Indonesia Morning News For October 10

Indonesia probes Standard Charter over $1.4bn transfer
Indonesia is investigating reports that $1.4 billion held by Standard Chartered Plc in Guernsey, mainly on behalf of Indonesian clients, was transferred to Singapore just before the island moved to new tax transparency rules, tax and regulatory officials said.
— Reuters/Nikkei Asian Review

Military ambitions shake Indonesia’s politics
During former president Suharto’s New Order reign, political analysts were breathless followers of the Indonesian military’s regular changes in command, a measure of who was in favor, who was not, and, more importantly, who might be rising as a possible successor to the president himself.
— Asia Times

Garuda to retire Boeing 747-400s
National flag carrier Garuda Indonesia announced on Monday that it will stop operating its Boeing 747-400 planes, which have been flying since 1994 and have logged up 89,900 hours flying time.
— The Jakarta Post

Poverty in paradise: The dark side of Indonesia’s new tourism hope
A patchwork of white-sand beaches, colourful coral reefs and turquoise water, the islands of Raja Ampat are set to be Indonesia’s next tourism hotspot – but locals fear the government is failing both them and the environment in its development push.
— The Nation

Economists to speak up on inequality issues
Narrowing the wealth gap will be the key topic discussed at the Indonesian Economists Association (ISEI) national seminar and plenary session held from Oct. 18 to 20 in Lampung.
— The Jakarta Post

Mystery over weak Indonesia spending stumps policy-makers
Almost 4 million new jobs, rising wages and eight interest-rate cuts in Indonesia should have been enough to spur consumers into action in the world’s fourth most populous nation.
— Business Mirror

Only 25 areas receive single-fuel price program by September
State-owned energy company Pertamina has said that the single-fuel price program can only be implemented in 25 areas by September from the targeted 54 areas by the end of 2017.
— The Jakarta Post

Freeport Shares Divestment Reach IDR54 Trillion
Freeport Indonesia’s 51 percent stake divestment is estimated to be worth USD4 billion or equivalent to IDR54 trillion.
— Netral News

Bank Muamalat Process New Share Offer
Bank Muamalat Indonesia has planned to increase capital to boost performance and support future business growth, as one of the results of the Extraordinary General Shareholders Meeting, Wednesday (9/20/ 2017), in Jakarta.
— Netral News

Lippo Seals $1b Deal With CMG for Hospital Expansion in China
Lippo Group, one of Indonesia’s largest property conglomerates, has agreed to a $1 billion deal with Chinese state-owned conglomerate China Merchant Group for the construction of health facilities in the world’s second largest economy.
— Jakarta Globe

Indonesia tidal takes FID
Indonesian tidal developer SBS Energi Kelautan has taken a final investment decision on a 12MW first phase of its Nautilus project off the island of Lombok.
— reNews

Big firms tap into specialty textile market
Several big firms have started pushing up production in specialty textiles or fabrics for special purposes, such as sofa and shoes amid the country’s dependence on the import of these materials.
— The Jakarta Post

BKPM Invites Business Players to Place Investments in Tourism Sector
Head of Investment Coordinating Board (BKPM) Thomas “Tom” Lembong is inviting foreign and domestic investors to place capitals in tourism sector.
— Netral News

Bandung Hosts Indonesia-Middle East Annual Gathering on Economy
The seventh Indonesia-Middle East Annual Gathering on Economy, or Image, kicked off in Bandung, West Java, on Monday (09/10).
— Jakarta Globe

Provident Capital, Indonesia’s Saratoga mount $138m takeover bid for Finders Resources
Singapore-headquartered private equity firm Provident Capital Partners, and Indonesia’s Saratoga Investama Sedaya and Merdeka Copper Gold have joined hands to bid for mining project developer Finders Resources at $138 million (A$178 million), the Australian publication Stockhead reported.
— DealStreetAsia

US$750 million marine energy project moves forward in Indonesia
Indonesia’s first ocean energy independent power producer, SBS Energi Kelautan (SBSEK), has announced it has completed final investment decision with SBS International Ltd. (SBS) to move forward with the 12 MW, Phase I of the 150-MW Nautilus marine energy project in Lombok, Indonesia.
— HydroWorld

Indonesia Classed “Investment Grade”
O n May 19, S&P Global Ratings raised the sovereign credit rating of Indonesia to BBB- from BB+.
— Financial Tribune

Automotive Sector: Ford Cars to Return on the Streets of Indonesia?
After Ford Motor Indonesia, the local unit of American car manufacturer Ford Motor Company, exited Indonesia earlier this year as the company found it too difficult to compete with Japanese counterparts on the Indonesian market, Ford found a new way to make sure its components and after sales services can be delivered in Southeast Asia’s largest economy.
— Indonesia Investment

Confronting New Innovations
McKinsey Digital released a finding in 2016 based on the labour force of 46 countries that a third of tasks involved in 60 percent of jobs could be automated with today’s technology. Labour that is routinized like packaging products to equipment maintenance is easily done by robots.
— Indonesia Expat

Feature photo Arian Zwegers
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Indonesia morning news by AEC News Today is your one stop source for Indonesia news on matters of governance and policies affecting Asean business communities and is published M-F by AEC News Today: Governance, not government; policies not politics.