Indonesia GDP Growth at Slowest in Over Two Years on Exports

Indonesia’s economy grew at the slowest pace in more than two years last quarter as slower exports and government spending countered gains in consumption and investment.
Gross domestic product increased 6.02 percent in the first three months of 2013 from a year earlier, the Central Bureau of Statistics said in Jakarta today. That compares with a 6.11 percent pace reported previously for the fourth quarter of 2012 and the median estimate of 6.1 percent in a Bloomberg News survey of 26 economists.

Latest Business Opportunities Update May 2013

(1) Airport since 2002 for Sale
Asking Price: 100 million USD

Description: Airport for sale is for 100million USD for 80% stake of the airport. Must also do modernisation for the airport.

(2) Listed Company for Sale at USD$8million
Asking Price USD$8m for 70% stake

Description: This company is listed on Catalist. Must do general offer and restructuring after taking over can be advised. Reason for Sale: Owners are retiring.

(3) Boutique Resort Hotel for rent : RMB1,340,000/each year (Approx. US$243,633/each year) or Takeover : US$6.8 million.
*Location: China Wuxi YiXing
*5-10 year contract-negotiable-with or without present staff.
*19 nos. twin-sharing rooms.
*Full kitchen facilities-for 100-200 pax.
*6 nos. dining rooms (each room sits 20 pax)
*Outdoor dining (tentage) can accomodate 300-500pax
*Bamboo forest surroundings/6 nos. BBQ pits/ Campfire/ Fishing ponds/
Mountain climbing / Outdoor camp style living.
*Ideal for events-organising companies/ corporate training centres / etc…
(ID: 13050701)

(4) QingPu (Shanghai) – Nurses International Academy Seeking A Medical Operator and Developer to take over existing facilities
* Ground Plan 99750sqm;
* Main Admin Building;
* Annex Building – Gym and Training Center;
* Basket Ball Courts – Canteen/Staff Hostel;
* Training Complex;
* Education Centre and Students’ Salon;
* Apartment, Library and Beauty Shop;
* Supermarket and Clinic;
* Investment Methodology: Suitable for Nurse Training, Training Centers, Convalescent Home and Medical Tourism; (ID 13050701)

(5) Property name: 555 Fuzhou Road
(Yi Wen Building)Shanghai/China

Brief :
1. Price : Property Valuation : US$50million.
Any offer above US$50million..secures.
2. Lease : 44years from 2012
3. Can upgrade from Motel to a 4-star HOTEL or Offices
Total of 9 floors (including a mezzanine), approximately 7000 square meters, medium size, suitable for investment in Shanghai Grade ‘A’-Lot Star property.Shanghai-European center -Truly English Victorian style architecture. Motel class-200+rooms.
Can use two floors for restaurant. (ID13050701)

(6) QingPu (Shanghai) Retirement Home for Joint Venture

* Main Building:
** 4 Storey with 300 bed-space
** Build up area 12,800 sqm;
** All utilities ready: Electrical, Water, Gas, Telecoms and Broadband;
** Big Car Park Space;

* Annex Building for Admin Office/Canteen/Staff Hostel;

* Surrounding Environment 400mu (1mu = 665sqm) for further expansion (not included in this context);
* For Family Members;
* Scenic and Tranquil with lakes and roadways; (ID13050701)

(7) Australia Melbourne 1000 acres dairy farm business

Asking Price: $3.8million Aussie, negotiable
Sales Revenue: $100k/month
Cash Flow: Undeclared

销售收入是$ 100k/month;

Description: 2hrs from airport, 1000 acres dairy farm biz, with 300 cattles, machineries, 3 large farm houses,
crops, milking stations, 2 workers wages @10$/month, excellent ground water value at 1.5m$,
income about 30k per month, gross turnover about $100k/month, excellent investment business.

每月收入约30,000美元的总营业额的$ 100k/month,优良的投资业务。

(8) Singapore Commercial Air Con Servicing Business For Sale
Asking Price: SGD$1.9million,
Sales Revenue: Available upon request
Cash flow: Available upon request

Description: Established more than 10 years, strong revenue growth company, provide high quality air con maintenance and repair service to commercial clients in Singapore

Australia 1000 acres dairy farm business opportunity

Melbourne 2hrs from airport
1000 acres dairy farm biz,
With 300 cattles, machineries, 3 large farm houses, crops, milking stations, 2 workers wages @10$/month, excellent ground water value at 1.5m$, income about 30k per month, Gross turnover about $100k/month, asking 3.8m$ aussie negotiable, excellent investment business.

