructure is deemed inefficient due to limitation of interoperability and interconnectivity between principals,” BI executive director of communications Tirta Segara said in a press statement.

    NPG is a system that processes payment transactions electronically through a variety of instruments, such as ATM cards, electronic money and credit cards. With NPG, people are able to carry out non-cash transactions from any bank in the country, using any kind of instrument or channel.

  • Tourism Investment Grow 23 Percent

    Tourism Investment Grow 23 Percent

    Tourism Minister Arief Yahya said that investment realization in tourism sector during January to September 2016 reached US$1,094 billion (Rp14.7 trillion), a 23 percent increase year-on-year. “The highest [percentage of] investment was made in star hotel development,” Arief said yesterday as quoted from the Tourism Ministry website.

    Tourism investment realization comprised of foreign investment (PMA) of US$594.59 million and domestic investment (PMDN) of US$139.06 million. Foreign investment in star hotel development made up 56 percent of total investment. The rest consisted of management consulting (27 percent) and restaurant (7 percent). Domestic investment comprised star hotel development (65 percent), water tourism (21 percent) and amusement parks (4 percent). Some 51 percent were Singapore-based investors.

    On tourist arrivals, Arief said that the number of foreign tourist arrivals from January to October 2016 was 9,403,641 or grew 9.54 percent year-on-year. He expects that until late December, the target of 12 million foreign tourist arrivals will be exceeded, with an estimated 1.3 million arrivals in November and 1.5 million arrivals in December. “I’m optimistic that it will be surpassed as the said months are the peak periods,” he said.

    To attract tourists in 2017, Arief will roll out three priority programs: digital tourism, homestay and air connectivity. According to him, digital tourism is a strategy to win global markets, particularly that of 26 countries. Digital tourism program will kick off with the launch of ITX (Indonesia Tourism Exchange), which will bring together travel agencies, accommodation operators and attractions to facilitate transactions.

    Earlier, President Joko Widodo had instructed his subordinates to bring in up to Rp670 trillion worth of investment. According to Jokowi, investment proposals in tourism sector can help the government to achieve the target. “We must simply establish the product support, positioning, packaging and promotion.”

    The Investment Coordinating Board (BKPM) chairman Thomas Lembong said that several Chinese investors are interested to develop national tourism industry. He named Fosun International and HNA Group as prospective investors. Fosun International is a company actively investing in tourism and fashion industries. The HNA Group is China’s first airline company.

  • BlackBerry has no plans to move BBM servers to Indonesia

    BlackBerry has no plans to move BBM servers to Indonesia

    Back in June, BlackBerry announced a new partnership with Indonesia-based Emtek to help expand the consumer BBM business. Since then, several inaccurate articles have come out about who now owns BBM and most recently, several outlets published articles noting that BlackBerry would be moving BBM server(s) to Indonesia. Looking to clear the air surrounding that information, BlackBerry COO Marty Beard, has taken to the Inside BlackBerry blog to lay out the situation accordingly.

    In June, we struck a partnership with Indonesia’s leading media company, Emtek, to license the rights to develop and offer cross-platform BBM.

    The goal was to better serve our many BBM users, and, in particular, our 60 million monthly active users in Indonesia, by working with a trusted partner who we know can accelerate the delivery of new features and services for BBM. That goal has been more than met – see all of the new security features, mobile shopping offerings, mobile games, and more that have become available on BBM in the last several months.

    However, we’ve read some inaccurate press reports that tell a different story and we want to bring the facts to light. First of all, let’s be clear. BlackBerry owns 100% of BBM. We have merely licensed the rights to the Android, iOS and Windows Phone versions of BBM to a newly formed subsidiary of Emtek named Creative Media. BlackBerry maintains direct control over the BBOS and BlackBerry 10 versions of BBM, as well as BBM Enterprise (formerly BBM Protected).

