Indonesia Economy Forum

[Reashot Xigwin]

Indonesia`s logistics business continues to grow: Kadin
Rabu, 29 Oktober 2014 20:54 WIB |

Jakarta (ANTARA News) - Indonesias logistics sector continues to grow from year to year, according to the Indonesian Chamber of Commerce and Industry (Kadin).

"It is very often mentioned that the logistics system in Indonesia has many problems. Yet, it seems that the logistics business growth is higher than the national economic growth," Kadin Chairman Suryo Bambang Sulisto said here on Wednesday.

He noted that the two conflicting conditions, that the national logistics business was said to be ailing and at the same time was showing a high growth rate, had raised many questions.

"Logically, if the Indonesian logistics business is developed more efficiently, it will be able to grow larger," Suryo said.

Over the past several years, the world has been noticing Indonesias logistics and transportation business for its efficiency and effectiveness.

This has resulted in high logistics cost and affected the worlds perception of investing in Indonesia.

Kadin recorded that the logistics cost reached 24.6 percent of the gross national product (GNP), two-thirds of which came from transportation cost.

"Such a high logistics cost has raised concerns amid global economic integration and competition that demands efficiency in business," the Kadin chairman added.

Therefore, the road map for the countrys logistics development should be aimed at ensuring growth, following the road map and encouraging efficiency.

According to him, Indonesia already had a solution to improve the national logistics business as it was included in the blue print of the national logistic development system contained in Presidential Decision No. 26/2012 on the Blue Print of the National Logistics Development System.

Last week, Jakarta hosted an exhibition, "Indonesia Transport, Supply Chain and Logistics (ITSCL)," in preparation for the implementation of the ASEAN Economic Community (AEC) next year, and also as an effort to promote its logistics business.

Logistics Deputy of the Indonesian Chamber of Commerce and Industry (Kadin) Carmelia Hartono stated at a press conference that the exhibition was expected to boost the Indonesian logistics sectors preparations for the AEC implementation.

It is also expected to help explore challenges and opportunities in free trade era investments.

The exhibition, organized in cooperation with the government, various associations, and industries, was also expected to measure the capacity of the national logistics system.

Carmelia viewed that though its contribution to the gross domestic product was high at 25 percent, the national logistics business was still inefficient.

"This is a challenge we should face together because we are still concerned about our logistics readiness to face the AEC," she remarked.

On the occasion, Chairman of the Indonesian Logistics and Forwarders Association (Alfi) Yukki Nugrahawan Hanafi noted the countrys infrastructure conditions could hamper Indonesian companies in the coming AEC era.

"Therefore, it is important to introduce the ITSCL for reforming Indonesian logistics," Yukki added.

According to him, a number of national logistics companies were making preparations to penetrate the ASEAN region in the free trade era.

"We are now able to identify several companies that have high resources and can compete," he added.(*)

 

[Zarvan]

Hey Indonesian members I was watching a documentary on Japanese news channel about some Indonesian Businesses man who have bought some french shopping mall chain that How he is doing his business growing also helping people he bought that chain with price of 1 billion dollars Who is he any idea ?
@madokafc @Indos @Reashot Xigwin @MarveL @Jakartans@PkDef @guitar01

 

[Reashot Xigwin]

Hey Indonesian members I was watching a documentary on Japanese news channel about some Indonesian Businesses man who have bought some french shopping mall chain that How he is doing his business growing also helping people he bought that chain with price of 1 billion dollars Who is he any idea ?
@madokafc @Indos @Reashot Xigwin @MarveL @Jakartans@PkDef @guitar01

Show me the video...

 

[Zarvan]

Show me the video...

This is the Guy who is he ?

 

[Maxtini]

Oh~ he isn't buying French shopping mall chain.
He is buying Indonesian Carrefour with a nominal sum of US$750million. Carrefour has considered quitting Indonesian market.
I think this is a bad move, since there were a lot of potential growth in Indonesia retail sector. But it is good news for Indonesian company though.

