The Jakarta Globe RSS: Business http://www.thejakartaglobe.com 2013 The Jakarta Globe Your City, Your World Thu, 23 Oct 2014 03:54:04 +0000 en-US hourly 1 http://www.thejakartaglobe.com/images/jakarta-globe.gif http://www.thejakartaglobe.com Visi Media Plans $100m Bond Sale by June to Repay Credit Suisse Debt http://thejakartaglobe.beritasatu.com/?p=338470 Thu, 23 Oct 2014 10:44:39 +0700 Jakarta. Visi Media Asia, the media holding company of Bakrie Group, plans to raise Rp 1.2 trillion ($100 million) from a bond sale in the second quarter of next year. Visis Media’s corporate secretary Neil Tobing said on Wednesday that the company is waiting for additional signs of stability in the political and economic situation before proceeding with the plan to sell the bonds. The proceeds from the bonds will be used to pay half of its $220 million debt from Credit Suisse. Visi Media plans to sell a part of its stake in Intermedia Capital, which controls free-to-air television station ANTV. Other Visi Media units are Lativi Media Karya, which runs the free-to-air television station TVOne and Viva Media Baru, which runs the digital news portal Vivanews.com. Investor Daily  ]]> Jakarta. Visi Media Asia, the media holding company of Bakrie Group, plans to raise Rp 1.2 trillion ($100 million) from a bond sale in the second quarter of next year. Visis Media’s corporate secretary Neil Tobing said on Wednesday that the company is waiting for additional signs of stability in the political and economic situation before proceeding with the plan to sell the bonds. The proceeds from the bonds will be used to pay half of its $220 million debt from Credit Suisse. Visi Media plans to sell a part of its stake in Intermedia Capital, which controls free-to-air television station ANTV. Other Visi Media units are Lativi Media Karya, which runs the free-to-air television station TVOne and Viva Media Baru, which runs the digital news portal Vivanews.com. Investor Daily  ]]> http://thejakartaglobe.beritasatu.com/?p=338470 BII's Net Income Falls 53% on Bad Loans, Higher Interest Costs http://thejakartaglobe.beritasatu.com/?p=338441 Thu, 23 Oct 2014 10:40:52 +0700 Jakarta. Profit at Bank Internasional Indonesia, a subsidiary of Malaysia’s Malayan Banking, dropped by more than a half in the January-September period from a year earlier, as the lender coped with funding and set aside more money to cover unpaid loans. BII’s net income fell 53 percent to Rp 372.8 billion ($31 million), the lender said in a statement on Wednesday. Its net interest income rose 4.7 percent to Rp 4.3 trillion from Rp 4.1 trillion. Higher interest costs for deposits and slowing lending growth pressured net interest margin down 48 basis points to 4.63 percent. BII, the country's eight-largest lender by assets, showed that its outstanding loans increased 14 percent to Rp 104.6 trillion in the nine-month period from a year earier. Still, gross non-performing loans, or loans that have gone unpaid, rose to 2.55 percent of total loans outstanding from 1.74 percent, driving up the provision costs by 151 percent to Rp 1.4 trillion. Investor Daily]]> Jakarta. Profit at Bank Internasional Indonesia, a subsidiary of Malaysia’s Malayan Banking, dropped by more than a half in the January-September period from a year earlier, as the lender coped with funding and set aside more money to cover unpaid loans. BII’s net income fell 53 percent to Rp 372.8 billion ($31 million), the lender said in a statement on Wednesday. Its net interest income rose 4.7 percent to Rp 4.3 trillion from Rp 4.1 trillion. Higher interest costs for deposits and slowing lending growth pressured net interest margin down 48 basis points to 4.63 percent. BII, the country's eight-largest lender by assets, showed that its outstanding loans increased 14 percent to Rp 104.6 trillion in the nine-month period from a year earier. Still, gross non-performing loans, or loans that have gone unpaid, rose to 2.55 percent of total loans outstanding from 1.74 percent, driving up the provision costs by 151 percent to Rp 1.4 trillion. Investor Daily]]> http://thejakartaglobe.beritasatu.com/?p=338441 Sumber Alfaria Mulls $166m Expansion Plan in 2015 http://thejakartaglobe.beritasatu.com/?p=338464 Thu, 23 Oct 2014 10:08:33 +0700 Jakarta. Sumber Alfaria Trijaya, the operator of Alfamart convenience store chain, is considering spending between Rp 1.8 trillion and Rp 2 trillion ($149 million and $166 million) to add up to 1,200 stores and distribution centers next year. The company spent Rp 900 billion in the first six months of this year for the construction of 630 stores. The company aims to have 9,757 stores by the end of this year from 8,557 last year. “We are not expanding much next year because the competition is getting tighter,” said Tomin Widian, Sumber Alfaria’s corporate secretary, on Wednesday. Sumber Alfaria is offering 2.24 percent of its shares to raise Rp 518.8 billion on Oct. 24. The company will use money raised from the proceeds to add 30 percent shares in its unit Midi Utama Indonesia from Lawson Asia Pacific Holdings. Investor Daily]]> Jakarta. Sumber Alfaria Trijaya, the operator of Alfamart convenience store chain, is considering spending between Rp 1.8 trillion and Rp 2 trillion ($149 million and $166 million) to add up to 1,200 stores and distribution centers next year. The company spent Rp 900 billion in the first six months of this year for the construction of 630 stores. The company aims to have 9,757 stores by the end of this year from 8,557 last year. “We