    Businesses running BBM Enterprise for the ultimate in high-security mobile communications can remain confident that there will be no changes, disruptions or degradation of their service. It is also important to note that there are NO plans to move any BBM infrastructure, including BBM servers located in Canada and the U.S., to Indonesia, contrary to what the Head of Creative Media apparently communicated to the media.

    BlackBerry and Emtek are 100% aligned on their vision to advance BBM for consumers and on making sure our many Indonesian users continue to have the best experience possible. We remain extremely committed to Indonesia and our fans there. To that end, we have ensured that Indonesian consumers will have ready access to our handsets through our partnership with PT BB Merah Putih..

  • Apple targets Indonesia with $44 million in R&D investment

    Apple targets Indonesia with $44 million in R&D investment

    Apple is working hard to break into the Indonesian smartphone market, announcing plans to invest roughly $44 million in a research and development (R&D) center over the next three years.

    The investment will let the company sell its iPhone 7 there after the Indonesian government recently announced that as of January 2017, all 4G-enabled phones sold in the country must include at least 30% local content, which can be reached via hardware, software, or an investment.

    Indonesia presents a massive growth opportunity for Apple, which posted its first annual decline in revenue in 15 years during Q3 2016. The year-over-year decline is primarily due to the decelerating global smartphone market since the iPhone comprises almost two-thirds of the company’s total revenue.

    Nevertheless, Apple is unlikely to find immediate success in Indonesia, much as it has in other emerging markets such as India. The smartphone market is largely controlled by Samsung, which accounted for 26% of smartphone shipments in Q2 2016, according to IDC. Meanwhile, low- to mid-tier devices from local and Asian vendors such as OPPO, ASUS, Advan, and Lenovo make up the rest of the top five vendors, by share.

    The low- to mid-tier smartphone market is a key area in which Apple does not yet have a significant presence. This is a missed opportunity Piper Jaffray analyst Gene Munster noted during Business Insider’s IGNITION conference in December. And while the iPhone SE at $400 could be seen as an attempt by the company to partly capture the mid-tier market, it’s still marginally more costly than those being offered by local and Asian vendors. The OPPO F1, for instance, retails for around 3.8 million Indonesian Rupiah (roughly $283 USD).

    The global smartphone market is expected to slow considerably over the next few years. Despite a record-setting holiday quarter, 2015 was likely the last year of double-digit growth for smartphone shipments.

    Mature markets were at the heart of this year’s deceleration. Adoption has reached new highs in key markets in the United States, Europe, and China. The pool of first-time buyers in these countries is shrinking rapidly, and sales are now primarily coming from phone upgrades.

    Meanwhile, emerging markets will continue to see robust shipment growth. India and Indonesia, in particular, will help fuel a large share of the shipments growth within the global smartphone market over the next few years.

  • Indonesian property players welcome house price increases for foreign buyers

    Indonesian property players welcome house price increases for foreign buyers

    The government’s decision to increase house prices for foreign buyers has been met with positively by Indonesian real estate business players, who reason that it will help to protect the domestic property market.

    “If the government keeps the price low for foreign buyers, Indonesians will be forced to bear the high price jump. Therefore, I think this is a right decision,” Association of Housing Development in Indonesia (Apersi) chairman Eddy Ganefo said on Tuesday. He explained that the higher purchasing power of foreigners might hurt the domestic industry.

    The price increase is stipulated in a regulation issued by the Agrarian and Spatial Planning Ministry.

    The minimum house price set for foreigners in Yogyakarta and Bali now stands at Rp 5 billion (US$371,112) per unit, up from Rp 3 billion under a previous regulation.

    In West Nusa Tenggara and North Sumatra, the minimum price also jumped to Rp 3 billion from Rp 2 billion.

    Indonesian Real Estate Association (REI) chairman Eddy Hussy said he was optimistic that the changes in price would not affect demand from foreigners to purchase houses.

