Filipino esports organization, Mineski, is pouring USD 2 million in the Indonesian esports market in 2019, betting on the country’s ranking as the second-largest gaming market in Southeast Asian. The esports industry in Indonesia is set to reach USD 879.7 million this year.
To grow Indonesia’s esports scene, Mineski plans to leverage all its three main business units: Mineski Infinity, Mineski Events Team (MET) and Mineski Professional Team. The USD 2 million investment will be coming through MET Indonesia to improve the country’s competition and esports’ infrastructure. The company has also unveiled plans to host multiple esports tournaments in Indonesia, such as the Garuda Garuda Cup, the Indonesia Professional Gaming League and Dota 2’s Jakarta Masters.
Mineski has existing relationships with one of the Indonesia’s biggest telecommunications provider, Telkomsel, and two e-commerce unicorns, Go-Jek and Tokopedia. It is looking to build upon the partnership to strengthen its presence in Indonesia.
(Sources: Esports Insider; Fox Sports Asia; Esports Observer)
LINE Financial Asia Corporation, a subsidiary of LINE Corporation is acquiring 20% of the total outstanding shares of PT Bank KEB Hana Indonesia. Under the agreement, LINE Financial Asia will become the second largest shareholder of PT Bank KEB Hana. The move also makes way for LINE to introduce digital banking service in Indonesia in 2019.
PT Bank KEB Hana Indonesia was established under the name PT Bank Pasar Pagi Madju in 1971. In 2007 it was acquired by Korean Hana Financial Group.
LINE is one of the most popular messaging platforms in Indonesia and it is now looking to grow its fintech capabilities. According to a report in Bloomberg in January 2018, LINE announced an expansion into financial services inluding cryptocurrency trading. It had established a holding company called Line Financial Corp. and applied for a license to open a cryptocurrency exchange in Japan. The report also said that LINE was exploring expanding cryptocurrency operations in to Hong Kong and Luxembourg. In July 2018, LINE announced plans to establish a cryptocurrency exchange called BITBOX, which would offer more than 30 popular cryptocurrencies for global users (except in Japan and the United States), with support in 15 languages.
PT Bank KEB Hana Indonesia will be able to leverage LINE’s user base, branding, technology, content and know-how to strengthen its digital marketing strategies. With the partnership, the two companies plan to introduce deposit/microcredit products, remittance and payment services in Indonesia. In addition, they are looking to implement and improve credit rating models through projects with local and international credit rating agencies and optimize identification process in accordance with local regulations.
(Source: Marketing Interactive)
Amazon is planning an investment of around IDR 14 trillion (USD 1.3 billion) in Indonesia for the next ten years. The American tech giant will bring the firm’s cloud computing unit, Amazon Web Services, into the Indonesian market. The move highlights Amazon’s growing interest in the Southeast Asia region as it expanded into Singapore in 2017.
Cloud computing spending in Indonesia has skyrocketed in the past 6 years, starting with just USD 160 million in 2012. Now, the value has gone up to USD 1.3 billion. Cloud computing is playing a major role in the growth of Indonesia’s vibrant start-up scene. The government aims to grow 1,000 startups with a total valuation of USD 10 billion by the year 2020.
Amazon will be competing against the Chinese internet giant, Alibaba, which opened its first data center in the country earlier this year. The data center helps Indonesian customers with low latency requirements, as well as addresses Indonesia’s data residency requirements when storing and processing of data from within the country set out in Government Regulation 82. The South East Asian region as a whole is also witnessing increased activity. In early September 2018, Facebook revealed that it will invest more than SGD 1.4 billion (USD 1 billion) to construct its first data centre in Asia in Singapore.
