Tag: jakarta

  • Indonesia’s New Capital Already Attracting Speculators

    Indonesia’s New Capital Already Attracting Speculators

    Indonesia’s decision to relocate its capital from Jakarta to eastern Borneo is already attracting speculators and inflating land prices, according to a local industry body, which is urging President Joko Widodo to take measures to differentiate between pure profiteers and real developers.

    I’ve heard that land prices are rising already, said Soelaeman Soemawinata, chairman of the Association of Indonesian Real Estate Companies which represents more than 5,000 member firms.

    We must set developers and speculators apart. Speculators don’t develop anything as they just wait until land prices increase, and then sell. Developers expect the government to secure the land, which can be developed by them.»

    The government controls about 180,000 hectares of land in the future capital, triple of Jakarta, in a $33 billion project to build the new landmark city from scratch with support from both the public and private sector. Indonesia plans to begin construction by 2020-end and start the relocation in phases starting from 2024.

    Despite limited access to lands in the East Kalimantan province due to it mostly being protected and commercial forestry under government control, developers remain upbeat with various plans underway from basic infrastructure to luxury condos.

    Still, the association and Soemawinata want further tightening to screen participants. He said the association wanted President Widodo to provide a legal basis for the participation of private developers» considering that construction could last through several regimes.

    The move to relocate Indonesia’s capital is meant to ease pressure on the congested and sinking Jakarta and spread economic activity outside the island of Java.

  • Amazon In Talks For Stake In Indonesia’s Ride-Hailing Startup Go-Jek

    Amazon In Talks For Stake In Indonesia’s Ride-Hailing Startup Go-Jek

    Amazon.com Inc is in early talks with Go-Jek Group to buy a stake in the Indonesian ride-hailing startup, a source familiar with the matter told Reuters on Wednesday.

    Details of the stake were not known and the source did not want to be identified as the talks are private.

    Both Amazon and Go-Jek did not respond to a Reuters request for comment.

    Indonesia’s first unicorn, Go-Jek, has up to 20 services and has evolved from ride-sharing to allowing its customers to make online payments and order everything from food to groceries.

    Earlier this year, Amazon also bought a stake in British online food delivery company Deliveroo as it competes with Uber Technologies Inc’s Uber Eats in the global race to dominate the market for takeaway meals.

    Reuters reported in July that Amazon is expanding its transportation prowess to do virtually everything short of building a car.

    Go-Jek, which counts Alphabet Inc’s, Alibaba Group Holdings Inc, Tencent Holdings and Visa Inc (V.N) as investors, last raised here funding in July at a valuation of around $10 billion.

  • Uniqlo Indonesia plans several new stores

    Uniqlo Indonesia plans several new stores

    Japanese clothing retailer Uniqlo in Indonesia is set to launch new outlets in Batam, as well as Jakarta and Bekasi next month.

    The Batam store, opening in the Grand Batam mall in Penuin, Lubuk Baja, will be the first Uniqlo in Indonesia to be located in the city. The company hopes it will help locals avoid travelling to other cities to purchase the brand’s collections.

    The new Jakarta outlet is slated for Mall of Indonesia in Kelapa Gading, while the Bekasi opening is at Grand Galaxy Park – bringing the total number of locations in the territory to 29 stores in nine cities.

    “The addition of stores in Jakarta and Bekasi will further strengthen our presence in providing our Lifewear products and services in these cities,” said Uniqlo Indonesia’s president director of PT Fast Retailing Naoki Kamogawa.

  • Retail sales in Indonesia decline

    Retail sales in Indonesia decline

    Retail sales in Indonesia declined 1.8 percent in June, compared with an annual growth rate of 7.7 percent a month earlier, a central bank survey showed on Thursday.

    The last decline from a year earlier was in January last year when retail sales also dropped 1.8 percent.

    The survey predicted retail sales would rise 2.3 percent on an annual basis in July, when the new school year begins.

