Indonesia Economy Forum

[skyhigh88]

Indonesia to overtake Brazil and Mexico as 4th largest smartphone market in 2020
www.thestar.com.my
Business NewsHome > Business > Business News
Tuesday, 6 September 2016 | MYT 10:29 AM

SINGAPORE: Global prospects for wearable electronics continue to be strong with retail value sales projected to grow by 138% to become a US$45 billion dollar industry in 2021, remaining the worlds second best-selling product behind smartphones.

Euromonitor International's new data released Tuesday on the global consumer electronics industry also said new products like smart wearables and wireless speakers and innovations like Ultra HD and convertible laptops resonate with the shift in consumer preferences.

These products command higher retail selling prices, helping boost profit margins of manufacturers and retailers, says Head of Consumer Electronics at Euromonitor International, Wee Teck Loo.

While wearable electronics demand is growing, Emerging markets like India and Indonesia provide plenty of untapped opportunity for smartphones due to the huge pool of feature phone upgrades.

Indonesia is projected to overtake Brazil and Mexico as the fourth largest smartphone market reaching almost $1 billion dollar sales in 2020, adds Loo.

The top-10 smartphone markets in 2021 are projected to be: 1. China 2. India 3. US 4. Indonesia 5. Brazil 6. Russia 7. Mexico 8. Japan 9. Philippines 10. United Kingdom - Bernam

http://www.thestar.com.my/business/...ico-as-4th-largest-smartphone-market-in-2020/

ECONOMY & BUSINESS
China Expresses Commitment in 271 Projects in Indonesia
TUESDAY, 06 SEPTEMBER, 2016 | 09:48 WIB
TEMPO.CO

Indonesian President Joko Widodo, left, shakes hands with China's President Xi Jinping before a group photo session for the G-20 Summit held at the Hangzhou International Expo Center in Hangzhou in eastern China's Zhejiang province, Sept. 4, 2016. AP/Ng Han Guan

Jakarta - Chinese investors have expressed their commitment to invest in 271 projects in Indonesia in the second quarter of 2016, according to Harjanto, director general of resilience and development of international industry access at the Industry Ministry, at the G20 Summit in China.

“China has expressed its commitment to Indonesia’s 271 investment projects worth US$925 million, of which main contributions are from steel, electronic, food, cement and other strategic industries,” Harjano said in a press release on Tuesday, September 6, 2016.

China’s investments in Indonesia were expected to have positive impacts on the national economy and the domestic industry competitiveness, he added.

Included in realized China’s investments in Indonesia are PT Sulawesi Mining Investment operating in the nickel mining sector with a production capacity of 300,000 tons per year and an investment value of US$636 million in Morowali Industrial Park, Central Sulawesi. PT Sulawesi Mining Investment owns the first nickel smelter in Indonesia utilizing the Arc Furnace Rotary Kiln technology.

Another China’s investment is PT Virtue Dragon Nickel Industry operating in ferronickel processing sector in Konawe, Southeast Sulawesi, with a total investment of US$5 billion and an annual production capacity of 600,000 tons.

“There’s also Anhui Conch Cement Company operating in the cement industry with a total investment value of US$5.7 billion and an annual production capacity of 20 million tons,” Harjanto revealed.

In Indonesia, Anhui Conch Group will build five integrated plants and a grinding plant in South Kalimantan, Banten, North Sulawesi, South Sulawesi, and West Papua.

At the Indonesia Business Forum in Shanghai, Industry Ministry Airlangga offered four industrial zones in Indonesia ready to work with foreign investors.

“We also invite Chinese investors to seize investment opportunities in Indonesia, such as those offered by mineral, coal gasification, petrochemical, agriculture, shipyard, and automotive component industries,” Minister Airlangga said.

ANTARA

http://en.tempo.co/read/news/2016/0...esses-Commitment-in-271-Projects-in-Indonesia

 

[CountStrike]

Economy in brief: GE to supply locomotives to Sumatra, Sulawesi

Jakarta | Mon, September 5 2016 | 09:21 am
JAKARTA: US-based General Electric (GE) aims to supply locomotives for railway services on Sumatra and Sulawesi islands.

The routes are still under development and are targeted to be finished by 2019 for Sulawesi and 2021 for Sumatra. The government says the projects will not be affected by recent budget cuts.

