Jakarta Globe Business

Syndicate content
Your City, Your World
Updated: 24 min 17 sec ago

Matahari on Course to Open 8 New Stores in 2017, Closing 4

Thu, 2017-11-23 18:48
Jakarta. Matahari Department Store, Indonesia's largest retailer of apparel, beauty and home products, opened a new store at Citimall Baturaja in Ogan Komering Ulu district, South Sumatra, on Wednesday (23/11). It is Matahari's sixth new store this year and it underlines the company's strategy of expanding to medium-sized cities across the archipelago, while closing those in the Jakarta area that are unprofitable. So far this year, Matahari has opened stores at Pacific Mall in Tegal (Central Java), Suncity Mall in Madiun (East Java), Lippo Plaza Jember (East Java), Manhattan Times Square in Medan (North Sumatra) and Grage City in Cirebon (West Java). The retailer will open a new department store in Lahat, South Sumatra on Nov. 30 and a specialty store for its in-house fashion brand Nevada, at Pakuwon Mall in Surabaya next month. The company closed its stores at Pasaraya Manggarai and Pasaraya Blok M in South Jakarta in September. It will also close its store at Mall Taman Anggrek in West Jakarta by Dec. 3 and another at Lombok City Center in West Nusa Tenggara by the end of next month. Matahari said earlier that it will have 155 department stores by the end of this year, up from 151 stores last year. The new 5,800-square-meter store is Matahari's first in Baturaja and its sixth in South Sumatra. Aimed at the city's middle class, the store boasts local and foreign fashion brands and a large selection of beauty and home products. "Matahari sees opportunity in Baturaja amid increasing standards of living. We also saw that residents previously had to travel long distances to reach the nearest Matahari store," Miranti Hadisusilo, corporate secretary and legal director at Matahari Department Store, said in a statement. The store features a more spacious layout and it is equipped with an eco-friendly LED lighting system. It also offers high-quality brands. Matahari further seeks to bring greater benefit to the area by employing nearly 200 local residents. "The presence of the Matahari store in Citimall Baturaja can be a benchmark for economic growth in Baturaja," said Teges Prita Soraya, associate director and marketing and communication head at Nirvana Wastu Pratama, the company that manages Citimall Baturaja. The Jakarta Globe and Matahari Department Store are both affiliated with the Lippo Group.
Categories: Indonesian News

Experts Say Indonesia Is Not Yet Ready to Embrace 'Fourth Industrial Revolution'

Thu, 2017-11-23 17:49
Jakarta. Indonesia has a long way to go before the country can fully embrace the so-called "Fourth Industrial Revolution," panel members at the 2017 Indonesia Economic Forum said in Jakarta on Wednesday (22/11). The Fourth Industrial Revolution, the phenomenon in which digital technology is becoming embedded and transforming society, must be prepared for by developing human skills to compete in the digital age, Shweta Khurana, head of corporate affairs at Intel Indonesia, said. Artificially intelligent machines, robotics and other cloud-based technologies will not surpass human achievement, Shweta added. "The highest paid job today is that of a mathematician, not a technologist," Shweta said. "So, computers won't beat us." "Artificial intelligence is not new, it has been around for a while and it must not be feared. Instead, it does help our life," added Charles Ho, founder of Singapore-based startup consultancy Ace Round. While digital startups are becoming more prolific across the world, Indonesia still lacks an entrepreneurial workforce that can truly take advantage of new technologies and ways of doing business, panelists said. "We should start at school. We have to prepare our children with relevant entrepreneurial skills such as thinking critically, out of the box and risk taking ability," Shweta said. "In Indonesia, those skills are still evolving and are rarely seen at schools. "In Sweden, where the average age of entrepreneurs is 19, access to affordable computers and high-speed internet is provided for to support youth conducting business. This sort of infrastructure is actually very important to the Fourth Industrial Revolution," she said.
Categories: Indonesian News

