Tag: jakarta

  • 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.

  • 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.

  • 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.

  • 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.

  • Ministry tells Indonesian airliners to hire 900 jobless local pilots

    Ministry tells Indonesian airliners to hire 900 jobless local pilots

    The Transportation Ministry has said as over 900 Indonesian pilots having not been able to gain employment with local airliners, the ministry is planning to impose a new obligation to ensure higher absorption of local pilots by the airline industry.

    “This is a big problem. At least 900 local pilots have no jobs. This will be our homework, to create opportunities for them,” Transportation Minister Budi Karya Sumadi said on the sidelines of the Air Transportation Safety Campaign at the ministry’s office on Sunday.

    Budi said his ministry would require local airliners to employ local pilots, while promising that the ministry would also help improve the competence of the pilots through further training.

    “There has to be an obligation for local airliners to take on local pilots,” he added.

    In addition, the ministry would give impose stricter requirements to foreign pilots working at local airliners.

    “We should impose certain requirements for foreign pilots working in Indonesia,” he added.

    Reportedly, 564 foreign pilots are currently working in the country.

  • FL Technics Opens for Business in Jakarta

    FL Technics Opens for Business in Jakarta

    FL Technics has opened its MRO hangar at Soekarno-Hatta International Airport, Jakarta, Indonesia, and reached cooperation agreements with ten Asian airlines.

    The 9,000-square-meter facility accommodates up to three narrowbodies and is certified to serve 737NGs and CLs, A319s, A320s and A321s.

    Line maintenance has started and base maintenance will begin in 2017.

    Zilvinas Lapinskas, CEO of Lithuania-headquartered FL Technics, said: “After renovating and upgrading the facilities according to European standards, we finally have a modern MRO centre, located in the heart of Indonesia.”

    The unveiling of the facility follows FL Technics Indonesia passing audits by Indonesia’s Directorate General of Civil Aviation and the Thai Department of Civil Aviation.

    The ten airline customers are comprised of NAM Air, Sriwijaya Air, K-Mile Air, Lion Air, Batik Air, Kalstar Aviation, Airfast Indonesia, Trigana Air Service, Tri-MG Intra Asia Airlines and Travira Air.

  • Singapore Airlines to cut 5 weekly flights to Jakarta

    Singapore Airlines to cut 5 weekly flights to Jakarta

    Singapore Airlines will cut five weekly flights to Jakarta, from Dec 1, as directed by the Indonesian civil aviation authorities, the airline said.

    SIA which has been operating 63 flights a week to and from Jakarta has been told to cut five flights a week due to runway maintenance works at Jakarta’s Soekarno-Hatta International Airport.

    The five affected flights are SQ962 and SQ963 on Mondays, Tuesdays, Wednesdays, Thursdays and Saturdays.

    SIA apologised to customers for the inconvenience and said it will progressively contact those affected to accommodate them on other flights.

    Responding to media queries, a Civil Aviation Authority of Singapore (CAAS) spokesman said the authority is aware of SIA’s plans.

    “CAAS hopes that the runway maintenance works will be completed expeditiously and that the impact on airlines will be fairly distributed,” she said.

    CAAS also hopes that the Indonesian civil aviation authorities will be able to allow Singapore Airlines to resume all 63 weekly services to Jakarta as soon as possible to reduce the impact on business travelers and tourists, who rely heavily on air services to travel between Singapore and Jakarta.

    The latest development comes several weeks after SIA said it had had to postpone plans for a thrice-weekly Singapore-Jakarta-Sydney service, which had been due to start on Nov 23.

    The Indonesian authorities had also cited runway maintenance works as the reason for withdrawing approval for the route.

  • Facebook Is Next on Indonesia Tax List as Google Deal Nears

    Facebook Is Next on Indonesia Tax List as Google Deal Nears

    Indonesia is eyeing Facebook as its next target in a government tax crackdown as it nears a settlement with Google Inc. Facebook, which counts more than 88 million Indonesians among its users, owes about 2 trillion rupiah ($148 million) to 3 trillion rupiah in unpaid taxes and penalties, Muhammad Haniv, head of the special taxpayers office at the Finance Ministry’s Tax Directorate-General, said on Wednesday in Jakarta. The office has sent a letter to the company in Ireland, calling for a meeting to discuss the issue and seek information on the company’s business interests in Indonesia, he said.

