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  • Indonesia Falls Behind Vietnam in Pepper Production

    Indonesia Falls Behind Vietnam in Pepper Production

    Indonesia is the world’s second largest pepper producer. In 2013, Indonesia’s pepper production reached 88,700 tons, or an 18.8 percent worldwide market share. Indonesia has the world’s largest pepper production area with 178,000 hectares.

    However, the productivity of Indonesia’s pepper production area is only at 0.5 tons per hectare. “The productivity is low despite having the world’s largest pepper production area,” the head of Trade Study and Development Board, Trade Ministry, Tjahja Widayanti said.

    Whereas Vietnam is the world’s largest pepper producer, boasting a market share of 34.5 percent of world’s total pepper production. Vietnam’s pepper production in 2013 was 163,000 tons, having a “mere” 51,000 hectares of pepper production area.

    Vietnam’s pepper production area is smaller than that of Indonesia and India. “It shows that the productivity of Vietnam’s pepper production area is very high, i.e. 3.2 tons per hectare,” Tjahja said.

    Aside from Vietnam, other countries which have a high productivity of pepper production area are Rwanda at 3.9 tons per hectare, Thailand at 3.4 tons per hectare, Malaysia at 2.5 tons per hectare and Brazil at 2.3 tons per hectare.

    According to the International Pepper Community (IPC), world pepper production this year is expected to fall by 1.75 percent compared to last year’s realization of 403,213 tons. Some 87.22 percent of which, or 351,710 tons, were contributed by IPC member states. In 2017, pepper production is projected to recover, reaching 425,100 tons. “Global pepper industry is still facing challenges of climate change which adversely affects pepper production and quality,” Tjahja said.

    World import of pepper has been increasing. In 2015, the total world import of pepper reached US$3.3 billion with an average annual increase of 15.6 percent throughout 2012-2015. The United States is the world’s largest pepper importer with a 22.8 percent share of the import market. Singapore and India’s pepper imports have significantly increased by 40.7 percent and 27.4 percent, respectively.

  • SIA delays launch of Jakarta-Sydney route after Indonesia withdraws approval

    SIA delays launch of Jakarta-Sydney route after Indonesia withdraws approval

    Flag carrier Singapore Airlines (SIA) said on Wednesday (Nov 9) it has delayed plans to launch a new route linking Singapore, Jakarta and Sydney, after Indonesia withdrew its approval due to runway maintenance work.

    The airline had earlier announced that it planned to launch the thrice-weekly Singapore-Jakarta-Sydney route on Nov 23. SIA said Indonesia’s civil aviation authorities had issued written approval, and the airline had secured the necessary airport slots.

    However, Indonesian authorities have informed the airline that they are now unable to approve the flights due to runway maintenance work at Jakarta’s Soekarno-Hatta International Airport, SIA said. The runway work also affects other airlines, it added.

    In response to media queries, the Civil Aviation Authority of Singapore (CAAS) said it was aware of the delay in the launch of the new route.

    “SIA’s new service will enhance air connectivity between Singapore, Jakarta and Sydney, which will facilitate people and trade flows between these cities,” CAAS said.

    “We hope the Indonesian civil aviation authorities can give approval for this new service as soon as possible so that it can be launched.”

    SIA said it will contact customers with bookings on the route and transfer them to other flights. “The airline apologises for the inconvenience caused to our customers,” it said.

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  • New Tax Tariff for Online Retailers in Indonesia ?

    New Tax Tariff for Online Retailers in Indonesia ?

    The new regulation implies that those individuals and companies that generate revenue and profit through online retailing (including sales through Facebook or Instagram pages) are required to report their income and fulfill their tax obligations.

    In general, a corporate income tax rate of 25 percent applies in Indonesia. Small and medium-enterprises with an annual turnover below IDR 50 billion (approx. USD $3.8 million) obtain a 50 percent tax discount (imposed proportionally on taxable income of the part of gross turnover up to IDR 4.8 billion). In 2013, Indonesia’s Finance Ministry issued a regulation that set a one percent income tax tariff on individual and institutional taxpayers with an annual gross turnover below IDR 4.8 billion (approx. USD $363,636).