are not expanding much next year because the competition is getting tighter,” said Tomin Widian, Sumber Alfaria’s corporate secretary, on Wednesday. Sumber Alfaria is offering 2.24 percent of its shares to raise Rp 518.8 billion on Oct. 24. The company will use money raised from the proceeds to add 30 percent shares in its unit Midi Utama Indonesia from Lawson Asia Pacific Holdings. Investor Daily]]> http://thejakartaglobe.beritasatu.com/?p=338464 Asian Shares Hit by Wall St fall, China PMI in Focus http://thejakartaglobe.beritasatu.com/?p=338410 Thu, 23 Oct 2014 08:39:30 +0700 Tokyo. Asian shares sagged on Thursday after a retreat on Wall Street and falling crude oil prices revived investor concerns over slowing global growth, as markets nervously waited for Chinese and European manufacturing reports later in the day. Japan's Nikkei share average fell 0.8 percent while MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.27 percent. "I think it will take some time before markets calm down. Market sentiment is still fragile. The market has realised that the U.S. economy cannot be decoupled from sluggishness in the rest of the world," said Tsuyoshi Shimizu, chief strategist at Mizuho Asset Management. "But on the other hand, I think the market is now going to the other extreme in betting on recoupling of the U.S. and the rest of the world," he added. Wall Street shares slid on Wednesday after big gains in the past few days. Energy companies were hit by a fall in oil prices while earning results from companies such as Boeing and Biogen Idec failed to meet investors' lofty expectations. In addition, a shooting incident at the Canadian parliament in Ottawa unnerved investors. Oil prices flirted near multi-year lows hit last week, as data showed a second consecutive weekly jump in U.S. crude stockpiles. The U.S. Energy Information Administration said crude stocks rose by 7.11 million barrels, more than double the 2.7 million barrel increase analysts had expected. U.S. crude futures slipped in Asia, extending its 2.8 percent fall on Wednesday to trade at $80.46 per barrel, near two-year low of $79.78 hit last week. The fall in oil prices underscored worries over the health of the global economy as a recession threatens Europe and data this week showed Chinese economic growth slowed to its weakest level since 2009. A string of manufacturing data from China and Europe due later in the day will give investors another chance to gauge the pulse of the world economy. U.S. Treasuries prices edged down after small dips in the previous U.S. session, as a mild rebound in U.S. consumer prices in September was seen as reducing some bets the Fed might postpone possible plans to raise rates in 2015. The 10-year U.S. Treasuries yielded 2.218 percent , having risen as high as 2.250 percent on Wednesday. The data also helped to lift the U.S. dollar against other currencies. The euro dipped to $1.2674, near its lowest level in more than a week, having slipped from $1.28875 marked on Wednesday last week. The dollar also ticked up to 107.18 yen, up almost a full yen from Tuesday's low of 106.15. Elsewhere, the New Zealand dollar tumbled 0.7 percent to $0.7871 following data showing consumer price inflation slowed in the third quarter. Reuters  ]]> Tokyo. Asian shares sagged on Thursday after a retreat on Wall Street and falling crude oil prices revived investor concerns over slowing global growth, as markets nervously waited for Chinese and European manufacturing reports later in the day. Japan's Nikkei share average fell 0.8 percent while MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.27 percent. "I think it will take some time before markets calm down. Market sentiment is still fragile. The market has realised that the U.S. economy cannot be decoupled from sluggishness in the rest of the world," said Tsuyoshi Shimizu, chief strategist at Mizuho Asset Management. "But on the other hand, I think the market is now going to the other extreme in betting on recoupling of the U.S. and the rest of the world," he added. Wall Street shares slid on Wednesday after big gains in the past few days. Energy companies were hit by a fall in oil prices while earning results from companies such as Boeing and Biogen Idec failed to meet investors' lofty expectations. In addition, a shooting incident at the Canadian parliament in Ottawa unnerved investors. Oil prices flirted near multi-year lows hit last week, as data showed a second consecutive weekly jump in U.S. crude stockpiles. The U.S. Energy Information Administration said crude stocks rose by 7.11 million barrels, more than double the 2.7 million barrel increase analysts had expected. U.S. crude futures slipped in Asia, extending its 2.8 percent fall on Wednesday to trade at $80.46 per barrel, near two-year low of $79.78 hit last week. The fall in oil prices underscored worries over the health of the global economy as a recession threatens Europe and data this week showed Chinese economic growth slowed to its weakest level since 2009. A string of manufacturing data from China and Europe due later in the day will give investors another chance to gauge the pulse of the world economy. U.S. Treasuries prices edged down after small dips in the previous U.S. session, as a mild rebound in U.S. consumer prices in September was seen as reducing some bets the Fed might postpone possible plans to raise rates in 2015. The 10-year U.S. Treasuries yielded 2.218 percent , having risen as high as 2.250 percent on Wednesday. The data also helped