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The progress and challenges of sustainable financing in Indonesia

The World Bank approved in late March a US$300 million loan for Indonesia to assist Indonesia’s reform agenda by among other methods promoting sustainable financing practices in a bid to strengthen the resilience of the financial sector against economic shocks.

Building sustainable financing is not a new idea within the country’s financial system. There have been numerous notable milestones over the years, as this report will explore.

However, as the country has gradually progressed to establishing a sustainable financial system, there has been an ongoing debate whether financing green projects or investing in companies that uphold the environmental, social and governance (ESG) criteria will bring good returns. To that end, economists have raised concerns about whether there is an appetite for sustainable investment products in the market.

While the country is still laying down the building blocks, it is important to see what sustainable financing has to offer so that investors will not miss out on its potential benefits while issuers can plan ahead to cater to the growing market.

SRI KEHATI

What is sustainable financing?

Sustainable financing largely refers to any form of financial service that takes into account the ESG criteria to achieve the broader goal of sustainable development.

According to the  Financial  Services Authority (OJK) Roadmap for Sustainable Finance in Indonesia 2015-2019, sustainable financing includes efforts in the financial services industry to mitigate the impact of climate change, to shift toward a competitive low-carbon economy, to promote environmentally friendly investments, as well as to support the 4P development principles as outlined in the National Medium-Term Development Plan (RPJM), which consist of pro-growth, pro-jobs, pro-poor and pro-environment.

The pursuit of sustainable financing to date

Sustainable financing has been pursued for years. In December 2014, the OJK published a Roadmap for Sustainable Financing in Indonesia, which lays out much of the agenda’s development framework. Three years later, it issued the OJK Regulation (POJK) No. 60/POJK.04/2017 which set out the standard for green bonds issuance in the country. Last year, it appointed eight banks to start channeling loans based on the principle of sustainable financing.

Other stakeholders have also taken part in the agenda. The Finance Ministry issued a green Islamic bond (sukuk) in February 2018 and put Indonesia on the map by becoming the first Asian country to do so. The bond raised $1.25 billion and was used to fund several environmentally friendly projects. The ministry issued another one in February 2019 worth around US$2 billion.

In the local green bond market, state-owned infrastructure financing company PT Sarana Multi Infrastruktur became the first issuer of a corporate green bond in Indonesia, which was issued on July 9, 2018. The company was committed to utilizing 100 percent of the proceeds for green projects, such as the LRT and mini-hydropower plants, meanwhile, POJK No. 60 only required 70 percent of proceeds from green bond sales to be used to finance green projects.

All these efforts are in accordance with Indonesia’s 2005-2025 National Long-Term Development Plan (RPJPN), which states that one of its eight missions is the realization of “a greener and sustainable Indonesia” as it recognizes that “the long term sustainability of development will face the challenges of climate change and global warming which affect activities and livelihood”.

Reported better returns, better resilience

“Sustainability is good business,” a 2020 report written by The Economist Intelligence Unit (EIU) on financing sustainability says.

Of the 161 investors and 154 issuers across the Asia Pacific that the study surveyed, 68 percent of investors and 63 percent of issuers said that their sustainable investments and financing performed better than their traditional equivalents.

It is worth mentioning that for over a quarter of investors, sustainable investing failed to bring about the desired returns. Despite this, the report noted that all of the parties interviewed for the study “firmly debunk the notion that there is no financial benefit to sustainable investing”.

In the local bourse, there is already an indicator that shows the correlation of ESG to higher returns, as measured by the Sustainable and Responsible Investment (SRI) -KEHATI Stock Index. It is the only one of its kind on the Indonesia Stock Exchange (IDX) as it focuses on companies that have fulfilled its ESG criteria.

The SRI-KEHATI index tracks the shares of 25 publicly listed companies, among them are agribusiness company PT Astra Agro Lestari, PT Bank Central Asia and food manufacturing giant PT Indofood Sukses Makmur, and according to data provided on the IDX site, the index does better than the IDX main gauge, the Jakarta Composite Index (JCI), and the LQ45 index in terms of returns.

Between Dec. 30, 2009, and Dec. 30, 2019, the SRI-KEHATI index generated a return of 173.66 percent, higher in comparison with the JCI and the LQ45 index, which generated a return of 148.57 percent and 103.59 percent, respectively.

Over the years, the SRI-KEHATI index has also experienced fewer steep falls in comparison with the LQ45. In 2018, for example, when the main gauge’s return fell to a negative 2.5 percent, the LQ45 plunged to a negative 9 percent, meanwhile the SRI-KEHATI only recorded a negative return of 4.3 percent.

