Tag: Indonesia

Indonesia – Indonesia’s antitrust agency has reportedly fined Google approximately 202 billion rupiah ($12.4 million) for engaging in unfair business practices concerning its payment system for the Google Play Store.

According to a Reuters report, the agency began investigating Alphabet Inc.’s Google in 2022 over allegations of abusing its dominant position by mandating Indonesian app developers to use Google Play Billing at higher rates than other payment systems, under the threat of removal from the Google Play Store.

The panel disclosed that the agency concluded Google had levied fees of up to 30% through its Google Play Billing system. 

The panel further stated that Google’s practices reduced developers’ earnings by driving away users and concluded that the company violated Indonesia’s anti-monopoly laws. The agency also highlighted that Google holds a commanding 93% market share in the country of 280 million people. 

A Google spokesperson stated that the company intends to appeal the ruling, emphasising its commitment to complying with Indonesian law.

“Our current practices foster a healthy, competitive Indonesian app ecosystem,” the spokesperson said, as quoted by Reuters.

Google previously stated that it had introduced a system allowing developers to offer users an alternative billing option. The company has also faced fines from the European Union for anti-competitive practices involving its price comparison service, Android mobile operating system, and advertising platform.

It is worth noting that Google encountered issues in Indonesia months earlier when sales of its Google Pixel phones were blocked. The company reportedly failed to comply with regulations requiring at least 40% of components in smartphones sold domestically to be locally manufactured.

Indonesia – PT Pertamina Retail (PERTARE) has forged a strategic partnership with PT Multipolar Technology Tbk, the technology and innovation arm of the Lippo Group, through a memorandum of understanding (MoU) aimed at advancing operational management and enhancing business ecosystem development.

This partnership is a key step for PERTARE in transforming its operations and business ecosystem. By adopting technologies from PT Multipolar Technology Tbk, including Starlink, SD-WAN, access points, and managed services, PERTARE aims to boost efficiency, enhance reliability, and improve customer experiences.

PERTARE’s president director, Zibali Hisbul Masih, highlighted the significance of the collaboration in strengthening all aspects of the company’s operations and business ecosystem.

Wahyudi Chandra, president director of PT Multipolar Technology Tbk, also noted that beyond IT and connectivity management, there are many other business opportunities to explore with companies under PT Lippo Karawaci Tbk—the real estate and property development arms of the Lippo Group. 

“We are very grateful for PERTARE’s openness to establishing further collaboration. From our side, we may be able to provide support through the information technology ecosystem. We certainly hope that after this ceremonial MoU signing, this partnership can be immediately implemented,” Chandra commented. 

The MoU was signed by PERTARE’s director of finance & general affairs, Mohammad Fitrawan Nur; PT Multipolar Technology Tbk’s president director, Wahyudi Chandra; and PT Multipolar Technology Tbk’s director, Jip Ivan Sutanto.

The signing ceremony was also witnessed by the boards of directors from PERTARE and Lippo Karawaci Group, including PERTARE’s president director, Zibali Hisbul Masih; commercial & operations director, Fedy Alberto; deputy chief executive officer of PT Lippo Karawaci Tbk, Marlo Budiman; CEO of PT Data Lake Indonesia, Nike P. Kosasih; and president director of PT Zup Loyalti Indonesia, Angkasa Perdana Putra.

PT Pertamina Retail, a subsidiary of PT Pertamina (Persero), manages retail fuel stations across Indonesia, offering gasoline, diesel, lubricants, and convenience store products. With a long-term goal of becoming a world-class national energy retail company, Pertamina Retail is committed to delivering top-notch service and supporting the country’s sustainability under its “Uniting Energy to Serve the Nation” mission.

Indonesia – The Indonesian government, through its communications minister, has revealed plans to introduce a regulation setting a minimum age for social media use, aiming to enhance child protection in the digital space.

According to The Jakarta Post, the Communications and Digital Ministry is drafting a regulation to impose age restrictions on social media use. However, Minister Meutya Hafid has not disclosed the specific age limit being considered for Indonesia. 