  • AirAsia keeps improving flight services

    AirAsia keeps improving flight services

    AirAsia won for the 11th time at the prestigious Skytrax World Airline Awards as the world’s best low-cost airline during the Paris Air Show in Le Bourget, Paris, France, in the middle of June 2019. But despite the awards, it has never let itself get complacent.

    The airline keeps its commitment to continue increasing and improving its flight services for domestic routes and foreign routes, by being continually committed to providing low cost but quality flight services on all of the routes it serves.

    In July 2019, the airline launched three new routes from Jakarta to Sorong in West Papua, Lombok in West Nusa Tenggara and Semarang in Central Java. The new routes will start operating on Sept. 1 and will be served by Airbus A320 aircraft with a capacity of 180 seats. In June, AirAsia launched five new domestic routes. The five round-trip domestic routes are Jakarta-Lombok (11 flights per week), Bali-Lombok (seven flights per week), Yogyakarta Kulonprogo-Lombok (three flights per week), Bali-Labuan Bajo (seven flights per week) and Surabaya-Kertajati (three flights per week). AirAsia will start operating its flight services on the five new domestic routes from Aug. 1 onwards.

    In an effort to attract more passengers to the new routes, AirAsia is offering special prices, namely for Jakarta–Lombok starting from Rp 635,000, Bali–Lombok from Rp 243,000, Surabaya–Kertajati from Rp 626,000. All the prices are one-way but include tax and free baggage up to 15 kg.

    The flight tickets, which are offered at a price of Rp 2.49 million for Jakarta-Sorong, Rp 590,000 for Jakarta-Lombok and Rp 341,000 for Jakarta-Semarang, can be ordered at airasia.com and through the AirAsia application. The prices are only for one-way but include passenger service charge and free baggage up to a maximum of 15 kg. The prices are only available on flights booked until July 28, for flights from Sept. 1 until Oct. 26.

    Sorong is the largest city in West Papua and stands as a gateway to Raja Ampat, one of the most exotic and beautiful tourist destinations in Indonesia.

    In Lombok, where AirAsia has recently opened its new hub, travelers can enjoy a number of enchanting destinations, such as Bukit Merese, the Gili Islands, Tanjung A’an, Pink Beach and Mandalika.

    In Semarang, which is also known as the little Netherlands, travelers can trace its history through the old buildings mostly from the Dutch colonial era, while hunting for local delicacies along the exotic journey.

    Besides the route expansion, last month AsiaAsia also offered five million cheap tickets through its Big Sale 2019 program for various domestic and international destinations. The promotional tickets include those on favorite routes, such as Jakarta-Singapore at a price of only Rp 150,000, Medan-Penang from Rp 230,000 and Surabaya-Bali from Rp 359,000.

    The airline has also introduced a new standard of flight comfort with its Airbus A330neo, which will certainly change the public perception of long-distance flights. It will offer the best value of ticket prices for 30 long-distance destinations in 10 major markets of AirAsia Group.

    “Besides developing international connectivity to support the visit of foreign tourists to Indonesia, this year, as we promised, we are focusing on expanding our domestic routes, especially those to eastern Indonesia.,” said AirAsia’s president director Dendy Kurniawan recently during the ceremony to launch the new routes.

    Currently, AirAsia Indonesia operates a total of 292 flights per week from Jakarta to various domestic and international destinations, such as Kuala Lumpur, Penang, Bangkok, Phuket, Surabaya, Yogyakarta and Bali.

    Overall, AirAsia serves more than 700 flights per week on 38 direct routes from 15 cities of Indonesia for domestic and international routes. It has a fleet of more than 200 airplanes of the type Airbus A320-200 and Airbus A330-300 in six countries, namely Indonesia, Malaysia, Thailand, Philippines, India and Japan, with more than 140 international destinations in Asia, Australia, the Middle East and the US.

    “We’ll continue to be committed to providing low cost but quality flight services in Indonesia. We realize it through the principle of efficiency, innovation and operation digitalization. It is not just a marketing gimmick. It is part of our vision and mission to realize ‘Now Everyone Can Fly,” Dendy Kurniawan concluded.