Meanwhile, for the year to date, the SRI-KEHATI index fell by 29.65 percent, lower than that of the LQ45 which dropped by 31.64 percent but steeper than that of the JCI, which declined 26.60 percent.

This article originally posted by Jakpost.


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Analisis: Bank 4.0 tembusan inovasi teknologi

Kemajuan teknologi, meningkatnya pelanggan milenial disertai dengan lonjakan perusahaan fintech mengharuskan bank mengubah bisnis mereka. Teknologi telah mengubah dunia dengan Internet of Things (IoT), gamifikasi, kecerdasan buatan dan asisten digital, omnichannel, blockchain, data besar serta otomatisasi proses robot (RPA). Otomasi akan menggantikan tenaga manusia dalam tugas rutin dan berulang di sektor perbankan, seperti pembuatan akun baru, pembukuan, akuntansi dan audit, tugas teller dan penerbitan pinjaman.

Bonus demografis di Indonesia akan menjadikan generasi millennial sebagai kelompok pelanggan utama bagi bank dalam lima hingga sepuluh tahun ke depan. Karena mereka adalah masyarakat yang melek digital dan fasih dengan teknologi, layanan bank tentu harus disesuaikan dengan penggunaan digital mereka. Mereka mungkin tidak terbiasa dengan layanan tabungan konvensional karena sebagian besar transaksi harian mereka dilakukan melalui smartphone dan layanan fintech. Mereka menginginkan layanan yang dipersonalisasi, cepat dan mudah.

Perubahan-perubahan itu memaksa bank bertransformasi untuk mengamankan relevansinya sendiri. Mereka yang menolak untuk menerima perubahan dan menolak untuk beradaptasi akan kalah dalam persaingan dan “dipaksa” menutup bisnis mereka. Lantas, bank seperti apa yang dapat bertahan di lingkungan dan kompetisi baru? Jawabannya adalah bisnis Bank 4.0 dengan empat karakteristik berikut, mereka siap untuk bertahan atau bahkan berkembang.

Figure 1 Karakter Bank 4.0 FMB Partner

Karakteristik pertama adalah bahwa bank akan berubah dari perusahaan berbasis produk ke perusahaan berbasis layanan. Saat ini, bank menawarkan produk siap pakai kepada pelanggan mereka. Namun, pendekatan ini tidak lagi sesuai dengan karakteristik pelanggan di masa depan. Bank perlu menawarkan solusi, bukan produk. Demi menawarkan solusi untuk masalah pelanggan, bank harus memahami pelanggan mereka sepenuhnya.

Ini mengarah ke karakteristik kedua Bank 4.0: menjadi sentris pelanggan. Layanan elektronik yang dipersonalisasi akan menjadi aturan utama, hal ini termasuk pengalaman pengguna yang dipersonalisasi, penawaran yang dipersonalisasi, saran yang dipersonalisasi, dan pemasaran yang dipersonalisasi. Karena generasi milenial akan menjadi pelanggan utama bank, maka sudah seharusnya bank memahami kebutuhan dan preferensi generasi ini.

Berdasarkan Survei Millenial yang dilakukan oleh Mandiri Institute pada 2018, produk perbankan yang paling banyak digunakan oleh milenial adalah rekening tabungan (91 persen) dan transaksi (78 persen) dan produk non-bank yang paling banyak digunakan adalah transaksi (31 persen) dan asuransi (32) persen). Hampir 60 persen generasi milenial menggunakan pembayaran nontunai lebih dari sepuluh kali sebulan, dan 53 persen menggunakan aplikasi mobile banking lebih dari sepuluh kali sebulan. Lima puluh lima persen jarang pergi ke teller atau menggunakan internet banking, sedangkan 36 persen tidak pernah menggunakan internet banking dalam sebulan. Ini mencerminkan kebutuhan milenial untuk layanan yang cepat dan mudah.

Bahkan pengalaman pengguna yang berbeda dari layanan mobile banking dan internet banking menghasilkan frekuensi berbeda yang signifikan dalam menggunakan layanan tersebut. Tuntutan Millenial untuk layanan dan produk perbankan didominasi oleh aplikasi, layanan online, mobile banking, pembayaran dan transaksi (Gambar 2). Sebagai masyarakat yang cepat dan fasih digital, mereka membutuhkan kemudahan dan kecepatan dalam mengakses layanan.