Telkom group Provides Digital Customer Experience For Customers in Surabaya and Bandung

Thu, 2017-11-23 16:53
After opening The Digital GraPARI TelkomGroup in Medan and Bumi Serpong Damai (BSD) Tangerang, PT Telkom Indonesia (Telkom) once again introduced two Digital Grapari TelkomGroup namely in Dinoyo, Surabaya and Lembong, Bandung. The service center which provides a variety of current services to deliver the seamless experience for these customers was unveiled simultaneously by TelkomGroup Consumer Service Director Mas'ud Khamid in Surabaya, (22/11). "As a digital telecommunication company in Indonesia, Digital GraPARI TelkomGroup is one of TelkomGroup's efforts to transform services to customers. It is also a manifestation of our commitment to provide the best service to TelkomGroup customers and society in general, "said Mas'ud. Former Director of Sales Telkomsel said that Digital GraPARI TelkomGroup provides the most complete services for Telkom and Telkomsel customers, both retail and corporate, which is expected to provide a better different experience. "This is our answer to bring a customer service center that is able to accommodate the diverse needs of digital telecommunications, in line with our commitment to build the digital community of Indonesia," said Mas'ud. The customer service center also serves as an educational tool for customers and the community to experience Digital Customer Experience through digital facilities that are sophisticated, unique, and relevant to the lifestyle of the digital community ranging from Digital Welcoming Screen as a guide to digital experience choices according to customer needs. In addition, there is also a myIndiHome-MyGraPARI digital point to solve Telkom and Telkomsel's self-service problems such as IndiHome customer service, Halo card reimbursement, additional IndiHome service, Telkomsel card service up to debit, credit or cash payment service. Digital GraPARI TelkomGroup also provides Discovery Screen which is a facility to find out and understand the advantages of Telkom and Telkomsel products according to customer needs and lifestyle through digital experience using sophisticated touchscreen desk. Other facilities that will pamper customers digitally are also available at Experience Screen, a cutting-edge technology featuring digital features of Telkom and Telkomsel services on glass walls with touch-sailing projectors. Digital GraPARI TelkomGroup also features a variety of digital attractions that can enrich the customer experience, such as Smart Living device, or commonly called smart home based technology internet of things (IoT) and virtual reality that provides a different visual experience. Also comes with the concept of integrated service space with digital lifestyle experience, GraPARI also has a spatial concept designed based on customer experience journey with a wider space that allows service officers to help customers more actively and persuasively to realize customer intimacy. Digital GraPARI TelkomGroup provides services with the concept of "One and Done" where service personnel can serve all the needs of TelkomGroup customers supported by digital devices so that it is expected to provide complete customer service solutions.
Categories: Indonesian News

Taxpayers Urged to Use Second Chance to Declare Hidden Assets

Thu, 2017-11-23 15:16
Jakarta. The Directorate General of Taxation has urged taxpayers to declare previously unreported assets, following the release this week of a regulation that will exempt them from any penalties if they comply. The Finance Ministry regulation, which became effective on Monday (20/11), is the government's answer to complaints by tax amnesty participants, who discovered that they could still be required to pay additional tax, or even face criminal charges, when transferring title of ownership of their assets from surrogates to themselves, despite having declared the assets under the amnesty program. Finance Minister Sri Mulyani Indrawati earlier said the problem often arose due to a mismatch between the details of assets participants listed under the tax amnesty program, and the reality tax officials found when scrutinizing such assets. The minister said many of these mismatches were likely due to honest mistakes. To clean up this mess, the government revised the regulation to exempt taxpayers from penalties if they declare unreported assets. This stipulation also extends to taxpayers who did not join the amnesty program but are still willing to come clean. "We designed it to boost self-compliance," tax office spokesman Hestu Yoga Saksama told reporters on Wednesday. "Taxpayers should use this opportunity immediately." While there is no deadline for the declaration of hidden assets, the tax office has been ramping up scrutiny of taxpayers who did not join tax amnesty program. The office has launched audits of 811 tax cases since September. Seven of the 68 taxpayers audited so far were found to be hiding a total of Rp 5.7 billion ($422,000) in hidden assets. Under a government regulation that became effective in September, any assets that were unreported between Jan. 1, 1985 and Dec. 31, 2015 would be treated as additional income and be subject to a tax rate of up to 30 percent. The tax base and tax compliance are still low in Indonesia, limiting the government's ability to fund development and distribution programs. Indonesia only has 32.9 million taxpayers out of a total population of more than 260 million. Of those, 20.2 million were required to file annual tax returns last year, while only 12.7 million complied. Hestu said the ministerial regulation could increase tax collection this year but it is not the ultimate goal. "If we wanted to boost collection, we would have set a deadline, but we did not," he said. The government had collected Rp 858 trillion in taxes, including income tax from the oil and gas sector but excluding proceeds from customs and excise, as of the end of October. This is only 67 percent of the Rp 1,284 trillion target set in the revised 2017 state budget.
Categories: Indonesian News