(Sources: Data Economy; The Straits Times)
The Salim Group and the Keppel Group, through the Alpha Data Centre Fund (Alpha DC Fund), managed by Alpha Investment Partners Limited (Alpha), and Keppel Data Centres Holding Pte Ltd (Keppel Data Centres), have signed conditional agreements to develop and operate a high-availability data centre in Bogor, outside of Jakarta, Indonesia. Dubbed IndoKeppel Data Centre 1 (IKDC) 1 will be developed and operated by a 60:40 joint venture between the Salim Group and Keppel Data Centres. The facility development will be in three phases. The data centre will have a gross floor area of approximately 105,300 sq ft with Tier 3 concurrent maintainability standards for power and cooling. The construction of the core and shell of the data centre, as well as the first phase fit-out, is expected to be completed by the first half of 2020. This will be the first phase of a larger 7ha data centre campus development.
IKDC 1 and its underlying 3ha land plot will be held by a 60:40 joint venture between the Salim Group and the Alpha DC Fund respectively. The Alpha DC Fund is a USD 1 billion real estate private fund investing in data centres in Asia Pacific and Europe.
The Salim Group has been keen on expanding its Salim Digital Ecosystem to support the nation’s transformation to Indonesia Industry 4.0. One of Indonesia's biggest conglomerates with interests ranging from food, banking and telecommunications, the Salim Group currently owns and operates a data centre in Indonesia serving financial institutions and enterprise customers. It also has fibre optics cables laid out all across Sumatra, Java all the way to Bali. The conglomerate has also invested in submarine cables from Java to Singapore.The collaboration bring the Salim Group's experience together with the Keppel Group's established track record in owning, developing and operating high-availability data centres across the Asia Pacific and Europe, the collaboration pools both groups' expertise for the construction, fit-out and subsequent operation and maintenance of the data centre.
Indonesia’s data centre services market is one of the fastest growing in the region with a compound annual growth rate (CAGR) of 35%. This is largely supported by data onshoring regulations, increased smartphone adoption and the growing popularity of e-commerce.
(Source: Business Times, Kepcorp)
PasarPolis, an Indonesian insurtech startup, has received Series A funding round from Indonesia tech unicorns Go-Jek, Traveloka and Tokopedia, who will also act as strategic partners. The amount is reported to be between USD 5-8 million.
Most of the investment will be directed to create a more affordable tailor-made micro-insurance products for policy holders. PasarPolis also aims to enhance its technology as it eyes to become the market leader of insurtech in Southeast Asia.
PasarPolis started as an insurance comparison website and offers micro-insurance products today covering health, vehicle, accident, property, travel and life. It works with 30 major insurers, including AXA, AXA Mandiri, Lippo Insurance and Zurich, and is also a partner to government's workers' insurance BPJS Ketenagakerjaan and Go-Jek. In 2017, PasarPolis launched a product called Go-Proteksi in collaboration with Go-Jek, which provides life insurance and asset protection for Go-Jek drivers, including protection for smartphones. According to e27, over 300,000 drivers are paying UDR 7,500 (USD 0.5) per month.
Going forward, PasarPolis intends to develop more products that can be bundled with its partners' offerings, such as e-commerce and travel booking.
(Sources: Tech Crunch; e27; Deal Street Asia)
According to a recent survey titled IDC Asia/Pacific Enterprise Cognitive/AI Survey, conducted by the leading IT market research and advisory firm IDC, Indonesia leads the adoption of AI across the region. According to the survey, the AI adoption in the region is on the rise. AI adoption rates across South East Asia increased from 8% last year to 14%, reflecting efforts by companies to incorporate different forms of AI/cognitive intelligence into their operations.
The survey found that 24.6% of respondent organisations in Indonesia said that they are adopting AI. Internet companies such as Go-Jek, the ride-hailing and online payment giant, and Kaskus, Indonesia’s biggest online forum and marketplace, are leading the AI adoption trend.
According to IDC, Indonesia’s leading position is followed by Thailand (17.1%), Singapore (9.9%) and Malaysia (8.1%). AI was most commonly used in the region for algorithmic market forecasting and automated asset and infrastructure management. As for adoption drivers, discovering better business insights was the most important factor to 52% of respondents, moving up from being the third-most important factor in 2017. Other drivers in 2018 were improving productivity and enhancing process automation.
Indonesia was also the country with the highest percentage of organisations with no plan to adopt AI within the next 5 years, at 59%.