  • Lotte Mart opens 46th store in Indonesia

    Lotte Mart opens 46th store in Indonesia

    Lotte Mart, a discount store chain operated by retailer Lotte Group, said Wednesday it has opened its 46th store in Indonesia in line with its global growth strategy.

    With floor space of 5,572 square meters, the Pramuka shop opened on the underground floor of a commercial-residential building in Jakarta with some 7,000 households.

    Lotte Mart’s 16th retail outlet in Indonesia has a health and beauty section, as well as young children and fresh food corners, the company said.

    Lotte Mart also operates 26 wholesale stores and two supermarkets in the world’s fourth most populous nation.

    Currently, Lotte Mart runs a total of 290 stores in South Korea, China, Indonesia and Vietnam, and plans to raise the number of shops to over 300 next year.

  • Indonesia challenges Google to disclose financial reports

    Indonesia challenges Google to disclose financial reports

    The Directorate General of Taxation will intensify its investigation on the suspected unpaid taxes by tech behemoth Google, claiming that the company’s tax settlement offer was too small.

    The government said that it would continue investigating Google as it has gathered preliminary evidence indicating that the firm has allegedly committed a criminal act.

    “Next year, it is not going to be about a tax settlement anymore,” Muhammad Haniv, the head of the Taxation Directorate General’s Jakarta branch, who is also the main investigator in the case, said on Tuesday.

    “We have to accelerate the process. We want Google to disclose its financial reports and the tax office will calculate the tax owed,” he said.

    He said the consequence of the tax office’s findings would be that Google had to pay taxes owed plus a 150 percent penalty.

  • Samsung Maintains its Market Dominance followed by OPPO and ASUS in Indonesia

    Samsung Maintains its Market Dominance followed by OPPO and ASUS in Indonesia

    According to International Data Corporation’s (IDC) latest Quarterly Mobile Phone Tracker, total smartphone shipment in Indonesia in 2016Q3 recorded a slight Quarter-On-Quarter (QoQ) drop of 7% but still showed a moderate increase of 4% over the same period last year. “After the peak season of Lebaran ended, a stretch of quiet business begun in 2016Q3 which forced smartphone vendors to lower their shipment and focus more on improving the sales performance as well as laying the groundwork in anticipation of the peak shopping season in 2016Q4.” Says Reza Haryo, Senior Market Analyst, Client Devices, IDC Indonesia.

    Key highlights in the Indonesian smartphone market in 2016Q3 include: 

    US$250<US$300 price band segment grew significantly, which was contributed by the traction of OPPO’s F1s and Samsung’s Galaxy J7. However, when considering the Indonesian market as a whole, the US$100<US$200 segment remained the sweet spot, thanks to the demand for entry level 4G phones which usually offers the combination of 2GB ram and 16 GB internal storage.

    The share of 4G phones have also increased from 58% in 2016Q2 to 68% in 2016Q3 and had 8% sequential growth. This is largely due to the fact that telco service providers have been competing to expand their market share in a bid to capitalize on the growing number of smartphone users in the country through data bundling packages. In line with this expansion, the portion of smartphones sold in telco channel has also increased 22% YoY.

    “Indonesians use smartphones for entertainment purposes such as social messaging, video streaming, gaming, as well as browsing. Hence, there is a demand for the larger screen sized phones and the share of phablets have increased from 11% in 2015Q3 to 16% in 2016Q3. Most of the volumes came from major vendors such Samsung, OPPO and Asus. Samsung’s Galaxy J7, OPPO’s F1s and ASUS’ Zenfone Selfie were among the most popular models.” Adds Haryo.

    Top Five Vendor Highlights in 2016Q3 

    Samsung’s consistent marketing campaigns in retail shops enabled the vendor to increase shipments despite having a slower demand. This also extended the gap between the market leader and its competitors. The fallout from the Note 7 incident had relatively little impact on its brand perception in Indonesia.