Go-Jek Launches Go-Bills Service

Thu, 2017-11-23 13:53
Jakarta. Go-Jek, a popular application-based ride-hailing platform, has launched a new service, Go-Bills, which allows users to pay health care and electricity bills through its built-in digital wallet Go-Pay. "Indonesians are transforming into a cashless society and we are hoping that the Go-Bills service will help in the country's transition. In the near future, we will continue to develop the service, which can ease users in paying their monthly bills," Go-Jek co-founder and chief executive Nadiem Makarim told reporters during the Go-Bills launch event on Wednesday (22/11). The event saw in attendance Communications and Information Technology Minister Rudiantara. The company is also joining hands with interbank network provider Artajasa, health care and social security agency BPJS Kesehatan and state-controlled Bank Negara Indonesia (BNI). Users can transfer their funds to Go-Pay accounts from several banks that team up with Go-Jek, and then use it for a number of Go-Jek services, including Go-Bills, taxi service Go-Car and food delivery service Go-Food. Nadiem said Go-Jek services, especially Go-Pay, promote financial inclusion. President Joko "Jokowi" Widodo seeks to achieve a 75 percent financial inclusion rate by 2019. In 2014, when he took office, the figure stood at only 36 percent. In the near future, Go-Jek wants to team up with other banks, as it expands its Go-Bills service by allowing users to pay also for telecommunications and internet services, Nadiem said. Meanwhile, according to information and technology director at BPJS Kesehatan, Wahyuddin Bagenda, the newly launched service can encourage insurance payers to pay their bills on time, anytime and anywhere. Recently, Go-Jek has also allowed users top up their Go-Pay wallets at Alfamart convenience stores. Go-Jek, which has been downloaded 55 million times as of October, currently employs 400,000 partner drivers and connects users to more than 100,000 food outlets. The platform is available in 50 cities across the country.
Categories: Indonesian News

Garuda Indonesia Announces Extra Medan-Sabang Flights

Thu, 2017-11-23 00:10
Jakarta. Flag carrier Garuda Indonesia will offer more flights between Medan in North Sumatra to Sabang in Aceh in support of the Sail Sabang 2017 festival, a statement released by the Tourism Ministry said on Thursday (21/11). The airline will add four new flights starting on Nov. 29 using short-haul regional airliner ATR 72-600 with a capacity of 70 passengers. "We offer the extra flights to make Sail Sabang 2017 a success," Sugiyono, Garuda Indonesia's general manager in Banda Aceh, said. The airline normally only offers the flight on Friday and Sunday. Sail Sabang 2017, held from Nov. 28 to Dec. 5, will feature at least 28 activities, including the International Yacht Rally, Sabang Fun Bike, Sabang Underwater Photo Contest, Sabang City Tour, Banda Aceh City Tour and the Free Diving Competition.
Categories: Indonesian News

