Category Archives: economy

The Netherlands overtakes Switzerland in world competitiveness stakes

DutchNews, May 24, 2018


The Netherlands has overtaken Switzerland and moved into fourth place in the latest global competitiveness rankings published by IMD

The top five most competitive economies in the world remain the same as in the previous year, but their order changed in the 2018 rankings. The United States, third last year, returns to the top spot, followed by Hong Kong, Singapore, the Netherlands and Switzerland. 

The Netherlands’ advance reflects a ‘balanced’ path to competitiveness, ranking in the top 10 in economic performance, government and business efficiency, IMD said. Switzerland declined mainly due to a slowdown in exports and, to a lesser extent, an increase in perceptions about threats of relocation of R&D facilities. 

The IMD World Competitiveness Center, a research group at IMD business school in Switzerland, has published the rankings every year since 1989. It compiles them using 258 indicators.

‘Hard’ data such as national employment and trade statistics are weighted twice as much as the ‘soft’ data from an executive opinion survey that measures the business perception of issues such as corruption, environmental concerns and quality of life. This year 63 countries were ranked. 

The Netherlands is also currently ranked 4th on the World Economic Forum‘s list of the 138 most competitive countries, behind Switzerland, the United States and Singapore.

Local King Koil Assembler Upbeat About Consumer Purchasing Power, Eyes Expansion to E. Indonesia

Jakarta Globe, Muhamad Al Azhari, November 25, 2017

Duta Abadi Primantara, a local company that holds licenses for some international
mattress brands, is upbeat about its future business due to expected growth of
consumer buying power in years to come. The company is also eyeing a major
expansion to the eastern part of Indonesia. (Photo courtesy of Duta Abadi Primantara)

Jakarta.Duta Abadi Primantara, a local company that holds licenses for some international mattress brands, is upbeat about its future business due to the expected growth of consumer buying power in years to come. The company is also eyeing a major expansion to the eastern part of Indonesia.

The company, first established in the 1990s, currently has four factories and 13 assemble point facilities in Sumatra, Java, Sulawesi, Bali and Kalimantan.

DAP holds licenses to locally assemble high-end mattresses for brands based in the United States, including Aireloom, King Koil, Serta and Tempur. The company has its own locally-manufactured mattress brand, called Florence, that targets medium- to low- income customers.

King Koil and Serta are the leaders in the premium segment of the mattress industry in Indonesia.

Anthony Setiawan, the vice president director of Duta Abadi, said the company has seen a healthy single digit revenue growth over the past few years and is bullish about future businesses.

"There has been a slowdown [in economic growth], we felt it too, but buying power is predicted to increase in the future, a lot research has shown. Also, we noted an interesting fact that people in Indonesia are now more aware that quality sleep is important. If you look at the statistics, people spend a third of their time sleeping. It is very important that they sleep well," said Anthony, who is the second generation of the family who founded and owns DAP.

Indonesia’s economy expanded at a slower pace in the third quarter this year compared to market expectations, a disappointing outcome for the country as a slowdown in private consumption dragged overall growth.

The economy expanded 5.06 percent year-on-year in the third quarter, just slightly higher than a 5.01 percent year-on-year growth in the previous quarter. The third quarter figure is lower than the median estimate from polling by Reuters and Bloomberg, which showed figures of 5.13 percent and 5.2 percent growth respectively.

Despite the fact that Indonesia’s economy expanded at around 5 percent on average over the last five years, government officials and economists generally remain upbeat over growth outlook in the near term, thanks to new infrastructure development, an expected rebound in commodity prices and more investment in the country.

Anthony said about 80 percent of his company's products are sold to end-customers, while the remainder are bought by hospitality industries like hotels and healthcare operators like hospitals.

"We started the business in the 1990s with Florence mattress. This is our first brand,  which we manufactured and distributed. Then, in 1996, we acquired the exclusive license for King Koil in the United States," Anthony told the Jakarta Globe on the sidelines of Hotel Week, a three-day exhibition and conference that gathers players in hospitality industry.

He said DAP then expanded to acquire exclusive licenses to assemble mattresses for Serta, Tempur and Aireloom.

Anthony said the company imports raw materials for its premium mattress brands but assembles them in Indonesia. DAP currently has a comprehensive distribution network in Indonesia that covers Java, Sumatra, Sulawesi, Bali, East Nusa Tenggara and Kalimantan.

He said the next stage of expansion will be targeted to the eastern part of the country to capture the higher purchasing power of people and benefits from expansions of hotel operators in the region.

"The hospitality industry is very important for us. When we started marketing King Koil, our first customer was the Mulia hotel in Senayan. From this, we started being acknowledged among five-star hotels. This continues until now as hotel owners and operators are getting more aware that mattress are one of the most important factors in their hospitality services," Anthony said.

"For customers, when they stay at a particular hotel, when they feel they have a good sleep and rest, they will look at the brand of the mattress, usually they may be encouraged to buy the same at home."

DAP has also started to tap into the hospital market due to more attention in the sector from the government.