    Yunita Purnamasari, an external spokeswoman for Facebook in Jakarta, said Thursday she couldn’t comment at this stage on the tax demand. Apple, which is also being targeted by the tax office along with Twitter and Yahoo!, didn’t immediately respond to a request for comment.

    Indonesia’s government is seeking to boost revenue as it tries to keep the budget deficit below the legal limit of 3 percent. Authorities have turned to Instagram Inc. stars and merchants peddling goods and services on social media to bridge a revenue shortfall as an ambitious tax amnesty program loses steam after earning the government 97.1 trillion rupiah in the first three months of its start in July.

    Indonesia’s government plans to drop claims on any unpaid taxes and penalties it has sought from Google if a settlement is arrived through negotiations, Haniv said. The settlement with Google, the largest unit of Alphabet Inc., may come as early as next week and the government will focus on ensuring the company pays all future taxes, he said. The company owes about 5 trillion rupiah in taxes and penalties, he said.

    Taj Meadows, Google’s head of policy communications for Asia Pacific, declined to comment on Wednesday and referred to an earlier statement that said the company had paid all applicable taxes and will continue to fully cooperate with the Indonesian government.

    Indonesian tax officials have visited Google’s office in central Jakarta several times in recent months. The government had earlier sent Google a warning letter for refusing a tax audit that can result in criminal punishment, Haniv said in September.

  • Indonesia Considers Importing Cows from Mexico

    Indonesia Considers Importing Cows from Mexico

    Indonesia is considering to import cows from Mexico and negotiations are now underway for that, an agriculture ministry official disclosed on Wednesday.

    “Private parties and a local government were currently in the process of negotiations,” Syukur Iwantoro, an expert staff on innovation and technology under the ministry, said after attending a calf harvest event.

    Regarding permit for import of up to 400,000 heads of cows, he admitted that private parties would be given full authority for this purpose and negotiations were on with partners in Mexico.

    Iwantoro noted that the government would ensure that cows to be imported from Mexico are free of foot and mouth disease.

    “So far, the government has been in touch with a number of countries, including Australia, in connection with beef supply,” he disclosed.

    He recalled that the government has put in place several alternatives to prevent escalation of beef prices in various regions in the country.

    “Price of beef in different regions in Indonesia varies from Rp85,000 to more than Rp100,000 per kilogram,” he pointed out.

    The imported cows were to be distributed in Jakarta and surrounding areas.

    “The country is now importing almost 700,000 heads of cows. So far, most of the cows are being imported from Australia,” he stated.

  • BNI President Addresses Rush Money Issue

    BNI President Addresses Rush Money Issue

    Bank Negara Indonesia (BNI) president director Achmad Baiquni asked customers not to panic and get affected by solicitations to withdrawal money en masse. The so called rush-money rumor has been circulating on social media in recent days.

    According to Baiquni, the rumor is baseless and irrelevant, considering Indonesia’s banking fundamentals are normal and healthy.

    “Banking conditions are very good, so there should be no reason to worry,” Baiquni told.

    Baiquni firmly stated that banks’ performance continues to grow, both in terms of assets, loans, deposits and third party funds. Baiquni also urged people to ignore the call to withdraw their savings from banks.

    “Let’s not over-blow the issue—especially in social media. There is no need to worry,” Baiquni said.

    In terms of macroeconomics, Baiquni said the rupiah is stable while the Jakarta Composite Index is slowly gaining. “Last week’s correction was only a brief Trump effect.”

    Baiquni said BNI is asking customers to remain calm and not be provoked by the issue. “If there are customers who want more information about this matter and require an explanation, we are ready.”

    Earlier, the Police Headquarters’ Director of Special Economic Crimes Brig. Gen. Agung Setya said the solicitation is prone to prone risks of greater crimes that can harm the public.

  • Alibaba eyes young, savvy Indonesia market

    Alibaba eyes young, savvy Indonesia market

    Chinese e-commerce giant Alibaba Group sees “huge potential” in the Indonesian market as the government, through a recent e-commerce road map, pushes efforts in developing the sector to make the country the biggest digital economy in Southeast Asia by 2020.

    Alibaba Group vice chairman Joseph Tsai said the diversified company — which has assets in e-commerce, technology, payment systems and logistics — saw “huge potential in Indonesia” for two reasons: The young population and a mobile phone savvy public.

