JAKARTA (TheInsiderStories) – Good morning, here we provide several pieces of important news that might help your business decisions today:
JCI Seen in 5,869 – 5,967 Range
The Jakarta Composite Index (JCI) is projected to move higher today, within a range of 5869-5967, according to Indosurya. Investors will keep an eye on Bank Indonesia’s two-day monetary policy meeting, ending today. JCI still has room to set a new record level, as long as support can be maintained.
Online Transportation Rule to be Finalized this Week
Transportation Ministry Secretary-General Sugihardjo has confirmed a draft bill on online transportation services will be finalized this week. The draft bill contains provisions governing vehicle ownership, lower and upper tariff limits, and fleet quota. The norm will be applied to all land-based transportation operators, not only specific to online-based services, an approach that led to the previous norm being revoked by the Supreme Court. The new regulation is expected to be enforced starting November 1.
Government Aims Rp12 Trillion ‘Blended Finance’ for LRT Project
The Government is seeking to raise a Rp12 trillion package of ‘blended finance’ from multilateral agencies for its infrastructure program, particularly the Light Rail Train network (LRT) being built in Jakarta and Palembang. During an IMF Annual Meeting in the U.S.A., the government will present proposals to officials from World Bank, International Chambers of Commerce as well as the International Finance Corporation about a potential blended finance package. ‘Blended finance’ refers to the mix use of grants, private and public financing in facilitating infrastructure projects.
Government Aims for 14% Drop in Logistics Costs by 2019
Coordinating Minister for Maritime Affairs Luhut Panjaitan said that the government aims for logistic costs to fall to 7 per cent of GDP by 2019 from a current unsustainable 14.1 per cent currently. Luhut said that Indonesia’s present logistics costs are way higher than those of Japan, at 4.9 per cent. One of the impediments for high logistics costs is inefficient transporting, and the government is thus striving to optimize transportation infrastructure and connectivity, looking at a breakthrough by developing sea tolls, among others. The government provides transportation and logistic cost subsidies to deliver goods via a sea toll, which will also shrink price disparity.
Brazil Challenge Indonesia Over Chicken in WTO
Brazil said it may renew chicken exports to Indonesia as early as 2018, after a World Trade Organization panel issued a favorable ruling on Tuesday(17/10) in a trade dispute between the two nations. Th WTO ruled that the Indonesia’s restrictions on such imports from the South American nation were unjustified, including delays in the approval of veterinary health certificates for chicken products from Brazil. The WTO said the panel’s decision should be adopted within 20 to 60 days, unless either of the parties appeals or its Dispute Settlement Body decides by consensus not to adopt it. Brazil’s annual chicken exports totalled US$6.8 billion last year, according to ABPA, with exports to Indonesia potentially reaching US$70 to US$100 million per year over the medium term.
Four Public Companies to Delist from IDX
The Indonesia Stock Exchange (IDX) has indicated it intends to delist four public companies, namely, PT Inovisi Infracom Tbk (IDX: INVS), PT Berau Coal Energy Tbk (IDX: BRAU), PT Permata Prima Sakti Tbk (IDX: TKGA) and PT Lamicitra Nusantara Tbk (IDX: LAMI) by end-November this year at the latest. The four concerns are to be delisted as they are considered in default.
SmartSaver Indonesia Contributes Triple Revenues to Holding Company
I Synergy, Malaysian-based owner of an online shopping reward program, has increased its total sales transactions 184 per cent, to 142,000 in 1H2017, compared to 50,000 in 1H2016. The reason for the increase is the strong performance of the company’s online retail affiliate program, SmartSaver, a recent entry in the growing Indonesia market. During June 2017, SmartSaver Indonesia is Affiliate Junction Indonesia’s first affiliate program set up under the retail segment. The online platform already promotes a total of 101 advertisers, including Lazada Indonesia and Zalora Indonesia.
Datsun Jan-Sept Car Sales Go Downhill
Datsun, the car brand revived by PT Nissan Motor Indonesia, reported sales fell by 205.6 per cent on an annual basis, from 23,909 to 7,823 units during the first nine months of 2017. The low-cost green car maker holds a 4.35 per cent market share. The company claims that the drop in sales is actually part of its strategy.
PLN to Revise 35,000 MW plan
State-power company PT Perusahaan Listrik Negara (PLN) plans to revise its power supply business plan for 2017-2026, as the current sales target set out has been deemed unrealistic. PLN Director of Corporate Planning Syofvi Felienty Roekman explained the revision was the result of a weak electricity sales program, which was assumed to be 8.3 per cent per year during the plan’s deliberation phase. In fact, PLN’s sales per September grew just 3.1 per cent, with a volume of 163.6 terawatt-hours (tWh), slower than last year’s 7.1 per cent growth (YoY) with a volume of 158.6 tWh. Syofvi said that the program’s capacity target will remain the same, and only the schedule will be adjusted. The construction of several power plants will be rescheduled to forestall any electricity surpluses. Some time ago, Energy and Mineral Resources Minister Ignasius Jonan asked PLM to adjust its power plant program, shooting for a total capacity of 17,000 MW by 2019. Additional capacities of up to 35,000 can according to Jonan be realized by 2024.