Indonesia Business part of Mybusinessblogging.com Channel

The Central Bank of Indonesia (BI) rate’s was increase 25 basis point, from 8.5 percent become to 8.75 percent. 

This condition will be bringing the positives influence to appreciate our currency (IDR) at level Rp. 9.200/ US$ and also of course, it will be able to support the decreasing of our inflation currently. 

Beside Indonesia, it was so many countries includes European region will do the same action, except United States of America (USA) which consistent at level 2% for The Federal Reserve Bank (The Fed) rate’s. 

Negatives influence caused by increase of BI rate’s is the decreasing of credit banking expansion (www.mediaindonesia.co.id). 

Topic: Government, Industry, News

PT Bank Danamon Tbk has implementing Flexcube program from Oracle (one of market leading for information technology solution in the world) for their business in Self Employed Mass Market (SEMM). 

Danamon agree and will using this program to expand their networking in micro financing area which called is “Danamon Simpan Pinjam (DSP)”.  

Flexcube as platform core banking for DSP business and it will be more easier, quick and also very innovative for service banking. 

DSP was designed to cover a small, middle and micro enterprise business needed in Indonesia. 

DSP business as a strategic vision of Danamon Bank and it will developing million peoples who needs the solution for special design with more quickly, safety, completely, and also similar with convensional banking. 

The transformation project for core banking in Danamon is one of the bigger implementation for core banking in ASIA region. 

Danamon only need 5 months to implementing this program in their 700 branchs office in Indonesia. 

Currently, Danamon Bank is the second posisition for private national bank and in the fifht largers for commercial bank in Indonesia (source information from IndoPacific Edelman for Oracle ASEAN: syamsul.arief@indopacedelman.com). 

Topic: Business, News

Succes issued Retail Government Bond (ORI) since first issued (ORI-001) till fourth issued (ORI-004) has making our government optimistic by continued to issue the fifth retail bond number 005 (ORI-005) on next September 2008. ORI-005 will have a five-year maturity, and the yield will be compared to other five-year bonds in the market.  

The government who reprentative by Rahmat Waluyanto, Director general of debt management assure that the yield of bond will be more attractive than deposit rates currently.  

The government was raised Rp 13.46 trillion (US$1.46 billion) from its last retail bond, ORI-004. From the total offered from February to March, this year, close to 4,000 Indonesians, 22 percent of them housewives, bought the bonds.

Domestics investor were more interested in buying short-term and zero-coupon bonds, while foreign investors preferred long-term bonds (www.thejakartapost.com).   

Topic: Finance, Government, Invesment, News

Government has targeting the trading volume of Indonesia to Japan will increase from 9.5% become to 12% after the agreement of Indonesia-Japan Economic Partnership Agreement (IN-EPA) has realized. This EPA’s agreement will be related by liberalization, facility and partnerships beetwen each country. 

This agreement will be effective as per July, 01st 2008 and with this agreement, Japan will decrease about 80% duty tariff till 0% and also for Indonesia,  about 58% duty tariff will be deducted become to 0% percent tariff. 

Last year, Japan’s investment was only US$ 700 million, while before the monetary crisis in 1998, Japan has invest about US$ 3 billion per year.   

Japan is one of trading partner’s priority for Indonesia with volume reaching 20% from the total (www.mediaindonesia.co.id)

Topic: Business, Economic Growth, Government, Invesment, News

in 2008, stated-owned oil and gas company, PT Pertamina was projected 39 percent to increase their profits.  It’s mean that the company must be raise their net profits from Rp. 24.5 trillion on the last year (2007) become to Rp. 34 trillion or equivalent with US$ 3.68 billion. 

With current condition by rising oil prices, Pertamina optimis that the projected will be realize. Pertamina also made cost-cutting measures in the procurement of fuel and crude oil to boost its net profit. 

On 2006, Pertamina was able to book Rp. 24.5 trillion in profit, up to 29 percent from 18.99 trillion in 2006 or about 45 percent of 2007 profits will be paid to the government as a dividend (www.thejakartapost.com).   