    “We acquired (Southeast Asia e-commerce platform) Lazada so that we could be in Indonesia as well as five other Southeast Asian countries — Malaysia, the Philippines, Singapore, Thailand and Vietnam, with Indonesia obviously being the largest market,” Tsai told a press briefing on the sidelines of the 11.11 Global Shopping Festival on Nov. 11. The 11.11 Alibaba Group Global Shopping Festival, more commonly known as Singles’ Day, is the world’s largest shopping event.

    Alibaba Group acquired Lazada for US$1 billion earlier this year, its largest international investment ever. Lazada, which operates its own logistics and networks, is currently one of the fastest growing online shopping platforms in Indonesia.

    “We see that consumers in Indonesia are even younger than consumers in China. Indonesia is very much a “mobile first” e-commerce environment. People are enthusiastic about mobile phone use,” Tsai said.

    A survey of smartphone owners in Indonesia, who account for 43 percent of the population, showed that up to 57 percent of online shopping in the country is done on mobile phones, with average time spent on smartphones reaching more than two hours (136 minutes) per day, according to recent Google research.

    “They’re skipping computers and instead using mobile phones as their premier technology device. That growth is extremely fast, and we’re extremely excited about that,” Tsai said of the Indonesian market.

    Emerging Middle Class

    Indonesia’s e-commerce transactions are expected to reach US$24.6 billion this year, three times the US$8 billion recorded in 2013, thanks to emerging numbers of internet users and middle class Indonesians.

    The government even expects e-commerce transactions to reach US$130 billion in 2020 as it introduced the 14th economic stimulus package on an e-commerce roadmap covering support for funding, human resources training, logistics and telecommunication infrastructure, among other elements.

    In tapping into the growth potential in Indonesia, Alibaba Group aims to localize its operations to make them relevant in serving domestic consumption, which accounts for more than half of the country’s gross domestic product (GDP).

    “We want to be as local as possible to understand consumers locally through the Lazada platform,” Tsai said.

    In doing so, Alibaba Group may introduce the 11.11 Global Shopping Festival in local platforms to capture more transactions from Southeast Asia.

    “The service will also roll out to other markets, such as Southeast Asia, leveraging Alibaba Group’s investment in Southeast Asia e-commerce site Lazada, and markets that have a sizeable Chinese community,” the company’s press statement explained.

  • South Korean, Chinese cinema giants line up to enter Indonesian market

    South Korean, Chinese cinema giants line up to enter Indonesian market

    The government’s recent decision to allow full foreign ownership in local movie businesses has attracted the interest of South Korean and Chinese cinema giants to invest in Southeast Asia’s largest market, a government official said.

    Creative Economy Agency (Bekraf) head Triawan Munaf said a number of foreign investors were currently conducting feasibility studies for expanding their operations in Indonesia, home to more than 250 million people. Among the big names on the list are South Korean’s Lotte Cinema and Megabox, as well as China’s Dalian Wanda, which is also the world’s largest cinema chain operator.

    “Hopefully they can come by the middle of 2017,” he said on Thursday on the sidelines of the DBS Asian Insights Conference 2016 in Jakarta.

    Despite being the largest economy in Southeast Asia, Indonesia has one of the least penetrated cinema markets in the world. Data gathered from various commercial cinemas shows that there are only about 1,100 film screens available in the whole of Indonesia, with 35 percent of all theaters being in Jakarta.

    With its population size, Indonesia, Triawan said, ideally should have 15,000 screens.

    BKPM estimates that the recent removal of certain sectors from the nation’s negative investment list, signed by President Joko “Jokowi” Widodo earlier this year, will help efforts to hit the investment target of Rp 594.8 trillion (US$43.6 billion) by the end of this year.

    Under new regulations, foreign investors can now fully own local cinemas, film production houses and distribution firms.

  • Direct air link to Indonesia from Mumbai soon

    Direct air link to Indonesia from Mumbai soon

    A direct air link between India and Indonesia is set to become a reality with Garuda Indonesia, the South East Asian country’s national air carrier, considering to launch a service soon.

    Garuda Indonesia plans to introduce direct flights connecting Jakarta-Mumbai. In all likelihood, it should happen this December, Consul General of Indonesia Saut Siringoringo said here on Tuesday.

    He hoped the move would not only address the biggest challenge — absence of direct air connectivity — but eventually also provide a boost to bilateral trade, tourism and people to people ties. Tourism, he added, has considerable potential, particularly in pushing up the number of people from India visiting Indonesia.