Karakteristik ketiga Bank 4.0 adalah semua bank akan digital. Bank akan berubah menjadi perusahaan teknologi dengan lisensi perbankan. Perbankan tidak lagi tentang tempat pelanggan pergi, tetapi tentang sesuatu yang dilakukan pelanggan. Menurut Backbase Whitepaper dari Juni 2018, bank digital pertama berdiri di atas empat pilar: saluran omnibanking, perbankan modular, perbankan terbuka, dan perbankan pintar (omnibanking channel, modular banking, open banking and smart banking). Omni perbankan adalah interaksi yang mulus dan konsisten antara pelanggan dan lembaga keuangan mereka di berbagai saluran. Sebagian besar pelanggan bergerak di antara banyak perangkat untuk mencapai goal mereka, dan pelanggan yang menggunakan lebih banyak saluran mereka akan lebih dapat menerima/memiliki banyak produk bank. Oleh karena itu, penting untuk memiliki interaksi yang lancar dan konsisten di berbagai saluran.

Mengingat kemajuan teknologi yang cepat dan kebutuhan untuk menanggapi permintaan pelanggan yang dinamis, bank membutuhkan sistem yang gesit. Perbankan modular cocok bagi bank yang ingin menjadi gesit. Gaya Lego adalah salah satu pendekatan untuk menjadi gesit. Alih-alih memiliki satu aplikasi monolitik atau lapisan terpisah, operasi Lego-style memungkinkan bank dengan mudah menginstal dan menghapus aplikasi berdasarkan kebutuhan mereka. Sisi produksi lincah ini harus disertai dengan distribusi lincah dengan karakteristik pelanggan pertama, fast twitch, test–learn-tweak, right channeling dan revenue readiness. 

Figure 2 Millenial concerns with regard to banking services

Open banking adalah pendekatan terbaru yang diadopsi oleh sektor perbankan. Uni Eropa telah mendorong maju dengan mewajibkan bank-bank Uni Eropa menerapkan Petunjuk Layanan Pembayaran (PSD2) yang direvisi, di mana monopoli bank terkait dengan informasi akun pelanggan mereka dan layanan pembayaran akan segera menghilang. Bank dipaksa untuk memberikan akses penyedia pihak ketiga ke akun pelanggan mereka melalui antarmuka program aplikasi terbuka (API). Ini mengubah perbankan menjadi platform untuk semua transaksi keuangan pelanggan–Perbankan sebagai Platform (BaaP).

Saat ini, sebagian besar bank mempertahankan sistem tertutup dengan kepemilikan aset, pekerjaan lokal, produksi massal, proprietary value dan scarcity control. Sementara itu, sistem perbankan terbuka memiliki fitur akses yang terhubung, jaringan terdistribusi, produksi unit, shared value dan abundance management. Perubahan dari perbankan tertutup menjadi perbankan terbuka akan meningkatkan daya saing bank, terutama dengan munculnya perusahaan fintech.

Perbankan digital adalah bentuk perbankan pintar yang memanfaatkan big data. Yaitu bank yang sebenarnya duduk di atas “minyak” baru, yang merupakan big data tentang informasi demografis dan keuangan, gaya hidup dan kegiatan sosial pelanggan mereka. Menggunakan kekayaan data ini, bank dapat menyediakan produk dan layanan yang dipersonalisasi melalui saluran yang dipilih atau diinginkan. Pengalaman ini akan meningkatkan kepuasan pelanggan dan meningkatkan loyalitas mereka kepada bank.

Bank digital juga merupakan bank kognitif yang menggunakan kecerdasan buatan. Sebuah studi oleh Baker McKenzie menemukan bahwa 49 persen bank akan menggunakan AI untuk manajemen risiko, 45 persen untuk analisis dan penelitian keuangan, 37 persen untuk investasi dan manajemen portofolio, dan hanya 17 persen bank belum memperkenalkan AI ke bisnis mereka. Penggunaan teknologi ini dapat menciptakan aliran pendapatan baru, mengoptimalkan proses dan biaya bisnis, dan meningkatkan pengalaman pelanggan.

Karakteristik keempat Bank 4.0 adalah kolaborasi dengan perusahaan fintech, yang akhir-akhir ini berkembang pesat. Di Indonesia, 45 perusahaan pembayaran fintech telah terdaftar di Bank Indonesia, 1 lisensi pinjaman fintech (P2PL) telah dikeluarkan oleh Otoritas Jasa Keuangan (OJK) dan 77 perusahaan fintech P2PL lainnya telah terdaftar di OJK.