ASEAN organisations continue to lag their North Asian counterparts in making AI a strategic agenda. Over 80% of Chinese and South Korean companies believe that AI capabilities would be critical for organisational success and competitiveness in the coming years, but less than 40% of companies in Singapore and Malaysia feel that way.
Inadequate skills and knowledge, and high implementation costs were highlighted as the most important barriers to AI adoption.
(Sources: Computer Weekly; HRM Asia)
PT Telekomunikasi Indonesia (PT Telkom), the country’s largest telecom operator, and Cisco, a global technology leader, have agreed in May 2018 on a partnership to support digital transformation of Indonesia’s state-owned enterprises. The two companies have agreed to focus on four key areas, including (1) networking; (2) cyber-security; (3) hybrid cloud; and (4) talent development.
Networking: PT Telkom and Cisco will work together to build industry-specific value-add services that enable digital transformation of enterprises in key sectors, such as financial services, retail and manufacturing. Examples include network solutions and services that allow banks to open digital branches, or manufacturers to connect industrial devices and machines across the floor to enable automation, reduce operational costs and improve productivity.
Cyber-security: The two companies will collaborate to equip enterprises with tools to protect them from potential cyber-attacks, which could result in criminal and/or unauthorised use of electronic data. This will be done by complementing PT Telkom’s offerings with Cisco’s portfolio, such as Firewalls, IPS, Stealthwatch, and others, in order to give enterprises both defensive and offensive mechanisms to safeguard against such attacks. According to the Indonesian Security Incident Response Team on the Internet Infrastructure/ Coordinator Centre (Id-SIRTII/CC), there were over 200 million cyber-attacks from January to November 2017. Among major ones, the WannaCry malware attack in May 2017 affected 12 institutions across Indonesia, including Jakarta and Sulawesi, in various sectors such as health, education, and public services.
Hybrid cloud: Both companies will also aim to provide joint cloud management services that ensure business agility, flexibility, as well as compliance. This will be achieved by providing flexible solutions that allow enterprises to store, process and manage data on remote servers – both public and private.
Talent development: The companies will work jointly to train technical as well as sales teams to enhance their skills. The training programmes will include courses offered by Cisco’s Networking Academy, including those in network programmability and cyber-security, as well as Cisco’s Blackbelt Framework for Engineers.
The success of this transformation, according to Cisco South East Asia President Naveen Menon, hinges on ensuring that enterprises not only adopt the right technology, but are also ready to combat cyber-threats and have access to a large pool of professionals with the skill sets required to succeed in a hyper-connected digital world.
(Sources: Digital News Asia)
Technology firm, Online Pajak, which provides an electronic tax filing solution, recently launched a blockchain-based app in Indonesia that enables customers to share encrypted tax data with the tax and treasury offices, banks and the central bank. Such an app could potentiall improve transparency, reduce paperwork and errors, and provide proof for taxpayers that they have paid their dues.
Blockchain technology, the underlying technology behind cryptocurrencies, eliminates the need for middlemen to ensure trust and makes transactions more efficient, reducing time required to completion as well as risk of fraud. Transactions are verified by a network of unrelated computers based on software and stored in immutable blocks, secured by hashing. Every computer in the system has a copy of every transaction in the form of the Blockchain or ledger.
Indonesia’s second-largest bank, Bank Mandiri, is exploring the use of blockchain technology for trade financing. The financial regulator of the country, the Financial Services Authority is studying how blockchain could help the banking industry.
(Sources: Cryptovest, Reuters)
Indonesia’s Directorate General of Highways, also known as Bina Marga, has chosen AgileAsset enterprise software to improve the country’s pavement, bridge, and safety management programs. AgileAssets will provide the development and maintenance of the integrated infrastructure asset management system, and – in partnership with Indonesian technology consulting firm Global Tekno Tritama – will serve as Bina Marga’s implementation partner.
The analytical capabilities of AgileAssets’ software will help modernise Bina Marga’s asset management programs to focus on data-driven decision-making, which will enable it to improve safety, reduce costs, and maximise the performance of Indonesian roadways.
