JAKARTA (TheInsiderStories) – Good morning, we provide several pieces of important news that might help your business decisions today:
Gojek To Expand in Four Countries in SEA, Compete With Rival
Go-Jek, Indonesia’s first billion-dollar start-up, is looking to expand its ride-hailing services to three to four countries in South-east Asia, escalating its rivalry with Grab and Uber Technologies Inc. After Indonesia, the Philippines, Vietnam and Thailand have the greatest number of people in the region, with a combined population of about 270 million. Co-founder and Chief Executive Officer Nadiem Makarim didn’t specify the countries or services that Go-Jek will target, but said in an interview they will be places with a large population and where cash rules, hinting that Go-Jek’s digital payment service will be a key part of its push into new markets. Singapore-based Grab, aided by massive funding from SoftBank Group Corp and China’s Didi Chuxing, has pushed aggressively into Go-Jek’s home turf. For Go-Jek, this will be its first foray outside its home country.
TOD Project Kick-Off in Pondok Cina Station
On Monday state-owned housing developer PT Perumnas and state railway operator PT Kereta Api Indonesia started construction of transit-oriented development (TOD) apartments at the Pondok Cina Commuter Line train station in Depok, West Java. The four-tower apartments on a 27,706-square-meter plot will become an urban development model for Greater Jakarta, said Perumnas President Director Bambang Triwibowo in his speech at Monday’s groundbreaking ceremony. Pondok Cina apartments is the second TOD project, following the TOD development kicked off earlier this year at the Tanjung Barat Commuter Line train station in South Jakarta. At least 9 more TOD will be developed in Greater Jakarta.
Mitsubishi-Led Consortium To Develop US$260 million Property in BSD City
Sinar Mas Land, the property holding of diversified conglomerate Sinar Mas Group, has formed a joint-venture with a Japanese consortium led by automotive conglomerate Mitsubishi Corporation to develop a premium mixed-use area in BSD City, Tangerang, Banten, with an investment of more than US$260 million (Rp 3.5 trillion). Sinar Mas Land’s listed property developer PT Bumi Serpong Damai Tbk (BSDE), Mitsubishi, an investment arm of the Japanese Ministry of Land and Infrastructure, along with private rail companies Hanshin Electric Railway Corporation, Nishi-Nippon Railroad Corporation and Keikyu Corporation, will develop projects on 19 hectares in BSD City to build 1,000 units of houses and shops. The joint venture, named BSD Diamond Development, is going to be launched in the near future.
Indonesia Air Force Acquires Inzpire MSS
Inzpire has been awarded a contract to supply its GECO (Air) tablet-based mission system to Indonesia, and has recently redesigned the whole GECO system to provide a more open and modular architecture. The company announced that it was awarded a contract by the Indonesian Air Force (Tentara Nasional Indonesia-Angkatan Udara: TNI-AU) for a one-year trial of GECO (Air) on its F-16, Su-30, T-50I, Hawk, and Super Tucano aircraft. GECO (Air) is also in use with the Royal Jordanian Air Force on its F-16s and rotary wing fleet. The complete GECO MSS is in service with the United Kingdom’s Puma helicopter force, and Inzpire’s tablet-based Aircraft Moving Map Wires Alerting System (AMMWAS) is used throughout the country’s Joint Helicopter Command.
Indonesia to Allow Freeport Exports amid Tough Talks on Divestment Valuation
The Indonesian unit of U.S. miner Freeport McMoRan Inc. can continue to export copper concentrate even if negotiations over the company’s permit to operate the giant Grasberg mine are not resolved this month. Amid recent talk about valuation of the stake between the two parties, Freeport will be allowed to continue to export as long as they there is progress in the development of a second smelter, a mining ministry official stated. In April, the government awarded Freeport a permit to export 1.1 million tons of copper concentrate until February of next year, but said shipments could be stopped again in October if negotiations over a new mining permit were not resolved by then.
AirAsia Indonesia Operates the Bali-Kolkata Route
Following the operation of flights connecting Mumbai and Bali in May this year, AirAsia Indonesia inaugurated a new route to India, with flights four times a week from Bali to Kolkata. This route has begun to open its sales since August 17. AirAsia Group CEO in Indonesia, Dendy Kurniawan, said, this route is part of the company expansion this year which is the fourth international route of the AirAsia Group in Indonesia, after Bali-Mumbai, Bali-Narita, and Jakarta-Macau.
Indonesia, Australia’s CEPA Continues
Indonesia and Australia discussed the ninth chapter of The Indonesia-Australia Comprehensive Economic Partnership Agreement, known as IA-CEPA in Jakarta and push for the completion of the negotiations by the end of 2017. The-Ninth Chapter meeting, following previous meeting on August, 4 in Canberra. IA-CEPA agreement is based on the existing ASEAN-Australia-New Zealand free-trade agreement and will rule out tariffs for 10,012 types of goods. CEPA agreement was established on Nov. 2, 2010, and temporarily stopped during 2011-2015 but was reactivated on March 2016. In accordance with ninth negotiation chapter, there will be Indonesia-Australia Business Partnership Group meeting on next Oct. 5. Bilateral trade between Indonesia and Australia has decreased over the past few years. It dropped to US$8.46 billion last year from $10.2 billion in 2012, down by 4.63 percent on average per year, according to data from the Trade Ministry. Indonesian exports reached US$3.19 billion, while the import value stood at US$5.26 billion. The non-oil and gas commodity trade still dominates of the total trade value.