to lift the U.S. dollar against other currencies. The euro dipped to $1.2674, near its lowest level in more than a week, having slipped from $1.28875 marked on Wednesday last week. The dollar also ticked up to 107.18 yen, up almost a full yen from Tuesday's low of 106.15. Elsewhere, the New Zealand dollar tumbled 0.7 percent to $0.7871 following data showing consumer price inflation slowed in the third quarter. Reuters  ]]> http://thejakartaglobe.beritasatu.com/?p=338410 After Huge Jet Orders, Budget Airlines Eye Rich Seam of Aircraft Leasing http://thejakartaglobe.beritasatu.com/?p=338434 Thu, 23 Oct 2014 08:39:43 +0700 Singapore/Paris. From Scandinavia to Southeast Asia, low-cost airlines have ordered record numbers of planes in recent years, redefining the jet industry. Now they plan to lease out scores of their new planes, re-ordering the aviation business all over again. Between them, Indonesia's Lion Air, Malaysia's AirAsia and Norwegian Air Shuttle have ordered more than 1,400 Airbus and Boeing jets, worth about $140 billion at current list prices. They're about to test the growing market for rented planes, competing with established finance firms that lease out aircraft to cash-strapped carriers from China to the United States. Jet makers and the finance companies which dominate aircraft leasing question whether budget airlines have the know-how to succeed, and some in the industry wonder whether they have simply ordered more planes than they need. But the low-cost carriers' sights are trained on new revenue streams, and net profit margins of about 20 percent enjoyed by global aircraft lessors - well above the airline industry average. "It's the leasing companies that have made money in the last 10 years, not the airlines," Norwegian Air Shuttle's chief executive Bjorn Kjos told Reuters in a recent interview, referring to lessors who buy 30-40 percent of Airbus and Boeing planes. "They have a fantastic bottom line. They earn all the money the airlines should have earned." For would-be lessor budget carriers, whose orders have boosted aircraft production and secured thousands of jobs, renting out planes provides both insurance against a downturn and diversified revenues. Though such business remains in its infancy, it could also help them hedge currency risk, bringing in revenue in dollars that can also be used to buy jets. With over 900 jets worth $96 billion at current list prices on order or already delivered between them, Lion Air and Norwegian Air Shuttle in particular plan to become active in leasing. The trend has fuelled concern that scores of jets could boomerang back onto the market, undercutting plane values and disrupting the global industry. To some, such moves confirm suspicions that too many planes have been sold to airlines that don't need them as Airbus and Boeing jostle for market share. "When people realise demand may not be as believed, things change. Looking for alternative things to do is one of the possible indicators of aircraft over-ordering," said Adam Pilarski, senior vice president at U.S. consultancy Avitas. New breed Airlines often rent out unused planes, when needed, to manage fleets. But few have successfully moved into leasing for its own sake, and many that have tried, like Singapore Airlines Ltd, eventually exited. What has changed is that low interest rates, high fuel prices in the recent past and growth in emerging markets have encouraged the new breed of budget carrier to place huge orders. Last week India's IndiGo followed suit with a record provisional Airbus deal. Add to this relentless Airbus-Boeing competition, and many say there hasn't been a better time to buy new jets at potentially huge bargains. "I am very confident that there aren't many leasing companies in the world that have a better purchase price than us," Norwegian CEO Kjos said. "When you purchase 100 aircraft you can get a fair discount. If you purchase 250 you get an even better discount. There aren't that many leasing companies that purchase 250." Lion Air's Singapore-based lessor, Transportation Partners, aims to ramp up third-party leasing in 2015 and 2016 with a focus on China, Brazil, Japan and the United States, chief operating officer John Duffy told Reuters. "We are in some respects, the strategic hedge or the pressure valve. If planes coming into the group are identified as being surplus to requirements, then we have the right to lease them anywhere," Duffy said at an industry gathering. AirAsia started a leasing unit last month, aiming to form a venture with a leasing investor. "People are looking for good rates of return with low risk. The asset class of airplanes is becoming a good asset class," Chief Executive Tony Fernandes told Reuters recently. The unit is expected to lease jets both to affiliated airlines and externally. Leasing risks If successful, the low-cost carriers could in theory take business away from traditional lessors, particularly smaller players. That could in turn put pressure on lessors to cut their rates. "The historical success of airlines-as-lessors is mixed at best, but if these companies aggressively grow their leasing fleets we believe it could put marginal pressure on lease rates," Wells Fargo analyst Gary Liebowitz said in a report in August. Leasing executives are quick to flag potential risks. They say theirs is a highly specialised business in which problems like having too many jets grounded between rentals, or the wrong funding structure, can quickly escalate. "The skill sets that are needed to