Menurut Survei Milenial oleh Lembaga Mandiri, sekitar 82 persen generasi milenial menggunakan layanan dan produk perbankan dan fintech. Ada banyak pilihan bagi bank untuk berkolaborasi dengan perusahaan fintech. Bank dan P2PL fintech dapat berkolaborasi dalam pemberian pinjaman. Salah satu caranya adalah dengan menggunakan skema kemitraan label putih (white label partnership scheme). Dalam skema ini, bank bekerja sama dengan P2PL melalui produk co-branded. Dengan basis big data, bank dapat menawarkan pelanggan mereka yang tidak memenuhi syarat untuk pinjaman bank kepada pemberi pinjaman P2PL dan menerima biaya referensi sebagai imbalan. Selain itu, karena peraturan tersebut juga memungkinkan lembaga menjadi pemberi pinjaman, bank dapat menyalurkan pinjaman melalui P2PL. Dengan demikian P2PL berfungsi sebagai saluran distribusi. Untuk bank, ini akan mengurangi biaya akuisisi ketika mencari pelanggan.

Kemungkinan lain adalah bagi bank untuk menjual produk investasi ritel melalui perusahaan fintech. Saat ini, sekitar 70 persen pemberi pinjaman dalam skema P2PL berusia muda, antara 18 dan 35 tahun. Ini merupakan peluang bagi bank untuk menawarkan produk investasi dengan dana lebih kecil yang diperlukan yang akan lebih sesuai dengan kebutuhan generasi milenial. Ini akan menurunkan biaya saluran distribusi untuk bank, karena produk mereka dapat menjangkau lebih banyak pelanggan dengan cara yang lebih murah, lebih mudah dan lebih cepat. Adapun layanan P2PL, ini akan meningkatkan pendapatan berbasis biaya.

Untuk itu Bank perlu berubah, jika tidak mereka akan kalah bersaing dan akhirnya menghilang. Lantas, apakah bank-bank di Indonesia bersedia berubah?

Sumber: Jakpost.

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How should your business approach the Ramadan?

Cultural nuance and understanding can provide an opportunity to stand apart in the mobile app industry.

Establishing a mobile presence has become an integral factor for business success in today’s dynamic market. Globally, apps account for over 80 percent of mobile time and with app downloads predicted to grow to well over 250 billion downloads by 2022, it is clear to see where the opportunity lies for marketers to grow and consolidate their user base, particularly in Southeast Asia where 350 million internet users spend more time on mobile than any other market.

To succeed, businesses and independent app developers should go beyond just launching an app and increasing downloads. They need to own its entire life cycle — including user engagement and retention.

One important aspect of engagement is to seize the opportunities that come once in a year. The festive month of Ramadan, in this sense, is perhaps the ticket to making your app stand out in a crowded marketplace.

Nearly 250 million people will be celebrating Ramadan across Indonesia, Malaysia, and Singapore. The potential impact of Ramadan on businesses is, therefore, undeniable.

As we know, consumers and businesses alike are influenced by their surroundings and habits. It’s no surprise that just like Thanksgiving and Black Friday in the United States, or Boxing Day in England, Ramadan makes a serious impact on Southeast Asian businesses.

Over the past decade, this sacred time of fasting and prayer has called for a shift in the digital realm. Users are increasingly turning to their phones for shopping, information or diversion, profoundly impacting how app marketers are approaching their mobile strategies and campaigns around this festive season.

Ramadan this year, will start on the evening of Sunday, 6 May and end on the evening of Tuesday, 5 June. This leaves businesses with a very short window to further plan their marketing activities for this period.

Here are the top three key pointers to ensure that mobile-first businesses reach the right audience with the right messaging this Ramadan season.

  1. Benefiting from the 13th Month Salary Allowance

Businesses should consider allocating more of their Ramadan campaign budget spend to Indonesia, as the largest economy in Southeast Asia has been a top performer over the past few years. Besides the country’s strong economic growth in 2018, smartphone penetration has been steadily on the rise, growing from 24 percent in 2017 to 26 percent in 2018.

The most significant opportunity for businesses comes from a steady increase in the purchasing power of their users in Indonesia during this period.

“Tunjangan Hari Raya” (THR) translated to “Religious Holiday Allowance” is commonly known as the 13th salary, and is usually given two weeks before Eid. This additional “month’s salary” provides app users with the additional boost in buying power, which can in many cases translate into more in-app purchases.

While current data shows that Ramadan observers tend to spend this disposable income on new clothes, gadgets grooming and gifting, perhaps there’s more than can be done outside the typical habits.

With so many transactions taking place over this festive period, marketers who get their messaging right will be able to capitalise on this massive opportunity and direct shoppers and browsers alike to their app.

  1. The Right Message at the Right Time of the Day

To campaign more effectively during Ramadan, businesses should take the opportunity to secure a better understanding of the holiday itself. Appreciating the nuances and traditions of different observances can make all the difference.

Whether it’s rising for pre-dawn Sahur, fasting through the lunch hours or winding down after Buka Puasa (breaking the fast), marketers can learn the times of day in which they should avoid pushing alerts for offers and discounts to their audiences, and which other times would boost app opens and revenues.

