Category: Uncategorized

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

Opportunities for logistics providers expanding in Indonesia

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With more than 17,500 islands spread across three time zones, Indonesia’s geography inevitably presents certain logistical challenges. The country, which lies on either side of the equator and whose islands are separated by the Java Sea, is noted for its rugged terrain, active volcanoes, tropical storms and mudslides, as well as its congested streets and poor infrastructure. Given these obstacles, one could even say that the local logistics sector performs daily miracles in delivering goods and services. However, there are also hopeful signs that government and private sector action could lead to improvements, with a large infrastructure development programme on the cards. Even so, investing

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

Green light for the auto sector in Indonesia

Posted OBG AdminPosted in Uncategorized

With new export bans, investment reforms and a push for value addition driving a flood of new projects in the country, Indonesia’s manufacturing sector is slated for significant expansion in the medium term. Automotive manufacturing in particular is set to benefit, with the government’s low-cost green car (LCGC) programme witnessing strong growth when it was rolled out in 2013, while the luxury vehicle segment is expected to expand in the coming years. Growth Story Indonesia’s manufacturing sector has been on the rise in recent years, with expansion driven by its low-cost workforce, a growing young population and increasingly affluent consumer class, as well as government

Pham Hong Hai-CEO-HSBC Vietnam

Indonesia expanding 4G LTE services

Posted OBG AdminPosted in Uncategorized

Indonesia is slated to see its already sizeable base of mobile broadband subscribers expand in the coming years, with the recent rollout of 4G/long-term evolution (LTE) services by the country’s big three operators. That said, operators are facing challenges such as insufficient infrastructure, high capital expenditure requirements and limited available spectrum. The government’s recent move to base its telecoms licensing criteria on service provision, rather than the number of towers and base transceiver stations (BTS) a company owns, could also have a negative impact on revenues, at least in the early rollout of 4G LTE services. It could also prompt a wave of consolidation, ensuring

Mark Geilenkirchen-CEO-Port of Sohar

Indonesia’s affordable housing schemes providing a step up

Posted OBG AdminPosted in Uncategorized

Unlike other global economies, Indonesia largely surfed over the 2008-09 financial crisis, with the economy bucking Western trends and going into a strong, expansionary mode – chalking up 6.5% GDP growth in 2011 and over 5% growth in the years since. This came in the wake of strong economic growth in the years prior to 2008 as well, leaving the Indonesian per capita income in 2013 at a level five times higher than it had been at the start of the new millennium. Budi Hadidjaja, president-director of Cowell Development, told OBG, “The construction of residential property has been one of the fastest-growing sectors in Indonesia’s

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

Indonesia’s tourism sector to benefit from increased purchasing power of the middle class

Posted OBG AdminPosted in Uncategorized

While Indonesia has long had a small and extremely wealthy elite, the steady economic growth and political stability that followed the departure of President Suharto and the Asian Financial Crisis in 1998 has lifted millions of people out of poverty and created a new middle class. The number of Indonesians in this category rose by 40% between 2003 and 2010, according to former minister of finance, Muhamad Chatib Basri. (salkantaytrekking.com) By some estimates the middle class, defined as having an annual income of at least $3500, now makes up about one-third of the population, making it bigger than the combined populations of Australia, Malaysia and

George Richani-CEO-Al Ahli Bank of Kuwait

Marine segment offers great potential as Indonesia targets better accessibility

Posted OBG AdminPosted in Uncategorized

With more than 17,000 islands spanning 54,716 km of coastline and some of the world’s most enchanting diving spots, Indonesia has major potential in the marine tourism segment. And while it is the world’s largest archipelagic country, the marine tourism sector has remained relatively undeveloped. Out of the Wilderness Although there are a number of boutique sailing cruises operating out of Bali towards the east and surfers who travel thousands of kilometres to catch a wave at some of the remote islands in the west, the large cruise ships that dock in neighbouring countries such as Malaysia and Thailand rarely make a stopover in Indonesia.

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

Protecting and developing Indonesia’s fisheries

Posted OBG AdminPosted in Uncategorized

As the largest archipelago country in the world with more than 17,500 islands, Indonesia has both huge potential and abundant wealth lying within its territorial waters. Looking to tap into this potential, newly-elected President Joko Widodo has so far placed a high degree of emphasis on marine industry and security, stating in his inaugural speech in October 2014 that, “the time for us is to return to make Indonesia a maritime nation … to be as great in the oceans as our ancestors were in the past”. Maritime Security While this emphasis has strong connotations towards bolstering the country’s naval prowess (Widodo also quoted the

Daniel Asare-Kyei-CEO-Esoko; Curtis Vanderpuije-CEO-ExpressPay; and Daniel Marfo-General Manager-Zipline Ghana

Good enough to eat: Turkey has made important strides in food safety to meet EU regulations and expand export markets

Posted OBG AdminPosted in Uncategorized

Few treats are as simple and pleasing to the palette as a fresh tomato from a Turkish summer market. But in 2010, worries about pesticide contamination brought strict curbs on exports to the EU, hitting local tomato farmers, among the world’s top five producers of the Mediterranean staple. However, the EU has now abolished the more stringent inspection requirements on tomatoes, satisfied with Turkish efforts to meet safety standards. That success followed a vote by the UN’s Food and Agriculture Organisation in June 2013 to

Pham Hong Hai-CEO-HSBC Vietnam

The letter of the law: New and updated legislation provides clearer guidelines for investors

Posted OBG AdminPosted in Uncategorized

Eager to expand exploration in both traditional hydrocarbons and unconventional fossil fuels like oil shale and coal bed methane (CBM), Mongolia’s parliament overhauled the existing 1991 framework with a new Petroleum Law in July 2014. Significantly easing terms for exploration, the new rules have created much-needed clarity in applying for production-sharing contracts (PSCs) and established competitive fiscal terms. An underexplored frontier play, the hope is that significant new finds in Mongolia will justify the development of infrastructure for transport and refining capacity. Licensing The law is most significant in incentivising exploration terms and expanding the Petroleum Authority of Mongolia’s (PAM) remit over a broader range

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

Partnering for trade: Fresh agreements with key neighbours are set to boost trade

Posted OBG AdminPosted in Uncategorized

Landlocked between two large markets, Mongolia has long used an activist trade policy to develop “third neighbours” and improve its terms of trade. The 1965 International Convention on Transit Trade of Landlocked States already grants it access to third markets, although quotas and transit tariffs are still subject to negotiations. Over the past decade, however, China has largely cornered the market for Mongolia’s mineral exports – despite pledges to allow up to 30% of exports to transit to third markets like Japan and South Korea – largely due to poor transport infrastructure and high transit tariffs. The Economic Partnership Agreement (EPA) signed with Japan in