operate an efficient and profitable leasing company are not necessarily the same skills you may have when running an airline," said Jeffrey Knittel, president of CIT Transportation, a leasing unit of U.S. insurer CIT. Besides, some airlines are seen as reluctant to lease from competitors if that means sharing confidential data. Jet makers are meanwhile aware that traditional lessors remain among their most influential and loyal customers. "I do not encourage our customers to set up leasing companies," Airbus sales chief John Leahy said on the sidelines of a conference. "The leasing model is a different model...I don't think airlines running part-time leasing companies is a good alternative." Neither Airbus nor Boeing commented on specific airlines. For Boeing, "The better question is whether this practice is practical," said marketing vice president Randy Tinseth. "Leasing companies have infrastructure to support the placement, contracting, configuration and technical management of the assets - airlines do not." Reuters]]> Singapore/Paris. From Scandinavia to Southeast Asia, low-cost airlines have ordered record numbers of planes in recent years, redefining the jet industry. Now they plan to lease out scores of their new planes, re-ordering the aviation business all over again. Between them, Indonesia's Lion Air, Malaysia's AirAsia and Norwegian Air Shuttle have ordered more than 1,400 Airbus and Boeing jets, worth about $140 billion at current list prices. They're about to test the growing market for rented planes, competing with established finance firms that lease out aircraft to cash-strapped carriers from China to the United States. Jet makers and the finance companies which dominate aircraft leasing question whether budget airlines have the know-how to succeed, and some in the industry wonder whether they have simply ordered more planes than they need. But the low-cost carriers' sights are trained on new revenue streams, and net profit margins of about 20 percent enjoyed by global aircraft lessors - well above the airline industry average. "It's the leasing companies that have made money in the last 10 years, not the airlines," Norwegian Air Shuttle's chief executive Bjorn Kjos told Reuters in a recent interview, referring to lessors who buy 30-40 percent of Airbus and Boeing planes. "They have a fantastic bottom line. They earn all the money the airlines should have earned." For would-be lessor budget carriers, whose orders have boosted aircraft production and secured thousands of jobs, renting out planes provides both insurance against a downturn and diversified revenues. Though such business remains in its infancy, it could also help them hedge currency risk, bringing in revenue in dollars that can also be used to buy jets. With over 900 jets worth $96 billion at current list prices on order or already delivered between them, Lion Air and Norwegian Air Shuttle in particular plan to become active in leasing. The trend has fuelled concern that scores of jets could boomerang back onto the market, undercutting plane values and disrupting the global industry. To some, such moves confirm suspicions that too many planes have been sold to airlines that don't need them as Airbus and Boeing jostle for market share. "When people realise demand may not be as believed, things change. Looking for alternative things to do is one of the possible indicators of aircraft over-ordering," said Adam Pilarski, senior vice president at U.S. consultancy Avitas. New breed Airlines often rent out unused planes, when needed, to manage fleets. But few have successfully moved into leasing for its own sake, and many that have tried, like Singapore Airlines Ltd, eventually exited. What has changed is that low interest rates, high fuel prices in the recent past and growth in emerging markets have encouraged the new breed of budget carrier to place huge orders. Last week India's IndiGo followed suit with a record provisional Airbus deal. Add to this relentless Airbus-Boeing competition, and many say there hasn't been a better time to buy new jets at potentially huge bargains. "I am very confident that there aren't many leasing companies in the world that have a better purchase price than us," Norwegian CEO Kjos said. "When you purchase 100 aircraft you can get a fair discount. If you purchase 250 you get an even better discount. There aren't that many leasing companies that purchase 250." Lion Air's Singapore-based lessor, Transportation Partners, aims to ramp up third-party leasing in 2015 and 2016 with a focus on China, Brazil, Japan and the United States, chief operating officer John Duffy told Reuters. "We are in some respects, the strategic hedge or the pressure valve. If planes coming into the group are identified as being surplus to requirements, then we have the right to lease them anywhere," Duffy said at an industry gathering. AirAsia started a leasing unit last month, aiming to form a venture with a leasing investor. "People are looking for good rates of return with low risk. The asset class of airplanes is becoming a good asset class," Chief Executive Tony Fernandes told Reuters recently. The unit is expected to lease jets both to affiliated airlines and externally. Leasing risks If successful, the low-cost carriers could in theory take business away from traditional lessors, particularly smaller players. That could in turn put pressure on lessors to cut their rates. "The historical success of airlines-as-lessors is mixed at best, but if these companies aggressively