The report also highlighted that Minister Meutya’s remarks about the age restriction followed her discussion of the plan with President Prabowo Subianto.

“We discussed how to protect children in digital space. The president said to carry on with this plan. He is very supportive of how this kind of child protection will be done in our digital space,” Meutya said on a video posted on the YouTube channel of the president’s office. 

A key factor considered to be driving the proposed social media age restriction is Indonesia’s internet penetration, which reached 79.5% last year, according to a survey by the Indonesia Internet Service Providers’ Association. The survey revealed that 48% of children under 12 use the internet, with many accessing platforms like Facebook, Instagram, and TikTok, while 87% of Gen Z users (ages 12–27) are online.

The announcement of Indonesia’s proposed social media age limit follows Australia’s recent approval of a regulation banning social media access for children under 16.

Late last year, Australia introduced the ‘Social Media Minimum Age bill,’ requiring platforms such as Meta’s Instagram and Facebook, along with TikTok, to prevent minors from logging in or face fines of up to A$49.5 million ($32 million). The ban is expected to take full effect within a year, Reuters reported.

The Straits Times also reported that Singapore is considering age limits for social media to protect young users. Under the new Code of Practice for Online Safety, app stores are required to block children under 12 from downloading apps like Instagram and TikTok, which are rated for users aged 12 and above.

Indonesia – Cheil Indonesia has announced the appointment of Fajar NF as its new executive creative director, marking a significant move as the agency continues to enhance its creative leadership. 

As the newly appointed ECD, Fajar will spearhead Cheil Indonesia’s creative direction, overseeing the agency’s diverse portfolio while driving its mission to deliver innovative and impactful campaigns. His ability to blend creativity with data-driven insights will play a crucial role in enhancing the agency’s regional standing and ensuring its continued success in the competitive market.

With over 21 years of creative leadership at top-tier agencies across Indonesia, Fajar has crafted award-winning, culturally resonant campaigns for leading global brands. His impressive portfolio boasts prestigious accolades, including a Grand Prix at Citra Pariwara, multiple AdFest awards, and a Yellow Pencil at D&AD.

Before joining Cheil, Fajar served as senior creative director at Innocean Indonesia, where he worked with a diverse range of brands across sectors like technology, smartphones, automotive, banking, and FMCG, delivering campaigns recognised both locally and internationally. He also spent 14 years at Hakuhodo Indonesia, further honing his creative expertise.

Commenting on his appointment, Fajar said, “I am thrilled to join Cheil Indonesia at such an exciting time. This is an incredible opportunity to contribute to the agency’s legacy of creative excellence and develop campaigns that connect brands with audiences in meaningful ways.”

Joo Hwan Kim, president director at Cheil Indonesia, also shared, “Fajar’s appointment comes at a pivotal moment for the agency as we continue to expand and enhance our creative output. His expertise in crafting culturally impactful campaigns and his passion for innovation will be integral to our success as we look to elevate our creative offering and strengthen our position in the market.”

Indonesia – Indonesia-based e-commerce firm Bukalapak has revealed plans to phase out the sale of physical goods on its marketplace, redirecting its focus toward virtual products and digital services.

The company informed its users that they have until February 9, 2025, to place final orders for physical goods before the marketplace shuts down, Reuters reported.

Moving forward, Bukalapak will exclusively focus on offering virtual goods, such as mobile credits and internet packages, as well as services for paying electricity, water, and cable TV bills, among others.

Reuters highlighted that since its listing, Bukalapak has faced intense competition from Shopee and Tokopedia. 

In an official statement, Bukalapak explained that the decision to discontinue physical product sales was driven by market changes and increased competition, prompting an adjustment to its long-term strategy for sustainability and relevance. This plan was disclosed in an information disclosure announcement in October 2024.

“We want to emphasise that this change is a necessary step to focus on business lines with higher growth potential that we have been developing,” the company said. 

Bukalapak assured users that despite the shift in product focus, the Bukalapak Marketplace platform—including its app, website, and Mitra Bukalapak services—will remain fully operational and accessible for existing services.