A recent report from AppsFlyer indicates that for most app categories, the hours between 3 am to 6 am before Sahur are when festival observers tend to be most active online and make the most app purchases. Other peak periods include lunch hours and evenings, after Buka Puasa.

On the other hand, after observers leave work from 4 pm to 8 pm, apps register fewer opens and purchases, compared to other periods in the year. During these hours, in fact, many consumers are commuting in traffic or preparing for Buka Puasa.

  1. Localisation is More Than Just Translation

Localisation does not only refer to the local user interface but also covers marketing content. Advertisements and articles created in one geography can be interpreted differently in another.

Indonesia and Malaysia have many regional dialects and languages, but more importantly, each country has a unique culture that should be respected and reflected in any marketing strategy. Businesses should then ensure that they take into account the cultural differences at the social, organisational, and individual levels.

For instance, Mudik is the tradition of returning home to celebrate with family and is observed across Indonesia, Malaysia, and Singapore. It is also commonly known as ‘Pulang Kampung’ in Indonesia and ‘Balik Kampung’ in Malaysia and Singapore.

This period sees a substantial rise in travel spending on flight and train tickets, car rentals, and accommodation. Mudik presents an opportunity for marketers to personalise their messages based on their customer profile, which includes information about the user’s hometown and place of work, language, and personal preferences.

In conclusion, businesses should be spending substantial portions of their budgets on Ramadan, when supported by strong data recording purchasing and engagement patterns.

As the opportunity to re-plan marketing campaigns within the four weeks of Ramadan is small, marketing campaigns should be devised in a lean way, by testing and iterating efforts throughout this period.

Furthermore, by taking advantage of specific seasonal occasions, such as Indonesia’s 13 Month’s salary and Pulang Kampung, and targeting users with localised content at specific times of the day, app marketers will be able to tap into unexpected revenue sources and boost user retention.

Source: E27

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Investment, Export & Government Spending Improve in Q3

Based on data from Statistics Indonesia (BPS), investment growth in Indonesia (gross fixed capital formation, GFCF) reached 7.11 percent (y/y), the highest level in four years. This improvement may very well be related to the improving ranking of Indonesia in the World Bank’s Ease of Doing Business, where Southeast Asia’s largest economy jumped from 91st to 72nd this year. Moreover, the government has been eager to improve the investment climate through deregulation.

Another positive matter is that Indonesia’s import and export performance improved markedly. Indonesia’s exports surged 17.27 percent (y/y), while its imports surged 15.09 percent (y/y) up to the third quarter of 2017. These are great figures considering the nation’s import and export experienced contractions over the past three years. The improving export performance is primarily attributed to rising commodity prices (specifically prices of coal and crude palm oil). In terms of export volumes, however, there has not been a significant improvement, hence global demand for Indonesian commodities has not strengthened significantly yet.

Indonesia

Meanwhile, government spending rebounded by expanding 3.46 percent (y/y) in the third quarter of 2017, accelerating after a near 2 percent contraction in Q2-2017. The Indonesian government has particularly been trying to boost spending on infrastructure development across the Archipelago as this would cause the multiplier effect and encourage structural economic and social growth. Moreover, the availability of high-quality infrastructure would also attract more private investment.

The key to unlock significantly accelerating economic growth is a recovery in household consumption (household consumption accounts for slightly over half of Indonesia’s GDP). According to a Bank Indonesia official it is particularly the lower middle class segment that is reluctant to spend their money.

Source: Indonesia Investments

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How to saving cash ahead of Eid al-Fitr

Ramadan awash with deals, but you still need to do your homework before whipping out your wallet

Over the course of the holy month of Ramadan, we’ve been working hard to educate consumers on the best deals that have come up throughout the month. From cars and banking products to two-for-one deals and shopping sales, the holy month is awash with opportunities to save money on big purchases.

And with that in mind, I thought it’d be useful to use this week’s column to consolidate all of that knowledge in a single place, so that you can get the information you need on how to save ahead of Eid. After all, there’s still a week left of Ramadan, and, what’s more, many of the deals described below may still apply after Eid, too. Read on for a top money-saving tips during Ramadan.

Ramadan Shopping in Indonesia

Cars

We’ll start with the obvious one. Ramadan can be the best month in which to buy a car. And this year, with new car sales relatively sluggish, dealers have gone all-out to get prospective buyers in showrooms. Pick any car from any brand, and you can be sure there’s a deal on for it. Or if you’re open to any car, as long as you get a good deal, my advice would be to look out for offers where the dealer fronts up part or all of the down payment (with no strings attached), or for deals that offer zero per cent finance on new cars.