The project marks AgileAssets’ first major collaboration with a client in the Asia Pacific region. The relationship has been facilitated by Esri Indonesia, the local distributor of Esri’s mapping and spatial analytics technology and a longtime business partner of AgileAssets. At Bina Marga, the AgileAssets system will be fully integrated with Esri’s ArcGIS Enterprise platform, enabling stakeholders to analyse visual data and share location-based insights. As the government is taking a more systematic approach to managing the national road network, this partnership is expected to help them quantify the impact of their decisions.
As part of Indonesia’s Ministry of Public Works and Housing, Bina Marga maintains a national network of nearly 47,000km of roads and about 18,000 bridges on the country’s more than 17,500 islands, making systems, such as those offered by AgileAssets, crucial for effective decision-making.
The Association for Internet Service Provider in Indonesia (APJII) has revealed that internet penetration in the country is highly uneven.
According to the survey undertaken by APJII, the total number of internet users in Indonesia grew by 8% to 143.26 million in 2017, which is equivalent to approximately half of the country's population.
About 44.16% of the respondents accessed the internet with their mobile phones, 39.28% used computers and mobile phones, while 4.49% used computers only. The study revealed that 89.35% of them used the internet for chatting, 87.13% to access social media, 74.84% to use search engines, 72.79% to view images, and 70.23% to download videos. Several features were usually accessed simultaneously.
The APJII study also analysed internet penetration rates in urban areas (non-agricultural sector-based income), rural areas (agricultural sector-based income) and urban-rural areas (mixed income). In urban areas, 72.41% of people had access to the internet, while the rural-urban areas, penetration was 49.49%, which fell slightly to 48.25% in rural areas.
(Sources: APJII; Jakarta Globe; e27)
Telkom and Telstra have signed a MoU stating their intent to work together to explore the creation of an Indonesian Global Delivery Centre (IGDC) through their joint venture, telkomtelstra. The proposed IGDC will service local and global enterprises in the areas of professional services, project management and IT. This strategic arrangement will enable telkomtelstra to leverage the large pool of digital talent available in Indonesia and support Telstra’s international growth strategy. The MoU reflects the growing technology partnership between Telstra and Telkom, extending on the project management and device accreditation services telkomtelstra already provides to Telstra. The IGDC will be operated by telkomtelstra, a joint venture between Telkom and Telstra set up in 2014 to supply managed telecommunications services to enterprises in the Indonesian market.
Pundi X, a cryptocurrency point-of-sale (POS) solutions provider for retail stores, has announced that it has partnered with Stellar.org, a Silicon Valley non-profit organization that supports the Stellar network, an open-source blockchain network that provides interoperability between financial institutions and different payment systems.
Under the agreement, Pundi X will integrate with the Stellar protocol to become an Indonesian Rupiah anchor on the network, enabling businesses and individuals to send and receive cross-border payments faster and at a lower cost. Additionally, Pundi X will start to support Stellar's native currency Stellar Lumens (XLM) in its cryptocurrency POS solution platform.
Over 75% of Indonesian export and import activities are conducted in US dollars. However, Bank Indonesia plans to diversify the use of currencies in international trade. The partnership between Pundi X and Stellar.org is expected to encourage businesses to send and receive payments in Indonesian Rupiah due to improved efficiency.
(Sources: Stellar; Pundi X)
Rintis Sejahtera (Rintis), a local ATM switch institution, has signed an agreement with UnionPay International (a subsidiary of China UnionPay) to issue chip technology based debit cards in Indonesia. Both companies will start to introduce the PRIMA-UnionPay co-branded debit cards to selected member banks in the first half of 2018. This debit card offers higher security in the payment processing procedure, as it prevents the copying of card and user data, enables transactions to be more secure with PIN-based authorisation, and creates opportunities for the card to be used for online purchases. UnionPay cards are accepted at most ATMs and merchants in Indonesia, such as DFS, Dufry, Grand Indonesia, Indomaret, Metro, Plaza Indonesia, Sogo, and many others.
