Other Briefings
Indonesia Online: A Guide to E-commerce
While currently, e-commerce only accounts for less than one percent (worth ~US$2 billion per year) of Indonesian retail spending, analysts believe that the country’s fast growing middle class and proliferation of smartphones will soon raise that share to eight percent (worth US$8 billion) in just a few years. If that scenario were to happen, then Indonesia’s e-commerce market would be the largest in Southeast Asia.
January 2015 ASEAN Regional Meetings
There are a number of important ASEAN regional meetings taking place in January, these include the ASEAN Tourism Forum held in Myanmar and the 117th ASEAN Federation of Accountants (AFA) Council Meeting, which will be held in Kuala Lumpur.
Indonesia Looks to Foreign Investment to Boost Economy
Indonesia is set to introduce a one stop service for providing ministry licenses, speed up the completion of government tenders by March each year, establish a land bank to fast track infrastructure projects and release a five-year $450 billion infrastructure investment plan.
Letters of Credit Required for Indonesia Commodities Exporters
A Rule from Indonesia’s Trade Ministry requires commodity exporters to use letters of credit (L/C) in overseas shipments from April 1, 2015. The new rule will effect coal, oil and gas, palm and palm-kernel oil, and minerals including tin. According to the Ministry, these commodities together accounted for over 41 percent of Indonesia’s exports from 2009 to 2013, averaging $US71 billion per year.
ASEAN Exchanges: Myanmar Integrates Further
Myanmar’s Deputy Finance Minister, Maung Thein, has announced that the over-the-counter Myanmar Securities Exchange Centre (MSEC) will be replaced with the Yangon Stock Exchange in October 2015. So far, ten companies are expected to meet the criteria for initial listing on the exchange.
Cambodia Raises its Income Tax Threshold
At the beginning of January, Cambodia reduced the income tax burden on workers in the country. The government has raised its tax threshold from 500,000 riel (US$125) to 800,000 riel (US$200). The previous lowest income tax bracket had begun at 500,000 riel, at a rate of five percent. This change puts approximately US$3.75 a month back into the pockets of workers in Cambodia earning over US$200 per month.
Indonesia-Malaysia Financial Agreement a Model for Bilateralism
Indonesia’s Financial Services Authority (OJK) banking supervision commissioner Nelson Tampubolon has said a recent agreement with Malaysia, which eases Malaysian restrictions on Indonesian banks, is a model for future bilateral agreements. He intends to use the agreement as a basis for planned negotiations with Singapore.
Philippines the First ASEAN Country to Join the EU’s General System of Preferences Plus (GSP+)
On December 18, 2014, the European Parliament officially granted the Philippines’ request for inclusion in the European Union’s (EU) General System of Preferences Plus (GSP+). The Philippines will soon be able to export, tariff-free, over 6,200 products (66 percent of all product tariff lines) to the EU, including processed fruit, coconut oil, footwear, fish, and textiles.
ASEAN Open Skies Policy To Be Implemented in 2015
The ASEAN Open Skies policy will be implemented next year with the goals of increasing regional and domestic connectivity and enhancing regional trade.
Cambodian Government Preparing Standardized Tax Reports
The Cambodian Ministry of Economy and Finance is drafting standardized accounting procedures for small and medium-sized businesses. The main goal of the draft is to streamline bookkeeping, improve tax collection efforts for the government, and make it easier for lending institutions to evaluate loans.
