Daily Business Briefing – Oct. 13

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

Government Seeks Job Access for Indonesians in Australia

The government is negotiating for ways to expedite employment of Indonesians in Australia, as both nations enter the final phase of free trade talks. Indonesia also seeks the removal of tariffs for products such as textiles. From the other side, Australia is pushing for reduced tariffs on products such as skim milk powder and cold rolled steel, and the ability of Australians to hold majority ownership of investments in education, tourism and healthcare in Indonesia. The two nations have imposed a November deadline for the conclusion of the free trade talks.

Metrodata, Synnex Set up Logistics Center in Indonesia

Taiwanese IT and consumer electronics distributor Synnex Technology International has announced a plan to build a logistics center in Indonesia, with an investment estimated at US$19.8 million, the company announced in a press statement released on Oct. 12. To tap the Indonesian market, Synnex and Indonesia-based IT business group PT. Metrodata Electronics Tbk (IDX: MTDL) set up a joint-venture, PT. Synnex Metrodata Indonesia, in 2011. The joint-venture is structured with a network of 20 operation centers and 14 warehouses to supply IT hardware/software and systems, as well as handsets and value-added services for more than 4,500 local sales agents in some 150 cities around Indonesia. In view of the great potential for growth in the Indonesian market, the company is looking to construct even more logistics centers on its own in main cities, according to Synnex president Evans Tu.

Kioson Buys 99 Percent of Narindo, an e-Voucher company

PT Kioson Komersial Indonesia Tbk (IDX: KIOS), the first online-to-offline (O2O) e-commerce company ever listed on the Indonesia bourse has completed its acquisition of a 99 per cent stake in PT Narindo Solusi Komunikasi, an aggregator e-voucher and other digital services company. Kioson, with a current roster of more than 19,000 partners, believes such an acquisition will strengthen their bottom line. After the acquisition, company aims to raise revenue by 1,900 per cent on an annual basis, to Rp500 billion by the end of this year.

Natuna Sea BIGP Gas Project Enters Development Phase

A local unit of London-based Premier Oil had signed an Engineering Procurement Construction and Installation (EPCI) contract for the development of Bison, Iguana and Gajah Puteri (BIGP) gas fields in Natuna Sea, marking the next development phase of the company’s Natuna Sea Block A concession area. The project is expected to be completed in 3Q 2019 with capacity of 60 MMscfd gas and 1,100 bopd of condensate.

Bank Negara Indonesia Books Rp10.16 Trillion Net Profit in 3Q

PT Bank Negara Indonesia Tbk (IDX: BBNI) recorded Rp10.16 trillion net profit in 3Q, a 31.6 percent rise from the Rp7.72 trillion of a year ago. Loan disbursement grew 13.3 percent during the period, against industry level of just 8.2 percent. Loan disbursement was also backed by quality improvement, reflected in the decreasing cost of credit: 1.7 per cent versus 2.4 per cent on an annual basis. The state-owned lender was able to maintain its net interest margin at 5.5 per cent over the period.

JLL: IT Firms Help Boost Demand for Office Space

An increasing number of IT companies operating in Indonesia are helping to boost demand for office space in Jakarta’s Central Business District, according to New York-based property consultancy services JLL. However, as new office space is being added constantly, the non-central business district occupancy rate is lingering at around 76 per cent, while CBD occupancy rate stays at 81 percent. E-commerce IT, service offices, insurance and the professional sector are among active businesses in the last three months. Meanwhile, for condominium segment, occupancy rate reached 64 percent over the last six months. Retail segment occupancy rate reached 89 per cent, thanks to active F&B sector, mainly in SCBD, Senopati, Kemang, Pondok Indah and Pantai Kapuk Indah.