For more information, please contact us by sending e-mail to

New Business Opportunities

Opportunities available for you to
(1) Take over Western Restaurant in Singapore
(2) Take over Photography Studio in Singapore
(3) Take over Ladies Footwear Business in Singapore
(4) Indo Food Shop @ Orchard Road Area for takeover

For more information, please send request to

If the business you wish to take over is not listed above, please inform us for assisting you in monitoring.

Palm Oil Exports From Indonesia Climb to Highest in Five Years

Palm oil exports from Indonesia, the world’s largest producer, jumped to the highest level in at least five years in February after China and Pakistan boosted purchases to benefit from a slump in prices.

Shipments, including palm and kernel oils, gained 9.1 percent to 2.04 million metric tons from 1.87 million tons in January, according to data from the Indonesian Palm Oil Association e-mailed on Thursday. That’s the most in a month at least since 2008, according to the earliest available data from the association compiled by Bloomberg, and it beat the median estimate in a Bloomberg survey of 1.51 million tons.

Rising exports may help trim Indonesian stockpiles and halt a 34 percent decline in prices in Kuala Lumpur in the past year. Indonesia’s inventories of the tropical oil used in everything from noodles to biofuels dropped 14 percent to 3 million tons in February from a month earlier, according to a Bloomberg survey published on February 14.

“It seems that exporters were able to adapt to the new imports rule in China that had caused some concern in January,” said Fadhil Hasan, executive director at the growers’ group, known as Gapki. Demand for Lunar new year festival in February also boosted shipments, he said.

China imposed more stringent rules on edible oil imports to improve food-safety standards with effect from January 1 and Indonesia’s exports to the Asian country fell 15 percent in January. Shipments jumped 108 percent to 370,110 tons in February and sales to Pakistan surged 80 percent to 149,850 tons, Gapki data showed. Exports to India, the world’s largest buyer, fell 13 percent to 699,770 tons and sales to European Union dropped 22 percent to 305,120 tons, the data showed.

Futures in Kuala Lumpur, the global benchmark, fell 6.3 percent in February, the most since September. The contract for delivery in June fell as much as 1.5 percent to 2,360 ringgit ($767) a ton on the Malaysia Derivatives Exchange on Thursday.

Palm oil and its by-products accounted for 93 percent of Indonesia’s total February shipments, or 1.9 million tons, and the remainder was palm kernel oils, the data showed. Exports in the first two months of the year rose 29 percent to 3.9 million tons from a year earlier, Gapki data showed.


Indonesia Tops Asean 3 with Best Q4 Earnings Beat

Morgan Stanley Research maintained its country preference for Indonesia over Thailand and Singapore saying Indonesian companies have had the best earnings performance for the October-December quarter on strong growth in financials.

Thirteen out of 24 Indonesian companies in the Morgan Stanley MSCI list beat consensus expectations, the broker said in its Asean Equity Strategy report, dated April 3.

Financials beat consensus expectations by 17 percent, led by Bank Rakyat Indonesia Persero, it said. In comparison, MSCI Singapore companies beat consensus expectations by 3.6 percent while MSCI Thailand companies missed the expectations by 7.7 percent, the report said.

Indonesia has been the only ASEAN 3 country to have seen positive upward revisions in forecast 2013 earnings per share by 60 basis points over the last four weeks, it said.

Consensus has revised down forecast 2013 earnings per share for MSCI Singapore companies by 60 basis points in the last four weeks and for MSCI Thai companies by 30 basis points in the same period, the report said.

“We reiterate our country preference of Indonesia … We would use any macro headwind-driven correction, particularly in the Indo market, as another interesting entry opportunity,” the broker said.

MSCI’s index of Indonesia has risen 14.1 percent so far this year, outperforming a 4.5 percent gain of MSCI’s index of Singapore and a 2 percent gain of MSCI’s index of Thailand.

Source: reuters

Indonesian inflation accelerates to 5.90% in March

Indonesian inflation accelerated to 5.90 percent year-on-year in March, surpassing the upper limit of the central bank’s target range due to an increase in food prices, official data showed Monday.

The rise in the consumer price index was well above the bank’s target range of 3.5 to 5.5 percent for this year, and quicker than the 5.31 percent recorded in February.

