Mobile Money in Indonesia

With T-Cash, Telkomsel subscribers can make many transactions, like buying vouchers to top up their cell phones and PLN tokens, paying Telkomsel postpaid kartuHALO bills, cable TV provider TelkomVision, PLN and state-owned regional water utility PDAM, and using it to pay at participating merchants. Users can also use T-Cash for cash transfers, allowing them to send and receive money quickly via their cell phones, which is very convenient, especially for those who do not have bank accounts and are far from any bank. Just access *828#.

Bank Indonesia, the country’s central bank, has granted a license for the T-Cash service, which currently has more than 260 partners across the archipelago offering various products and services (Indomaret, Tokobagus.com, Fuji Image Plaza, Universities featuring academic contents and others).

There are now more than 7,000 T-Cash sales points from Aceh to Papua.

- See more at: http://m.thejakartapost.com/news/2011/02/02/tcash-a-new-payment-method-mobile-era.html#sthash.pvCRTOi6.dpuf
http://m.thejakartapost.com/news/2011/02/02/tcash-a-new-payment-method-mobile-era.html

Permit required for online businesses in Indonesia

The draft new regulation, scheduled to be issued in February 2016, is currently being discussed by the Trade Ministry, Communication and Information Ministry and the Law and Human Rights Ministry. The Indonesian government is of the view that the regulation was a necessity as the current online trading practice was not supervised by the government.

http://www.dealstreetasia.com/stories/indonesia-pushes-for-permit-regime-for-online-businesses-10164/

List of mcommerce apps in Indonesia

In no particular order, here are a few mobile apps that can help average Indonesians sell online, categorized by business model.

https://www.techinasia.com/indonesia-mcommerce-apps-list/

Another Indian startup in Indonesia

India-based and Ratan Tata-backed CarDekho is on the lookout for acquisitions in the range of $1-5 million (Rs6-30 crore) in Southeast Asian market such as Indonesia, Malaysia and Vietnam and Thailand, The Economic Times reported.

Amit Jain, chief executive of CarDekho said, the Jaipur-based automotive classifieds portal is making a start in this direction by talking to a few players for potential buyouts.

If successful, CarDekho will join the bandwagon of Indian startups entering other emerging markets where local challenges are similar (to India) and technology ecosystem is not mature.

The company had recently launched CarBay.co.id in Indonesia to provide local information on new and old cars in the Indonesian language.

http://www.dealstreetasia.com/stories/india-cardekho-on-the-lookout-for-acquisitions-in-indonesia-other-se-asian-markets-9418/

Mobile Money in Indonesia

The electronic money system frees people from being tethered to a physical bank branch for the financial services he offers, but it took few adopters time to trust the mobile-based service. Indonesia remains a cash economy where paper money dominates transactions, and many people still don’t understand the value mobile banking.

http://www.wsj.com/articles/mobile-banking-struggles-to-gain-traction-in-indonesia-1437507127

Countries exempt from tourists visa

Indonesia lifted visa requirements for 45 countries to boost tourism.

http://www.indonesia-investments.com/news/news-columns/visit-visa-no-longer-required-in-indonesia-for-45-countries/item5702

Another startup focused fund in Indonesia

India-based venture capital firm Aavishkaar plans on bringing US$75 million of Series A funding to four countries with highest startup growth, and Indonesia is one of them.

As Aavishkaar’s Senior Investment Manager Adi Sudewa, the company’s representative for Indonesia said the Aavishkaar Frontier Fund (AFF) will be focussed outside India to provide Series A funding in farming, health, education, water and sanitation, and renewable energy sector.

There have been many big players entering Indonesia. Japan-based ones dominate the game, as names like SoftBank, CyberAgent Ventures andIMJ Investment Partner are supporting startups in the country. India and China-based investors seem to be interested as well.

http://e27.co/indias-aavishkaar-to-inject-us75m-into-indonesia-bangladesh-other-countries-20150703/

Local content in smartphones in Indonesia

Come January 2017, all 4G LTE FDD devices need to contain 30 percent “local content” – a figure which is composed of various factors such as software, hardware components, and assembly.