The cooperation between both companies has been growing steadily since last year. Indonesia's payment industry is seeing a rapid transformation towards cashless payments, therefore this milestone agreement will create a large opportunity for Rintis to upgrade their payment infrastructure. Further, Rintis has also expressed an interest to diversify its cooperation with UnionPay in the digital payments sector, by bringing a QR code payments proof-of-concept to the market in early 2018.
In 2016, UnionPay International signed comprehensive cooperation agreements in 2016 with the top three Indonesian acquirers to expand its acceptance footprint in the market. These three acquirers are BCA, the biggest private bank in Indonesia, and Mandiri and BRI, two major state-owned banks. It is estimated that UnionPay's acceptance coverage at local merchants was 80% by the end of 2017.
(Sources: Asia One; Finextra)
Over the past three years, the Ministry of Communications and Information Technology has managed to build an information highway and the fourth-generation cellular infrastructure, or 4G. As of July 2017, Indonesia had 55,701 base transceiver stations (BTS) to facilitate wireless communication in 297 districts and municipalities. As a benchmark for comparison, there were only 25,997 BTS in 58 regions at the end of 2016.
This month, the ministry ordered state-controlled cellular operator Telekomunikasi Selular to boost the 4G spectrum to 2.1GHz and 2.3GHz for urban users. Indonesia recently announced an auction of 50MHz of spectrum in the 4G-ready 2.1GHz and 2.3GHz bands, which will allow operators to increase their 4G holding to expand their coverage in the wake of massive growth.
Indonesian telecommunication providers have enjoyed 4G subscriber growth over the past year: Telkomsel (30.7 million, 17% increase); Indosat Ooredoo (14.9 million, 15% of its total base); 3 Indonesia (8.8 million, 13% of its user base); and XL Axiata (19.9 million, 39.5%).
According to data from the Indonesian Internet Service Providers Association (APJII), in 2016 the number of internet users was about 100 million — 40% of the country's population.
(Sources: Developing Telecoms; Jakarta Globe)
Telkom Indonesia — Indonesia’s state-owned telecommunications and network service provider – has selected the Palo Alto Networks Next-Generation Security Platform to ensure it has a secure base from which to move forward with its global expansion. Ranked ninth in the Asia-Pacific region in terms of market value, Telkom Indonesia is seeing double-digit growth. As such, the company has serious international expansion plans, aiming to become one of the top five telecommunications and network providers in South East Asia. Providing wired and wireless telecoms, broadband, mobile, high-speed internet, pay TV, data centers and digital services for the retail and enterprise markets, the company operates three data centers, and as such, security is vital.
From a network perspective, Telkom Indonesia has a complex network infrastructure that enables a large variety of services and features more than 10,000 users. Facing the many various cyberthreats that exist – from simple password theft to the denial of services and SQL injections - Telkom Indonesia needed to be agile enough to handle threats and quickly develop appropriate responses to new ones. To prevent such attacks and any subsequent disruption to services, Telkom Indonesia is deploying five Palo Alto Networks PA-3000 Series firewalls, and eight Palo Alto Networks next-generation PA-5000 Series firewalls, and is also employing Panorama (a network security management solution that provides static rules and dynamic security updates to simplify the management of a changing threat landscape) as well as AutoFocus (a contextual threat intelligence service that accelerates threat analysis).
(Source: Palo Alto Networks)
Cloudera, Inc., the modern platform for machine learning and analytics, optimized for the cloud, announced the launch of its official entity in Indonesia, deepening its commitment to the Asia Pacific region. Cloudera’s expansion into Indonesia is strategically charted to bolster the government’s Smart City initiatives and upskill professionals across the technology industry. The company's Indonesia office will have functions such as Sales, Solutions Engineering and Solutions Architecture.