Topic: Business, Government, News

PT Sentul City Tbk will increase they pricelist for their property business, start from 10 percent up till 15 percent increase related with oil price increasing currently. 

Although the purchasing power of consument has been decreasing but, the company optimis that the demand of propery business still attractive and also will not influence by significantly refer to oil price increase. 

Currently, Sentul City have two segmentation for their property market. There are consist of down-grade and middle-up consument.

This two segmentation still have a good market penetration, especially for middle-up consument. The company very optimistic that propety is never ending business in the world (www.thejakartapost.com).

Topic: Business, Industry, Invesment, News

After oil increased in the end of May 2008 by our government, currently Pertamina has plan to increase the LPG, especially for size 12Kg. 

The LGP for size 12Kg more neededs by consument than another size like 3Kg or 50Kg. This condition has continue increasing by persistantly after oil increasing. 

If Pertamina still using the old price to supply the LPG 12 Kg, so the company will be loses caused by transportation increase, but if Pertamina increase the LGP 12Kg price, so it will be difficulty condition for consument.  

This is a dilematic condition for Pertamina, but the company should be making some decision and consideration to get the best way to solving these problem (www.kompas.co.id).

Topic: Government, News

The Enabling Trade Index in the 2008 Global Trade Report published on Wednesday (18/06/08) by the World Economic Forum compares 118 countries openness and international trade capabilities. 

Overall, Indonesia ranked 47th among the 118 countries. Hong Kong topped the list, followed by Singapore, Sweden, Norway and Canada. Malaysia ranked 29th, China 48, Thailand 52 and Vietnam 91. 

The index sums up countries market access, border administration, transport and communications infrastructure, and business environments.

This condition is a good news for Indonesia Government and also  good at attracting international trade with its relatively competitive tariff barriers, but our border controls and distribution channels create major obstacles. 

However, as soon as the goods arrive in Indonesia, they are welcomed with inefficient customs administration, irregular payments and corruption at the border.

In infrastructure, Indonesia scored much lower than Malaysia, China, Thailand and India, although it was comparable to Vietnam (www.thejakartapost.com).

Topic: Business, Industry, Invesment, News

To establish one oil station, pertamina needs Rp. 10 billion  to invest. Currently, Pertamina has introducing their investment in oil station “Pasti Pass” with Company Own Company Operator (COCO) program which owner and operating by Pertamina directly. 

Beside in Rasuna Said, COCO program also has been application by company in Tanah Abang, Industry Area and Pramuka. Totally, Pertamina has 4 oil station who owned and operated by the company (COCO-program). 

According  to Ari H. Sumarno, the director of Pertamina, until this time Pertamina has apllication about 500 existing oil station with “Pasti Pass” programs. In the end of 2008, Pertamina has targeting about 1.000 oil station will adapting “Pasti Pass” programs. 

With “Pasti Pas” program, Pertamina guaranteed not only for the quality service, but also for quantity, caused by Pertamina has  adapted the international standar for oil station business in the world. For entirely, our oil station wil have ability to compete in the global competition

Topic: Government, Industry, Invesment, News

Mochtar’s first grand son, Michael Riyadi will leading the projet of St. Moritz Penthouse and Residences in this year projects, a multi billion dollar projects to establish a new business district in Puri Kembangan, West Jakarta. 

St. Moritz will have 17 buildings that will provide 11 centers in one area, including office buildings, apartments, schools, a hotel, a hospital and a mall.

This project will be a blast in the future and will help people to cut commuting time in Jakarta. The office building has 65 floors and will be the tallest in Indonesia.

The 135-hectare land plot is designed to be a self-sustaining business district with a block concept. We also want the new business district to be a global city, competing not with other developers, but with other cities in Southeast Asia.  

This projects will become to a global city in Asia and also have a competitive advantage. Property prices in Jakarta are among the cheapest in the world.

According to Global Property Guide 2008, the average apartment price in Jakarta is US$1,068 per square meter while in Manila it is $1,969. In Kuala Lumpur, it’s $1,400 (www.thejakartapost.com).  

Topic: Business, Industry, Invesment, News