grow their leasing fleets we believe it could put marginal pressure on lease rates," Wells Fargo analyst Gary Liebowitz said in a report in August. Leasing executives are quick to flag potential risks. They say theirs is a highly specialised business in which problems like having too many jets grounded between rentals, or the wrong funding structure, can quickly escalate. "The skill sets that are needed to operate an efficient and profitable leasing company are not necessarily the same skills you may have when running an airline," said Jeffrey Knittel, president of CIT Transportation, a leasing unit of U.S. insurer CIT. Besides, some airlines are seen as reluctant to lease from competitors if that means sharing confidential data. Jet makers are meanwhile aware that traditional lessors remain among their most influential and loyal customers. "I do not encourage our customers to set up leasing companies," Airbus sales chief John Leahy said on the sidelines of a conference. "The leasing model is a different model...I don't think airlines running part-time leasing companies is a good alternative." Neither Airbus nor Boeing commented on specific airlines. For Boeing, "The better question is whether this practice is practical," said marketing vice president Randy Tinseth. "Leasing companies have infrastructure to support the placement, contracting, configuration and technical management of the assets - airlines do not." Reuters]]> http://thejakartaglobe.beritasatu.com/?p=338434 Market Gains on Hopes of Friendly Finance Minister http://thejakartaglobe.beritasatu.com/news/market-gains-hopes-friendly-finance-minister/ Wed, 22 Oct 2014 22:37:22 +0700 Jakarta. Indonesia’s financial markets gained on Wednesday as investors were optimistic President Joko Widodo will name a business-friendly finance minister. According to an anonymous source cited by BeritaSatu, names such as Bambang Brodjonegoro, a former ministry deputy; Muhammad Chatib Basri, a former finance minister; Mirza Adityaswara, senior deputy governor of the central bank; Agus Martowardojo, the current central bank governor; and Sri Adiningsih, an economist who advises Megawati Soekarnoputri, the chairwoman of the Indonesia Democratic Party of Struggle (PDI-P), are possible Joko picks for finance minister. Bambang was summoned to the State Palace in Central Jakarta on Wednesday morning, fueling speculation. “We expect someone who is a technocrat from inside the ministry and someone who understands the impact of the fuel price increase; how to effectively use direct cash assistance and someone who understands how project developments works,” the source said. The rupiah declined to 12,026 per dollar on Wednesday from 11,993 per dollar according to data from the central bank. The Jakarta Composite Index gained 0.89 percent to close at 5,074.32 on Wednesday, as investors await the cabinet announcement with optimism. About 4.4 billion shares worth Rp 5.01 trillion were traded on Wednesday. Gainers beat decliners by 206 to 81. Foreign investors, contributed about 40 percent of the total trading on the day, buying Rp 44.9 billion more shares than they sold. The benchmark 10-year government bonds declined to 8.13 percent on Wednesday from 8.18 percent. A falling bond yield means investors see lower risks in holding the debt papers. Aldian Taloputra, economist at Mandiri Sekuritas, said the new finance minister would face tough challenges. These may include the trend of slowing global and domestic economic growth, triple deficit threats and welfare inequality. The World Bank trimmed its forecast for 2014 economic growth for Indonesia to 5.2 percent from a previous 5.3 percent in April. Indonesia expanded by 5.78 percent in 2013, the World Bank said, adding that it expects a pick-up for next year’s growth, at 5.6 percent growth — contingent on how effective the new administration will be in pushing through reforms. Meanwhile, the country of over 250 million people faces a deficit trouble trifecta in terms of its budget, trade and current account. It also struggles with enormous wealth inequality, with Indonesia leading Asia in terms of the proportion of total wealth concentrated among its top decile.]]> Jakarta. Indonesia’s financial markets gained on Wednesday as investors were optimistic President Joko Widodo will name a business-friendly finance minister. According to an anonymous source cited by BeritaSatu, names such as Bambang Brodjonegoro, a former ministry deputy; Muhammad Chatib Basri, a former finance minister; Mirza Adityaswara, senior deputy governor of the central bank; Agus Martowardojo, the current central bank governor; and Sri Adiningsih, an economist who advises Megawati Soekarnoputri, the chairwoman of the Indonesia Democratic Party of Struggle (PDI-P), are possible Joko picks for finance minister. Bambang was summoned to the State Palace in Central Jakarta on Wednesday morning, fueling speculation. “We expect someone who is a technocrat from inside the ministry and someone who understands the impact of the fuel price increase; how to effectively use direct cash assistance and someone who understands how project developments works,” the source said. The rupiah declined to 12,026 per dollar on Wednesday from 11,993 per dollar according to data from the central bank. The Jakarta Composite Index gained 0.89 percent to close at 5,074.32 on Wednesday, as investors await the cabinet announcement with optimism. About 4.4 billion shares worth Rp 5.01 trillion were traded on Wednesday. Gainers beat decliners