Carrefour’s Exit From Indonesia ‘No Surprise’ - The Source - WSJ

Carrefour’s Exit From Indonesia ‘No Surprise’

Carrefour SA's exit from Indonesia was no surprise, analysts said Tuesday, after the company announced the sale of operations in the country to its local partner CT Corp.

The market was “aware that discussions were underway with Carrefour’s local partner in Indonesia,” explained Laurence Hofmann, from Oddo Securities.

“The group needs cash and you do what you can when you need cash,” she added.

Over the past six months, the company has sold its operations in Colombia and Malaysia, handed over its loss-making unit in Greece for one euro, and closed its stores in Singapore.

“Carrefour’s retrenchment brings in further cash to reduce indebtedness and increases its focus on Western Europe, China and core Latin America,” said Clive Black, an analyst for Shore Capital, in a research note.

Carrefour is planning to reinvest in its stores in Europe, with cash expected to be directed into the company’s French home market– which mades up around 40% of total revenue in 2011—and other euro-zone countries such as Spain, Italy and Belgium, which represented around 20% of global sales last year.

This year, Carrefour targets total investments of €1.6 billion ($2.05 billion) to €1.7 billion, a figure described as “unworthy of a retailer of their size,” by Ms. Hofmann.

The analyst adds that Carrefour should be looking to invest around €3 billion a year, revamping its network of stores in mature markets and reinforcing its position in Brazil and China.

In the coming months, market observers don’t exclude the idea that the company may continue to shed international assets.

Businesses in Turkey, Poland and Romania are the most likely candidates for further disposals, according to several analysts.

But even if these operations were to be sold, the company’s remaining businesses would represent around 89% of Carrefour’s sales in 2011.

So far, investors have reacted positively to Carrefour reducing its global footprint. Since the first disposal in June, Carrefour’s shares have risen over 25%, recovering ground after sliding by a similar amount in spring.

Asked whether Carerfour’s exit from Indonesia was a good choice, Ms. Hofmann said “only time will tell.”

“Is it a good idea to leave what is set to be amongst the world’s biggest economies by 2020? I’m not certain about that,” she added.

 

[katarabhumi]

This is the Guy who is he ?

Chairul Tanjung, our former Coordinating Minister for Economics under former president SBY.

Chairul Tanjung - Wikipedia, the free encyclopedia

 

[guitar01]

This is the Guy who is he ?

That is Mr. Chairul Tanjung, so far the 5th wealthiest man in Indonesia.
His core business is banking (PT. Bank Mega Tbk.), 2 TV stations, numerous shopping malls, palm oil plantation, and as you mentioned he purchased the Indonesian operation of Carrefour. He also own the franchise license for Coffee Bean&Tea Leaf in Indonesia (and thailand, I think), and ownership (~10 percent) in our national carrier Garuda Indonesia.
He was also the Coordinating Minister for Economics under president SBY. In his short 5 month tenure he is widely seen as very successful.

Anyway, I found an interesting article:

"More fundamentally, Indonesia needs a new growth strategy if it is to create opportunity for the tens of millions who work in low-productivity agriculture and grey-market jobs, including the 40 per cent of the population that manages on less than $2 a day. The answer could lie in manufacturing. Indonesia should capitalise on the fact that wages are rising in China and that labour-intensive manufacturers are seeking new production sites in southeast Asia. Gustav Papanek, emeritus professor at Boston University, calculates that the country could create 21m jobs and nearly double economic growth to 10 percent if it could grab 7 percent of China's market share in manufacturing."

wish I could post the full article but my post count isn't enough

 

[Indos]

Hey Indonesian members I was watching a documentary on Japanese news channel about some Indonesian Businesses man who have bought some french shopping mall chain that How he is doing his business growing also helping people he bought that chain with price of 1 billion dollars Who is he any idea ?
@madokafc @Indos @Reashot Xigwin @MarveL @Jakartans@PkDef @guitar01

There is Indonesian also who is quite young and bought a majority shares of Inter Milan. 44 years old. Erick Tohir.