The statistics office said the increase was driven by surging food prices after the government introduced measures several months ago to limit imports of some products.

The price of shallots, widely used in Indonesian cooking, jumped 82.3 percent in March from the previous month, while there were also sharp rises for garlic and chilli, said statistics office chief Suryamin, who goes by one name.

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Indonesia’s middle-income group to grow to 140m by 2020

JAKARTA: In less than a decade from now, more than half of Indonesia’s population of 240 million would be categorized as middle-class and affluent consumers (MACs), and they would bring an unprecedented wave of spending.

The Boston Consulting Group predicts in 2020, Southeast Asia’s largest economy would have some 140 million MACs – more than the entire population of the Philippines.

Today, there are already 70 million described as middle-class.

Management-consulting firm Boston Consulting Group categorizes MACs as those with a monthly household expenditure of between 200 and 750 US dollars – not by the usual measure of average annual income.

Strong economic growth brought about by the stable political climate and robust domestic spending have enabled millions in the lower-income group to move up the socio-economic ladder.

The nine-month study across Indonesia also revealed that the future middle-class would be more dispersed – beyond the big cities in mainland Java.

Vaishali Rastogi, partner and managing director at the Boston Consulting Group, said: “It’s a dramatic change that is happening. In 2012 you had to take 25 locations and you’ve pretty much covered 50 per cent of the middle-income group. In 2020, to even cover 50 per cent of the middle-income group, you need as many as 54 locations. And in fact if you want to cover 70-75 per cent of the middle-income group you need as much as, or nearly 140 locations.”

This means the capital Jakarta will not be the only place to look at for business opportunities. Other cities – from Java to Sumatra; Kalimantan to Sulawesi and even smaller regencies would experience an exponential growth in the rise of the middle income.

In fact, projections are that there would be more MACs in mainland Java than the entire population of Thailand, and Sumatra will have more MACs that the population of Singapore and Malaysia combined.

Full article is at

Indonesia is top SEA destination for foreign investment

SINGAPORE : Indonesia is the most popular destination for foreign investment in Southeast Asia, attracting a record level of foreign direct investment (FDI) of US$22.8 billion in 2012.

The country’s FDI for the last quarter of 2012 rose 22.9 percent from a year earlier, according to data from the Indonesia’s Investment Coordinating Board.

The Lee Kuan Yew School of Public Policy says Indonesia, now the 16th largest economy, is on track to become the world’s 7th largest economy by 2030 as more foreign investors turn their eyes to Indonesia.

The country’s Investment Coordinating Board is expecting foreign direct investment to increase by 23 percent this year after growing 26.7 percent in 2012.

Experts say investors in China are showing keen interest in resource-rich indonesia’s mining industry and consumer sectors.

The presence of a yuan-clearing bank in Singapore will also help to facilitate Chinese investments in Indonesia.

Tan Khee Giap, Co-director, Asia Competitiveness Institute, Lee Kuan Yew School of Public Policy, says: “Indonesia will be a rising middle power and, according to our studies, among ASEAN 10, the growth of Indonesia has the biggest spinoff to the Singapore economy because not only they are close to us, they will use our infrastructure – the seaport and the airport and also the spillover economic activities.”

Japanese manufacturers are also expected to move part of their manufacturing operations to Indonesia following Japan’s recent row with China over disputed islands.

Luky Eko Wuryanto, Indonesian Deputy Minister for Infrastructures & Regional Development, says: “Manufacturing factories have to be built also in our country so along that lines, in total, we probably privatise around 10 to 15 sectors, according to our analysis.”

Indonesia’s 140 state-controlled firms account for nearly a fifth of the country’s gross domestic product last year.

Their revenues are estimated to have hit US$155 billion last year.

In particular, Jakarta has said it is open to liberalising its airline and banking sectors with deals like DBS’s proposed acquisition of Bank Danamon pending approval from its central bank.

Luky Eko Wuryanto says: “Indonesia is also one of the fastest growing markets for airline passengers right now – more than 19 percent per year, we have been opening the airline industry.”

Minister Wuryanto adds that Indonesia is keen to upgrade its sea ports and improve connectivity from the western part of Indonesia to other ASEAN countries like Singapore, Malaysia and Thailand.

Singapore remained the largest source of Indonesia’s FDI in 2012, followed by Japan, South Korea and the US.

Full article at