The company further emphasised its strong financial position, backed by solid cash reserves, and clarified that discontinuing physical product sales on the Bukalapak Marketplace will not significantly impact its revenue.

“Bukalapak is committed to supporting sellers in adapting to this change. We are providing various guides and resources to help sellers ensure a smooth and secure transition…We also value the trust that customers have placed over the years and will ensure that customer rights are upheld until the end of the transition process,” the company stated. 

Indonesia – GoTyme, the digital bank under Tyme Group, has announced its expansion into Indonesia, aiming to empower small businesses with flexible financing solutions and drive growth in the country’s SME ecosystem.

In a LinkedIn post, GoTyme has revealed it has teamed up with Indonesia-based lending infrastructure provider Finfra and its subsidiary danabijak, a peer-to-peer lending platform licensed and regulated by the OJK. This strategic partnership aims to deliver fast, flexible financing solutions tailored to the dynamic cash flow needs of small businesses.

GoTyme Indonesia also teased the upcoming launch of a new product set for release in Q1 of 2025.

“At GoTyme Indonesia, we are passionate about supporting Indonesian small businesses to thrive and grow. We can’t wait to create a community of innovation, collaboration, and excellence in Indonesia,” the brand said on LinkedIn. 

GoTyme’s expansion into Indonesia was announced just before its parent company, Tyme Group, revealed it had achieved unicorn status, following the addition of digital financial service platform Nubank to its shareholder base. With a total of US$250m in funding, Tyme Group now boasts a valuation of US$1.5b and is poised to further expand its presence across Southeast Asia.

Indonesia – Global branded payments provider Blackhawk Network (BHN) has teamed up with Roblox to introduce digital gift cards in Indonesia, making it easier for Roblox fans to connect with loved ones and engage with a global community through immersive virtual experiences.

As part of this partnership, Roblox digital gift cards are now accessible on popular gaming platforms such as Tokopedia, Lapakgaming, Bukalapak, PaysGift, Codashop, Blibli, GOC, and UniPin, available in denominations of 100,000 rupiah, 200,000 rupiah, or 500,000 rupiah.

These gift cards, whether bought online or in-store, offer up to 25% additional Robux, providing even greater value for users. Robux, the platform’s virtual currency, lets users purchase digital items in virtual experiences or the Roblox Marketplace. Gift cards can also be redeemed for Roblox Premium, a subscription service that adds monthly Robux and offers exclusive items and discounts.

BHN and Roblox also plan to introduce physical gift cards by the end of the year, available both in-store and online through various retailers.

Matt Howe, regional head at BHN, said, “Roblox is a leader in its category, bringing together millions of people across the globe to connect, play, and learn in an immersive environment. Our partnership to launch Roblox gift cards in Indonesia will make the game even more accessible to fans and open it up to new players to help build an even bigger community of interactive users.” 

Roblox is accessible on mobile, PC, tablet, and VR devices, allowing players to interact in real time across any compatible platform. With over 88.9 million daily active users, Roblox offers immersive, user-generated experiences that connect people globally to play, learn, and build friendships.

Indonesia – To strengthen its position as a high-quality, mid-to-high-end stationery brand, Bantex has unveiled a comprehensive brand refresh alongside a significant expansion of its product line in Indonesia. 

Launched at a conference in Jakarta, Bantex introduced 31 new categories and over 600 SKUs, marking a major milestone in its brand revitalization. This initiative includes a significant expansion of product offerings, the launch of innovative items, and upgrades to its visual identity, such as refreshed packaging and design, all tailored to meet the needs of both local and global markets.

The expanded product line spans a diverse range of categories, including writing materials, notebooks, office stationery, storage solutions, binding, adhesives, and document management tools. Additionally, it introduces smart devices such as attendance machines, scanners, laminators, shredders, and safes, further solidifying Bantex’s position as a one-stop solution for high-quality stationery and office needs.