 

[Jakartans@PkDef]

That is Mr. Chairul Tanjung, so far the 5th wealthiest man in Indonesia.
His core business is banking (PT. Bank Mega Tbk.), 2 TV stations, numerous shopping malls, palm oil plantation, and as you mentioned he purchased the Indonesian operation of Carrefour. He also own the franchise license for Coffee Bean&Tea Leaf in Indonesia (and thailand, I think), and ownership (~10 percent) in our national carrier Garuda Indonesia.
He was also the Coordinating Minister for Economics under president SBY. In his short 5 month tenure he is widely seen as very successful.

Anyway, I found an interesting article:

"More fundamentally, Indonesia needs a new growth strategy if it is to create opportunity for the tens of millions who work in low-productivity agriculture and grey-market jobs, including the 40 per cent of the population that manages on less than $2 a day. The answer could lie in manufacturing. Indonesia should capitalise on the fact that wages are rising in China and that labour-intensive manufacturers are seeking new production sites in southeast Asia. Gustav Papanek, emeritus professor at Boston University, calculates that the country could create 21m jobs and nearly double economic growth to 10 percent if it could grab 7 percent of China's market share in manufacturing."

wish I could post the full article but my post count isn't enough

The man is linked with Soeharto dynasty as he was high-school friend of Tommy Soeharto.
Some says he is just a 'care taker' of Tommy's asset.

 

[Reashot Xigwin]

Indonesia’s New President Gets Down To Business

• By
• I Made Sentana
• and
• Joko Hariyanto

Indonesia’s President Joko Widodo walks after Friday prayers at the Presidential palace in Jakarta on Oct. 24.
Reuters
JAKARTA, Indonesia–Indonesia’s President Joko Widodo made an impromptu visit Tuesday to the office of the country’s investment agency, in a sign the new president is serious about keeping an election-campaign promise to shorten the time needed to obtain a business license.

“I went there to ensure the services (provided by the investment agency to investors) are good, because we want to establish a one-stop investment system, meaning investors won’t have to go to several ministries in order to get a business license,” Mr. Widodo, who was inaugurated Oct. 20 as the seventh president of Southeast Asia’s largest economy, told reporters.

A former furniture exporter, Mr. Widodo said during the campaign for July’s election that making it easier to start a business would be among his priorities if he were elected. Doing so would help attract investors amid increasing competition from neighbors, such as Vietnam, Cambodia and Myanmar.

If Indonesia is to create enough jobs to meet an economic growth target of close to 7%, it will need to boost investment in its manufacturing sector, say analysts. It will also need to incentivize investment in infrastructure, a lack of which is often cited as a major impediment to doing business in the emerging market economy.

Indonesia has made improvements in its business licensing procedures, but Mr. Widodo said he’s still unhappy with the services at the investment agency, which is tasked with promoting investment and issuing investment licenses.

“Basically we want it to only takes three days to get a business license, but some investors said it took them 12 days,” Mr. Widodo said. “We have to quicken the process.”

In 2013, the World Bank ranked Indonesia 120 out of 189 economies in terms of overall ease of doing business, with one being the most friendly. The country ranked 175 for starting a business and 147 for enforcing contracts.

Indonesia, with its large consumer base of 250 million people, represents a huge opportunities for investors, but the business environment in the country is viewed as challenging by many due to a lack of legal clarity and the time it takes to wade through all the different regulations.

The president’s visit “shows his commitment” to creating change, Alexander Rusli, chief executive of Indonesia’s third-largest cellular operator by subscribers, told The Wall Street Journal. “In Indonesia, getting a business license is one of the most challenging parts (of doing business) because it’s so complicated.”

 

[Nike]

Indonesia, Angola ink energy cooperation agreement
Jumat, 31 Oktober 2014 19:34 WIB | 980 Views

Jakarta (ANTARA News) - The governments of Indonesia and Angola on Friday signed an agreement to intensify cooperation in the development of refineries and the trade of oil and gas.