    From 2,70,000 Indian tourists last year, which was a 13 per cent growth, the number would cross 3,50,000 this year. “I am very optimistic, this year it could even reach 4,00,000,” the Consul General said, pointing out visa free facility, for stay upto 30 days, was provided on arrival to Indian tourists. Mr. Siringoringo is from the Consulate in Mumbai that covers eight States, including all those in south India. His office, he added, issued around 7,000 working permits every year.

    Bilateral trade

    On the bilateral trade, he said it was around $16 billion and the need for Indonesia was to diversify it beyond the coal and palmoil. Pharmaceuticals and agriculture were two areas that could contribute to the diversification, he added.

    The Consulate, he said, was keen on showcasing Indonesia and strengthening ties with India through programmes. It recently organised a two-day ‘Expo Indonesia 2016’ in Mumbai featuring 37 Indonesian companies. Apart from showcasing a range of products, including furniture, paper, health-care products, food, the event served as a platform to explore business ties. The last time such an exhibition was conducted was in 2007, Mr. Siringoringo said.

    Stating that there is a lot of interest on both sides, he said 130 business delegates from India attended the ‘Trade Expo Indonesia 2016’ last month in Jakarta, an event that witnessed a transaction of $ 84 million.

    Apart from holding another exhibition next year, the Consulate is also getting ready for the visit of a Ramayana troupe comprising 100 dancers from Indonesia.

  • Plug and Play to invest in dozens of Indonesian start-ups

    Plug and Play to invest in dozens of Indonesian start-ups

    Indonesia is a few steps closer to becoming the largest digital economy in the region, as one of Silicon Valley’s largest players, Plug and Play, has expressed interest in investing in dozens of Indonesian start-ups.

    Despite Silicon Valley firms being discouraged from investing abroad recently, Plug and Play seems to see huge potential in Indonesia’s digital economy, as the US tech giant signed a joint venture agreement with local investment firm Gan Kapital to establish Plug and Play Indonesia.

    State-owned lenders Bank Negara Indonesia (BNI) and Bank Tabungan Negara (BTN) will be actively involved in the mobile financial technology-focused start-up accelerator.

    The local branch will be officially established next January and invest in up to 50 early-stage start-ups per year. They will receive funding, mentorship and complimentary co-working space for a three-month period.

    Plug and Play CEO and founder Saeed Amidi said the company hoped to establish 200 Indonesia start-ups in its portfolio by 2020 in response to the visit of Indonesian delegates, led by President Joko “Jokowi” Widodo earlier this year.

    “It took us a few months to come here but we are super excited to start this journey together and work together to build a better economy, what we call knowledge-based economy and digital economy, here in Indonesia,” he said following a meeting with the President on Tuesday.

    During his visit to Plug and Play’s headquarters in Silicon Valley, as part of his visits to the headquarters of US technology giants, Jokowi expressed his expectation to have the company partake in Indonesia’s efforts to become Southeast Asia’s biggest digital economy.

    He even wrote “Start it up together, prosper together” at Plug and Play’s headquarters, from which up to 100 start-ups across the globe are developed every year, including Dropbox, with US$3.5 billion in funds raised by its start-ups since 2006.

    Gan Kapital Group chief financial officer Wesley Harjono, who will also be managing director of Plug and Play Indonesia, said it will allocate around $10 million per year for the 50 start-ups that they have chosen to support.

    “If there are 50 start-ups and we give an average of $500,000 per start-up, then we can prepare $10 million per year,” he stated, adding that start-ups would also enjoy exposure to the global market in hopes that investors abroad would also start to take part.

    Communications and Information Minister Rudiantara highlighted the importance of Plug and Play’s presence in Indonesia to attract more foreign investment in the country’s e-commerce sector.

    “He has come here even at a time when Silicon Valley is being discouraged from investing abroad. He said he is confident about Indonesia and this is a positive factor,” he said.

    The government issued its 14th economic policy package last week, aimed at supporting the digital economy. The government expects the new policy package, dubbed the e-commerce road map, to create 1,000 “technopreneurs” and $130 billion in business value by 2020.

    The road map is intended to better protect national interests and give priority to small and medium enterprises and start-ups, and will offer grants or subsidies to boost their chances of surviving in the tough e-commerce industry.