Market

Nearly five years after the Ministry of Finance expanded the tax base by collecting Value Added Tax (VAT/PPN) for digital products traded through the electronic system (PMSE), the number of collectors continues to increase. There are now 176 companies that have the same set of responsibilities and of this number, 166 companies have carried out their obligations. The value of tax revenue also continues to increase.

John Riady, son of James Riady, confidently told the press on February 25, 2014 that mataharimall.com will become the largest e-commerce platform in Indonesia. As director of Lippo Group, John said the group had set aside US$500 million for the development of mataharimall.com in two-three years time. With over Rp1 trillion investment from Matahari Department Stores (LPPF) and Matahari Putra Prima (MPPA), we all know mataharimall.com ceased operations in 2018.

President Prabowo Subianto is scheduled to start the first official overseas trip today. China is said the first stop of the 16-day trip, which includes visiting US, UK, attending APEC Summit in Peru and G20 Summit in Brazil. As a big admirer of Deng Xiaoping, Prabowo’s three-day visit to China might be the most interesting to watch.

Shares of Cinema XXI (CNMA), the largest operator in the country, ended higher by 1.1% to Rp180 on Thursday (Nov 7). That means the stock is still way below the initial public offering (IPO) price (Rp270) last year. 

Shares of Media Nusantara Citra (MNCN), controlled by Hary Tanoesoedibjo (chairman of Perindo Party), ended substantially lower by 4.% Thursday (Nov 7) just when his friend and business partner Donald Trump won US presidential election. Surya Citra Media (SCMA), competitor of MNCN in free-to-air TV business, on the other hand, ended higher by 1.6%. 

President Prabowo Subianto sworn in Muliaman Hadad, former chief of the Financial Services Authority (OJK), as head of a new powerful investment company called BP Danantara, two weeks ago. This week, the president was slated to announce the establishment of the agency, but postponed because legality of Danantara yet to be established.

President Prabowo Subianto is so obsessed with ‘food self-sufficiency” that he kicked start development of food estate project in Merauke (Papua) despite failures in similar project he led as then minister of defense in Kalimantan. His cabinet members backed the president’s obsession up with some rather questionable policy initiatives. Doomed to fail!

Food logistic company BULOG, one of the most corrupt institutions under Soeharto regime, will soon returned to its old format as non state company placed directly under the President. Reform movement following Soeharto’s downfall led to restructuring of BULOG, but very soon we’re going to see reborn of the old BULOG. 

Talk is cheap. When legislators asked where the additional salary Rp2 million per month for all teachers (which could mean a jump by more than 150% in some cases) will come from, the lower education minister Abdul Mu’ti said ‘that’s not from us’ and that ‘it is being reviewed by ministry of finance’.

Telkom (TLKM), market leader in the telco industry, opened slightly higher by 0.36% to Rp2,780 this morning to make a market capitalisation of Rp275.4 trillion. The stock has fallen 40% from its last peak (September 2022), while second largest player Indosat (ISAT) gained 40% in the same period. What’s wrong?