With its Asia Pacific headquarters in Singapore, Cloudera works with customers across many industries such as telecommunications, financial services and government sectors to better equip them to address the challenges that organizations often face with data. It’s solutions have been adopted by several leading organizations in Indonesia including Bank Danamon, Bank Mandiri, and Telkomsel to accelerate data capabilities to support business roadmaps in technology innovation, increase revenue, improve customer service, detect fraud and reduce compliance cost in today’s digital age. The company aims to promote innovation, accelerate pace of technology adoption and contribute towards developing Indonesia as a connected country of opportunity in the future.
The Indonesian Tourism Ministry has tapped Adobe to support its campaign towards digitizing its platforms to better serve the growing tourist visits of the country. Through the partnership, Adobe will provide the ministry with its quality products that can help promote the Indonesian tourism and understand consumer behavior. Adobe is set to provide different platforms and products from its portfolio, such as the Adobe Experience Cloud, Adobe Analytics, Adobe Experience Manager, Livefyre and Adobe Audience Manager to the Indonesian Tourism Ministry to help the agency understand consumer and tourist preferences, market Indonesia as a top destination, target and attract new visitors as well as create targeted tourism campaigns for the agency. The collaboration between Adobe and the Ministry is a welcome initiative in line with the ministry's "Go Digital" theme for 2017.
(Sources: Digital News Asia; The Drum)
Global technology company Oracle and Indonesian information technology infrastructure solution provider PT Central Data Technology (CDT) are building a partnership to overcome challenges in cloud implementation for enterprises in the country. Under a government regulation, all business in the country particularly those in the banking and financial sectors must have data centers in Indonesia to secure all confidential data, such as private information and financial transactions, from possible misconduct, as well as to facilitate the government in conducting investigations into particular cases.
To overcome the challenges imposed by this regulation, CDT offers Oracle Cloud Machine (OCM), a private cloud computing solution which facilitates the integration between devices and applications and speeds up the process of implementing and migrating data to the cloud. Through this OCM solution, Oracle puts the machine in customer data centres with a subscription-based pricing scheme as per customer requirements. Inside the OCM server there is an Oracle application like SaaS so customers can take advantage of all the cloud services with direct access to devices located in their own data centre (on premise).
(Sources:Digital News Asia)
Alibaba Cloud, the cloud computing arm of Alibaba Group, has announced its plans to establish a new data center in Jakarta, which is scheduled to open during its current fiscal year, which ends March 31, 2018. This move will significantly increase its computing resources in Asia, allowing greater support for small and medium enterprises in Indonesia.
Alibaba Cloud will be the first leading global cloud computing company to establish an international cloud data center in Indonesia, significantly enhancing the local IT infrastructure on the back of Alibaba Cloud’s global data center network. The move responds to Indonesia’s “1,000 Start-ups Movement” initiative launched last year with the aim of nurturing 1,000 ventures by the year 2020, and targeting a cumulative valuation of USD 10 billion.
(Source: Alibaba Group)
Indonesian e-commerce platform Blibli.com has expanded its market by acquiring Tiket.com, a six-year-old online travel agency startup, which has established itself as a mid-scale player in Indonesia and focuses on flights, hotels, car rental, rail tickets and events.
While BliBli has been engaging in the travel sector only since 2016, it is considered a generalist ecommerce platform in the country. It plans to keep the Tiket brand in place and will support Tiket.com from its share inventory, sales, promotion and penetration to social media, as well as improve human resources. With this acquisition, Blibli.com expects that it will receive a bigger share of the market in terms of booking of airplanes, hotels, trains, car rental as well as concerts online ticketing.
(Sources: Tnooz.com, CNN Indonesia)
The Indonesian Government has initiated its 100 Smart Cities Project, which was inaugurated in Makassar in May 2017. Prior to the event, the government had assessed various cities and districts throughout Indonesia to select 25 key targets for smart city development within two years. Indonesia targets to develop 100 smart cities by 2019. It should be noted that the smart city concept will not be the same for every city as the plan will be adapted according to each city’s requirements.