“We are still waiting for the tender; we will submit it immediately,” GE Indonesia operations president director David Hutagalung told The Jakarta Post during the signing of a memorandum of understanding (MoU) between state-owned railway operator KAI and the US Trade and Development Agency (USTDA) in Jakarta on Friday.

Between 2014 and 2016, GE supplied 150 new locomotives to KAI. In June, GE received a maintenance order for 50 KAI locomotives made by GE with a contract value of US$60 million.

“Our locomotives’ local content reached 24 percent; the bogie is made by state owned PT Barata Indonesia and assembled by PT Industri Kereta Api [Inka],” David said.

Other than GE, KAI also has options to source locomotives from Inka. The state-owned company has produced CC300 locomotives since 2013. — JP

 

[skyhigh88]

Indonesian delegation visits Taiwan to seek business opportunities
Focustaiwan
2016/09/05 21:22:50

Taipei, Sept. 5 (CNA) A delegation of businesspeople from Indonesia is now in Taiwan to explore opportunities for bilateral cooperation under Taiwan's "New Southbound Policy."

The delegation is being led by Ang Tjoen Ming, a business tycoon who was appointed in 2014 by Indonesia President Joko Widodo as his special envoy to Taiwan.

On Monday, Ming and his delegation attended a business conference and a forum in Taipei for enterprises in Taiwan and Indonesia, which was organized by Taiwan's Ministry of Economic Affairs.

The delegation is also expected to negotiate several cooperation deals, including agreements for the state-run Taiwan Sugar Corp. to build a factory in Indonesia and for an Indonesian enterprise to purchase a naphtha cracking plant owned by CPC Corp., Taiwan (中油), according to a source close to the delegation.

The initiatives are part of the "New Southbound Policy," which was introduced by Taiwan's Democratic Progressive Party (DPP) government after it took office in May, with the aim of enhancing trade and economic ties with countries in South Asia, Southeast Asia and the South Pacific.

The leader of the Indonesian delegation, who is also known as Dato Sri Tahir, is the founder of the Mayapada Group, a Jakarta-based business conglomerate.

In 2015, he was ranked by Forbes as Indonesia's 10th richest person, with an estimated net worth of US$2 billion.

The 64-year-old tycoon of Chinese descent was born in Surabaya and graduated from Nanyang University, Singapore, in 1976 with a bachelor's degree in business.

He is known for his business acumen and his influence in the Chinese community in Indonesia.

Bank Mayapada, which Ming founded in 1989, not only weathered the 1997 economic crisis but managed to expand aggressively after the crisis.

Currently, the Mayapada Group and its subsidiaries operate businesses that range from financial services, to the property, hospital, media and retail sectors. The group also owns and operates duty-free shops in Jakarta and Bali.

(By Jay Chou and Evelyn Kao)
Enditem/pc
http://focustaiwan.tw/news/aeco/201609050026.aspx

 

[skyhigh88]

G20 Summit & Indonesia: President Joko Widodo Speaks in Hangzhou

(Picture by: Seskab)
Indonesia Investments
06 September 2016

At the G20 summit in Hangzhou (China) Indonesian President Joko Widodo urged the leaders of the 20 strongest economies, in particular leaders of the advanced economies, to curb protectionist measures (tariff and non-tariff barriers) as these measures entail negative consequences for emerging markets. Trade could be the engine of international economic growth. Protectionism, however, undermines the flow of trade and therefore blocks accelerated economic growth. Widodo made this statement on Monday (05/09) at the third session of the G20 summit in Hangzhou's International Expo Center.

Instead, the 20 strongest economies are advised to engage in free trade deals. Indonesian President Widodo, often called Jokowi, said the commitment to engage in open and free trade (including with the non-G20 nations) will boost international trade and lead to much-needed accelerated economic growth.

Another request from Widodo to the G20 member nations (especially the advanced economies) is to open access for micro, small and medium-sized enterprises that originate from emerging markets. These enterprises should be able to enter the global value chain in order to boost economic growth and create a more just society as a whole. In the case of Indonesia, the micro, small and medium-sized enterprises are the backbone of the economy, accounting for about 99 percent of total enterprises active within the domestic economy, accounting for 60.6 percent of Indonesia's gross domestic product (GDP), and generating around 107 million jobs.