In anticipation of this pending regulation, Samsung already invested in additionalmanufacturing facilities in Indonesia.

How Apple and other global brands pushing into the Indonesian market with 4G phones are going to deal with this  remains to be seen.

https://www.techinasia.com/talk/local-content-rule-smartphones-indonesia-official/

BBM Money in Indonesia

Japan’s biggest lender is considering acquiring a bank in Indonesia, the Philippines or India that has expertise in consumer banking, said Go Watanabe, chief executive officer (CEO) of the main lending unit’s Asia-Oceania arm.

“We’re looking for a bank that is very strong in both corporate and retail consumer finance” akin to Bangkok-based Bank of Ayudhya Pcl, Watanabe, 56, said in an interview on Monday in Singapore. The company ideally wants a majority stake in a “relatively big-sized bank,” he said.

http://www.phonearena.com/news/In-Indonesia-BlackBerry-adds-a-multi-platform-mobile-payment-system-to-BBM-Money_id71024

Looking to acquire a big bank in Indonesia

Japan’s biggest lender is considering acquiring a bank in Indonesia, the Philippines or India that has expertise in consumer banking, said Go Watanabe, chief executive officer (CEO) of the main lending unit’s Asia-Oceania arm.

“We’re looking for a bank that is very strong in both corporate and retail consumer finance” akin to Bangkok-based Bank of Ayudhya Pcl, Watanabe, 56, said in an interview on Monday in Singapore. The company ideally wants a majority stake in a “relatively big-sized bank,” he said.

http://www.livemint.com/Companies/FPjcwC2T76bejcvaoPJK2M/Mitsubishi-UFJ-considers-buying-Asian-bank-similar-to-Thai-u.html

Indonesia Corporate Tax | GBG

In an attempt to win over more investors, the Ministry of Finance announced plans to reduce the corporate income tax rate from 25% to 17.5%; a figure nearing that of Singapore. Indonesia’s corporate income tax is slightly higher than its regional neighbours which can deter investors and often leads to the establishment of holding companies based out of Singapore thereby subjecting dividends to a more preferable taxation rate. Indonesia’s corporate income tax rate has been a particularly decisive factor for investors in the manufacturing sector where Indonesia faces stiff competition from markets such as Thailand and Vietnam. Key advisor to the President, Mr Luhut Panjaitan, has pledged to investors that the proposed plan will go through this year though there is no confirmation on the set time period.



Indonesia Corporate Tax | GBG

Indonesia General Insurance Industry | GBG

Thanks to its large and young population with increasing affluence, robust economic growth and relatively permissive foreign investment laws, Indonesia will continue to be one of the most coveted markets for the global insurance industry. Short-term capital outflows as a result of monetary tightening in advanced economies will not spoil the country's long-term appeal. The new Insurance Law has improved regulatory clarity and should yield new business opportunities in the takaful segment. Going into the regions with scaled-down products for individuals and small enterprises promises to unlock new demand among tens of millions of Indonesians who at present enjoy little or no insurance coverage. Drawing up easy-to-understand policies and educating people on the benefits of insurance will be a major part of this task.



Indonesia General Insurance Industry | GBG

Indonesia Residential Property Market | GBG

Several factors have affected the market environment for residential property in Indonesia over the past two years. Slowing GDP growth, rising interest rates and central bank measures to prevent excessive speculation call for a reassessment of investment prospects. While most of these factors point to a less bullish market in the near future, the longer-term prospects remain intact.



