Author: OBG Admin

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

Financial services in Indonesia achieve greater reach on the internet

Posted OBG AdminPosted in Uncategorized

With JPM organ Chase & Co recently advising traditional global bankers that “Silicon Valley is coming”, and Goldman Sachs estimating that the disruptive newcomers of the financial technology segment (FinTech) attracted $12bn in investment worldwide in 2014 – up from $4bn in 2013 – a new era in finance is beginning. This global trend has not passed Indonesia, either. Indeed, a string of innovative financial products from the country’s finance start-ups is now circumventing the traditional payment and investment system, helping to broaden financial inclusion and challenge the established banks. Indonesia’s tech-savvy youth have created pioneering start-ups with social and religious missions, but now, the

Mark Rutte-Prime Minister of the Netherlands

Efficient tax collection high on the agenda in Indonesia

Posted OBG AdminPosted in Uncategorized

More efficient tax collection is a top priority for Indonesia, with improved information sharing with foreign countries among the initiatives it has rolled out in service of this goal. The country has historically struggled to achieve its annual tax collection targets, despite the valuable revenue stream they represent, although recent moves by newly elected President Joko Widodo indicate the situation may soon change. The new administration has set its sights high for tax collection in 2015, implementing an ambitious reform policy that will see the Ministry of Finance’s (MoF) Directorate General of Taxation (DGT) transformed into an autonomous entity. The country also plans to crack

U Nyo Myint-Vice-Chairman-Myanmar Insurance Association

Infrastructure investment works to keep pace with Indonesia’s rapid urbanisation

Posted OBG AdminPosted in Uncategorized

The country’s urban areas have grown rapidly in recent decades, with Jakarta’s population more than doubling since the 1970s, driven by an influx of rural migrants seeking better opportunities. This growth has not been without consequences, as municipal governments struggle to absorb new residents, and infrastructure and employment gaps pose significant challenges to smooth urban growth. This trend is likely to continue, as some 30 Indonesian cities are expected to see significant population growth in the coming years. The government has taken steps to address these challenges, funnelling billions of dollars in new funding towards infrastructure in the 2015 budget. In light of the limited

Daouda Coulibaly-Managing Director-Société Ivoirienne de Banque

Preparing Indonesia’s banking sector for new legislation on foreign ownership

Posted OBG AdminPosted in Uncategorized

For most of its history, the Indonesian banking sector has been highly regulated, with the government often intervening in a heavy-handed manner to achieve policy goals and correct larger economic concerns. The results have been mixed, with the authorities erring at times on the side of too much control and at other times on the side of too much freedom, with some of the reforms of the 1980s and 1990s having weakened the sector ahead of the 1997-98 crisis. However, since the crisis of the late 1990s, the sector has been well supervised and managed, and the balance struck by the authorities has resulted in

U Nyo Myint-Vice-Chairman-Myanmar Insurance Association

Coal-fired plants offer a more affordable power source for Indonesia

Posted OBG AdminPosted in Uncategorized

With the spectre of an electricity shortfall looming larger with each passing year, the Indonesian government is looking to coal-fired thermal power plants to provide a quick and easy solution. Coal has many advantages over other forms of power generation in Indonesia: it is cheaper, more established technologically and abundant. It is also seen as preferable to diverting dwindling supplies of natural gas away from profitable export operations. To boot, coal prices fell sharply in 2014, mainly due to lower demand from China, and are expected to remain low in the short term. “We would expect to see some minor improvement in the coal price

Ali Bongo Ondimba-President of Gabon

Regulatory changes to speed up geothermal development in Indonesia

Posted OBG AdminPosted in Uncategorized

Already the world’s third-largest geothermal power producer, Indonesia is poised to enter a fresh phase of expanding this resource, with a new law setting the stage for further investment. By smoothing out many regulatory wrinkles for developers, the government hopes to tap the many subterranean thermal hotspots that dot the country as electricity producers scramble to meet growing demand. The same forces that cause natural disasters like earthquakes and volcanic eruptions across the nation’s archipelago also harbour some of the globe’s largest potential for renewable energy. Total Reserves According to the Ministry of Energy and Mineral Resources (MEMR), total proven, probable and possible (PPP) reserves

Ahmed Zaki Abdeen-Chairman-New Administrative Capital for Urban Development

Indonesia’s energy subsidy reforms

Posted OBG AdminPosted in Uncategorized

Long known for maintaining low fuel prices despite its large population, Indonesia has recently begun to take meaningful steps to reform a decades-old policy that has bloated federal budgets and often fallen short of its purported aim of helping the less fortunate. Policymakers in Indonesia, as in many countries around the world, have long seen energy subsidies as a quick and easy way both to appease voters by offering cheaper electricity and fuel, and to entice large, power-hungry industries to invest by offering cut-rate energy prices. Rising Costs For such purposes at least, these policies have worked. Yet the rising cost of hydrocarbons in the

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

Regional plans for transport well under way in Indonesia

Posted OBG AdminPosted in Uncategorized

The year 2015 is a landmark one for South-east Asia, with the much-anticipated arrival of the ASEAN Economic Community (AEC) due by the end of the year. This event will have far-reaching consequences across a whole range of economic, political, social and cultural fields, with the impact on the transport sectors of ASEAN member states also likely to be profound. Given its key strategic location within the association, as well as its status as the most populous member, ASEAN founder Indonesia will be a key part of the market liberalisation and heightened regional integration that is set to follow, as the AEC takes off. Bigger

Mokhtar Naouri-CEO-CASH Insurance

Indonesia’s equatorial location an asset for solar energy projects

Posted OBG AdminPosted in Uncategorized

Although the focal point of renewable energy development in Indonesia has been geothermal resources, of which the country holds over a third of the global total, in recent years solar power has gained new attention as a viable source. As an equatorial country, Indonesia is well-placed to reap the benefits of new solar options, with off-grid projects offering new ways to connect rural residents. Meanwhile, the government’s move to cut billions in annual fuel subsidies bodes well for broader development of renewables. Stakeholders now project that as the cost of solar materials continues to drop, solar will become a key driver of renewables growth over

Emmanuel Macron-President of France

More local natural gas needed in Indonesia

Posted OBG AdminPosted in Uncategorized

As Indonesia’s economy keeps chugging along with annual growth rates around 6% in recent years, its appetite for energy continues to expand in parallel. Demand for primary energy hit 130m tonnes of oil equivalent (mtoe) in 2013, and GDP growth of 8% a year through to 2025 forecast by the National Energy Council (NEC) is expected to push growth in energy consumption up to 7.3% a year in 2013-25, under a business-as-usual scenario. This would put primary energy demand at 277 mtoe within a decade, well above the 2013 supply of 189 mtoe. A big dilemma for policymakers is where to derive all of this