Daily Business Briefing – Oct. 11

JAKARTA (TheInsiderStories) – Good morning; here we provide several pieces of important news that might help your business decisions today:

Alipay, BBM To Launch e-Wallet

Alipay, an online payment services part of China’s e-commerce giant Alibaba Group, teamed up with Blackberry Messenger to introduce a joint electronic wallet service called DANA in Indonesia.  The service will allow payments and transfer of funds and will be accessible for Indonesian consumers in November.

GMF Aeroasia IPO part of Garuda Indonesia’s capital-raising plan

The initial public offering of PT GMF Aeroasia Tbk (IDX:GMFI) on Tuesday (10/10) was only one of capital raising plans mooted by its parent flag carrier PT Garuda Indonesia Tbk (IDX:GIAA). The aircraft maintenance operator sold 10 percent of shares at Rp400 per share and raised Rp1.12 trillion (US$83.01 million) at the offering. Its parent Garuda Indonesia plans to release up to 30 percent of its stake in GMF Aeroasia. The remaining 20 percent will be sold to a strategic buyer, from which Garuda Indonesia expects to raise $200 million, Garuda Indonesia chief executive officer Pahala Mansury said. A conditional sale and purchase agreement could be signed in early December, Mansury said. There are four potential buyers, he said, but declining to disclose the company’s name. GMF Aeroasia plans to use proceeds from the strategic stake sale to help finance expansion and for debt repayment.

Indonesian Government Kick-off Three TOD Projects in Jakarta

Indonesian government has inaugurated three low-cost apartment projects under the Transit Oriented Development (TOD)concept at commuter stations in Senen, Juanda and Tanah Abang  on Tuesday (10/10). So far the government had unveiled five such projects, with the earlier ones launched at commuter stations in Tanjung Barat and Pondok Cina. SOE Minister Rini Soemarno, PUPR Minister Basuki Hadimulyono and Transportation Minister Budi Karya Sumadi oversaw the unveiling at two different locations. Soemarno said 35% of apartment units in the project are intended for low-income families, while Hadimulyono said the project is part of the government’s programme to provide 1 million of affordable housing annually. TOD development is a form of optimizing the use of land located around the station to be used as a dwelling. The government aimed for the development of 10 projects under TOD concept.

BI Teams Up with Go-Jek to Distribute E-money Cards

Bank Indonesia (BI) has teamed up with ride-hailing application Go-Jek to distribute one milion electronic money (e-money) following the introduction of non-cash payments on toll roads, particularly in Greater Jakarta. Under the agreement, consumers can use the feature Go-Mart to buy electronic cards from state-owned lenders incorporated in the State-Owned Banks Association as well as private lender PT Bank Central Asia (IDX: BBCA). Timing to fully implement the cashless program by Oct. 31, BI and toll operator PT Jasa Marga Tbk (IDX: JSMR) have widely disseminated information about the policy since last month. 

ABB Build Facility for High-voltage Air Insulated Switchgear Plant in Indonesia

Zurich-based technology company, ABB, inaugurated on Tuesday (10/10) a new manufacturing facility for high-voltage air insulated switchgear (AIS) in Tangerang, Banten. The investment on the new factory reach US$11 million. This is part of ABB’s continued footprint expansion in the country including the establishment of a new factory for medium-voltage products (4,000 panel) in 2015 at the same location. Giandomenico Rivetti, head of ABB’s High Voltage Products business, said the 1,300 square-meter plant will manufacture a range of high-voltage switchgear and equipments such as live tank circuit breakers anddisconnectors.

Trade Ministry Distributes 75,000 Tons of Rice in Market Operation

Trade Minister Enggartiasto Lukita and Agriculture Minister Andi Amran Sulaiman distributing 75,000 tons of rice in Jakarta great areas. The market operation, which will run from Oct. 2017 to March 2019, uses the government rice reserve. He suspected traders had an adequate stock of medium rice, but they were reluctant to distribute the commodity to the market after the enforcement of the ceiling price. Traders said the ceiling price had reduced their profit significantly.

Long-Time Director Lim Resigns from Danamon

Vera Lim had resigned from her post as financial director at PT Bank Danamon (IDX:BDMN), the mid-sized lender said on Tuesday (10/10). Lim had served at Bank Danamon’s board of directors since 2007. Her replacement is Satinder Pal Singh Ahluwalia. Lim is said will continue her career at other lender.