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Kapital News Highlight - Oct 5

Saturday, October 6, 2018

• Go-Jek's expansion plan to the Philippines is still experiencing problems as the company is still waiting for the issuance of accreditation from the Philippines government. Go-Jek Chief of Corporate Affairs Nila Marita said that the company will first focus on securing accreditation in the Philippines before operating in the country. The Head of the Philippines Land Transportation Franchising and Regulatory Board (LTFRB) Martin B. Delgra III said that Go-Jek registered too late with the board to enter the country. Go-Jek has previously kicked off its full operation in Vietnam last month, the first step in the company's plan to expand into Southeast Asia. The company is currently looking into Singapore, Thailand and Malaysia but still experiencing difficulties in entering each of these countries. (Jakarta Post)

• The Ministry of Communication and Information has set a target of 8 million small and medium enterprises (SMEs) to market their products and services online in 2019 to help SMEs increase revenue and access to global markets. Currently, a total of 7,2 million SMEs has an online platform to sell their products and services. This number is already close to the government's target of 7,3 million by the end of 2018. Director of Economic and Maritime Information and Communication at the ministry Septriana Tangkary said that the ministry urged the SMEs to go online and joined the e-commerce platforms. She noted that 80 percent of SMEs that are online have experienced an increase in their daily revenues. However, there are still challenges for SMEs to go online involving the lack of understanding of using email and the internet. (Jakarta Globe)

• International Monetary Fund (IMF) Managing Director Christine Lagarde said that the trade and tariffs war are starting to dim the outlook for global growth. IMF called on countries to resolve their differences and reform global trading rules. In 2011, the global growth reached its peak, but then plateaued, with fewer countries participating in the expansion. Lagarde also said that the main problem is that the rethoric has turned into a new reality of actual trade barriers. This harm not only the trade itself, but also investment and manufacturing as uncertainty continues to increase. The IMF and World Bank meeting in Indonesia came 20 years after the Asian financial crisis, where Indonesia experienced large capital outflows and had to turn to the IMF for a bailout package that brought painful savings. Lagarde praised Indonesia's efforts to build a more resilient economy and said the IMF would provide financial assistance where needed. (Jakarta Globe)

• According to the governor of Bank Indonesia (BI) Perry Warjiyo, Indonesia has great potential in the development of halal industries. This is reflected in the number of Indonesian Muslim population which constitutes 12,7% of the world's Muslim population. The high potential can also be seen from the increasing awareness of the importance of the halal industries. This was conveyed by Perry in his remarks at The Indonesia International Halal Lifestyle Conference & Business Forum which is taking place on 3-5 October 2018 in Jakarta. Perry explained that BI together with the government and related institutions adheres to the 4C principles regarding the development of sharia economy and finance, especially the halal industry sector. In 2016, The halal industry market in Indonesia has reached 11 percent of the global market. (Netral News)

• The governor of Bank Indonesia (BI) Perry Warjiyo showed his optimism that the weakening of the rupiah against the US dollar will not continue into 2019. Perry revealed three factors that would stabilize the rupiah exchange rate next year. First, The Fed would slow down its monetary policy. Second, Perry estimated that global investors would not continue to put their funds in the US dollar. Therefore, the investors would seek alternative investment schemes in emerging countries, including Indonesia. In 2017, rupiah was appreciated due to the foreign exchange outflows of US$17,3 billion as a result of goods and services transactions could be covered by the capital inflow of US$29,2 billion. Therefore, Indonesia still had a surplus of US$11,9 billion by the end of last year. However, this year is different. Third, the current account deficit would be narrowed next year due to various efforts by the government to curb imports. (The Jakarta Post)


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