• Fitch Ratings & Gaikindo Expect Indonesia's Car Sales to Rebound

    Domestic car sales in Indonesia are expected to rebound in the second half of 2016 in line with Indonesia's improving macro-economy. Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association (Gaikindo), is optimistic that the small drop in Indonesia's February car sales is a sign that the sales decline is stabilizing. In February 2016 a total of 88,250 cars were sold in Indonesia, down 0.6 percent (y/y) from car sales in the same month one year earlier. Fitch Ratings also expects Indonesian car sales to rebound this year.

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  • Violence at Anti-Transport Services Apps Demonstration in Indonesia

    Today, Indonesian taxi and public transportation drivers staged another demonstration in Jakarta. They protest against the presence of app-based mobile applications such as Uber Taxi, GrabCar and Go-Jek that all recently started offering transportation services in the bigger cities of Indonesia and have become increasingly popular, at the expense of the financial performance of established transportation services such as taxis, public buses, bajaj (three-wheeled scooters) and ojek (motor taxi). The demonstration turned violent on Tuesday morning.

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  • Creative Business Ideas in Indonesia: Beer Delivery Service

    Since April 2015 sales of alcoholic beverages in kiosks or minimarkets in Indonesia are forbidden. Previously, light alcoholic beverages, such as beer or breezers, could be bought in these shops that have mushroomed in Indonesian cities. This was bad news for producers of light alcoholic beverages because it was made less easy to buy an alcoholic beverage. For such a drink you now have to go to the (licensed) supermarkets and hypermarkets or visit a cafe or restaurant. This increases the distance you need to travel for a drink or - when drinking in a cafe or restaurant - it becomes much more expensive.

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  • Electrification Ratio in Indonesia Up, Demand for Light Bulbs Rises

    Demand for lighting in Indonesia will rise in line with the rising electrification ratio (the percentage of households that are connected to the nation's electricity grid). Indonesia's electrification ratio stood at 85 percent in 2015, implying there are still around 40 million Indonesians that do not have instant access to electricity. The government is eager to raise the electrification ratio and this means that demand for lighting should grow accordingly. However, a large portion of lamps/lighting that is sold in Indonesia is still imported from abroad. As such, there should be lucrative business opportunities in Indonesia's lighting industry.

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