"There is a specific requirement if we want to tap into the hospital bed mattress, for electronic-adjustable bed, there is a certain certification that a manufacturer and supplier must secure, currently we cooperate with a certain supplier [of hospital beds], but we are working on the way of making our own [electronic-adjustable mattress]," Anthony added.

DAP currently holds the exclusive license to assemble and distribute King Koil products in Indonesia and China and distribute Serta products in Indonesia, Singapore, Malaysia, Vietnam and the Philippines.

Indonesia Exposure to Global Risk is Limited: IMF

Jakarta Globe, July 21, 2011

Relatedarticles

Indonesiafaces limited exposure to a large exit of foreign capital at a time of globalrisk aversion due to strong fundamentals and relatively low dependence onexternal demand, the IMF said on Thursday.

TheInternational Monetary Fund cited the country’s strong export growth, includingin manufacturing, and said the continued flexibility of the rupiah’s exchangerate would help protect against volatile cash inflows.

Thecomments come as Indonesia’s central bank tries to cap huge inflows of foreigncash from investors seeking higher interest rates than in the West, which itfears could trigger economic instability.

“IndonesianGDP growth is projected to remain robust at around 6.5 percent in 2011--12,”the IMF said in a statement following a consultation with Indonesian officialsand central bankers.

“Increasesin both foreign and domestic investment are supporting growth, whileaccelerating credit growth and expected reductions in energy subsidies shouldpush core inflation modestly higher this year and into 2012,” it said.

The fundalso urged Indonesia to reduce fuel subsidies so that it could boost spendingon infrastructure and social welfare.

IMF,however, said there was a risk of higher inflation if the government cut energysubsidies, and that the central bank would need to “act decisively” if thegovernment took that course.

Agence France-Presse

Foreign Direct Investment in Indonesia Up 21% in Q2

Jakarta Globe, July 21, 2011

Relatedarticles

Foreigndirect investment in Indonesia rose 21 percent in the second quarter of 2011from a year ago, as strong commodity prices attracted investors into the miningsector, the government said on Thursday.

FDI fromApril to June was Rp 43.1 trillion ($5 billion), which followed $4.6 billion offoreign investment in the first quarter, the country’s investment board (BKPM)said.

This tookFDI in the first six months to just short of a half of its full year target fora record Rp 156 trillion this year. Last year foreign investment into Indonesiareached a record Rp 148 trillion.

SoutheastAsia’s largest economy has been a hot destination for foreign investors in thepast two years due to its resilient economic growth, abundant resources,emerging middle class and political stability.

Reuters

RI posts record historical exports value in May

The Jakarta Post, Jakarta | Fri, 07/01/2011

Indonesia recorded a “historical” combined export value in May, totaling US$18.33 billion, an increase of 45.29 percent compared with May last year, the Central Statistics Agency (BPS) reported Friday.

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia's exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.

RI posts record historical exports value in May

The Jakarta Post, Jakarta | Fri, 07/01/2011

Indonesia recorded a “historical” combined export value in May, totaling US$18.33 billion, an increase of 45.29 percent compared with May last year, the Central Statistics Agency (BPS) reported Friday.

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia's exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.

RI posts record historical exports value in May

The Jakarta Post, Jakarta | Fri, 07/01/2011

Indonesia recorded a “historical” combined export value in May, totaling US$18.33 billion, an increase of 45.29 percent compared with May last year, the Central Statistics Agency (BPS) reported Friday.

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia's exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.

RI posts record historical exports value in May

The Jakarta Post, Jakarta | Fri, 07/01/2011

Indonesia recorded a “historical” combined export value in May, totaling US$18.33 billion, an increase of 45.29 percent compared with May last year, the Central Statistics Agency (BPS) reported Friday.

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia's exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.

RI posts record historical exports value in May

The Jakarta Post, Jakarta | Fri, 07/01/2011

Indonesia recorded a “historical” combined export value in May, totaling US$18.33 billion, an increase of 45.29 percent compared with May last year, the Central Statistics Agency (BPS) reported Friday.

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia's exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.

RI posts record historical exports value in May

The Jakarta Post, Jakarta | Fri, 07/01/2011

Indonesia recorded a “historical” combined export value in May, totaling US$18.33 billion, an increase of 45.29 percent compared with May last year, the Central Statistics Agency (BPS) reported Friday.

“This is a new record for exports, compared with the December 2010 figure, which stood at US$16.83 billion,” BPS head Rusman Heriawan told a press conference at his office in Jakarta.

Cumulatively, Indonesia's exports values in the January-May period reached $80.28 billion, an increase of 33.37 percent from the same period in 2010.

Rusman said the increase was attributable to the increases in both oil and gas and non-oil and gas exports.

“[In May 2011] non-oil and gas exports reached US$14.22 billion and oil and gas exports US$4.11 billion,” he said, as quoted by tempointeraktif.com.

Rusman added that coal and vegetable oil contributed the most to the increase in the non-oil and gas exports.

He also said that China was the top destination for non-oil and gas exports, followed by Japan and the US.

“The total value of exports to China was US$1.81 billion, to Japan $1.53 billion and the US $1.32 billion,” Rusman said.