Daily Briefs – Wednesday, August 30

JAKARTA (TheInsiderStories) – Good morning, we present some important news to help your business decisions today.

S’porean Investor Interested to Help Fund LRT Project
Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan said that a Singaporean investor and private lender PT CIMB Niaga Tbk (IDX: BNGA( showed an interest to help fund the Jakarta-Bogor-Depok-Bekasi light rail transit project. He said the investor, whose name remained kept confidential, is interested to help the project with up to Rp 2 trillion worth of financing each.

Low Carbon Emission Vehicle to Enjoy Incentives
Indonesia’s industry ministry has drafted a road map over development of the national industry, which will offer incentives for low carbon emission vehicle. The Industry Minister Airlangga Hartarto said in a statement on Monday (8/28) that the incentives could be enjoyed for hybrid cars, or cars using a combined fuel and battery to run.

BI to Release New Regulation on Fintech Industry in Q4
After establishing the so-called Bank Indonesia Financial Technology Office, or BI-FTO on November last year, the central bank plans to release a new regulation that will offer a thorough guidance for fintech players in the country. This regulation will be released in the fourth quarter of this year, Senior Deputy Governor at the Central Bank Mirza Adityaswara said, as quoted by Kontan.co.id

One-Stop Service Building in Jakarta to Assist Permits from Central to Region
President Joko Widodo said his administration to create a one-stop service building in the capital city of Indonesia, Jakarta, which offers investors to secure their permits from the central to the local governments, as part of an effort to reduce complex bureaucracy in the country and help attract investment. Widodo said, as quoted by Kontan.co.id, this building will be supervised by either the country’s Investment Coordinating Board, or BKPM or the Coordinating Ministry for Economic Affairs.


GIC, Intiland Set Up JV to Build Property Business in Jakarta 

Sovereign wealth fund GIC and Indonesian property developer PT Intiland Development Tbk (IDX: DILD) set up joint venture company to develop the first phase of Fifty Seven Promenade – an integrated mixed-use and high-rise project in Jakarta. An affiliate of GIC will own 33.4 per cent in the joint venture, while Intiland’s subsidiary PT Rahardja Mitra Familia will own 36.63 per cent. The remaining 29.97 per cent will be owned by other local property developer Galang Gema Pradana. This is the second joint venture between GIC and Intiland.

Airasia Bhd to Sell Stake in Indonesian unit

AirAsia Bhd and its wholly-owned unit, AirAsia Investment Ltd (AAIL), has executed multiple agreements to partially dispose of and subsequently convert its perpetual securities investments in PT Indonesia AirAsia into new shares to Indonesia-based company primarily engaged in trading coal PT Rimau Multi Putra Pratama TBK (IDX: CMPP), Bernama reported. Upon completion of the corporate exercise, CMPP, will become the new holding company of IAA, whereby AAIL and its Indonesian partner, PT Fersindo Nusaperkasa, will become the major shareholders in CMPP. It said the first agreement involved the sale of IAA’s perpetual securities at the nominal value of Rp1.27 trillion (US$95.49 million) to AAIL to subscribe in the rights issue of RMPP. The second agreement involved the sale of IAA’s perpetual securities at the nominal value of Rp1.32 trillion to FNP to subscribe in the rights issue of RMPP.

Indonesia to Build Batam as a Digital Industrial Park

The Indonesian government plans to build Batam Island as a digital industrial park to develop the digital economy and entertainment in the region, Antara Agency reported. Minister of Research, Technology and Higher Education Mohamad Nasir said on Monday, Batam has constructed the Nongsa Digital Park (NDP) that will be developed as a startup center in Indonesia. Nasir said the animation company, Infinite Studio, has occupied the NDP area. Nasir said the ministry is ready to prepare the regulation to support parties who develop digital economy in Indonesia.