The 25 selected cities/districts that have been selected for the first round of development are Semarang, Singkawang, Makassar, Bogor, Tomohon, Jambi, Bandung, Cirebon, Bekasi, Sukabumi, Samarinda, Tangerang, South Tangerang, Sleman, Badung, Siak, Mimika, Gresik, Sidoarjo, Purwakarta, Kutai Kartanegara, Banyuasin, Pelalawan, Bojonegoro, and Banyuwangi.
Both the governmental and private sectors are involved in this project. This project was initiated by several Indonesian ministries, namely the Development Planning Agency, the Presidential Office and the Ministry of Communication & Information. Private sector players include Siemens, Indosat Ooredoo Business, Kompas, Gramedia, and Lintasarta. More parties are expected to be involved and there is a strong possibility for collaboration opportunities with foreign companies.
(Sources: Kompas, Seasia)
Currently, two-thirds of Indonesia’s population do not have a bank account, while credit card adoption stands at a meagre 4%. Given that mobile penetration rates are very high, the future of payments in Indonesia is clearly digital.
Indonesia is seeing a large number of start-ups such as transport, travel and e-commerce applications mushrooming in the country. As the volume of daily transactions on apps grows, these start-ups are rolling out digital wallets to facilitate payments on their platforms. Transport app giants Go-Jek and Grab have both launched digital wallets, named Go-Pay and GrabPay, respectively, which users can top up via bank account transfers, ATMs or mobile banking.
Not to lose out on the game, banks are responding to the rise of fintech players by acquiring tech start-ups or by establishing their own digital banks. The Ministry of Communication and IT is actively involved in shaping Indonesia’s e-commerce landscape, and is working closely with telecommunications companies to prioritize the building of a national 4G and fibre optic coverage. Interestingly, the government, fintechs, banks and telecommunications companies are all converging towards the same goal: increasing financial inclusion through digitisation.
(Source: The Jakarta Post)
Apple has committed to invest around USD 44 million in a research and development center in Indonesia over the next three years, a move that enables it to start selling its latest iPhone 7 in the country. Indonesia has stipulated that starting from January 2017, all 4G handsets sold there must have a local content of at least 30%. That rule can be met in terms of hardware, software or an investment commitment.
Apple’s R&D center is expected to begin operating in the second quarter in Tangerang, Banten, and will develop educational programs for 300 to 400 local students. Apple will carry on with the second center in Java and the third center outside Java.
(Source: Reuters, The Jakarta Post)
To achieve its 2020 Master Plan, called Grab 4 Indonesia, ride-hailing app Grab is planning to invest USD 700 million for the next four years in Indonesia. The investment will be allocated for developing a research and development center in Jakarta, provide funding for emerging startups with social purposes and increase mobile payment access, particularly with Grab's own GrabPay credit system.
Grab is seeing a significant growth of its services, in particular for GrabBike and GrabCar, which has grown 600% compared to last year. Grab services are available in Indonesia big cities, including Jakarta, Bandung, West Java, Padang, West Sumatra, Makassar, South Sulawesi and Yogyakarta, Medan, etc.
The company has established a partnership with state-owned enterprise Pertamina, which allows Grab drivers to get incentives at selected petrol stations for certain types of fuel, including Pertamax, Pertalite and Pertamina Dex, and also lubricants such as Enduro and Fastron.
(Source: The Jakarta Post)
Research and advisory firm IDC has announced its top technology predictions for Indonesia at the IDC FutureScape Media Briefing and highlighted that digital transformation will attain macroeconomic scale over the next two to three years, changing the way enterprises operate and reshaping the global economy. IDC calls this as the dawn of the "DX Economy."
The following are some of the strategic predictions by IDC:
In December 2016, PT. Telkom Indonesia Tbk (Telkom) inaugurated a mega project known as the “Sistem Komunikasi Kabel Laut”, a sea cable telecommunication system which will operate the South East Asia – Middle East – West Europe 5 (SEA-ME-WE 5) route in Telkom Landing Station (TLS) in Pantai Puak, Dumai. The Telkom Group, through its subsidiary PT Telekomunikasi Indonesia International (Telin), cooperated with 18 global telecommunication corporations to establish this cable system which measures around 20,000 km in length. This system will connect Indonesia with 15 countries directly, and ends in Toulon, France.
