Around 95% of the total turnover of modern retail business this year (Rp 43.8 trillion) is contributed by local products. Currently, Indonesian consumers tend to choose local products over imported products for their food and beverages, clothes and electronics. Thus, according to the Indonesian Retailers Association (Aprindo), imported products only covers a maximum 10% size in modern retail stores in Indonesia, depending on each retailer.
Source: PA Asia - Public Affairs and CSR from Investor Daily, 6 May, p.1
Sunday, 10 May 2009
Foreign companies treated as locals in merger, acquisitions
Foreign companies would be given the same treatment as local companies when registering pre-notification of merger or acquisition plans with the Commission for the Supervision of Business Competition, an official said Thursday, The Jakarta Post reported.
“We have a lot of foreign companies with representative offices in Indonesia, and just like local companies, they will have to comply with the regulation we have put down in the guideline,” director of communication for the commission, A. Junaidi, told a press conference.
He added that the pre-notification of merger and/or acquisition to the commission is voluntary for companies but incentives are provided for those who chose to do so.
“The companies which pre-notify the commission will not have their merger or acquisition nullified by the law should they do any illegal conduct after the merger. For instance, if after a merger a company is monopolizing the market, we will not demand a nullification of the merger. Instead, we will press charges under the monopoly law,” he said.
Source: www.ekon.go.id
“We have a lot of foreign companies with representative offices in Indonesia, and just like local companies, they will have to comply with the regulation we have put down in the guideline,” director of communication for the commission, A. Junaidi, told a press conference.
He added that the pre-notification of merger and/or acquisition to the commission is voluntary for companies but incentives are provided for those who chose to do so.
“The companies which pre-notify the commission will not have their merger or acquisition nullified by the law should they do any illegal conduct after the merger. For instance, if after a merger a company is monopolizing the market, we will not demand a nullification of the merger. Instead, we will press charges under the monopoly law,” he said.
Source: www.ekon.go.id
Shell submits old exploration data
The Indonesian government and Netherlands-based gas company Shell signed a memorandum of understanding to submit exploration data of oil and gas working area in Indonesia for any period prior to 1965. Hadi Suprapto, Ferial VIVAnews.
Director General of Oil and Gas at the Department of Energy Evita Herawati Legowo said that Indonesia has requested the data since last 2006. "We are expecting of discovering new oil and gas working area based on the data," Legowo said in Jakarta on Tuesday, April 28.
There are abandoned high potential of oil and gas working areas in the country, according to Legowo. She explained that it will take 15 months to complete the data transfer from Shell to the Indonesian government. "We are optimistic that the data copying will be completed by July 2010," she said.
Since the data is mostly old and fragile, Shell is willing to spend US$500,000 for data scanning to make the soft copy. After asking for data transfer to Shell, the government is also planning to make similar transfer with Chevron and ExxonMobil.
Source: www.bkpm.go.id
Director General of Oil and Gas at the Department of Energy Evita Herawati Legowo said that Indonesia has requested the data since last 2006. "We are expecting of discovering new oil and gas working area based on the data," Legowo said in Jakarta on Tuesday, April 28.
There are abandoned high potential of oil and gas working areas in the country, according to Legowo. She explained that it will take 15 months to complete the data transfer from Shell to the Indonesian government. "We are optimistic that the data copying will be completed by July 2010," she said.
Since the data is mostly old and fragile, Shell is willing to spend US$500,000 for data scanning to make the soft copy. After asking for data transfer to Shell, the government is also planning to make similar transfer with Chevron and ExxonMobil.
Source: www.bkpm.go.id
Government may end KAI monopoly in railway operations
The government will soon introduce a regulation paving the way for the liberalization of the railway sector, Asia Pulse reported on Thursday.
The Ministry of Transport has submitted a draft regulation on the railways to the State Secretary for presidential approval, The Jakarta Post reported
Director General of Railways Tunjung Inderawan said the draft regulation calls for an end to the monopoly of PT Kereta Api Indonesia in railway operation n the country.
A railway analyst from the Indonesian Institute of Sciences (LIPI), Taufik Hidayat, said the regulation should also address matters such as safety in railway transport and equal treatment of all players in the business.
Source: www.ekon.go.id
The Ministry of Transport has submitted a draft regulation on the railways to the State Secretary for presidential approval, The Jakarta Post reported
Director General of Railways Tunjung Inderawan said the draft regulation calls for an end to the monopoly of PT Kereta Api Indonesia in railway operation n the country.
A railway analyst from the Indonesian Institute of Sciences (LIPI), Taufik Hidayat, said the regulation should also address matters such as safety in railway transport and equal treatment of all players in the business.
Source: www.ekon.go.id
Retailers need legal security, Carrefour case as a reference
The chairman of the Indonesian Employers Association (Apindo) Sofjan Wanandi yesterday said that the investment in the retail sector really needs legal security from the clarity of laws and the government’s firm actions. He stated that the current case of Carrefour should be solved in good terms and with solid evidence. According to him, it is time for Indonesia to have a trade law that specially regulates the retail sector.
Source: Media Indonesia, 30 April, p.18
Source: Media Indonesia, 30 April, p.18
A communication forum is officiated
Trade Minister Mari Elka Pangestu officiated a communication forum on the development of traditional market, shopping centers and modern stores, through a Decision Letter No.737.1/M-DAG/KEP/3/2009. The forum currently has 18 market actors and observers. It chaired by the Director General of Domestic Trade, Subagyo.
Source: Investor Daily, 30 April, p.14
Source: Investor Daily, 30 April, p.14
Indonesian government initiatives to stimulate investment in infrastructure and clean technologies
On 28 April, the Co-Ordinating Ministry of Economic Affairs presented the recently established PT Sarana Multi Infrastruktur (PT SMI). This state-owned company has been established with the objective of bringing government institutions, private companies and financing institutions together to realize infrastructure investments. The company aims to arrange the needed government support for infrastructure projects and to assist in the arrangement of financing. It may also participate in joint ventures that build and operate infrastructure projects.
Last year, the Indonesian government launched the Clean Technology Fund. This fund has US$ 250 million available to invest in projects that are using environmentally friendly technologies, projects in renewable energy, in water and in agriculture. The fund can invest in projects of up to US$ 80 million, with equity amounts of between US$ 5 and 20 million and can arrange additional financing from other funds and from financial institutions. The Fund will apply market-based profitability criteria in its project selection, but uses the Ministry of Finance’s influence in arranging the necessary support from government institutions and state-owned companies.
Last year, the Indonesian government launched the Clean Technology Fund. This fund has US$ 250 million available to invest in projects that are using environmentally friendly technologies, projects in renewable energy, in water and in agriculture. The fund can invest in projects of up to US$ 80 million, with equity amounts of between US$ 5 and 20 million and can arrange additional financing from other funds and from financial institutions. The Fund will apply market-based profitability criteria in its project selection, but uses the Ministry of Finance’s influence in arranging the necessary support from government institutions and state-owned companies.
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