  • DBS Inks Sustainability-Linked Loan in Indonesia

    DBS Inks Sustainability-Linked Loan in Indonesia

    The export financing sustainability-linked loan is the first of its kind in Indonesia. DBS Bank Indonesia has signed a sustainability-linked export financing loan with wooden door manufacturer PT Sumatera Timberindo Industry (STI), the bank said in a press release on Wednesday.

    DBS said the loan is evaluated based on a target of obtaining timber and raw materials from sources certified by the Forest Stewardship Council (FSC). Its interest rate will be reduced for each shipment of raw material that has an FSC certification that the raw material is responsibly sourced.

    STI is a FSC-certified company focused on responsible sourcing, manufacturing and exporting of sustainable-certified products. According to director Hidayat Ang, STI’s synergies with DBS in advancing sustainability support the company’s long-term growth and empower the local community to do good for the environment.

  • AirAsia launches three new routes for Jakarta flights

    AirAsia launches three new routes for Jakarta flights

    Low-cost carrier AirAsia is launching three new routes for direct flights from Jakarta to Sorong, West Papua; Lombok, West Nusa Tenggara; and Semarang, Central Java. These flights will start operating on Sept. 1 using the Airbus A320 plane with a 180 seat capacity.

    The airline is offering a special price for a one-way ticket for these flights starting from Rp 2.7 million (US$193.97) for Jakarta – Sorong, Rp 634,000 for Jakarta – Lombok, and Rp 341,000 for Jakarta – Semarang. All of these flights are available through airasia.com or the AirAsia mobile apps. The offer is available starting from July 20 to 28 for flights from Sept. 1 to Oct. 26.

    AirAsia Indonesia CEO Dendy Kurniawan said that his company was currently focusing on expanding its domestic and international routes.

    “We showed our commitment to provide affordable and high-quality flights through this offer,” Dendy said through a written statement.

    According to Dendy, the ticket includes 15kg checked baggage for passengers.

    “We hope that our service will be able to boost economic growth, especially in tourism,” Dendy said.

  • Visa takes stake in startup Go-Jek

    Visa takes stake in startup Go-Jek

    Digital-payments company Visa has invested an undisclosed amount into Southeast Asian ride-sharing and services startup Go-Jek giving it a foothold in the company’s payments platform.

    The two companies say they will work together to provide greater options for cashless payments and more seamless experiences for consumers across Indonesia and Southeast Asia.

    Indonesian-based Go-Jek, which has since launched in Vietnam and Thailand, has created Go-Pay which is one of the leading digital-payment providers in Indonesia and established itself as a regional rival to GrabPay

    “The partnership will see Go-Jek and Visa collaborating on innovative payment solutions for digital-first consumers and Southeast Asia’s unbanked and underserved population,” the two companies said in a statement.

    “Financial inclusion in Southeast Asia continues to be an urgent and important issue. The vast majority of Indonesia’s transactions are still cash-based and the adoption of digital payment services is as low as one-in-four users in markets like Vietnam. Addressing this opportunity could increase Gross Domestic Product levels by between 9 per cent and 14 per cent, even in relatively large Southeast Asian economies,” the statement said.

    Visa regional president Asia Pacific, Chris Clark said Visa and Go-Jek share common objectives. “We both want to make everyday life more convenient, whether it’s how people move around town in Southeast Asia’s fast-growing urban areas, or making it easier for people to pay and be paid all over the world. We also have a shared goal to bring formal financial services to the unbanked and underserved, including micro, small and medium businesses. Through this partnership, we will explore ways to leverage the power of Go-Jek and Visa’s networks to expand financial access in Southeast Asia.”

    Go-Jek president Andre Soelistyo said Visa’s investment in the company is an endorsement of its business model.

  • Indonesian brand Palm Lagoon opens at Trans Studio mall

    Indonesian brand Palm Lagoon opens at Trans Studio mall

    Indonesian brand Palm Lagoon, which specialises in resort wear, has opened at Bali’s Trans Studio mall.