Air Asia Launches New Direct Flights to Singapore From Medan, Padang

Wed, 2017-11-22 23:55
Jakarta. Air Asia, Southeast Asia's largest budget airline, announced new direct flights from Singapore to Sumatra’s capital cities Medan and Padang in a statement released by the Tourism Ministry on Tuesday (21/11). The new flights will start operations in February 2018 using a narrow-body Airbus A320-200 with a capacity of 180 passengers. "We are excited to launch the new flights to offer affordable, high-quality air services for all people," Dendy Kurniawan, Air Asia's chief executive for Indonesia, said. The airline now serves a total of seven routes connecting Singapore and Indonesia. The other routes are from and to Jakarta, Bandung in West Java, Semarang in Central Java, Yogyakarta and Denpasar in Bali.
Categories: Indonesian News

Ad Spending Slows, But Advertisers' Confidence Picks Up: Nielsen

Wed, 2017-11-22 23:47
Jakarta. Advertising spending slowed in the first nine months of this year compared to the corresponding period in 2016, with political advertisement leading the pack ahead of the 2019 presidential election, a report from Nielsen Advertising Information Services or Nielsen AIS showed. Advertising spending in the country grew eight percent to Rp 107.7 trillion ($7.96 billion) between January and September this year, up from Rp 99.8 trillion in the corresponding period last year. However, the growth was slower than a 15 percent growth in the first nine months of last year. According to the executive director and head of media monitoring business at Nielsen Indonesia Hellen Katherina, ad spending in the first quarter this year grew slowly as business players and investors took a wait-and-see approach. However, the improvement of the domestic economy in the third quarter had boosted business players' confidence, encouraging advertisers to pay for more ads in local media. "The Islamic fasting month in the second quarter also helped to boost advertising spending growth this year," Hellen told reporters at a press briefing in Jakarta on Tuesday (22/11). Nielsen gathered and monitored advertising spending from 15 national free-to-air television stations, 99 newspapers and 123 magazines and tabloids. The advertising spending is calculated based on gross rate card and promotions, disregarding discounts and other marketing gimmicks. Advertising spending on television continues its dominance, contributing to 80 percent of total spending on advertisement in the period, or equivalent to around Rp 85.7 trillion. The figure increased 12 percent compared to the same period last year. Although government and political organizations still top the list as the biggest advertising spenders in the first nine months of this year, in which they spent a total of Rp 5.4 trillion, the number was down nine percent since the corresponding period last year. Haircare ad spending grew by 16 percent to Rp 5 trillion, while telecommunications services and devices managed a 33 percent increase to Rp 4.7 trillion. City development project Meikarta — a by Lippo Group development — was the biggest advertiser in the period, spending Rp 1.2 trillion in the two months since August, followed by online booking Traveloka (Rp 871.6 billion) and Indomie instant noodle (Rp 767.2 billion) between January and September. Ahead of the 2019 election, political ad spending may soar still in the coming years. Nielsen data showed that by the end of 2015 political parties still dominated ad spending throughout the year, when Indonesia held its first simultaneous regional elections. "We do not have any projection for the upcoming 2019 election year, but we see that TV still dominates political ad spending in advanced countries," Hellen said.
Categories: Indonesian News