The agreement was signed by Acting President Director of PT Pertamina Muhamad Husen, representing the Indonesian Government, and Executive Administrator of Sonangol EP Mateus Neto.

The signing of the agreement was witnessed by Vice President of Indonesia M. Jusuf Kalla and Vice President of Angola Manuel Domingos Vicente at the Vice Presidential Office in Jakarta.

Also present during the event were Coordinating Minister of Economy Sofyan Djalil, Minister of Foreign Affairs Retno Lestari Priansari Marsudi, and Minister of Energy and Mineral Resources Sudirman Said.

Jusuf Kalla noted that the cooperation was important as Angola was one of the biggest oil producers in Africa.

"The country was engulfed in war, but now, it (Angola) has become a rich country due to oil and gas production," he stated.

Kalla said Indonesia will continue to enhance cooperation in the field of oil and gas with some countries to meet its domestic demand of oil and gas as the national production failed to match the demand.

"We may not only import gas and oil from a single country, but from several countries, and we will continue to cooperate with them," he emphasized.

In the meantime, Marketing and Trading Director of PT Pertamina Hanung Budya remarked that the state-owned oil and natural gas company will evaluate the cooperation agreement as it was still in its nascent phase with regard to oil and gas cooperation between the two countries.

The cooperation may cover trade, construction of oil refineries, development of the upstream sector, and the assignment of on-field personnel, Budya added.

(Reporting by Ahmad Wijaya/Uu.A059/INE/KR-BSR/S012)

Indonesia, Angola ink energy cooperation agreement - ANTARA News

 

[Nike]

President Jokowi receives Angolan VP
Jumat, 31 Oktober 2014 19:23 WIB | 560 Views

President Joko Widodo (Jokowi) with Angolan Vice President Manuel Domingos Vicente (right). (ANTARA/Andika Wahyu)

Jakarta (ANTARA News) - President Joko Widodo received Angolan Vice President Manuel Domingos Vicente here on Friday afternoon.

The Angolan vice president is in the city as a courtesy call, following the signing of a memorandum of understanding (MoU) on energy earlier in the day.

"Today, an MoU was signed between state-owned companies Pertamina and Sonongol EP. This is the first cooperation agreement signed under my government," President Jokowi said before the meeting.

He added that he hoped the agreement was realized immediately so that people can benefit from it at the earliest.

The Angolan vice president witnessed the signing of the MoU in the company of his Indonesian counterpart M. Jusuf Kalla at the latters office. The agreement was signed by Pertaminas acting president director, Muhamad Husen, and theexecutive administrator of Sonangol EP, Mateus Neto.

Following the signing of the agreement, Vice President M. Jusuf Kalla noted that the MoU would act as the legal umbrella for cooperation in the energy sector.

"We still have to research in detail and identify areas in the energy sector where we can cooperate," he remarked.

Kalla further stated that the cooperation agreement was important because Angola is categorized among the most noted oil producers in Africa.

Indonesia, he added, will continue to increase its oil and gas cooperation with a number of countries as part of efforts to meet the oil and gas demand in the nation, which cannot be fulfilled by domestic supply.

(Reporting by GNC Aryani/Uu.H-YH/INE/KR-BSR/S012)

President Jokowi receives Angolan VP - ANTARA News

 

[Nike]

Indonesia: a nation at the crossroads
PUBLISHED: 29 OCT 2014 23:47:00 | UPDATED: 30 OCT 2014 07:22:38
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Indonesian President Joko Widodo ... has no legislative majority. Photo: AFP

GREG EARL Asia Pacific editor


Indonesia’s new ministerial team takes over as the country faces a striking transition - democracy appears to the alive and well but the economy is facing serious headwinds.

Indeed, when the economist Hal Hill took over after an ebullient presentation by a political scientist colleague at a conference last month he couldn’t help but comment on the baton change.

“This is an unusual feeling, compared with the Suharto years. The economists are more qualified on Indonesia but the political scientists are more certain,” he said.