Another subject that was touched upon by Widodo was international terrorism and the global refugee crisis that both bring along (economic) costs. Widodo stated that nations need to take firm actions in order to prevent the emergence of more terrorist attacks in G20 member nations, such as France, Turkey and Indonesia. However, he emphasized that nations need a 'soft power' approach, not a 'hard power' approach to solve the issue as bold military action ('hard power') will not resolve anything, and may actually exacerbate the situation. The focus should be on cross-boundary intelligence information gathering and coordination as well as tackling the root causes of terrorism. These root causes include poverty, inequality, and marginalization.

Widodo added that Indonesia is in the midst of making its investment climate more attractive, particularly through deregulation, the simplifying of permitting procedures, improving the nation's trade facilities, improving the investment mechanism, and safeguarding stable minimum wage growth (in recent years minimum wages had jumped considerably, hence causing concern among investors).

After his statement at the G20 summit, Widodo also urged Indonesia to focus on the e-commerce industry. A country such as China with the Alibaba Group has been a phenomenon in this industry. Indonesia should be able to do something similar. Recent research conducted by Google Inc. and Temasek Holdings Pte signals Southeast Asia's digital economy (which includes e-commerce, online games, advertising and other economic activities related to the Internet) is expected to surge to USD $200 billion by 2025. The same research mentions that Indonesia's digital market will account for 40.5% - or USD $81 billion - of this total market. With an estimated USD $46 billion, Indonesia's e-commerce sector will contribute most to the total.

http://www.indonesia-investments.co...ident-joko-widodo-speaks-in-hangzhou/item7163

 

[skyhigh88]

China Railway Corp.-led consortium awarded Indonesian project
09.06.2016
High-speed, 142-km rail project to link Jakarta, Bandung
By Lu Bingyang and Chen Na

(Photo by Merdeka)

RELATED POSTS
China Rail Corp. Loses 7.3 Billion Yuan in First Half
First China Made Bullet Train Makes Maiden Trip
China's Rail Project in Indonesia Gets Construction Permit

(Beijing) — China's homegrown bullet trains will be used in a 142-km high-speed railway project in Indonesia, the latest move by the Chinese government to export its state-of-the-art rail technology.

Sheng Guangzu, general manager of China Railway Corp. (CRC), the country's railway operator, said on Sept. 3 that China-made bullet trains will run on a high-speed rail line connecting Indonesia's capital, Jakarta, and the country's third-largest city, Bandung.

China's efforts to push its high-speed technology have suffered a string of setbacks in recent years. Several overseas bids by Chinese rail companies in countries, including the U.S. and Mexico, have been scrapped, mainly due to red tape.

The Jakarta-Bandung link has also seen several proposal changes before it was finally awarded to a Chinese consortium led by CRC.

When the Southeast Asian nation floated a plan to build the country's first bullet train line late last year, both China and Japan expressed interest in the project.

But the Indonesian government scrapped bids from both sides in September, saying it wanted a rail link on which trains run at less than 250 km per hour. Then, in an unexpected reversal, Indonesia chose China's bid over Japan's in October to build a link whose trains could run at speeds of up to 300 km per hour, a decision made possible due to the flexible funding options included in the Chinese bid.

To secure the deal, the consortium had a groundbreaking ceremony in January, even before the Indonesian authorities granted a construction license to the group. The license was later granted in August, after the group spent seven months negotiating with local governments "one by one" for permission to expropriate land, a person close to the Chinese bidders told Caixin.

The trains for the Jakarta-Bandung project will be assembled in Indonesia, and an assembly plant is being built, Sheng said.

China's first homegrown bullet train, built according to a technology standard developed and patented in the country, completed its inaugural trip in mid-August and it will get a production permit from the National Railway Administration next year at the latest, a person close to CRC said.

Contact reporter Na Chen (nachen@caixin.com); editor Ken Howe (kennethhowe@caixin.com)

http://english.caixin.com/2016-09-06/100986066.html

 

[Kalazan]

Then what your university result?

Gempita? Adnan? Vita berapi?

let u know....without british and indonesia your were nothing.

 

[pr1v4t33r]

>>> Ultra-violent ‘Headhsot’ Trailer Takes Aim at TIFF

watch the trailer here: http://bloody-disgusting.com/movie/3405506/ultra-violent-headhsot-trailer-takes-aim-tiff/

.

 

[kaka404]

Indonesian kebab chain to invest $1M in PH
BY KRISTYN NIKA M. LAZO ON SEPTEMBER 7, 2016BUSINESS

The Indonesian kebab chain, Kebab Turki Baba Rafi, is planning to expand its operations in the Philippines by investing $1 million for opening an additional 50 outlets.