by 206 to 81. Foreign investors, contributed about 40 percent of the total trading on the day, buying Rp 44.9 billion more shares than they sold. The benchmark 10-year government bonds declined to 8.13 percent on Wednesday from 8.18 percent. A falling bond yield means investors see lower risks in holding the debt papers. Aldian Taloputra, economist at Mandiri Sekuritas, said the new finance minister would face tough challenges. These may include the trend of slowing global and domestic economic growth, triple deficit threats and welfare inequality. The World Bank trimmed its forecast for 2014 economic growth for Indonesia to 5.2 percent from a previous 5.3 percent in April. Indonesia expanded by 5.78 percent in 2013, the World Bank said, adding that it expects a pick-up for next year’s growth, at 5.6 percent growth — contingent on how effective the new administration will be in pushing through reforms. Meanwhile, the country of over 250 million people faces a deficit trouble trifecta in terms of its budget, trade and current account. It also struggles with enormous wealth inequality, with Indonesia leading Asia in terms of the proportion of total wealth concentrated among its top decile.]]> http://thejakartaglobe.beritasatu.com/news/market-gains-hopes-friendly-finance-minister/ Micro Credit, Internet Banking and Branch Expansion Drive Growth at BRI http://thejakartaglobe.beritasatu.com/?p=338341 Thu, 23 Oct 2014 08:24:03 +0700 BRI plans to offer Kawasan Berikat Nusantara more loans over the next nine years. (JG Photo/Jurnasyanto Sukarno) Bank Rakyat Indonesia enjoys net income growth of 18 percent in the first nine months of 2014. (JG Photo/Jurnasyanto Sukarno)[/caption] Jakarta. State-controlled Bank Rakyat Indonesia, the country’s second-largest lender by assets, saw an 18 percent growth in net income in the January-to-September period from the same period last year on the back of steady micro-credit demand. Profit at BRI rose to Rp 18.1 trillion ($1.51 billion) in the first nine months of this year from Rp 15.2 trillion in the same period last year. The robust growth has fueled confidence that the lender’s profit will reach at least Rp 24 trillion least by the end of the year, president director Sofyan Basir said on Wednesday. Sofyan also predicted 15 percent in lending growth by year-end, banking on BRI’s micro loans business. “Usually, the smaller loans — such as retail, consumer and micro loans — pick up nearing the end of the year, while loans to state-owned firms slow down significantly,” he said. The bank disbursed Rp 464.2 trillion in loans, or up 12 percent year-on-year, bolstered by a strong growth in micro loans. Micro loans — defined as loans of less than Rp 100 million — grew 16 percent to Rp 148.4 trillion, making up 32 percent of BRI’s total outstanding loans. BRI’s net interest margin, which is the difference between interest charged to its debtors and interest paid to depositors,  climbed to 8.78 percent, from 8.25 percent last year. BRI raised Rp 4.2 trillion in fee-based income, up 24 percent from last year, thanks to a jump in its electronic banking channel. Fees from Internet banking and mobile banking services at BRI grew 51 percent to Rp 691.1 billion. Still, the lender’s gross non-performing loans ratio rose to 1.89 percent in the third quarter of 2014, compared to 1.77 percent in the third quarter of last year. “The slight rise in non-performing loans mostly came from the medium-sized loans,” Sofyan said. BRI’s medium-sized loans are between Rp 1 trillion and Rp 5 trillion. Third-party funds grew 20 percent to Rp 544.3 trillion. This led to a significant improvement in the lender’s loan-to-deposit ratio, which stood at 85.29 percent from 90.88 percent in the same period last year. Jakarta-based BRI has added up to 665 branch offices so far this year, bringing to 10,234 its branches across Indonesia. Sofyan said the lender was currently mulling over plans to reopen its branch in East Timor. “We were visited by a government official from East Timor recently, and we’re currently assessing the opportunities there,” he said.]]> BRI plans to offer Kawasan Berikat Nusantara more loans over the next nine years. (JG Photo/Jurnasyanto Sukarno) Bank Rakyat Indonesia enjoys net income growth of 18 percent in the first nine months of 2014. (JG Photo/Jurnasyanto Sukarno)[/caption] Jakarta. State-controlled Bank Rakyat Indonesia, the country’s second-largest lender by assets, saw an 18 percent growth in net income in the January-to-September period from the same period last year on the back of steady micro-credit demand. Profit at BRI rose to Rp 18.1 trillion ($1.51 billion) in the first nine months of this year from Rp 15.2 trillion in the same period last year. The robust growth has fueled confidence that the lender’s profit will reach at least Rp 24 trillion least by the end of the year, president director Sofyan Basir said on Wednesday. Sofyan also predicted 15 percent in lending growth by year-end, banking on BRI’s micro loans business. “Usually, the smaller loans — such as retail, consumer and micro loans — pick up nearing the end of the year, while loans to state-owned firms slow down significantly,” he said. The bank disbursed Rp 464.2 trillion in loans, or up 12 percent year-on-year, bolstered by a strong growth in micro loans. Micro loans — defined as loans of less than Rp 100 million — grew 16 percent to Rp 148.4 trillion, making up 32 percent of BRI’s total outstanding loans. BRI’s net interest margin, which is the difference