News December 11st, 2018

1. Indonesia can boost exports using China digital platforms: Ambassador

Beijing, (ANTARA News) - Indonesia could use China`s digital commerce platforms to boost its exports
not only to China but also to other countries, Indonesian ambassador to China Djauhari Oratmangun
said here on Monday. "If we want to boost exports, investment and tourism we have to have good
relations with China as our main partner. China has an advanced IT and ecommerce," Djauhari said
when receiving delegation of China-Indonesia discussion on China-ASEAN relations. During the Singles
Day sales event, he said, Alibaba gained a total US$30.79 billion in 24 hours while JD.com obtained
US$18 billion. "These two largest platforms in China could get more than US$48 billion in just 24 hours,
an amount bigger than our export value to China in a year," he remarked.

The ambassador said Indonesia should use these digital commerce platforms which have already
launched the Indonesian Pavilion to boost its export. Currently five Indonesian products that have
entered the digital platform are shrimp crackers, biscuits, coffee, instant noodle and swallow nest.
Other potential digital-based enteprises are Jumore which has existed in 157 countries and Tencent
which has operated social communication WeChat to develop cashless payment method for tourists.
"However for this issue we need to have the regulation, especially for tourists to assure the state
revenue from this transaction," he said. China has contributed the largest number of tourists to the
country at 2.5 million and it is expected to reach 3 million in 2018.

https://en.antaranews.com/news/121187/indonesia-can-boost-exports-using-china-digital-
platforms-ambassador
2. Forex reserves recover by $2b in November

Bank Indonesia (BI) has announced a US$2 billion increase in foreign exchange reserves in November
due to capital inflows from oil and gas exports and other foreign exchange revenue. The inflows
exceeded outflows for foreign debt service. The foreign exchange reserves stood at $117.2 billion at
the end of November, up from $115.2 billion a month earlier. The central bank explained that the
foreign exchange reserves were sufficient to cover 6.3 months of imports plus debt installments.
Meanwhile, the international standard for foreign exchange sufficiency is three months’ worth of
imports. “BI notes that the foreign exchange reserves can support economic resilience [in the face of]
external pressure and maintain macroeconomic and financial system stability,” said BI spokesman
Junanto Herdiawan, as reported by kontan.co.id on Monday. In November, BI did not need to spend
much foreign exchange, because the rupiah was holding up stronger against the United States dollar.
On Nov. 30, the rupiah changed hands at Rp 14,399 per US dollar, before weakening slightly in early
December. BI monetary management department head Nanang Hendarsah said the rupiah was
supported by fast capital inflows as external pressure was lessening.The central bank recorded capital
inflows of Rp 35 trillion ($2.41 billion). Meanwhile, foreign direct investment in November also
reached the highest figure of 2018 at $4.3 billion.

http://www.thejakartapost.com/news/2018/12/10/forex-reserves-recover-by-2b-innovember
3. Govt: 400 Online Lending Sites, Fintech Platforms Being Shut Down

TEMPO.CO, Jakarta - Communication and Informatics (Kominfo) Minister Rudiantara said the ministry
had shut down 400 financial technologies (fintech), consisted of sites and applications, related to fraud
cases on online loan services that are recently rampant in Indonesia. “We have shut down 400 fintech
of online lending services after confirmed by the Financial Services Authority (OJK),” said Rudiantara
in the Kominfo ministry building in Jakarta, Monday, December 10. Rudiantara said the public could
file a complaint regarding the online loan to OJK. “First, a complaint can be sent to OJK because OJK
has the authority on the permit of online lending fintech, and then OJK reports the case to us. Secondly,
fill out the complaint box via the Kominfo website,” he explained. People, the minister added, could
directly send a complaint via the ministry website. According to him, illegal lending loan service is part
of negative content which can be reported. “The public can send a complaint along with the reasons.
We will continuously update every complaint, and if we find it, we will proceed it to arrest. But for
sure, we confirm the case with OJK in advance,” he added. Rudiantara said people could report illegal
online lending firm easily without a hassle. “No need to send a letter, because we are in a digital era
that everything is fast, we will immediately block [such illegal fintech loan service],” he underlined.
Earlier, the Jakarta Legal Aid Institute (LBH Jakarta) attorney Jeanny Silvia Sari Sirait said there were
over 300 complaints received by her agency since the opening of a complaint center for financial
technology (fintech) consumers harmed by peer-to-peer lending or online-based lending firm on
November 4.

https://en.tempo.co/read/news/2018/12/11/056924148/Govt-400-Online-Lending-Sites-
4. Rupiah loses value on external factors

The Indonesian currency rupiah lost value trading at the level of 14,549 in the closing session from
14,482 per dollar earlier. "Rupiah depreciated on tension in trade relations between the United States
and China," chief researcher of Monex Investindo futures Ariston Tjendra said here on Monday.
Ariston said the market began to worry again over the impact of the detention of the finance head of
Huawei Technology Meng Wanzhou by the United States as it could fuel tension in the trade relations
between the two economic giants. However, he said, the rupiah weakening would not be too
significant considering the outlook of the Fed would not be too aggressive in raising its fund rate in
2019 after data in the non-farm payroll was below expectation. Financial market observer of Bank
Woori Saudara Indonesia Rully Nova said rupiah is relatively stable. "The government has announced
a series of policies to maintain the rupiah stability," Rully said. The rupiah stability would strengthen
the confidence of foreign investors in the country`s economy that would encourage them to return to
do business in Indonesia. Meanwhile, the middle exchange rate of Bank Indonesia on Monday showed
that rupiah strengthened to the level of 14,517 from 14,539 per dollar on Dec 7.

https://en.antaranews.com/news/121177/rupiah-loses-value-on-external-factors
5. Indonesia’s e-commerce sales predicted to reach US$65b in 2022

Global management consulting firm McKinsey & Company has forecast fast growth for e-commerce
in Indonesia, predicting sales to reach US$65 billion annually by 2022, eight times the $8 billion
recorded in 2017.

“Our research suggests some 30 percent of online commerce – sales worth US$2.5 billion in 2017 –
is additional spending that would not have existed if not for online commerce,” said Simon Wintels, a
partner of McKinsey, in a statement received on Monday.

McKinsey noted that the buzz around year-end online shopping festivals – notably Single’s Day, or
November 11 (11.11), and December 12 (12.12) – reflected the potential of online commerce in
Indonesia.

McKinsey estimated that e-commerce could facilitate up to $26 billion in new exports, or equal to 40
percent of manufacturing exports today. It also identified that jewelry exports in particular had
benefited from online commerce.

“The interest of major, global consumers reflects the growing demand for Indonesian products from
international markets,” said Phillia Wibowo, McKinsey Indonesia’s managing partner.

“More sectors need to take notes from the jewelry sector because overall Indonesian exports
through online commerce remain low, with many local merchants yet to tap into international
markets.”
McKinsey also argued e-commerce supported financial inclusion, as to date, e-commerce has
indirectly provided some 300,000 micro business owners with access to financial services through
online payments systems.

“To encourage the growth of mid-sized companies, the public and private sectors need to collaborate
to create accelerator programs aimed at boosting the competitiveness of promising mid-size
companies,” said Phillia.

http://www.thejakartapost.com/news/2018/12/10/indonesias-e-commerce-sales-predicted-to-
reach-us65b-in-2022.html