The kebab chain has been operating in the country since 2013; but according to it president Hendy Setiono the operations until now has been only the testing period, a market trial with opening of 14 outlets, all in Metro Manila situated near universities and inside malls.

But now, “we believe the Philippine market is our huge Asean market outside Indonesia,” he said.

Announcing the expansion plan at the MAP CEO conference 2016 in Makati City on Monday, Setiono later told reporters that Baba Rafi is aiming to take advantage of the growth opportunities present in the robust Philippine economy.

One of the 50 new stores planned will open in Zamboango this year as first store outside Manila and as the 15th in the network.

He said the group decided to open its first provincial store in Zamboanga because it believes the market there is great where mostly its product consumption targeting both Muslim and the general public. “That will make our product more acceptable in the southern part of Philippines,” he noted.

Besides the 50 directly owned outlets, the company will franchise 50 additional outlets to licensees across the archipelago within the following three years, Setiono said.

“Our target is to open more than 100 outlets across Philippine regions. Hopefully by the next three years, we can achieve that. We have a very aggressive target. Hopefully, we could fulfill more job opportunity,” he said.

“The Philippines is a very attractive market where middle group of income is here, rising of the youth generation, especially the 100 million population of the Philippines. Having that in one package, we are optimistic that the Philippines will be a great market for Asean,” Setiono said.

The Baba Rafi president said the Philippines is its third largest market after Indonesia and Malaysia. He hopes that with the establishment of the 100 stores, the Philippine venture may move up as the group’s second largest market.

With plans to also franchise outlets, Setiono said it would cost at least $15,000 or about P698,000 to franchise a Kebab Turki Baba Rafi store. This franchise deal would include facilities for outlets, equipment, location, operator training, recruitment, SOP, and supply of raw materials.

Kebab Turki Baba Rafi is the largest kebab food chain in the world with more than 1,200 outlets in Indonesia, Malaysia, Philippines, China, Sri Lanka, Singapore, Brunei, and Netherlands.

Aside from its existing markets, Setiono said the group is also scouting for other expansion areas, particularly entering the Vietnam market this year.

http://www.manilatimes.net/indonesian-kebab-chain-to-invest-1m-in-ph/284406/

 

[skyhigh88]

Home > Economics
Indonesia invites Taiwan to invest in maritime sector
2016/09/07 16:17:58
Focus Taiwan

Jakarta, Sept. 7 (CNA) Indonesia is encouraging Taiwan businesses to invest in its maritime sector to help realize its goal of becoming a world maritime hub.

Hanung Harimba Rachman, director of Indonesia's Investment Planning in the Agribusiness and Natural Resources of the Capital Investment Coordinating Board, said Tuesday that the maritime sector is a priority in the country's five-year development plan that was launched in 2015.

He said Taiwan businesses are invited to invest in the shipbuilding, fisheries, and cold storage sectors in Indonesia.

Other areas open to Taiwanese investment include seaport and deep sea energy development, Rachman said, noting that Taiwan is known for its strong manufacturing industry and high technology.

Indonesia wants to develop its maritime sector to adopt the use of high technology, he said.

In response, Chang Liang-jen (張良任), Taiwan's representative to Indonesia, said Taiwan and Indonesia have had close relations for years and should expand bilateral cooperation, especially in the maritime sector.

(By Jay Chou and Lilian Wu)

Enditem/pc

http://focustaiwan.tw/news/aeco/201609070014.aspx

 

[Kalazan]

Nothing Happen.

Meanwhile still surpluss. Profit

So far our economy was domestic driven..not export.
When the export really down...nothing really happened too.
If your economy depend by export, you will collapse.

Got it?

 

[Robin Wong]

Indonesia is the largest economy in ASEAN .. but its export in 2015 was only No. 5 ...

What happen with this?

Businesses need buyers who can pay, which basically means that the buyers should ideally have deep pocket.

Indonesia has lot of deep pocketed people. Maybe not really deep pocketed, but at least they must have disposable income (which is a simple definition of middle class).

Meanwhile Malaysia highly relies on export to develop since the domestic economy does not have enough disposable income to purchase the goods being sold.

 

[mejikuhibiu]

Indonesia is the largest economy in ASEAN .. but its export in 2015 was only No. 5 ...