Indonesia's New Mining Holding Company to Control $6.6b in Assets

Wed, 2017-11-22 19:45
Jakarta. Indonesia's plan to establish a holding company for state-owned miners could create a new giant with Rp 90 trillion ($6.6 billion) in assets, putting the miners in a better position to raise new funding to manage the country's natural resource wealth. Under the plan, which has been brewing for more than a year now, the government would turn state-owned Indonesia Asahan Aluminium (Inalum) – the country's largest aluminum producer – into a holding company for its peers, including gold miner Aneka Tambang, coal miner Bukit Asam and tin miner Timah. "[The assets] will be around Rp 90 trillion. It will be used to better manage our mineral and coal resources," Inalum president director Budi Gunadi Sadikin said on Wednesday (22/11), as quoted by Antaranews.com. State-Owned Enterprises Minister Rini Soemarno said earlier that the holding structure would benefit the miners, making it easier for them to obtain loans because the total assets under the holding company will serve as leverage. This would also alleviate the government's burden of having to inject capital into these companies when they need to expand, Rini said. Still, the new holding company will not be the largest mining entity in Indonesia. Freeport Indonesia, the local arm of United States-based miner Freeport McMoRan, had assets worth $11.1 billion as of June this year. The company operates Grasberg, Indonesia's largest gold and copper mine, in Papua. The world's top three miners, including Glencore, BHP (formerly known as BHP Billiton) and Vale, reported assets worth $128 billion, $119 billion and $99 billion, respectively, in 2016. Inalum has set a long-term goal to be among the world's top 12 largest mining companies, from below 50 currently, which means the company has to double its assets, Budi said. The government said earlier that Inalum would be the entity that acquires the remaining 40.64 percent stake that will become available as a result of Freeport Indonesia's divestment. Fajar Harry Sampurno, deputy for mining business, strategic industries and media at the State-Owned Enterprises Ministry, said Aneka Tambang, Bukit Asam and Timah will hold an extraordinary general shareholder meeting on Nov. 29 to approve the transfer to Inalum of the majority of the shares, currently held directly by the government. Inalum is wholly owned by the government after the latter bought out 58.8 percent of the company's shares from Nippon Asahan Aluminium, a consortium of 12 Japanese firms, in 2013.
Categories: Indonesian News

Malaysia, Indonesia Say EU Palm Resolution Will Affect Millions

Wed, 2017-11-22 19:08
Kuala Lumpur. Millions of people running small-time oil palm plantations will suffer if the European Parliament goes ahead with "unfair" measures that could curb palm oil use, the world's two largest palm oil producers said on Wednesday (22/11). In April, the European Parliament backed a call for greater vetting of palm and other vegetable oils used in biofuels to prevent the European Union's renewable transport targets for post-2020 leading to deforestation. Malaysia's Prime Minister Najib Razak and Indonesian President Joko "Jokowi" Widodo said the resolution by the European Parliament singles out palm oil, even as the production of other vegetable oils has "shown to contribute to the deforestation." They said restricting market access for palm oil would also work against the United Nations' goal of eradicating poverty and raising income levels. "Any discriminatory measures arising from the Resolution will not only be seen as unfair practices to trade but will also affect the livelihood of millions of palm smallholders in Indonesia and Malaysia," the two leaders said in a joint statement. This is the first time top leaders from both the countries have weighed in on the issue. Najib and Jokowi, had met in the Malaysian state of Kuching for the 12th annual consultation between both countries. The European Parliament's resolution calls for a single Certified Sustainable Palm Oil (CSPO) scheme for Europe-bound palm and other vegetable oil exports to ensure they are produced in an environmentally sustainable way. EU lawmakers said the move was a bid for a wider discussion on the issues after environmental groups such as Greenpeace warned of harmful impact on climate mitigation and biodiversity. While the report is not binding, EU lawmakers are now reviewing and proposing amendments to EU draft targets on biofuels, which will then go before the European Commission and member states. Reuters
Categories: Indonesian News

Jakarta's Ailing Ease of Doing Business Opens Up Opportunities for Other Provinces: Report