Insurance

Once you’ve got your new wheels, you’ll naturally need them insured. Happily, there are good deals going for insurance this month too. Have a look for deals from specific insurers – and even comparison websites – some of which may be offering additional coverage for the same price throughout the holy month.

Houses

If you’re looking to buy property, we’ve been told by real estate experts that now is a great time to do so. With a raft of new builds near completion, there’s now a lot of supply, meaning prices are looking good from the consumer’s point of view. And in Ramadan, developers have offered a whole load of incentives to sign on the dotted line, with offers ranging from helpful finance packages to a free car with every purchase. Do note that you won’t be able to buy a property between now and Eid (purchasing property is a time-intensive and painstaking process), but you should still be able to get the ball rolling under the terms set out in these Ramadan offers.

Banking products

Banks have really ramped up their Ramadan promotions this year, with several offering great incentives for signing up to one product or another. Credit cards are big news this year; the best offers come from air miles credit cards, many of which will give you thousands of bonus miles for signing up during the month. Otherwise, simply shop around for a regular card that meets your needs, and you may find a little bonus is on the cards simply for having applied at the right time.

Shopping

You may actually want to wait until Eid for this one (several malls have huge sales planned for the long Eid weekend), but you’re sure to find plenty of shopping deals if you head to a mall during the rest of Ramadan. Again, the big purchases seem to offer the best deals; all of the main furniture stores have items on sale, meaning that, if you’re looking to replace that ageing couch, now could be the best time to do it.

 

 

This article is originally posted and written by Jon Richards.

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A checklist for brands to do during Ramadan

Ramadan is a significant month for brands to communicate to their target audience, in a way which would not be hard selling but where they give back to the community. On social media, we see several campaigns which revolve around the Month.

In order to do this, brands need to understand and respect the culture of the region. On social media, timing the posting of content is crucial to capture attention. Especially for food brands, marketers should be sensitive to the fact that people are fasting and schedule their social media content accordingly.

Here are a few tips on how brands to market themselves during Ramadan:

Bloggers

Invite food and lifestyle bloggers for Iftar tasting sessions, so they can blog about the best places to have Iftar and Suhoor during this month. With several F&B concepts having a customised menu for Ramadan, it’s crucial to make your brand stand out.

Social media ads

People need to be made aware of offers during the month and the best way to catch their attention would be through targeted social media ads using geo-location and demographics.

Video Content

Create customised video content to show the USP of your brand and what they have to offer during this month. Ensure the content does not engage in hard selling and you are giving back to the community.

Corporate social responsibility

Ramadan is when you bring people together. Brands must respect that and contribute to the community, and especially the needy.

Retail outlets

Showcase their latest collection during Ramadan to utilise the upturn in buying. Use features like Facebook Live to showcase what you have to offer.

Make the most of togetherness in real time

Encourage your audience to bring their friends and family together, be it for a family gathering or an Iftar. Brands organise a lot of meeting ups during the month.

Deploy omnichannel marketing

Ensure you connect with your audience on several platforms with a combination of online and offline!

Night markets,

are a huge trend. Brands should look out to participate in these.

Prayers in a mosque by kyrsos on flickr.

Prayers in a mosque by kyrsos on flickr.

During Ramadhan spending usually surpasses cash payment ability. People start to think about using credit card services. A survey from showed a 60 percent increase in credit card payments during the season and a 20 percent increase in credit card promotion, as told by Google Indonesia e-commerce head Henky Prihatna.

The newest data from Google on consumer behavior during Ramadhan shows that data searches on topics related to the biggest celebration in the country increased up to 28 percent and spending increased up to 30 percent. Sales fashion was the largest product category with a sales increase of 180 percent, followed by home appliances with 100 percent and cellular phones with 80 percent.

The travel industry often makes the most of this month. The latest Google data based on analysis of travel behaviour last year shows that searching for flights and hotels rises significantly.

 

Source: Jakpost and Gulfnews

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Government issues regulation to end bank secrecy

The Indonesian government on Tuesday issued a regulation in lieu of law (Perppu) to end bank secrecy in the country, with officials of tax offices allowed to directly access bank accounts owned by both Indonesian citizens and foreigners.

 

Perppu No. 1/2017 on financial information access for taxation purposes was signed by President Joko “Jokowi” Widodo on May 8.

Coordinating Economic Minister Darmin Nasution confirmed that the Perppu applied to customers of both Indonesian banks and foreign banks.

“We used to have a regulation only for accessing foreign bank customers. But now the regulation is for customers of both foreign and Indonesian banks,” Darmin said as reported by kontan.co.id on Wednesday, adding that the Perppu annulled all regulations ensuring bank secrecy.