What happen with this?
-----
Population in ASEAN 2016
1. Indonesia 260,581,100
2. Philippines 102,250,133
3. Vietnam 94,444,200
4. Thailand 68,146,609
5. Myanmar 54,363,426
6. Malaysia 30,751,602
7. Cambodia 15,827,241
8. Laos 6,918,367
9. Singapore 5,696,506
10. Brunei 428,874

Total feritility rate 2016
1. Laos 3.10
2. Philippines 3.09
3. Cambodia 2.70
4. Indonesia 2.50
5. Myanmar 2.25
6. Malaysia 1.97
7. Vietnam 1.96
8. Brunei 1.90
9. Thailand 1.53
10. Singapore 1.23

Population 2030 estimate by World Bank
1. Indonesia 295,482,000
2. Philippines 123,575,000
3. Vietnam 103,260,000
4. Thailand 68,250,000
5. Myanmar 60,242,000
6. Malaysia 36,107,000
7. Cambodia 18,991,000
8. Laos 8,489,000
9. Singapore 6,281,000
10. Brunei 496,000

Largest exporter nation 2015 by CIA World Factbook
14. Singapore $384.6 bilion
23. Thailand $214.8 bilion
24. Malaysia $203.8 bilion
28. Vietnam $158.7 bilion
30. Indonesia $152.5 bilion
45. Philippines $58.65 bilion
90. Myanmar 9.752 bilion
98. Cambodia $7.867 bilion
101. Brunei $7.08 bilion
128. Laos $3.115 bilion

Largest importer nation 2015 by CIA World Factbook
16. Singapore $294.2 bilion
24. Thailand $196.4 bilion
26. Malaysia $174.7 bilion
29. Vietnam $150.4 bilion
31. Indonesia $138.4 bilion
40. Philippines $66.69 bilion
90. Myanmar 12.64 bilion
96. Cambodia $10.65 bilion
125. Laos $4.912 bilion
126. Brunei $4.184 bilion

valid sources ..... ?

 

[skyhigh88]

NEC wins undersea cable order from Indonesia's Telkom
September 8, 2016 6:25 am JST
Nikkei Asian Review

TOKYO -- Technology giant NEC has received an order worth roughly 20 billion yen ($196 million) from Telekomunikasi Indonesia, or Telkom, to install undersea communications cable, helping the telecom company expands capacity to keep up with growing mobile phone and internet use.

The Japanese business will install 5,300km of cable with a capacity of 32 terabits per second, linking nine major cities scattered across the archipelago as well as Singapore. NEC aims to finish in the first half of 2018.

The network also will connect two pre-existing cables that link Indonesia with the U.S. and with Europe. NEC's success with other cable-installation projects in Indonesia led to the Telkom order.

The global submarine cable market is split among NEC, U.S. company TE SubCom and France's Alcatel-Lucent. Rising demand in the Asia-Pacific region in recent years has brought fierce competition for orders.

(Nikkei)
http://asia.nikkei.com/Business/Companies/NEC-wins-undersea-cable-order-from-Indonesia-s-Telkom

 

[pr1v4t33r]

 

[skyhigh88]

2017 Investments Projected to Grow 6.2%
THURSDAY, 08 SEPTEMBER, 2016 | 12:28 WIB
TEMPO.CO

Jakarta - A research by Institute of Chartered Accountants in England and Wales (ICAEW) report titled Economic Insight: Southeast Asia projects Indonesia's actualized investments to reach 6.2 percent next year. The projection is based on the assumption that the economy will grow 5.2 percent next year.

This year so far, the economic growth rate has reached 5.04 percent.

"Indonesia's improving competitiveness has supported the flow of trade, employment, investments, and consumer spending," ICAEW regional director for Southeast Asia Mark Billington said in a written statement Tuesday, September 7.

Billington said Indonesian companies must maintain a strong capital inflow to secure business opportunities. Meanwhile, the government must keep a smooth credit disbursement for the remainder of this year, to make sure the wheels of the economy continue to move.

According to the Investment Coordinating Board (BPKM), actualized investment in quarter three has increased by 12.3 percent compared to the previous quarter.

As of the first half of 2016, actualized investments amounted to Rp298.1 trillion, or increasing by 14.8 percent, year on year. The figure also accounts for 50.1 percent of this year's actualized investment target, which the government sets at Rp594.8 trillion.

GHOIDA RAHMAH

http://en.tempo.co/read/news/2016/09/08/056802634/2017-Investments-Projected-to-Grow-62