SEA-ME-WE 5’s capacity is 24 terabyte per second and utilizes 100G technology, which is expected to be able to fulfil Indonesia’s increased bandwidth requirement. This project marks increasing global sea cable ownership by the Telkom Group, as previously it had established the Dumai Malaka Cable System, the Batam Singapore Cable System, the Asia America Gateway, and the Singapore Japan Cable System.
(Source: Antaranews, Jakartaglobe)
The Indonesian government is going to launch its newest port billing system, which utilizes digital technology, under the port operator PT Pelindo. This integrated billing system (IBS) will be employed in all of Pelindo’s associated ports and aims to ease and accelerate the shipping administration processes between the port authority and operator.
IBS transactions include e-registration, e-booking, e-tracking, e-tracing, e-payments, e-billing and e-care. The IBS has been tested in Tanjung Priok port and three other major ports, namely the Belawan Port in North Sumatera, Tanjung Perak Port in Surabaya, and Makassar Port in Sulawesi. Initially the project had been developed by Pelindo III to integrate its 14 ports in seven provinces, with investment expected to reach USD 74 million. Subsequently Pelindo I, II, and IV followed Pelindo III’s decision to connect 24 ports in Sumatera, Java, and Papua under IBS. The government expects that IBS development will be finished within the next 2 years.
Following this new system, six banks have been cooperating with PT Pelindo in relation to IBS. They are Bank Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Bank Central Asia (BCA), Bank Bukopin, and Bank CIMB Niaga. In the future, Pelindo IV’s Director, Budi Revianto said that more banks will be invited to participate in the IBS system.
(Source: The Jakarta Post)
Indonesia Travel Exchange (ITX) is Indonesia’s new marketing strategy to attract tourists into the country. Tourism Minister Arief Yahya said that the government has allocated around 40% of its tourism budget for digital marketing. This is due to the huge potential for tourism among Internet users, particularly tourists who will look for destination information via the Internet.
In ITX, a number of tourism-supporting businesses such as hotels, restaurants and travel agents will be integrated. ITX offers efficient and effective services for both service providers and tourists. Recently, the ministry has partnered with Chinese company Baidu to attract more Chinese tourists to come to Indonesia. In future, the ministry plans to cooperate with tech corporations to reach global markets. The Indonesian government aims to push up the company’s ranking in the tourism sector by 2019.
(Sources: Antaranews, Tempo.co)
The Indonesian government is planning to establish a new set of regulations regarding e-commerce activities taxation in Indonesia. This is due to the growth of digital activities in Indonesia, such as e-commerce, online marketplace, and fintech activities, among others. According to Bank Indonesia, the country’s e-commerce transactions has reached USD 14.48 billion in 2016 and is expected to rise to USD 130 billion in 2020. However, the decision has yet to be finalized in the deliberation of tax regulation over tax rates and types.
Fintech demands in Indonesia is growing each year, particularly in building the momentum to develop financial inclusion. Reportedly in 2013 the investment on fintech in Indonesia reached USD 3 billion and the Indonesian Chambers of Commerce and Industry (Kadin) expected that the investment will reach USD 105.6 billion in 2018. However, fintech sector in Indonesia is still in the early stage and thus regulation adjustment is needed for the industry to keep developing as expected.
The Indonesian government is striving to offer a more secured fintech transaction in the market. According to the Coordinating Minister for Economic Affairs Darmin Nasution, Indonesia plans to have an agency specialized in protecting fintech activities, particularly for customers. The agency will also be responsible to monitor and supervise fintech businesses to make sure that they comply with existing laws and regulations.
Indonesian President Joko Widodo said that the fintech sector is a great opportunity for the nation, especially for people in remote areas. The government hoped that fintech will bring three main benefits, namely international fintechs to register as an Indonesian entity, all payments denominated in rupiah, and the industry to save their funds in the national banking system.
(Sources: Antaranews, Tempo.co)