    The 207sqm boutique offers a curated selection of apparel, footwear, bikinis, swimwear, bags, sunglasses, watches and jewellery, targeting women and men.

    Brands sold include Rik and Reg, Saturdays eyewear, Pierre Lannier, Ellyse, Karmen and Marius, Little Savvy, Antyik Butik, Lima Watch, Hopy bags, RDNB bracelets and SNJA tote bags. Fashion advisors will be in store to provide styling advice.

    Onnie Khristanto, COO of Bestari Group, Palm Lagoon’s operator, said the new store brings the brand to life in a new and exciting way with its ‘less-is-more’ concept and product curation based on the beach-and-resort lifestyle.

    “We will inspire head-to toe looks and in-store associates will help our regular customers find styles they love with more ease as well as introduce brands our new customers will love to discover.”

    Launched in 2013, Palm Lagoon now has seven flagship stores in Indonesia, including one at Ngurah Rai International Airport, and 51 points of sales in major cities.

    Its products are also available online at Zalora, Zillingo, Shopee Indonesia, and Amazon Australia.

  • AirAsia announces five new domestic routes to Lombok, Labuan Bajo, Kertajati

    AirAsia announces five new domestic routes to Lombok, Labuan Bajo, Kertajati

    Low-cost carrier AirAsia launched five new domestic routes on Monday as it stated its “commitment to continue to support tourism and the economy by providing affordable flights”.

    Among the new services that will be operational on Aug. 1 are Jakarta-Lombok (11 times a week), Bali-Lombok (seven times a week), Yogyakarta’s Kulon Progo-Lombok (three times a week), Bali-Labuan Bajo (seven times a week) and Surabaya-West Java’s Kertajati (three times a week).

    Special promos are available for bookings made through airasia.com or the airline’s mobile app until June 30 for trips between Aug. 1 to Oct. 26, including for the Jakarta-Lombok (starting from Rp 635,000 [US$44.88]); Bali-Lombok (Rp 243,000) and Surabaya-Kertajati (Rp 626,000) routes. A free 15-kilogram baggage allowance is available for all the carrier’s domestic flights.

    “Since AirAsia’s newest hub in Lombok was inaugurated in early May and with the addition of our 25th Airbus A320 fleet, we are now ready to connect more and more of the country’s best destinations to support tourism and the local economy,” said AirAsia Indonesia managing director Dendy Kurniawan in a statement.

    AirAsia’s current domestic routes are Jakarta-Bali, Jakarta-Yogyakarta, Jakarta-Surabaya, Bali-Yogyakarta, Bali-Surabaya, Bali-Surakarta, Yogyakarta-Medan and Bandung-Bali.

  • Tokopedia enters wedding industry, buying Bridestory

    Tokopedia enters wedding industry, buying Bridestory

    Indonesian e-commerce platform Tokopedia has acquired local wedding-service marketplace Bridestory, which allows users to plan their big day on their smartphones.

    Bridestory targets the Southeast Asian wedding market, connecting couples with venues, organizers and vendors/service providers in the wedding industry. It has reportedly connected more than 3.5 million customers with at least 27,000 wedding vendors annually.

    “It all started with a web application,” said Bridestory CEO Kevin Mintaraga, “then we slowly saw the change in behavior as people became more mobile-centric. We also wanted to help brides to plan their wedding anywhere and anytime with their smartphone”.

    The Tokopedia acquisition includes Bridestory’s new service, Parent story, which help parents and expecting parents connect with age-specific activity providers for their kids.

    Tokopedia has stated that the site will continue to operate independently, while Kevin Mintaraga will join Tokopedia’s management in a VP role.

  • Indonesian Start-Up Seeks Swiss Listing

    Indonesian Start-Up Seeks Swiss Listing

    Jakarta-based Achiko wants to list 100 million shares on SIX, the Swiss stock exchange, it said on Wednesday. The shares were valued at $0.70 during its last fundraising, which would make for proceeds of $70 million.