There are many pitfalls awaiting new President Joko Widodo as he faces up to a legislature where he has no majority, but it is hard to ignore the democratic tally this year.

A complete outsider has become the first president to be handed power by another directly-elected leader, he survived legal challenges to his victory and has now assembled a diverse ministry without the formality that often marks Indonesian public life.

Meanwhile, the economy is experiencing a growth slump amid more inward-looking policies and a widening external deficit when changes in global financial markets are making external financing conditions more uncertain.

As Hill puts it: “The economy is at a crossroads of being able to eventually become an upper-income country or being stuck in the middle- income group.”

DEMOCRATIC TRIUMPH


Despite the triumph of the democratic process this year, which was once a question mark hanging over the country and this election at times, the economic concerns are now set to take a higher profile, even to the point of imposing unrealistic expectations on a new administration. That was underlined by the sharp slide in the rupiah earlier this week, the moment news filtered out that fuel subsidy reductions reportedly weren’t discussed at the first ministry meeting on Monday.

As one of the so-called fragile five emerging market countries with a high dependence on foreign-capital-fuelled growth, Indonesia has already felt the impact of negative sentiment this year when it appeared that the election results might be undone by legal challenges.

In its most recent report on the economy the World Bank forecasts growth will pick up next year from 5.2 per cent to 5.6 per cent on the back of stronger investment and export demand.

But it warns that any such increase in investment “depends on domestic and foreign investor confidence being supported by more policy certainty and pro-investment regulatory reforms.”

This is the key concern behind much of the traditional way of viewing this week’s new ministry, which is to add up the number of “technocrats” or professionals – who are typically seen as reformers – and compare that with the number of political party representatives – who are typically seen as rent-seeking opportunists.

REAL CHALLENGES


But, arguably, Indonesia has more technical advice on what economic policies to pursue to lift its productivity than most countries given the many qualified people in its bureaucracy and the regular advice from foreign experts focused on a country which the McKinsey Global Institute has suggested will be a top 10 economy by 2030.

The real challenge for this ministry is likely to be whether President Widodo has chosen politicians who can actually help him get reforms through the country’s divided legislature and this will really be a task for politicians, rather than technical experts.

At the same time he has also gambled on former business people having the skills to achieve this legislative task by choosing a ministerial team where business people – particularly from state-owned companies – play a large role.

A key business adviser to Australian companies in Indonesia, Noke Kiroyan, cautions economic observers against expecting rapid reforms from the new president.

“No administration can produce miracles. It will take a while for policies to emerge,” he said in an interview before the ministry was announced.

IMPROVING LOGISTIC PERFORMANCE


Fuel subsidies would be cut but probably not as dramatically as some market economists were anticipating and the new president would be very focused on improving Indonesia’s logistic performance, particularly through increased infrastructure investment, he said.

Noke predicts economic nationalism is largely now confined to the resources because Indonesia’s bureaucrats and politicians have learnt the hard way that constraints on food imports just increases prices.

With this lesson in mind, he said too many Australian investors saw Indonesia just as a resources investment location when they should be looking at the broader opportunities emerging.

“I don’t think we can close off to beef because we just don’t produce enough. That’s now a well accepted view,” he says.

“And 100 per cent of our wheat for flour now comes from Australia. And that’s now a staple food.”

The Australian Financial Review

Indonesia: a nation at the crossroads

 

[Nike]

Indonesia needs Rp278 trillion infrastructure investment to boost Internet connectivity
Rabu, 15 Oktober 2014 19:13 WIB | 1.583 Views

Lukita Dinarsyah Tuwo. (ANTARA/Wahyu Putro A.)

Jakarta (ANTARA News) - Indonesia needs an investment of at least Rp278 trillion to build infrastructure for supporting faster Internet connectivity in the country, Deputy Minister of the Development Planning Agency (Bappenas) Lukita Dinarsyah Tuwo stated here on Wednesday.

"The amount of money will be used to finance six priority programs within the period of 2014-2019," noted Lukita.