between interest charged to its debtors and interest paid to depositors,  climbed to 8.78 percent, from 8.25 percent last year. BRI raised Rp 4.2 trillion in fee-based income, up 24 percent from last year, thanks to a jump in its electronic banking channel. Fees from Internet banking and mobile banking services at BRI grew 51 percent to Rp 691.1 billion. Still, the lender’s gross non-performing loans ratio rose to 1.89 percent in the third quarter of 2014, compared to 1.77 percent in the third quarter of last year. “The slight rise in non-performing loans mostly came from the medium-sized loans,” Sofyan said. BRI’s medium-sized loans are between Rp 1 trillion and Rp 5 trillion. Third-party funds grew 20 percent to Rp 544.3 trillion. This led to a significant improvement in the lender’s loan-to-deposit ratio, which stood at 85.29 percent from 90.88 percent in the same period last year. Jakarta-based BRI has added up to 665 branch offices so far this year, bringing to 10,234 its branches across Indonesia. Sofyan said the lender was currently mulling over plans to reopen its branch in East Timor. “We were visited by a government official from East Timor recently, and we’re currently assessing the opportunities there,” he said.]]> http://thejakartaglobe.beritasatu.com/?p=338341 APEC Nations Vow to Pursue ‘Flexible’ Fiscal Policies http://thejakartaglobe.beritasatu.com/?p=338342 Wed, 22 Oct 2014 23:29:54 +0700 Beijing. Countries at an Asia-Pacific summit in Beijing pledged to pursue “flexible” fiscal policies to support the world economy and job creation, their finance ministers said in a joint statement on Wednesday. Noting that current tepid global economic growth was not creating enough jobs around the world, the 21-member Asia-Pacific Economic Cooperation (APEC) bloc said they would advance structural reforms to unleash new sources of growth. “As the global economy still faces persistent weakness in demand, growth is uneven and remain below the pace necessary to generate needed jobs and downside risks have risen,” the statement said. “We will continue to implement our fiscal policies flexibly, taking into account near-term economic conditions, so as to support economic growth and job creation, while ensuring fiscal sustainability,” it said. APEC, which includes the United States, Japan, South Korea, Indonesia and Canada, groups countries which account for 40 percent of the world’s population, 54 percent of its economic output and 44 percent of trade. US Deputy Treasury Secretary Sarah Bloom Raskin said in a separate statement that economic recovery in the United States had continued to strengthen and it was important for economies with the “space to do so” to take policy steps to boost demand. “While there is still more work to do, the United States’ comprehensive response to the economic crisis has laid the foundation for strong growth,” Raskin said. Wednesday’s APEC finance ministers’ meeting also reiterated a commitment to move towards market-determined exchange rates that are more flexible, reflect underlying fundamentals, and avoid persistent misalignment. The APEC meeting came a day after data showed China’s economy, the world’s second largest, grew at its slowest rate in the third quarter since the 2008/09 global financial crisis, adding to worries that it was weighing on global growth. Reuters]]> Beijing. Countries at an Asia-Pacific summit in Beijing pledged to pursue “flexible” fiscal policies to support the world economy and job creation, their finance ministers said in a joint statement on Wednesday. Noting that current tepid global economic growth was not creating enough jobs around the world, the 21-member Asia-Pacific Economic Cooperation (APEC) bloc said they would advance structural reforms to unleash new sources of growth. “As the global economy still faces persistent weakness in demand, growth is uneven and remain below the pace necessary to generate needed jobs and downside risks have risen,” the statement said. “We will continue to implement our fiscal policies flexibly, taking into account near-term economic conditions, so as to support economic growth and job creation, while ensuring fiscal sustainability,” it said. APEC, which includes the United States, Japan, South Korea, Indonesia and Canada, groups countries which account for 40 percent of the world’s population, 54 percent of its economic output and 44 percent of trade. US Deputy Treasury Secretary Sarah Bloom Raskin said in a separate statement that economic recovery in the United States had continued to strengthen and it was important for economies with the “space to do so” to take policy steps to boost demand. “While there is still more work to do, the United States’ comprehensive response to the economic crisis has laid the foundation for strong growth,” Raskin said. Wednesday’s APEC finance ministers’ meeting also reiterated a commitment to move towards market-determined exchange rates that are more flexible, reflect underlying fundamentals, and avoid persistent misalignment. The APEC meeting came a day after data showed China’s economy, the world’s second largest, grew at its slowest rate in the third quarter since the 2008/09 global financial crisis, adding to worries that it was weighing on global growth. Reuters]]> http://thejakartaglobe.beritasatu.com/?p=338342 SoftBank to Invest $100m in Tokopedia http://thejakartaglobe.beritasatu.com/?p=338331 Wed, 22 Oct 2014 22:47:52 +0700 A picture made available on 15 March 2012 shows the Zalora website displayed on computer screen at Zalora e-commerce company in Bangkok, Thailand, 14 March 2012. Rocket Internet GmbH, a German start-up incubator that has made a fortune copying successful US websites, is doing some original spade work for e-commerce in South-East Asia. The group has been quietly setting up companies and hiring staff in Indonesia, Malaysia, the Philippines, Singapore, Vietnam, Taiwan and Thailand in recent months to operate the new e-commerce site Zalora, specializing in fashionable, brand-name products.  