    Its seven-year-old subsidiary Mimopay offers payment services for consumers without bank accounts – thus far, the company has won 2 million clients. Mimopay’s offering includes services to pay via smartphone, at ATMs, or directly at vendors. The company said its service has potential among the 1.7 billion people with no bank account.

    From Indonesia, the fintech led by president Allen Wu and CEO Kenneth Ting wants to expand to Myanmar, Vietnam and the Philippinen. To do so, Achiko plans to seek strategic partnerships with local firms.

  • Tokopedia expands delivery promise Same Day Delivery

    Tokopedia expands delivery promise Same Day Delivery

    Indonesian e-commerce company Tokopedia is expanding its one-day delivery guarantee to almost all of its products as it prepares to battle Amazon and other foreign rivals.

    Backed by Alibaba Group and SoftBank, Tokopedia’s greatest strength might lie in the fact it is a 100-per-cent Indonesian focused company, unlike its rivals – and shareholder – which are simultaneously trying to build share in many different markets simultaneously.

    “We focus on Indonesia,” Tokopedia founder and CEO William Tanuwijaya said in an interview in Tokyo. “Our mission is really to solve the Indonesian customer problem. And we see the room for growth is still tremendous.”

    Online shopping in Indonesia is expected to grow by more than 400 percent within the next five or so years, to US$53 billion. That sort of growth is attracting Amazon, which opened in Singapore two years ago and subsequently launched in Australia, along with existing Indonesian rivals including Alibaba-backed Lazada and Shopee.

    Tokopedia already offers same-day or one-day delivery for about 65 percent of the products it sells. Expanding that to almost its entire catalog would be made possible by alliances with 11 logistics companies covering the most populous of the country’s 17,000 islands.

    The company is a marketplace, linking more than 5 million sellers with the nation’s largest database of online shoppers. It has no inventory of its own.

    Tanuwijaya admitted getting more than 90 per cent of goods delivered within 24 hours was a goal that might take two years or more to achieve.

  • AirAsia Opens Jakarta-Phuket Route

    AirAsia Opens Jakarta-Phuket Route

    “Currently the traveling trend continues to increase especially in the youth market, hence demand to open unique routes is increasing as well,” said AirAsia Indonesia president director Dendy Kurniawan.

    Phuket is one of Thailand’s biggest islands in the southern side and boasts various destinations, such as Phi Phi Island, Big Buddha statue in Chalong and Phuket Old Town. The carrier is currently offering promotional fares from Rp 583,000 (US$40.35) one way that can be booked until May 26 for a travel period between July 2 and Oct. 25.

    Other direct flights served by AirAsia from Thailand to Indonesia are Jakarta-Bangkok, Medan-Bangkok and Denpasar-Bangkok.

  • Indonesia’s Kimia Farma eyes Growth into Vietnam

    Indonesia’s Kimia Farma eyes Growth into Vietnam

    Indonesian state-owned pharmaceuticals firm Kimia Farma is considering expanding into Vietnam by acquiring a local company. The firm recently invested US$10.26 million in a Saudi Arabian firm, purchasing 60 percent of its shares and renaming it as Kimia Farma Dawaa.

    It is currently investigating Vietnamese regulations to discover whether or not it can own a majority stake in a local firm, a critical factor in securing its investment.

    “It depends on the regulation in the country,” said Kimia Farma finance director IGN Suharta Wijaya. “It the regulation is okay, we will enter the country this year.”

    “If the sales of each Kimia Farma outlet in the country is IDR1.5 billion ($104,877) per month, [the sales of an outlet of the Vietnamese company] could be IDR4 billion per month,” Wijaya added.

    Investment in the pharmaceutical industry is stepping up in Vietnam, with the announcement last week that Vietnam-focussed private equity firm Mekong Capital has issued funding to pharmacy chain Pharmacity.

    With 186 outlets retailing both traditional Vietnamese and Western medicines, Pharmacity is the country’s most widespread network of pharmaceutical products stores, with 1 million subscribers to its loyalty program. The firm is targeting 1000 outlets in Vietnam within two years.

    Reportedly, Kimia Farma is seeking to buy a chain with 400 outlets nationwide.