During the event, Bantex’s senior leader emphasised the importance of their recent brand refresh and strategic expansion. He noted that these efforts are aimed not only at achieving growth but also at bolstering market confidence and outlook. He further elaborated that the company is committed to innovation and leadership in delivering top-tier stationery solutions.

Meanwhile, a senior leader from RUHONG Group, Bantex’s new shareholder, highlighted the potential of Indonesia’s growing market and reaffirmed the group’s commitment to investing in Bantex. He outlined plans to enhance local manufacturing capabilities and create job opportunities, emphasising that these efforts aim to drive long-term growth and foster a brighter future.

Bantex’s brand launch conference marked a key milestone, showcasing its refreshed image and “Achieving made easy” philosophy. The initiatives highlight Bantex’s commitment to innovation and quality, solidifying its position as a leader in high-end stationery tailored to diverse client needs.

Indonesia – Oversea-Chinese Banking Corp (OCBC) and CIMB are reportedly competing for a controlling stake in Bank Pan Indonesia (Panin Bank), according to three sources familiar with the matter.

According to a Reuters report, two unnamed sources revealed that Singapore-based OCBC and Malaysia’s CIMB have submitted non-binding offers for the stake held by Australian lender ANZ and Indonesia’s Gunawan family, the founders of Jakarta-listed Panin Bank in 1971. 

This development comes after Reuters reported in October that ANZ and the Gunawan family were considering selling their combined controlling stake in the bank, where they hold significant ownership.

The Gunawan family, which currently owns 46.52% of Panin Bank, is reportedly open to reducing its stake and relinquishing control of the bank. According to three anonymous sources cited by Reuters, this move aligns with ANZ’s long-standing efforts to exit its investment in Panin Bank, which have been hindered by ongoing valuation concerns.

ANZ currently holds a 39.22% stake in Panin Bank, while the Gunawan family owns 46.52%, according to London Stock Exchange Group (LSEG) data. Together, their combined controlling stake is valued at approximately $2.4b, based on Monday’s closing price of 1,900 rupiah ($0.1197) per share, LSEG data reveals.

The reported sale has attracted interest from major Southeast Asian banks, including OCBC and CIMB, as they compete for control of a bank with a diverse portfolio spanning consumer financing to private wealth, as well as a strong foothold in the fast-growing Indonesian market.

According to Reuters, Panin Bank’s shares surged by nearly 9% on Tuesday, with a 7.9% increase to 2,050 rupiah each at the midday break. Additionally, LSEG data revealed that the bank’s shares have risen 58.3% year-to-date, bringing its total market value to $2.84b.

The sources, speaking on condition of anonymity due to the confidential nature of the deal, confirmed that non-binding bids for the stake are expected by the end of this month.

On Tuesday, LSEG data showed that Panin Bank was trading at a price-to-book ratio of 0.88, in line with peers like Bank CIMB Niaga and Bank Permata, which had ratios of 0.88 and 0.86, respectively. However, it was higher than Bank OCBC NISP’s ratio of 0.78 and Bank Maybank Indonesia’s 0.56.

Kuala Lumpur, Malaysia – HSBC is reportedly reviewing its retail banking operations overseas, particularly in Malaysia and Indonesia as well as in Mexico, as first reported by the Financial Times.

According to the report, the bank is shifting its focus beyond its core markets to reduce its consumer footprint and prioritise serving wealthier “premier” clients.

Moreover, it has been reported that HSBC is considering a substantial reduction of its retail operations in Mexico and is evaluating its presence in countries like Malaysia and Indonesia, with an eye toward capitalising on opportunities in premier banking.

It is worth noting that HSBC has been ramping up its wealth management division, especially in the United Kingdom and Hong Kong where most of its clients are coming from. 

In September this year, the global financial services company was reported recruiting hundreds of bankers to serve rich clients in the UK. A month later, the company tapped actor Tony Leung Chiu-wai as part of HSBC’s launch of its wealth programme “Wealth. Growing at every stage” in Hong Kong.

Retail banking exits are increasingly becoming common across markets in Asia, most notably Citigroup’s exit in 10 APAC markets, which included Taiwan, the Philippines, and Indonesia.