He was optimistic that private parties will be willing to financially support the governments projects as the state itself has a limited budget for developing its information and technology sector.

Lukita emphasized the important role played by private parties in financing the projects that will boost Internet connectivity in Indonesia.

The deputy minister pointed out that faster internet connectivity will improve the peoples quality of living and eventually have a positive impact on the nations economy.

"According to a study, every 10 percent growth in internet users will increase the economic growth by 1.23 to 1.38 percent. If we can have faster internet connectivity, it can be used as one of the tools to increase productivity," added Lukita.

(Reporting by Satyagraha/translating and editing by Amie Fenia Arimbi/INE/KR-BSR/O001)

Indonesia needs Rp278 trillion infrastructure investment to boost Internet connectivity - ANTARA News

 

[Reashot Xigwin]

Bandung Mayor Aims to Build Indonesia’s Own Silicon Valley
By Sara Schonhardt

Ridwan Kamil is used to building ideas, and he has plenty for Bandung, the large city in West Java where he is now mayor.

Bandung Mayor Ridwan Kamil is shaking up the establishment by looking at his city by designing his city to be digital and livable.Sara Schonhardt/The Wall Street Journal
The 43-year-old U.S.-trained architect says he represents the young generation that makes up more than half his city and he want to create the jobs, cool public spaces and ease of living that will keep them there.

“I want to make Bandung the happiest society in Indonesia,” he says. And, by 2017, the most livable.

He’ll face plenty of challenges in a city of 2.5 million that has gradually taken on some of nearby Jakarta’s most unsavory characteristics – gridlock, pollution and litter. But Mr. Kamil has already managed to improve Bandung’s ranking on a national livability index to seventh since he was elected mayor by a landslide last year.

He has done so by pushing for better public transportation, including a cable car and monorail (still under development) and a bike-sharing program, the first of its kind in Indonesia.

To draw youths back to the city’s mosques, his administration has instilled free WiFi. Inspired by the Highline in New York, Mr. Kamil is currently developing a skywalk, and has worked to build creative centers in several slums.

Founder of an urban farming community called Indonesia Berkebun (Indonesia Farming), he has also put an emphasis on green development, creating soccer parks, a photography park and a singles park below a highway overpass.

“Before it was empty, dark, criminal space, now it’s very busy with singles who don’t have lovers,” he says with a smile.


A tree-lined street in Bandung just off the main shopping strip pictured on a quiet Sunday morning.
Sara Schonhardt/The Wall Street Journal
Mr. Kamil is not a traditional mayor, but he is one of a handful of upstart politicians trying to shake up the oligarchy by cutting red tape and coming up with innovative ways to modernize Indonesia’s cities.

Speaking to a group of journalists recently in a navy suit and plaid button-up, he says he wants his city to be digital and collaborative. His role model is Apple co-founder Steve Jobs, and he’s working to create Indonesia’s own Silicon Valley, a technology-focused city he’s dubbed a “technopolis.

That means implementing smart cards for services and transportation and creating city-specific apps, an idea he’s borrowed from neighboring Singapore. Mr. Kamil has required every city agency to start a Twitter account and to document the work it is doing.

One of the many parks in Bandung, a city near Jakarta that Mayor Ridwan Kamil is trying to make green and digital.
Sara Schonhardt/The Wall Street Journal
“Social media is really changing the way we communicate with people,” he says.

For one thing it helps with transparency, something that is key to achieving Mr. Kamil’s vision – to make Bandung a global player in information technology. To do so he’s hoping to draw investment from tech companies and creative industries. He’s also building a command center “designed like a Star Trek cockpit,” that will monitor the city’s operations, he says.

But while he puts a lot of faith in the promise of technology and the power of social media, he also sounds a note of caution. “You have to be ready,” says Mr. Kamil. “In social media people admire you sometimes, people curse you also.”

Bandung Mayor Aims to Build Indonesia’s Own Silicon Valley - Indonesia Real Time - WSJ