Indonesian ride-hailing unicorn races to relevance 18 Jan 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 Nov 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 Nov 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 Nov 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.
MUFG banks on an easy ride in Indonesia 13 Nov 2017 Buying some or all of Temasek’s $2.8 bln stake in lender Danamon would round out the Japanese giant’s regional banking footprint. The big question is whether Jakarta will allow a path to control. On that front, MUFG is better placed than the last foreign suitor.
Asian energy deal defies green resistance 26 Oct 2017 The $5 bln sale of Equis solar and wind projects in Australia, Japan and beyond to a global fund group sets a new benchmark. As clean projects expand, they'll attract oil titans, too. Donald Trump and Malcolm Turnbull may discount renewables, but investors are inflating them.
Sea IPO lures investors angling for next big thing 20 Oct 2017 The Singaporean startup raised nearly $900 mln in a pricier-than-expected U.S. listing. That suggests investors looked past growing losses for fear of missing out on what could become Southeast Asia’s answer to Tencent or Alibaba. Those comparisons are a stretch.
Indonesia’s slowdown belies Jakarta’s reform spin 18 Oct 2017 Eight interest-rate cuts by Indonesia’s central bank since January 2016 are getting little traction with investors or consumers. As growth slows, the urgency is rising for President Joko Widodo to accelerate infrastructure projects, attack corruption and create well paid jobs.
Alibaba readies for showdown in Southeast Asia 29 Jun 2017 The Chinese giant spent another $1 bln to tighten its grip on regional arm Lazada. The extra control could be useful as Alibaba confronts local upstarts, domestic peer JD, and possibly Amazon in the future. All will face formidable challenges, from logistics to payments.
Indonesian tax amnesty odd help for private banks 10 Apr 2017 A tax amnesty that saw citizens declare $365 bln in assets has been a blessing in disguise for top private banks. The ultimate outflows to Indonesia were a fraction of the headline amount. More importantly, the scheme gave lenders the excuse to do some overdue spring-cleaning.
Saudi Arabia’s Asian pivot looks defensive 3 Mar 2017 A rare royal visit to the region shows the oil-rich kingdom’s vulnerability. Declining U.S. demand and competition from Iran and Iraq make Eastern customers more important. Saudi can offer something rivals can’t - splashy investments and the IPO of its state oil producer, Aramco.
Banks whiplashed by Asia’s distrust of hot money 9 Jan 2017 Indonesia plans new rules to ensure research is "factual", after a downgrade led it to cut ties with JPMorgan. Malaysia is clamping down on currency trading. The moves only highlight Southeast Asia’s vulnerability to capital flight rather than the region's impressive growth.
Indonesia cashes in on model tax amnesty 28 Sep 2016 Citizens have admitted hiding almost $200 bln in what is shaping up to be one of the world's more effective schemes. Success stems from low charges, credible government, and big penalties for abstainers. The global backdrop makes it a good time for other countries to strike.
StanChart picks bad time to test U.S. patience 27 Sep 2016 The emerging markets bank has referred charges of wrongdoing at one of its private equity portfolio companies to authorities. After facing the rap for sanctions abuses in 2012, StanChart is on probation in the U.S. It's a risky situation in such a politically charged atmosphere.
Indonesia’s e-commerce riches will be elusive 22 Sep 2016 Capital is pouring into Southeast Asia's most promising e-commerce market. Alibaba's $1 bln stake in Lazada gives it a head start. But competition is fierce. Issues like logistics and payments will make it costly to replicate the dominance the Chinese group enjoys at home.
Asia puts the comedy into equity capital markets 14 Sep 2016 An Indian bank recently botched a $1 bln capital raise. China is forcing an $8 bln bank listing down the market's throat. And a $70 mln firm in Jakarta thinks it can somehow raise $2.3 bln. The region badly needs more equity funding but the process can be rough around the edges.
Asian amnesties point to wealth of tax worries 1 Jul 2016 Authorities in India and Indonesia are doubling down on efforts to persuade citizens to declare their assets. The schemes in both countries are very different but could provide a welcome boost to tax revenues. New global rules could also help governments reap a big windfall.
Alibaba’s $1 bln Southeast Asia buy tests limits 12 Apr 2016 The Chinese e-commerce giant is taking control of upstart Lazada in its largest overseas deal to date. Countries like Indonesia and Malaysia offer new growth. But widening losses and fierce competition mean expansion is not cheap. It also dilutes Alibaba’s asset-light model.
Pooling data is best weapon for Uber’s rivals 12 Apr 2016 Car-hailing services in the United States and Asia are linking apps. The financial benefits from allowing customers to roam overseas are likely to be small. But sharing data and tech insights could help the quartet fight back harder against Uber in their respective home markets.
Philip Morris can cut down easily in Jakarta 31 Jul 2015 The tobacco giant must lift the free float of its Indonesian unit. The potential $1.5 billion sell-down comes as an economic slowdown hits cigarette sales. Luckily for the Marlboro man, investors can hardly ignore a share sale by the country’s largest listed group.