Under the Perppu, the Directorate General of Taxation is allowed to access bank accounts without having to secure permits from the Finance Minister or Bank Indonesia governor. Before the Perppu was released, the Directorate General of Taxation was required to get a permit from both institutions before accessing a bank account.

 

Source: The Jakarta Post

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Cara Cerdas Mengelola dan Menyimpan Uang

 

Meskipun Anda terhitung millenials ataupun tidak, baik masih merintis ataupun sudah sukses, sebelum Anda mulai membuat uang dari bisnis, penting untuk Anda mencari tahu bagaimana cara mengelola keuangan seperti: menerima pembayaran, menerapkan syarat & ketentuan pembayaran tersebut, dan mengelola keuangan Anda yang tepat.

Ilustrasi: My Domaine

Untuk itu dengan artikel ini, terdapat beberapa hal yang akan membantu:

  1. Mendapatkan bayaran

Mendapatkan bayaran dapat menjadi rumit karena Anda harus mengelola operasional bisnis dan juga menjaga arus uang Anda dengan lancar. Pemahaman atas cara mengelola keuangan  yang tepat waktu harus menjadi prioritas, bahkan jika Anda memilih untuk menyewa seorang akuntan atau pembukuan untuk mengelola keuangan Bisnis Anda. Anda masih perlu untuk membiasakan diri dengan pembukuan dan pengelolaan uang prinsip-prinsip dasar dan kegiatan seperti memahami kredit, membaca laporan bank dan formulir pajak, dan membuat evaluasi piutang dan hutang.

Anda juga harus memberikan pertimbangan hati-hati dengan pilihan cara pembayaran pelanggan Anda, termasuk uang tunai, cek, kartu debit, kartu kredit dan pilihan pembayaran online, serta membangun syarat pembayaran dan penagihan utang jika terjadi gagal bayar.

  1. Membuka Rekening Bank

Setelah memilih nama dan mendaftarkan bisnis Anda, Anda akan perlu untuk membuka rekening bank komersial sebagai salah satu dasar cara mengelola keuangan. Menyiapkan rekening bank bisnis mudah. Mulailah dengan memilih bank yang Anda memberikan Anda kemudahan dalam berbisnis. Pada umumnya pada saat , Anda membutuhkan identifikasi pribadi serta identifikasi bisnis Anda kertas pendaftaran dan izin usaha, karena ini biasanya diperlukan untuk membuka rekening bank komersial. Langkah berikutnya adalah untuk deposit dana ke rekening baru Anda.

Jika Anda memiliki kredibilitas yang bagus di mata bank, Anda juga perlu meminta bank untuk melampirkan jalur kredit ke akun Anda, yang dapat sangat berguna ketika melakukan pembelian untuk bisnis atau selama periode penjualan melambat untuk menutupi biaya overhead hingga bisnis Anda naik kembali. Juga pastikan untuk bertanya tentang rekening kartu kredit merchant, rekening debit, dan layanan bisnis kecil lainnya.

  1. Pembukuan

Dasar berikutnya dalam cara mengelola keuangan ialah ketika tiba saatnya untuk menyiapkan buku keuangan Anda, Anda memiliki dua pilihan – melakukannya sendiri atau menyewa seorang akuntan atau admin bagian pembukuan. Anda mungkin ingin melakukan keduanya dengan menjaga buku-buku Anda sendiri dan menyewa seorang akuntan untuk menyusun laporan keuangan akhir tahun dan formulir pajak. Jika Anda memilih untuk menyimpan buku-buku Anda sendiri, pastikan Anda mengerti tentang prinsip-prinsip dasar akuntansi karena bila tidak maka investasi dalam perangkat lunak akuntansi seperti Zahir atau Accurate akan menjadi hal yang tidak terpakai. Namun bila Anda memiliki pemahaman yang cukup atas akuntansi maka program software akuntansi memberikan kemudahan untuk Anda seperti membuat faktur, melacak saldo rekening bank dan informasi merchant account, dan melacak hutang dan piutang.

Ilustrasi: Investopedia

Jika Anda tidak yakin tentang kemampuan pembukuan Anda bahkan dengan bantuan perangkat lunak akuntansi, Anda mungkin ingin menyewa akuntan untuk melakukan buku Anda secara bulanan dan akuntan untuk mengaudit buku-buku triwulanan dan menyiapkan laporan bisnis akhir tahun dan pajak kembali. Untuk menemukan seorang akuntan atau pembukuan Anda dapat menghubungi FMB Consultant.

Demikian artikel “Cara Cerdas Mengelola dan Menyimpan Uang” bagian pertama. Follow our blog and LinkedIn for more updates!

