JAKARTA (TheInsiderStories) – Good morning. Followings are some relevant news that might help your business decisions today:
KML Food to List Shares in IDX
PT Kelola Mina Laut (KML Food), a fast food processed seafood company, is ready to list its shares in Indonesia Stock Exchange (IDX). The management of KML Food will consider options from BEI authorities to offer 40 percent of the shares to the public. KML Food Director Mohammad Nadjikh said, the company decided to go public because it wants to continue to grow. The Surabaya-based company currently has assets of more than Rp1 trillion. The company already operates 25 factories spread all over Indonesia. As many as 85 per cent of KML Food products are exported with the largest market to the United States, Europe, while the rest to Japan and some countries in Southeast Asia.
Ministry of Trade stated that it opened the option of importing special rice to strengthen the stock. Minister Enggartiasto Lukita asserted that if the imports is carried out by the government, then the rice to be imported is not that of the medium quality, but special rice and is done in an effort to strengthen government stock. Based on data from Perum Bulog, the current stock is approximately 950 thousand tons. While, the Ministry of Agriculture claimed that Indonesia does not need to import rice as the domestic stock of 3 million tons produced in December 2017 will sufficiently meet the need of 2.6 million tons. The 3 million tons of national rice stock was produced from 6 million tons dried paddy grain that harvested from 1.1 million hectare of land.
Indonesian FM Discuss Taxes with Facebook, Twitter
The government is still discussing the taxes of Faceb Facebookand Twitter. Previously, the government succeeded in taxing US-based IT giant, Google. The Tax Directorate General’s director of counseling, services, and public relations Hestu Yoga Saksama said the discussion of OTT companies’ tax has entered the final stages. Hestu was unable to say when the discussion will be completed, but according to Presidential Regulation No. 74/2017 on the Road Map of Electronic National Trading System (e-Commerce Road Map), all relevant regulations must be completed early this year.
Finance Minister Sri Mulyani Indrawati said that the discussion will be completed soon, but did not say exactly when.
“Once a decision is made, we will make an announcement. Immediately,” she said in Jakarta, Tuesday, January 9.
Last year, the Tax DG successfully collected Google’s income tax (PPh) and value-added tax (VAT) from the fiscal year of 2015, for an undisclosed amount.
KAI Secures US$45 New Contracts
Indonesian train company, PT Industri Kereta Api (Inka), will sign a contract for the procurement of a train worth US$45 million, or equivalent to Rp642.8 billion, with the Philippines in January 2018. “This month, we will sign a contract with the Philippines to manufacture two diesel multiple units or diesel hydraulic trains,” PT Inka`s Acting Executive Director M Nur Sodiq said here on Monday. The cooperation was the first time with the Philippines.
According to him, in addition to the Philippines, Inka also establishes cooperation with Bangladesh for the construction of 50 broad gauge (BG) trains and 200 meter gauge (MG) trains, worth US$99.8 million or Rp1.4 trillion. “The project with the Philippines should be completed by 2019, and the first shipment is expected by the end of 2018,” he remarked.
As for domestic projects, Sodiq added that Inka would work on 438 trains ordered by Indonesian train company, PT Kereta Api Indonesia (KAI), for executive and economic trains, worth Rp2.2 trillion (about $163.9 million).
Itochu to Invest in Health Care Management
Itochu will invest in a health care management unit of Indonesian conglomerate Lippo Group, looking to broaden its own hospital businesses across Asia, Nikkei reported. The Japanese trading company will take a roughly 25% stake in OUE Lippo Healthcare for 6.6 billion yen ($58.5 million). The Singapore-based subsidiary of Lippo operates 15 health care facilities in China, Malaysia and elsewhere.
Lippo itself operates 31 hospitals in Indonesia and plans to create joint ventures in markets such as China and Myanmar to engage in management of existing hospitals. So-called lifestyle diseases are spreading in Asia as living standards rise across the region. Itochu believes it can offer know-how from Japan to help manage such conditions.
Tourists Visiting Bali in 2017 Surges
The number of tourits visiting Bali in eleven months to November reached 1.37 million people, increased 51.5 per cent from 467,292 people in the same period of 2016. “Most of them came to Bali via direct flight and only 164 people come to the island through cruise ships,” the head of Bali branch of Statistics Indonesia Adi Nugroho was quoted by Bisnis Indonesia as saying. The Chinese tourists represented 25.54 per cent of total tourists visiting the island in the eleven month, totaling 5.38 million peope. The total foreign visitors visiting Bali in the eleven months increased 20 per cent from the same period in previous year.
68 Renewable Energy to Be Developed This Year
The Energy and Mineral Resources Minstry said as many as 68 renewable energy projects will be developed this year. The developer of those projects have signed power purchase agreement (PPA) last year. Director General for New, Renewable and Energy Conservation Rida Mulyana said of these projects, 55 are in the process of reaching financia closing, 5 projects have secured financing, but yet to start construction and 8 of them hav started construction phase. These include solar power projects.
Indonesia, Turkey begin CEPA talks
Indonesia has formally kicked off negotiations on a comprehensive economic partnership agreement with Turkey in an effort to increase exports. The first round of negotiations on the trade agreement, called the Indonesia-Turkey Comprehensive Economic Partnership Agreement (IT-CEPA), ran from Monday to Tuesday in Jakarta, The Jakarta Post reported.
Delegations from both countries discussed the agreement’s terms of reference (ToR) as well as trade issues, such as legal matters and customs. (*)