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Tag: malang

  • Malang Opens Courses for Domestic Workers

    Malang Opens Courses for Domestic Workers

    Dozens of domestic workers attended a course at Sanggar Kegiatan Belajar in Malang City on Tuesday. The course for domestic workers was held by the Institute for Community Research and Development (LPKP) Malang chapter and the International Labour Organization (ILO).

    “Domestic workers are trained to work effectively according to the applicable standards,” said Irfan Afandi, ILO promote project coordinator for East Java.

    Similar courses are also opened in South Sulawesi’s Lampung and Jakarta. East Java, along with Makassar and Lampung, is renowned for its supply of domestic workers. Whereas Jakarta is the destination market of the domestic workers.

    Community-based courses for domestic workers have been trialled in Malang, East Java. Education will be held in certain communities, comprising participants hailed from several areas in Malang. The courses for domestic workers are aimed at improving their skills, particularly ability to use home appliances.

    The first phase of the courses will include household management and cooking. Domestic workers will be given theoritical and practical training. The courses will last six months, with two meetings in a week.

    Improved skills are expected to put domestic workers in better position to seek employment rights, such as to negotiate employment contract, standardized and timely payment of wages, defined office hours, and request for breaks and holidays. Irfan said that according to ministerial regulations, domestic workers include nannies, drivers, gardeners, as well as caregivers for elderly persons and people who have disabilities.

    “A domestic worker would not be able do all things by themselves,” he said. After attending the courses, domestic workers will be given a certificate which would enable them to seek better pay and recognition as professional workers. Moreover, improved skills of domestic workers are expected to protect them from violence, sexual abuse, child exploitation and human trafficking.

    Data from ILO shows that Indonesia has 2.6 million domestic workers. Most of whom are hired to work in private homes, live in their employer’s home and are not given employee leaves nor holidays.

    Course participant Yuliati said she is interested to attend the course for domestic workers to get more experience. According to her, she had been learning to do domestic work by herself. “I’m paid Rp30,000 a day, without employment contract,” she said.

  • Malang city expected to go intl through digital technology development

    Malang city expected to go intl through digital technology development

    The Minister of Trade, Thomas Lembong, expects Malang to go global, thanks to its digital technology-based development, and by introducing the world to its potential, especially in creative products.

    “Malang must go global. I believe Malang and its people can go global in the digital age through internet and social media,” Lembong said here on Friday (April 1).

    He added that the potential that Malang city offers, particularly in culture, creativity and innovation, should be introduced to the world through digital technology.

    Moreover, the community of Malang City is a creative community, he said.

    “Malang has creative people with modern ways of thinking. I wonder if the creative industries are well developed here?” Lembong said.

    According to the minister, the use of digital technology in everyday life in Malang can act as a strong resource to face regional and international economic competition.

    A life style based on digital technology is key to development in the 21st century when competition is more about human resources.

    “Any modern city should attract innovation and be inspirational. I can see that Malang will be very good in these aspects,” he said.

    In accordance with the governments program of Nawacita (the nine goals), it will build or revitalize 5,000 traditional markets by 2019.

    The Ministry of Trade prioritizes the development of local markets which are older than 25 years, and those which were destroyed by fire, natural disasters and post-conflict.

    In addition, the markets which are located in disadvantaged areas and border areas that lack trading facilities, or those with a huge trade potential, will also be developed.

    Since 2011-2016, the Ministry of Trade has revitalized or built 43 markets in East Java province with a budget of Rp250 billion.

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  • Can Lippo Malls Indonesia Retail Trust Turn Itself Around?

    Can Lippo Malls Indonesia Retail Trust Turn Itself Around?

    With China’s stock market turmoil and Greece’s debt issues, it’s easy to miss out the woes that are befalling Singapore’s southern neighbour, Indonesia.

    The rupiah, Indonesia’s currency, has crashed by around 50% against the Singapore dollar since the start of 2010. In fact, the rupiah has tumbled in recent times to levels that were last seen during the Asian Financial Crisis of the late 1990s, some 17 years ago.

    Indonesia’s currency issues have heaped pressure on Indonesia-based but Singapore-listed companies and investment trusts.

    One good example is Indonesian retail malls owner Lippo Malls Indonesia Retail Trust the real estate investment trust has seen its units fall by 30% in price since the start of 2010 even as the broader market, a tracker for the Straits Times Index has climbed by 12%.

    Can things ever turn around for the REIT? Here are three reasons why it may.

    Hedging in place

    Lippo Malls Indonesia Retail Trust is well aware of the risk which can come with a falling rupiah and as a result, the REIT mentioned in its 2014 annual report that it “has entered into foreign exchange hedges to hedge its estimated quarterly cash flows in Indonesian Rupiah until the end of 2016.”

    These hedges can help to cushion any negative impacts from adverse currency swings which may affect the REIT’s bottom-line and distributions.

    Growth by acquisitions

    My colleague Stanley Lim had noted only two weeks ago that Lippo Malls Indonesia Retail Trust has made two new acquisitions of the Indonesian malls Lippo Plaza Batu and Palembang Icon and the purchases are accretive to the REIT’s distributions on a per unit basis.

    The REIT may also have a healthy pipeline of assets to acquire given the reach of its sponsor, PT Lippo Karawaci Tbk, Indonesia’s largest listed company by total assets.

    Undemanding valuation and juicy yield

    At its current unit price of S$0.35, Lippo Malls Indonesia Retail Trust has a very high trailing-12-months dividend yield of 8.2%.

    In the first quarter of 2015, the REIT’s distributions per unit (DPU) for the quarter had jumped by 16% year over year from 0.68 Singapore cents to 0.79 cents. Based on the REIT’s reading of its own micro-economics, it’d appear that brighter days are ahead. Here’re the REIT’s comments from its first quarter earnings release:

    “As the shopping centre moratorium continues, the near term retail space supply in Jakarta will be limited. This will create a favourable market condition for existing shopping mall owners as retail space in Jakarta will be keenly sought after in the next few years.

    The outlook for quality retail spaces looks promising in the next 12 months as both local and foreign retail players continue to remain active. Higher disposable income, lower inflation, coupled with an emerging trend of lifestyle shopping malls are expected to drive the demand for retail space.”

    While currency woes may still plague the REIT, it’s worth noting, as I mentioned earlier, that currency hedges have already been put in place till the end of 2016.

    In the meantime, Lippo Malls Indonesia Retail Trust is also selling for just 0.8 times its latest book value. These low valuations could potentially give some downside protection for investors.

    Foolish Bottomline

    While there may be things to like about Lippo Malls Indonesia Retail Trust, it’s important to note that its history with its DPU has been less than impressive.

    The REIT’s first annual distribution was in 2008 and it had doled out a DPU of 4.96 Singapore cents. But in 2014, its annual DPU was just 2.76 cents, a fall of some 44%.

    This undesirable track record is a source of risk, in the sense that while a weak rupiah may have played a part in the REIT’s shrinking distributions (this is something not within the REIT’s control), it could also be a sign that the REIT may not be the best operators of retail malls around.

    Investors would have to weigh the risks and rewards with Lippo Malls Indonesia Retail Trust before any investing decision can be reached.