JAKARTA (TheInsiderStories) – Good morning; here we provide several pieces of important news that might help your business decisions today:
Kioson, first e-commerce listed on IDX
Indonesian online-to-offline (O2O) e-commerce startup PT Kioson Komersial Indonesia has officially started trading on the Indonesia Stock Exchange (IDX) on OCt. 5, making it the first tech startup in the country to go public. Trading under the code of KIOS, the startup raised Rp45 billion (US$3.3 million) during the initial offering period of September 26-28. Selling at Rp300 (US$0.02) per shares, the company issued 150 million shares or equal to 23.07 per cent of the company’s total shares. It was oversubscribed by ten times the offered number and the majority of the investors come from the retail sector.
Tax Revenue still 60% from target until September
Minister Finance Sri Mulyani Indrawati reported Indonesia’s tax revenue until September has reached 60 percent from total target Rp1.283 trillion. She claimed the achievement is higher than the realization in the same period last year, if not considering the tax amnesty program (tax amnesty). The minister did not mention the exact value of the collected funds, but based on the this year’s target figure, it is about Rp 770 trillion. She said the positive performance in the tax collection was in line with significant growth in several business sectors, including the manufacturing sector, which grew 13 percent, and the mining sector, which grew more than 30 percent.
E-commerce tax regulation may be issued next week
The Finance Ministry soon to issue a ministerial regulation on the taxation of electronic commerce (e-commerce) businesses. Finance Minister Sri Mulyani Indrawati said her ministry would familiarize the regulation among the public soon after its issuance. She said the regulation would cover many aspects, including taxes on e-commerce transactions.
Express Taxi Sells Asset and Lays Off Drivers Due Lost in Competition
Publicly listed taxi operator PT Express Transindo Utama Tbk (IDX:TAXI), is announcing plans to sell its assets (cars and properties), and lay off 250 employees due to financial burden amid tight competition with online based transportation. In a public statement submitted to Indonesia Stock Exchange yesterday, the management of Express Group mentioned the sales process is still ongoing and the company has appointed professional property agent to assist the sale of the land. Express Group aim to obtain Rp6 billion (US$444 million) from the sale. The fresh money from the sale will be used to reduce the liability to pay the company’s long-term debt and are also used to support business and operational activities.
U.S. Jobless Claims Fall 12,000 to 260,000
The number of Americans filing for unemployment benefits fell more than expected last week, but the continued impact of Hurricanes Harvey and Irma on the data made it difficult to get a clear picture of the labor market. Other data on Thursday pointed to underlying economic strength despite the weather-related disruptions. The trade deficit narrowed in August as exports of goods and services rose to more than a 2-1/2-year high. Orders for core capital goods were stronger in August than previously reported. Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 260,000 for the week ended Sept. 30, the Labor Department said.
Indonesian Consumers Index More Optimistic in September
Bank Indonesia’s consumer index stood at 123.8 in September, up from 121.9 in August. The survey showed that consumers’ consumption increased in September while loan repayments and savings decreased. The central bank survey also showed that consumers expected price pressures to increase over the next three months due to more demand for services and goods ahead of Christmas and New Year. Indonesia’s annual inflation rate eased to 3.72 percent in September on the back of a continued decline in food prices. The rate in August was 3.82 percent.