Author: OBG Admin

Share analysis: Mitra Adiperkasa – retail

Posted OBG AdminPosted in Uncategorized

The Company Mitra Adiperkasa (MAPI) claims itself as the number-one lifestyle retailer in Indonesia. As of 2014, MAPI had 1931 retail outlets located in 64 Indonesian cities, with a portfolio of over 150 international brands and 111 retail concepts. The company divides its business into four major segments: retail (clothes, sports and toys), department stores, cafés and restaurants, and others. The retail segment accounted for 63.4% of total revenue in 2014, while the department stores and cafés and restaurants segments contributed 22% and 13.1%, respectively. Profitability wise, the retail segment offered the highest operating margin in 2014 (6.6%), followed by others (3.4%), cafés and restaurants

Share analysis: Mitra Keluarga Karyasehat – health care

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The Company Mitra Keluarga Karyasehat (MIKA) is the second-largest private multi-speciality hospital group in Indonesia in terms of number of hospital beds (in 2013), according to Frost & Sullivan. The company network consists of 11 hospitals (Bekasi Barat, Bekasi Timur, Cibubur, Cikarang, Depok, Kelapa Gading, Kemayoran, Kenjeran, Surabaya, Tegal and Waru) with total bed capacity of 1953 (as of 2014). MIKA’s operational focus is for each hospital to provide a comprehensive range of general hospital services for the local community. Each facility provides services to cater to both inpatients and outpatients, including emergency rooms, pharmacies, intensive care units, diagnostics and imaging, and laboratory and surgical

Share analysis: Sido Muncul – pharmaceuticals

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The Company Sido Muncul (SIDO) is one of Indonesia’s top manufacturers of herbal and consumer health products. Its popular products include the revolutionary Tolak Angin and Kuku Bima Ener-G, both market leaders in their respective segments, with market shares of 60% and 75.1% as of 2012, according to Capricorn Indonesia Consult. Despite its sturdy balance sheet, with a 0.1x debt-earnings ratio as of July 2013, the company decided to list its shares on the Indonesia Stock Exchange in December 2013. This initiative was considered necessary to expedite the process of becoming the top consumer health company in Indonesia. As of 2014, herbal medicine was the

Share analysis: Telekomunikasi Indonesia – telecommunications

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The Company Telekomunikasi Indonesia (TLKM) is a state-owned company which provides telecommunications, information, media and edutainment, as well as information and technology services. The company was founded in 1856, and went public for the first time in November 1995, both on the Indonesia Stock Exchange as well as the New York Stock Exchange (as American depository shares through Bank of New York Mellon). TLKM, through its subsidiary Telkomsel, is the largest mobile operator with 141.46m subscribers, having conquered 60% of the smartphone market in Indonesia. Data and internet contributed 27% to the group’s FY2014 revenue. TLKM had a blended average revenue per user (ARPU) of

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Developing the Islamic capital markets offering in Indonesia

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Although Indonesia has the world’s largest Muslim population, it trails many other markets in terms of uptake, awareness and product innovation in Islamic capital markets. As of the end of May 2015, only 3.3% of corporate bonds and 11.8% of government bonds by value were sharia-compliant. By contrast, in Malaysia half of all debt issued meets Islamic standards. According to the Financial Services Authority (OJK), Indonesia’s Islamic capital markets have developed for more than a decade, but remain limited. The OJK and others believe the problem is partly lack of official backing and promotion. While other countries may have smaller Muslim populations, they have governments

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Reconsidering lowering the foreign shareholding limit in Indonesia’s insurance sector

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There is significant foreign participation in the Indonesian insurance sector, with two-thirds of life assets held by companies with some investment from overseas, according to figures from the Financial Services Authority (OJK). However, the openness of the insurance market is being reconsidered on an ongoing basis, and it remains unclear whether foreign shareholdings will need to be reduced or if full participation will be allowed. Debating Limits The new Insurance Law, passed in late 2014, did not explicitly address the foreign shareholding limit, leading to uncertainty in the sector. Earlier debates included calls to lower the cap to 49%, and it is possible that supplementary

Chaim Zach-Managing Director and CEO-Agric International Technology and Trade; Kabiru Rabiu-Group Executive Director-BUA Group; and Aliyu Abbati Abdulhameed-Managing Director

Single market to lead to gradual regionalisation of insurance in Indonesia

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The ASEAN Economic Community’s (AEC) launch in 2015 is likely to have an impact on the region’s insurance industry. As the single market emerges, financial services will become borderless, products from one country will be sold in others, labour will be portable and companies will branch out into markets outside their home jurisdictions. However, the method and pace of regionalisation in the insurance sector remains open to debate. While the industry will not experience sudden shift, as financial services have been given a 2020 deadline with some flexibilities built in, insurance is expected to become incrementally regional. Different Approaches In Indonesia the sale of non-admitted

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Capital requirements to drive tie-ups between local and foreign insurers in Indonesia

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Despite the talk of restrictions on foreign investment in insurance in Indonesia, international companies remain interested and active in the sector. A number of significant deals were completed in 2015, with others in the works, suggesting that the market’s potential outweighs the risk of ownership limits being put in place. For local insurance companies, capital pressures and competition in the sector are increasingly driving them towards deals with foreign insurers. While the recent international deals have been well below the current 80% ceiling for foreign ownership, majority acquisitions could face questions if the limit was reduced to 49%, as some in the country have suggested.

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Indonesia has room for private health insurers

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Already in operation for a year, Indonesia’s national health insurance scheme (JKN) aims to provide cover to the entire nation by 2019, and private insurers are paying close attention. The JKN is expected to create opportunities for the private sector, as Indonesians become more aware of their insurance needs and potentially more inclined to buy supplemental cover. “The mandatory insurance scheme will not only benefit health insurers, but also the sector as a whole by introducing a large number of potential new customers to the market,” Roy Ibrahim, president-director of Asuransi Jiwa InHealth Indonesia, told OBG. A Decade in the Making Universal health care in

Peter Wong-Deputy Chairman and Chief Executive-HSBC

Indonesia moves forward with ASEAN integration

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As the dominant political and economic power in the ASEAN bloc, Indonesia’s participation in the ASEAN Economic Community’s (AEC) planned integration this year will have significant ramifications for domestic growth, trade flows and immigration. Although AEC integrations is expected to significantly bolster the region’s attractiveness to foreign investment, simultaneously reducing non-trade barriers and improving the flow of goods and services, the process has not been without challenges. For Indonesia the most notable challenges have been in global volatility and a growing domestic movement to pursue national interests and expand bilateral trade, championed by the administration of newly elected President Joko Widodo. Nonetheless, the benefits of