Indonesia

Indonesia’s Go-Jek can hitch ride on Meituan IPO

17 September 2018

The smartphone-based taxi service is raising about $2 bln. New cash will help Nadiem Makarim’s unicorn expand in the region and even into online shopping. A successful market debut by its Chinese backer Meituan Dianping also should fuel Go-Jek’s quest to be a multi-purpose app.

Indonesia can best defend rupiah by staying calm

6 September 2018

An emerging markets rout has pushed the rupiah to its weakest since the 1998 Asian crisis. Policymakers, who have until now been laudably proactive, appear rattled. But threats against speculators are less helpful than higher interest rates and reforms that encourage investment.

Consumer giants have bigger problems than Turkey

28 August 2018

Unilever and Nestlé can resist a crisis in Turkey, which accounts for little of their revenue. But both will suffer if troubles spread across emerging markets, which account for about half of group sales. All the more so since Western shoppers are unlikely to take up the slack.

Indonesian fight to help rupiah carries risks

15 August 2018

The central bank has raised rates to limit the damage to its currency from a Turkey-triggered drop in emerging markets. Meanwhile, the government is slapping tariffs on some imports. Monetary fixes are rarely enough but Jakarta’s solutions may jeopardise welcome economic reforms.

Indonesia’s pre-emptive strike sends right signal

30 May 2018

Southeast Asia's largest economy has raised rates for the second time in two weeks. It sends a clear message that the new central bank governor Perry Warjiyo will put a steady currency first. Much of the 25-basis-point hike has been priced in, but timing and tone should reassure.

Startups bump up against myth of Southeast Asia

25 May 2018

Indonesia’s Go-Jek is moving into four nearby markets. For this, the $5 bln ride-hailing firm will spend heavily on separate brands and apps. The problem for it, Alibaba and others is that this region of 660 mln remains more of a political concept than an economic reality.

Rio Tinto can ease out of Indonesian mine mess

23 May 2018

The Anglo-Australian group may be ready to accept $3.5 bln for its interest in Freeport-McMoRan's Grasberg copper operation. The offer is hardly full, but a deal would save on costs and frustration. It also should make it easier for both companies to extract from a tough spot.

Indonesia picks market stability over growth

17 May 2018

Agus Martowardojo is ending his term as central bank governor the same way he began: with a rate hike. The falling rupiah forced him to move earlier than planned. Southeast Asia's largest economy will splutter as a result, but delaying action would have had graver consequences.

The Exchange: Indonesia’s startup boom

11 May 2018

Southeast Asia's largest economy has seen a flurry of homegrown tech successes, led by $5 billion ride-hailing firm Go-Jek. Willson Cuaca of East Ventures and Donald Wihardja of Convergence Ventures explain why, and how, Jakarta can keep the hits coming.

Emerging markets split into haves and have-nots

8 May 2018

A stronger dollar and higher U.S. bond yields have hit Argentina, Indonesia and Turkey especially hard. But others like the Philippines are in sounder economic shape. Buoyant oil prices create winners as well as losers. For investors, discrimination is the better part of valour.

Asia’s hunger for cheap energy will sustain coal

4 May 2018

The era of steam coal is not over yet. Banks don’t want to finance it, big miners are dropping it, and China is migrating to cleaner natural gas. But the shift to green fuels is slow, and regional demand for electricity is outpacing it. That will keep prices lofty.

Jakarta is in a bind over interest rates

27 April 2018

Indonesian stocks are sliding alongside the rupiah, as higher U.S. yields prompt investors to sell out. But growth is tepid in Southeast Asia’s largest economy and an election looms. So the central bank is unlikely to follow through on talk of a hike, unless conditions worsen.

Indonesia’s green ploy for copper raises red flag

25 April 2018

New environmental rules complicate and delay already tricky negotiations over control of Freeport-McMoRan's Grasberg mine. Cleaning up is a good thing, but the timing smacks of strong-arm tactics. It's a cautionary tale to foreign investors about an economy with so much appeal.

Coal clearout puts Rio on path to greener deals

28 March 2018

The Anglo-Australian miner has raised $4.2 bln this month getting out of coal. That implies more buybacks and fewer environmental concerns, helping lift Rio Tinto’s modest valuation. It can also focus on future growth, including investments in battery ingredients like lithium.

Uber races towards IPO with Southeast Asian deal

26 March 2018

The U.S. ride-hailing giant is exiting another cut-throat market. It will hand its regional business to Grab, a $6 bln local rival, and take 27.5 pct of the enlarged group. This is a sensible step to prepare Uber for public life – provided Grab can hold onto its leading position.

Indonesia lays bare green-bond growing pains

27 February 2018

The country's $1.25 billion fundraising is hard to square with its palm-oil and coal exports. Issuers with the least eco-conscious credentials, though, are also important to lure onto the bandwagon with financial incentives. It's the various shades of green that are awkward.

Indonesian ride-hailing unicorn races to relevance

18 January 2018

Go-Jek is bringing in new backers including Alphabet and Temasek, sources say, as it expands its platform model across Southeast Asia. To ward off local rivals and be a serious contender in a cutthroat business, the now $4 bln startup has to grow quickly. Deep pockets help.

Rio Tinto holds valuable card in Jakarta deal

30 November 2017

As Freeport-McMoRan thrashes out terms for handing over a majority stake in the Grasberg copper mine to Indonesia, Rio's production arrangement dating back to 1995 gives it an effective veto. The best way to play this ace up its sleeve would be to negotiate a graceful exit.

Indonesia can close gap with tiger cub neighbours

23 November 2017

Stellar growth in Singapore, Vietnam and elsewhere means Indonesia is the laggard in a booming region. President Joko Widodo could do more to catch up, moving faster to upgrade infrastructure. Reassuring foreign firms by solving an ugly mining dispute would help too.

Freeport-McMoRan may be canary in copper mine

13 November 2017

Fresh violence prompted the company to close the main route to its Papua site. For all the fervour over electric-car demand for the reddish-brown metal, the flare-up is a reminder of looming supply issues. Beyond security concerns are sticky labour contracts across the industry.