EPA/NARONG SANGNAK A picture shows the Zalora website displayed on computer screen at Zalora e-commerce company in Bangkok, Thailand. EPA/NARONG SANGNAK[/caption] Jakarta. Japanese telecommunications and Internet provider SoftBank is leading a $100 million investment in Tokopedia, an Indonesian marketplace firm, in an effort to tap the Southeast Asian country’s burgeoning e-commerce industry, according to an official statement. The investment round — which will be under SoftBank’s newly formed Softbank Internet and Media Inc. (SIMI), and joined by Sequoia Capital and existing shareholder SB Pan Asia Fund — will pave the way for SIMI and Sequoia Capital’s representatives to join the Indonesian firm’s board of directors. Nikesh Arora, vice chairman of SoftBank and chief executive of SIMI said there is great potential for online marketplaces in Indonesia. “In the Asia region, the growth potential for online marketplaces particularly stands out in Indonesia,” Arora said. “Tokopedia has seen remarkable growth with their innovative business model. Leveraging synergies with our network of Internet businesses, we are confident we can help Tokopedia’s success in the Indonesian market.” Japanese companies are turning their investment to Indonesia, with over $2 billion worth of mergers and acquisitions in the country last year or over 17 percent of Japan total investment in Southeast Asia. William Tanuwijaya, chief executive of Tokopedia, said the investment would help Tokopedia to improve human resources, upgrade technology and enhance the design of its services. Tokopedia is competing with Berniaga, OLX, BukaLapak and Kaskus as the top marketplace platform in Indonesia. The total volume of e-commerce transactions in Indonesia in 2013 was $5 billion despite the fact that Indonesia has one of the slowest Internet speeds in the world. Additionally, Indonesia has one of the lowest rates of Internet penetration of any country in the world. Agus Tjandra, the deputy chairman of the Indonesia E-Commerce Association, or idEA, expected the transaction volume  of online marketplaces to reach $25 billion by 2016. Also read: Indonesia the Next Asian Investment Hub for Japanese Investors]]> A picture made available on 15 March 2012 shows the Zalora website displayed on computer screen at Zalora e-commerce company in Bangkok, Thailand, 14 March 2012. Rocket Internet GmbH, a German start-up incubator that has made a fortune copying successful US websites, is doing some original spade work for e-commerce in South-East Asia. The group has been quietly setting up companies and hiring staff in Indonesia, Malaysia, the Philippines, Singapore, Vietnam, Taiwan and Thailand in recent months to operate the new e-commerce site Zalora, specializing in fashionable, brand-name products.  EPA/NARONG SANGNAK A picture shows the Zalora website displayed on computer screen at Zalora e-commerce company in Bangkok, Thailand. EPA/NARONG SANGNAK[/caption] Jakarta. Japanese telecommunications and Internet provider SoftBank is leading a $100 million investment in Tokopedia, an Indonesian marketplace firm, in an effort to tap the Southeast Asian country’s burgeoning e-commerce industry, according to an official statement. The investment round — which will be under SoftBank’s newly formed Softbank Internet and Media Inc. (SIMI), and joined by Sequoia Capital and existing shareholder SB Pan Asia Fund — will pave the way for SIMI and Sequoia Capital’s representatives to join the Indonesian firm’s board of directors. Nikesh Arora, vice chairman of SoftBank and chief executive of SIMI said there is great potential for online marketplaces in Indonesia. “In the Asia region, the growth potential for online marketplaces particularly stands out in Indonesia,” Arora said. “Tokopedia has seen remarkable growth with their innovative business model. Leveraging synergies with our network of Internet businesses, we are confident we can help Tokopedia’s success in the Indonesian market.” Japanese companies are turning their investment to Indonesia, with over $2 billion worth of mergers and acquisitions in the country last year or over 17 percent of Japan total investment in Southeast Asia. William Tanuwijaya, chief executive of Tokopedia, said the investment would help Tokopedia to improve human resources, upgrade technology and enhance the design of its services. Tokopedia is competing with Berniaga, OLX, BukaLapak and Kaskus as the top marketplace platform in Indonesia. The total volume of e-commerce transactions in Indonesia in 2013 was $5 billion despite the fact that Indonesia has one of the slowest Internet speeds in the world. Additionally, Indonesia has one of the lowest rates of Internet penetration of any country in the world. Agus Tjandra, the deputy chairman of the Indonesia E-Commerce Association, or idEA, expected the transaction volume  of online marketplaces to reach $25 billion by 2016. Also read: Indonesia the Next Asian Investment Hub for Japanese Investors]]> http://thejakartaglobe.beritasatu.com/?p=338331