    OPPO decreased sequentially relative to the non-peak period but still maintained its aggressive online and offline marketing activities. OPPO’s direct to retail strategy with various marketing supports continued to allow OPPO to increase its retail presence.

    Asus continued to rely heavily on the affordable Zenfone Go but the lack of marketing efforts throughout the quarter brought about its decline in the market.

    Advan introduced 8 low-cost 4G models in 2016Q3 alone. 4G models have been quick to pick up, partly thanks to the local vendor’s marketing activities heavily focusing on retail channels.

    Smartfren. As a local vendor that also operates as a telco provider, Smartfren tried to book more revenue from data services and recorded a 17% sequential decline for its smartphone shipment. Aside from bundling programs with leading smartphones such as the Samsung J Series, Smartfren have been consistent in promoting their Mifi product with attractive bundling program.

    Lenovo decreased sequentially relative to the non-peak period choosing to focus on sell-out instead. A6000, A1000 and A2010a were their top 3 models shipped in 2016Q3 in terms of units.

    Overall Positive Outlook for Indonesia

    IDC maintains the forecast for 2016 as the market is expected to expand significantly in Q4 and high demand during the festive season will allow vendors to increase shipment volume to reach targets. In addition, the continuous economic improvement from heavy infrastructure investment will continue to boost the Indonesia economy.

    The Local Content regulation (TKDN) is getting more accepted in a sense of clearer approach. A number of vendors including Xiaomi, LG, and Blackberry have now showed commitment to comply with this regulation. In the short term, it is expected that the industry will be focusing on local assembly but the challenge remains from the inadequate component supply chain ecosystem. But in the longer term, depending on the effectiveness of incentives provided by the government, more component manufacturers could move to Indonesia. This means that vendors would need to be prepared to have end-to-end manufacturing in Indonesia instead of just assembly. Hence, we expect that the future outlook will remain positive for 2017 onwards,” ends, Haryo.

    Channel dynamics

    With the intense competition and relatively low demand in 2016Q3, it caused vendors to put their utmost focus on liquidating stocks through improvement to their channels. The Direct to retail approach by cutting down the intermediaries has proven to help the sell-out of OPPO. IDC believes smartphone vendors will try to replicate this distribution strategy soon but this will require a strong retail relationship which only the larger vendors will be able to execute given the large volumes that they have and that they are more established in the market.

    Telco collaboration

    “Telco providers need to challenge the status quo and find ways to innovate as their core business continues to be pressured by over the top players which could be significant threats in revenue loss even as mobile data traffic grows exponentially. With an advanced network infrastructure and strategic partnership between telco providers, over the top players and hardware vendors, IDC believes that Telco providers and smartphone vendors can leverage the increasing demand for over the top players to drive up ARPU as well as brand exposure,” ends, Haryo.

  • The rupiah may soon have three fewer zeros

    The rupiah may soon have three fewer zeros

    Indonesia’s central bank governor said yesterday that the bank is seeking to slash three zeros off the face value of rupiah notes to simplify its currency system.

    Bank Indonesia Governor Agus Martowardojo said he has asked President Joko Widodo to revive a previously shelved plan to redenominate the rupiah to make it “more efficient and simpler”.

    A draft law backing redenomination was submitted to parliament in 2013, but it was put aside due to instability in Indonesia’s financial markets then

    If approved, the central bank would need two years to prepare new notes and another seven years of transition, Mr Martowardojo s.aid.

    “Prices of goods and services have to also be simplified. Because of the transition period, in which people can use both the old and new rupiah denominations, we are sure it wouldn’t affect inflation,” he said at the launch of a new series of new currency designs.

    The largest rupiah denomination is currently 100,000 and the smallest is 1,000.

    Indonesian Finance Minister Sri Mulyani Indrawati said she would discuss the proposal with parliament. However, it is not on the list of current legislative priorities for next year.

    “A redenomination would strengthen assurance in Indonesia’s currency, but it does not affect anything nominally,” she told reporters.