Wed, 2017-11-22 12:58
[Updated at 11:57 a.m. on Wednesday, Nov. 22, 2017] Jakarta. Jakarta's ailing ease of doing business has opened up opportunities for other provinces in Indonesia to attract investments from companies seeking to relocate their production base from China, said researchers from the Asia Competitiveness Institute, a research center at the Lee Kuan Yew School of Public Policy, part of the National University of Singapore. The capital is losing momentum compared to well-performing provinces like West Java, Central Java and East Java, according to the 2017 edition of the Ease of Doing Business Index on Attractiveness to Investors, Business Friendliness and Competitive Policies — also known as the "EDB Index ABC." EDB Index ABC assesses each of Indonesia's 34 provinces based on their attractiveness to investors, business friendliness and competitive policies. The analysis is done at the sub-national level, allowing comparison on ease of doing business across the country. Jakarta has dropped two spots in the overall category of the EDB Index ABC to fourth position since 2015. East Java has inched up two positions to the top, West Java climbed three positions to second spot and Central Java gone up one position to third. Jakarta's attractiveness to investors — measured by companies' ability to earn profits in the province, cost effectiveness, infrastructure and market potential — dropped two positions to third. The capital also dropped five spots to seventh in terms of business friendliness, which is assessed based on the ease of operating a business and the government's responsiveness to businesses. Jakarta managed to jump 11 positions to 19th in terms of competitive policies, thanks to its one-door policy initiative. Nevertheless, the executive director of non-profit organization Jakarta Property Institute, Wendy Haryanto, said Jakarta has failed to show any significant innovation in processing permits, leaving the province behind other more innovative regions. This year's index is based on secondary data from Indonesia's statistics agency and primary data from surveys conducted in April-September this year on 925 company representatives working with the Indonesian Employers Association (Apindo). Research fellow and Asia Competitiveness Institute deputy director Mulya Amri said the surveys captured local businesses' views and sentiments about each province, providing a more grounded result compared to a similar index produced by the World Bank. As a comparison, the World Bank assessed only the two biggest cities in Indonesia — Jakarta and Surabaya — but nevertheless came out with its Ease of Doing Business Index which put Indonesia in 72nd position out of 190 countries this year, up 19 spots from a year earlier. Asia Competitiveness Institute director Tan Kong Yam said the ease of doing business index is crucial for local governments to attract investments at a time when multinational companies from Japan, South Korea, United States and Europe are starting to move out from China as its currency grows stronger and costs of producing goods in the Asian giant increase. "They're moving their production bases to Asean countries," Tan Kong Yam said in a press conference on Tuesday (21/11). "Indonesia is a major country that would be able to attract these companies because it has good resources, increasingly better-skilled labor and, more importantly, improving infrastructure and a large domestic market." Correction: The previous version of this article misspelled the name of Asia Competitiveness Institute director Tan Kong Yam. The Jakarta  Globe regrets the error. 
Categories: Indonesian News

Panglima Jendral Soedirman Airport to Become a Commercial Port

Wed, 2017-11-22 12:50
  Jakarta. The Central Java government and state-owned operator Angkasa Pura II on Tuesday (17/11) signed a memorandum of understanding to develop Panglima Jendral Soedirman Airport in Purbalingga into a commercial airport. The agreement was signed by Central Java Governor Ganjar Pranowo and Angkasa Pura II president director Muhammad Awaluddin at the Airport Hotel of Soekarno-Hatta International Airport in Tangerang, Banten. The signing was attended by Indonesian Air Force representative Yadi Husyadi, Airnav Indonesia (LPPNPI) director Novie Riyanto and Purbalingga district head Tasdi. "We already have a number of plans to maximize the potential of Panglima Jendral Soedirman Airport for the advancement of Central Java," Ganjar said in a statement on Sunday. The governor expressed his hope that the development will help the local economy grow as the airport will provide easier access not only for Purbalingga residents, but also for the neighboring districts of Banyumas, Banjarnegara, Wonosobo, Temanggung, Kebumen, Pekalongan, Tegal and Brebes. According to Muhammad, Angkasa Pura II has prepared a budget of Rp 320 billion ($23.7 million) for the development. It includes runway expansion to accommodate Bombardier and Boeing 737 aircraft, and construction of a 2,000 meter-square terminal to serve 200,000 a year. The groundbreaking is planned for mid-December, while the airport is expected to become operational in December 2018.
Categories: Indonesian News