Indonesia Residential Property Market | GBG

Rupiah forecast 13900 by December 2015

Eric Sugandi, Chief Economist at the Standard Chartered Bank, expects Indonesia’s rupiah to have depreciated to IDR 13,900 per US dollar by the end of the year from IDR 13,339 currently (29/06) due to the impact of the bullish US dollar ahead of monetary tightening in the USA and the looming Greek exit from the Eurozone. Actually, this is a conservative prognosis. In case Indonesia’s central bank does not raise its benchmark interest rate (BI rate), currently at 7.50 percent, pressures on the rupiah may increase in fact increase further

http://www.indonesia-investments.com/news/todays-headlines/eric-sugandi-indonesian-rupiah-may-touch-idr-13-900-per-us-dollar/item5689

Asian answer to IMF

The AIIB will begin with authorized capital of $50 billion, eventually to be raised to $100 billion.

China is likely to hold a 25-30 percent stake, while India will be the second-biggest shareholder with a possible 10-15 percent, delegates at a meeting to finalise the new bank's articles of agreement told Reuters in May.

Germany plans to take a 4.1 percent stake to become the fourth-biggest member after China, India and Russia, according to a finance ministry draft document seen by Reuters earlier this month.

Australia said last Wednesday it would contribute A$930 million ($719.36 million) over five years to become the institution's sixth largest shareholder.

Indonesia will be the eighth-largest shareholder in the AIIB with an investment of $672.1 million over five years, its finance ministry said on Sunday.

http://mobile.reuters.com/article/idUSKBN0P801520150628?irpc=932

Investments in Indonesia growing

Investment in Indonesia continues to grow despite the economic slowdown in the country, Chief of the Investment Coordinating Board (BKPM) Franky Sibarani said after visiting eight investment projects in Banten and Central Java from June 9 to 12. These projects are among examples of 100 investment projects that were inspected to check whether they could run smoothly

http://m.nasdaq.com/article/investment-in-indonesia-continues-to-grow-indonesian-investment-coordinating-board-bkpm-20150615-00879

Subsidized lending rate to reduce

The government is preparing to cut the lending rate of its subsidized micro credit loan program (KUR) in half as it seeks ways to spur economic growth amid the decline in private consumption and exports, a minister says.

Finance Minister Bambang Brodjonegoro said on Friday as part of the government’s program to spur the local economy, the interest rate of the subsidized KUR loan could be reduced to as low as 12 percent from the current level of 22 percent and 24 percent.

http://m.thejakartapost.com/news/2015/06/13/govt-halve-micro-loan-interest-rate-12.html

Indonesia subsidizes lending rate for small biz

Indonesia wants to unleash 30 trillion rupiah ($2.3 billion) of new loans for small businesses and halve some bank micro lending rates to help revive an economy running at its slowest pace in five years.

http://www.bloomberg.com/news/articles/2015-06-10/indonesia-to-halve-lending-rates-to-small-business-amid-slowdown

Indonesia bans local transactions in forex

To encourage the use of Indonesian Rupiah (IDR) for domestic Indonesian transactions, the Bank of Indonesia passed, on 31 March 2015, Regulation 17 which will ban the use of foreign currencies in such transactions from July 1, 2015.

According to the Bank of Indonesia’s director of money management, the Regulation is part of an effort to avoid a “dollarized economy” and uphold the “sovereignty of the rupiah”.

http://www.lexology.com/library/detail.aspx?g=d2bedf4d-9000-436d-b58c-7565f44bbbae

BRI selling it's insurance company

Bank Rakyat Indonesia , the second largest lender by assets, has invited about six companies including BNP Paribas Cardif and Tokio Marine Holdings Inc to bid for a 40 percent stake in its insurance unit,

http://mobile.reuters.com/article/idUSL3N0YU0YZ20150608?irpc=932

Indonesia not renewing Bilateral Agreement with Singapore

Indonesia has informed Singapore that it does not want to continue with a bilateral agreement signed in 2005 by both countries to promote greater investment flows, and this is an issue that must be addressed for both nations to boost economic ties, said Prime Minister Lee Hsien Loong.

It will be interesting to observe this negotiation - whether Jokowi is able to get his terms.

http://m.todayonline.com/world/asia/economic-ties-strong-despite-jakarta-not-renewing-treaty