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5 Tips for Expanding Business to Indonesia

Indonesia is Southeast Asia’s largest economy with a GDP of $888 billion (based on ppp), ranking 10th in the world and averaging over 5% growth over the last decade. In the last 18 months, growth has slowed to below 5% and is projected by the World Bank to be 4.7% for 2015. President Joko Widodo (known as “Jokowi”) took office in October 2014 and has pledged to improve infrastructure and reduce barriers to doing business in Indonesia as a means to increase the country’s GDP growth rate to 7% by 2017.

Over the past decade Indonesia has enjoyed steady economic growth, though less than needed to pull the country into upper middle-income status, and the rate of growth is slowing.  Sound macroeconomic policies, combined with growing domestic demand and high commodity prices, propelled economic expansion in recent years, but protectionist policies, corruption at all levels of government, poor infrastructure, weak rule of law, and labor rigidity have taken their toll.

The business environment in Indonesia can be challenging, with Indonesia ranked 114 out of 189 countries in the Ease of Doing Business 2015 report by the World Bank. U.S firms can encounter complex bureaucratic and regulatory requirements which make it time-consuming to enter the market.

On that note, here are five tips for Foreign SMEs looking to expand to Indonesia.

“Please come and invest in Indonesia, if you have any problem, call me”. – President Joko Widodo on World Economic Forum 2015. Source: AP Images

 

1. Have a local contact who knows your industry

The successful overseas businesses that have entered Indonesia in recent years have generally recruited local entrepreneurs to tap into their experience in the Indonesian market.

The Indonesian market can be very confusing for a lot of foreign investors when they first arrived. Although improving, significant rule-of-law issues persist. It can be conflicting like Indonesia has begun to implement local content requirements that prevent some foreign products from being sold in Indonesia.

What’s best for any company is to either have a local contact with good experience in their industry in Indonesia, or to partner up with a local company who already has the business connections or management skills. It will really helped in order to find new clients and navigate the unique challenges of the local market.

2. Don’t take the large population for granted

One of the biggest dangers for overseas businesses looking to invest in Indonesia is being overly optimistic about how successful they’ll be because of the large population.

250 million Indonesians sounds big, but a lot of people don’t realize that it’s a very fragmented market because of geography. Most of the population is concentrated on the island of Java, but there are also big population centers in Sumatra and Sulawesi.

Local market dynamics also present obstacles to foreign investors taking advantage of the large consumer base. Domestic firms have a pretty strong influence right across Indonesia, and the government still looks to protect Indonesian small businesses from foreign competition.

In one of these measures, the minimum total investment before SMEs can do business in Indonesia is IDR 10,000,000,000 (ten billion Rupiah). 25% of total investment, i.e. IDR 2,500,000,000, shall be injected as equity and the remaining balance may be injected as shareholder loan.

While attracting foreign investment is a priority, SMEs currently planning to expand to Indonesia will need to be savvy with the investment they make.

3. Navigating geography

Part of this savviness is in deciding where to set up shop. Most of foreign SMEs have chosen to manage their Indonesian operations in Jakarta because, it’s where the big money is.

But this presents challenges for businesses whose product or services need space, such as agriculture. Navigating geography is a key skill of entrepreneurs with this type of business.

Being close to the decision-makers and clients is important, and most of them are in Jakarta, but sometimes those decision-makers are influenced by people on the ground.

Logistics can also be a problem because Indonesian infrastructure and service networks have not been developed the best at this point. Thus it is really important to know where your market is, consider travel costs and distribution channels to make sure your costs don’t blow out.

4. Build good relationships with your overseas staff

A key point to come out is how Indonesians value foreigners insights. Take the goodwill of Indonesian people at face value. Some of the companies that already in Indonesia have strong cross-cultural training programs in Indonesia and overseas, said that Indonesian staff appreciated working for foreign companies.

5. Be aware, but not put off, by politics

While diplomatic problems may occur  or defined some countries’ recent relationship with Indonesia, the small businesses exporting to Indonesia has remained consistent.

There’s no reason why this shouldn’t also be the case for businesses who establish a physical presence here. SMEs would be aware of those political factors definitely, but the business activity doesn’t really drop off. There’s a lot of exporters doing really well in Indonesia, and some of the companies have their rates of return are high compared to China and India.

 

How We Can Help

Established in 2010, FMB Consultant is a management consultancy that provides you, multidimensional services at most on financial, management, and branding. FMB Consultant works with a high-knowledge team leading in tax administration, legal company (PT PMA) establishment, business plan, financial planning and regular book-keeping. FMB Consultant has handled majority clients from national, multinational, to international companies cross-industries.

Media contact:

Ivan Liyanto, Managing Partner, ivan@fmbconsultant.com  +62 899-6777-879

 

 

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