Indonesia

Uber and Lyft create Asian valuation conundrum

30 May 2019

U.S. ride-hailing exuberance faded into lacklustre market debuts. At the same time, Singapore’s $14 bln Grab, for example, recently raised capital privately at 7 times expected revenue, compared to Uber’s 5 times. Fast-growing payment units can only justify some of the gap.

Ditching Jakarta is worth the risk for Indonesia

3 May 2019

President Joko Widodo approved a $30 bln plan to uproot civil servants from the capital. Congestion is crippling and wealth too concentrated in a sinking city. A bold, wholesale move a la Brasilia or Canberra may be too costly, but dispersing government agencies would be a start.

Viewsroom: Will millennials kill Silicon Valley?

25 April 2019

Young, tech-savvy adults say everything from high prices to climate change may prompt them to leave the San Francisco area. Other U.S. cities can benefit. Also: Why CEO Jack Dorsey should favor Square over Twitter. And what to expect from Indonesian President Widodo’s second term.

Indonesian election may change some investor votes

18 April 2019

Polls suggest Joko Widodo won another term, but with a narrow enough victory margin to embolden a belligerent opposition. There were pockets of populist success, too. That will temper hopes he’ll finally tackle energy subsidies and even rigid labour rules to woo foreign money.

Indonesia’s Jokowi can make a final term count

8 April 2019

The president is on track to win re-election. His first five years had successes in infrastructure, and reduced rural poverty. With a stronger hand, he can tackle pricklier issues hindering private investment and job creation. That will help a sluggish economy, and his legacy.

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.