    However, the main problem for Indonesian authorities is that it faces difficulties to monitor transactions of the nation’s small and medium-sized businesses. Most of these businesses do not have legal entities or taxpayer identification numbers (NPWP).

    Meanwhile, the idEA estimates that Indonesia’s e-commerce retailers see an increase of at least 30 percent (y/y) in income during the Idul Fitri holiday (4 – 8 July 2016) as it detected a shift in consumer behavior. According to the idEA an increasing amount of Indonesian consumers prefer to shop online rather than visit offline stores.

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  • SIA to support Indonesia’s tourism campaign under new partnership

    SIA to support Indonesia’s tourism campaign under new partnership

    National carrier Singapore Airlines and Indonesia’s Ministry of Tourism on Thursday (Apr 28) announced a partnership to boost foreign tourist arrivals into Indonesia.

    Both parties signed a memorandum of understanding at the National Coordination Tourism Meeting in Jakarta on Thursday, and they will work to finalise details of the partnership in a memorandum of cooperation at a “later date”, the joint press release said.

    Under the three-year partnership, SIA will support the ministry’s tourism campaign “Wonderful Indonesia”, which aims to attract 20 million foreign tourist arrivals annually by 2019.

    Joint activities will include advertising and other campaigns to promote travel to Indonesia via Singapore from key source markets, which include China and India for the first year of collaboration, the press release said.

    SIA, together with its subsidiary SilkAir, serve 13 cities in Indonesia with more than 150 weekly flights, the airline said.

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  • Apple’s Tim Cook confirms intent to set up retail stores in India

    Apple’s Tim Cook confirms intent to set up retail stores in India

    Weeks after we revealed that Apple has applied to the government to set up its fabled stores in India, its chief executive officer Tim Cook has confirmed the same, signaling India’s elevation in the Cupertino-based smartphone maker’s consciousness as one of its key growth markets.

    In a townhall meeting with Apple employees held at Infinite Loop headquarters in Cupertino in the days following the first quarter earnings, Cook said that Apple was in “early preparations” to bring its retail stores to India, according to report by 9to5Mac, which tracks developments at Apple very closely.

    Cook singled out India as “one of Apple’s most important growth areas for the next decade”, underlining its importance given its favourable demographics and surging smartphone sales.

    Apple’s top boss also said India unlike many emerging markets had 4G mobile services and it which therefore “gives Apple the opportunity to push its latest devices to regions like India”.

    Cook also fielded audience questions, attempting to reduce concerns related to the company’s iPhone dependence, and discussed porting more Apple services to Android and releasing cheaper iPhones to appease growing markets.

    India is the world’s fastest growing smartphone market, having surpassed the US in 2015 as the second largest by unique active users worldwide. This would make a strong case for Apple’s famed retail stores, distinct for its look, feel and customer experience, to come up as the brand enjoys a very strong aspiration value, especially among the youth.

    Apple has applied for the single brand retail license, which once granted, will allow it to open its own stores here. Currently, Apple sells its iPhone, iPad, Mac and other products through third-party resellers in the country. But with the government easing up foreign investment rules on single brands and relaxing mandatory local procurement conditions for high-tech companies, the doors are now open for Apple to make a direct foray.

    Apple posted its best ever quarterly sales in India recently, with volumes crossing 800,000 units for the three month period to end-December 2015. During this period, sales in developed markets faltered. Revenue in India surged 38%, albeit on a smaller base, compared with 11% growth in overall emerging markets and 14% in Greater China, its second-largest market after the US.

    iPhone sales volumes grew 76% in India compared with 45% in Korea, the Middle East and Africa, 20% in several western European countries and 18% in mainland China, in the October-December quarter.

    “During hard times like now, it provides an opportunity to invest in newer markets such as India where there are long-term prospects,” Cook said during the first quarter earnings last month, acknowledging the potential of the Indian market.

    “India is quickly becoming the fastest-growing BRIC nation, the third-largest smartphone market behind China and the US, and the median age of the population is 27 compared to 36-37 in China,” he added.

