AKARTA (TheInsiderStories) – Good morning. Followings are some relevant news that might help your business decisions today:
Setya Novanto Resigns as House Speaker Chairman
House of Representatives Speaker Setya Novanto, who is charged with multimillion-dollar graft, has resigned from the post, a House Ethics Council official said on Monday (11/12). Last week, Setya wrote a resignation letter, in which he nominated Aziz Syamsuddin of the Golkar Party to replace him. The letter was delivered to the House on Dec. 6. In November, the Corruption Eradication Commission named Novanto as a suspect in a massive graft case surrounding the national identity cards (e-KTP) procurement project. The non-active Golkar chairman is accused of embezzling Rp 574 billion ($42 million) from the Rp 5.9 trillion project, which resulted in Rp 2.3 trillion state loses.
Luhut Visited Qatar to Draw Investors to Indonesia
Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan go to Qatar to draw investors from that country to Indonesia. He attended three bilateral meetings in that country starting with a meeting with Qatari Emire Sheik Tamin bin Hamad Al Thani on Doha on Sunday. The meetings were focused on investment plan by Qatar in Indonesia, according to a press release issued here on Monday (11/12). The other two meetings were with Finance Minister Ali Shareef Al Emadi, who is also secretary general of the Supreme Council of Economic Affairs and Investment, and Deputy Prime Minister Khalid bin Mohammad Al Attiyah, who is also Defense Minister and a lunch with the secretary general of Foreign Ministry.
Indonesia to Charges Intangible Goods Import Duty Starting 2018
The government said intangible goods Intangible goods imported electronically would be charged with import duty although Indonesia is still bound by moratorium of the World Trade Organization (WTO), Coordinating Minister for Economy Darmin Nasution said on Monday (11/12). Under the WTO moratorium, developing countries are not allowed to impose import duties on intangible goods trade electronically. Earlier, Finance Minister Sri Mulyani Indrawati said she hopes intangible goods such as e-books, software, etc. could be imposed with import duty next year. This year, developing nations including Indonesia has proposed to WTO that in 2018, intangible goods could be slapped with import duties. The WTO moratorium was effective since May 20 in 1998 in the Second Ministerial Conference in Geneva. A similar conference is to be held from 10 to 13 December 2017 in Argentina.
Garuda Indonesia and Grab Establish Collaboration
PT Garuda Indonesia Tbk (IDX: GIAA) and Grab, transport services on-demand and mobile payment, have agreed to collaboration in order to improve the services of each company and provide added value for users of both companies. Through a Memorandum of Understanding on Collaboration Service and Grab Indonesia Garuda Indonesia signed on Monday (11/12), the Indonesian Garuda service users can enjoy more benefits, such as GrabGift voucher to purchase Garuda Indonesia ticket online. In contrast, in Indonesia Grab customers will also have the opportunity to become a member GarudaMiles and redeem accumulated points GrabRewards held with GarudaMiles mileage.
Lippo Cikarang Rights Issue to Raises US$59 Million
PT Lippo Cikarang Tbk (IDX: LPCK) plans to issue new shares to raise about Rp800 billion (US$59 million) in the first quarter of 2018, the company said in a statement on Friday (12/09). The company said it plans to issue the new shares at Rp 3,800 apiece, which in total will amount to the equivalent of 27.04 percent of its enlarged capital. The rights issue was approved during an extraordinary general meeting of shareholders on Nov. 8.
Andalan Finance Accept Credit Facility of US$20 million from DEG
PT Andalan Finance Indonesia, unit of PT Industri & Perdagangan Bintraco Dharma Tbk (IDX: CARS) signed Senior Long-Term Facility Loan worth US$20 million from Deutsche Investitions und Entwicklungsgesellschaft mbH (DEG), a subsidiary of KfW Germany, is one of the largest financial institutions in Europe. Additionally, Andalan Finance also plans to issue Medium Term Notes amounting to Rp2 trillion ($148.15 million) by 2018, although predictable financing and financial services companies will experience some challenges such as political dynamics and simultaneous elections in 2018 or 2019. Until Nov. 2017, the company has managed to channel the financing of Rp4.16 trillion, an increase of 31 per cent from the same period last year. The finance portfolio has reached 94 per cent of the financing target until the end of 2017 with financing composition is dominated by a used vehicle.