    Apple has been making aggressive price cuts on older devices such as iPhone 5s and even cut prices on iPhone 6s and 6s Plus models after consumers were deterred by the high cost of new models. It’s also increasing availability, including online besides giving greater flexibility to retailers and distributors on pricing.

  • Ultra Music Festival Bali

    Ultra Music Festival Bali

    The Ultra Music Festival (UMF), Miami, is undoubtedly one of the world’s most popular electronic dance music fest. As part of the Ultra Worldwide initiative, UMF is now all set to host a spin-off on the beautiful island of Bali in Indonesia this September.

    The Ultra Beach Bali festival will be held at the Potato Head Beach Club on 24 and 25 September, 2015. The pre-sale tickets for the festival are already sold out. But don’t be disappointed, you can still grab your ticket.

    Click here to buy your ticket for the Ultra Bali Fest.

    Viagogo, which is the official ticketing partner for the Ultra Beach Bali fest, has called for ticket sales now. And it has been predicted that the two-day tickets that are available for purchase now may get sold out soon.

    This is the first time the Ultra Music Fest will be happening at ‘The Island of God’ and the team behind the show is expecting over 10,000 fans (which they call “Ultranauts) for the fest.

    “Bali has always been a dream destination for travelers around the world and now, with Ultra Beach Bali, it’s building a reputation for great live music too. It’s our mission to broaden access to the best events in the world and we’re delighted to provide our world class international ticketing services for this fantastic event,” Viagogo spokesperson.

    The artist line-up and other details are yet-to-be announced, but you go to the Ultra Bali website —ultrabali.com to stay tuned and get all the updates.

    Bali is the latest addition to the list of Asian countries that have been taken over by the Ultra storm. The festival has already made stops at South Korea, Japan and Thailand and is expected to hit Singapore and Philippines later this year.

  • Singapore’s MyRepublic enters Indonesia with fiber Internet services

    Singapore’s MyRepublic enters Indonesia with fiber Internet services

    It would seem that Singapore-based startup Internet provider MyRepublic has just launched operations in a new market: Indonesia.

    A quick look at MyRepublic’s Singapore website now shows Indonesia listed as one of the countries of operation along with Singapore and New Zealand. The New Zealand operation launched in October last year.

    MyRepublic’s Indonesian site is also live in Bahasa Indonesia and lists nine retail locations in areas such as Palembang and Surabaya.

    MyRepublic plans

    The site lists prices for all. The cheapest fiber optic plan is the Basic, which retails at US$15, while the most expensive plan Supernova retails at about US$70.

    It should be noted that the Supernova plan has a maximum download speed of 300Mbps, as opposed to the 1Gbps maximum speed MyRepublic customers in Singapore enjoy.

    This move into Indonesia, however, does not come as a surprise as one of the company’s investors, the Sinar Mas Group (who in May of 2014 invested US$3.5 million) is based in Indonesia.

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  • ​Disney opens its largest store in Shanghai

    ​Disney opens its largest store in Shanghai

    Disney’s first retail store in China is in the Pudong district of Shanghai.

    The Walt Disney Co. has opened its first Disney Store in China, a 9,257-square-feet store in Shanghai that is the company’s largest retail store in the world.

    The new store, opened May 20, comes as Disney strives to tap into China’s growing middle class. The store is in Shanghai’s Pudong district, where Disney plans to open a $5.5 billion theme park next year.

    Disney said an estimated 40 million tourists visit Pudong’s Lujiazui shopping area, where the store is located.

    “We couldn’t be more delighted to open our first Disney Store in China, in Shanghai,” Paul Candland, Disney’s Asia-Pacific region president, said in a statement. “Disney Store plays a critical role in how millions around the world experience our brand and allows kids, young adults and families to have a uniquely fun and immersive experience while shopping for their favorite Disney, Pixar, Marvel and Star Wars products.”

    The new Shanghai store showcases a 19-foot castle at the heart of the store, featuring an hourly musical and projection show, and a Marvel-themed area with hand-sculpted statues of superheroes. Its exterior includes a landscaped plaza and Mickey Mouse-shaped roof sculpted with 8,000 LED lights visible from key tourism points such as the Pearl Tower.

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