First tech start-up on Indonesia exchange oversubscribed 10 times

KIOSON, the first online-to-offline (O2O) Indonesian e-commerce company, has listed on the Indonesia Stock Exchange (IDX) under the ticker code KIOS.

Kioson, officially PT Kioson Komersial Indonesia Tbk, is the first start-up to list on the IDX. Kioson stock was set at Rp 300 per share and managed to secure up to Rp 45 billion in funds. During the public offering period, Kioson recorded an oversubscription more than 10 times the total number of shares offered. 

“This IPO is important for the Indonesian capital market, as for the first time, retail investors can place their funds in a technology start-up,”  Kioson president director Jasin Halim said.

“This IPO is part of our strategy to bridge the digital gap for the underserved market and boost the penetration of digital services to second tier cities in Indonesia.”

The digital gap among Indonesia's population of 250 million people is wide, he said. Based on Indonesian Ministry of Information and Communication data from 2015, there were only 8.7 million active online shoppers from the total of 93.4 million internet users in Indonesia. The ratio of internet users in rural areas is still about 17.3 percent.

“The largest opportunity is in the underserved market,” Jasin said. “There are three key issues for them to be online: payment, logistics and trust towards e-commerce.

“Kioson is an O2O platform that addresses those issues to make everyone transact online.”

From the total funds raised through the IPO, as much as 78.95 percent will be used by Kioson to acquire PT Narindo Solusi Komunikasi.

“This acquisition will strengthen our infrastructure through the assets owned by Narindo,” Kioson finance director Setiawan Parikesit said. “Narindo that focuses on the e-voucher aggregator business will maintain the company’s business from upstream, so we expect to support the Kioson bottom line.

“Narindo services include digital services and Payment Point Online Bank (PPOB), financial services, and e-commerce services.”

Started in 2015, Kioson has demonstrated rapid growth. As of April 30, 2017, the company's revenue reached Rp 25.9 billion, soaring 445 percent from Rp 4.7 billion year-on-year.

This achievement was supported by at least 19,000 kiosk partners within 384 cities in Indonesia, as of September 2017. Kioson is aiming to raise the number of kiosk partners to 30,000 by the end of 2017, for a 400 percent increase year-on-year.



Thailand launches Strategic Talent Center to lift business innovation

THAILAND launched its Strategic Talent Centre on July 3 in Bangkok, as a hub for Thai science and technology experts to assist local and international industry.

The Strategic Talent Center (STC) has been established “to enable the private sector to have easier access to the available pool of manpower in the field of science and technology and to facilitate the entry and sojourn of foreign science and technology experts in demand” according to Thailand Board of Investment Secretary General Mrs Hirunya Suchinai.

This movement aims to encourage manpower as one of the most important capitals for business and a significant key driver for the country’s ‘Thailand 4.0’ policy to take shape, according to Mrs Hirunya.

The STC was established under a cooperation agreement between Thailand Board of Investment (BOI) and five government agencies: Ministry of Science and Technology, National Research Council of Thailand, National Science and Technology Development Agency and National Science Technology and Innovation Policy Office. 

The centre will serve as a platform for interaction with the private sector in identifying available specialists or researchers in science and technology to support the private sector in conducting R&D and innovation activities.

The centre would help identify Thai and foreign people with specialised skills across technology and innovation arena, academia and government scholars, and researchers as well as those under the Talent Mobility Project of the National Science Technology and Innovation Policy Office. The STC will be actively involved in matching skills and expertise with real-world demands from the requesting companies.

Hirunya said, “Through the establishment of STC, we are enhancing the country's ecosystem for stronger research and development capability, which will in turn increase our competitiveness and support the development of target industries under Thailand 4.0 policy.

"We believe that there are many experts and specialists in Thailand but we never had a comprehensive database or information about them. The STC will take up this role and pull together extensive lists of these experts. This will not only match demand on manpower and supply of expertise, but will also promote links between the research sector and the private sector," Hirunya said.

In addition to matching services, the STC will provide an expertise recognition service for those in the science and technology fields. The centre will coordinate with relevant government agencies in recognising that expertise.

Hirunya said the recognised experts would be facilitated for their visa and work permits and would have access to the e-expert system run by Thailand’s One-Stop Center for Visas and Work Permits.

This flagship STC project will increase convenience for companies operating in Thailand to have greater access to pool of specialists and experts in the area of research and development.

"As we realise that human resources will play a vital role in moving Thailand forward, we at the BOI are looking at the comprehensive array of factors supporting investments in Thailand, not just tax incentives,” Hirunya said.

“STC is one step that we are taking to provide investors with better and more comprehensive services. The improved mobilisation of science and technology manpower will certainly contribute to the implementation of Thailand 4.0 policy.

“We are glad that our STC will play a significant role in this jigsaw puzzle and help investors optimize their opportunities here," said Hirunya.



Sydney promotes to China as Australia's 'business events capital'

A CITY of Sydney-led trade and business delegation to China will showcase the city’s claim as Australia’s number one destination for business and tourism events, in a move to attract even more visitors.

The 100-strong delegation to Guangzhou, from May 30 to June 2, will mark the 30th anniversary of the Sydney-Guangzhou sister-city relationship, and promote Sydney as 'Australia’s premier business conference city'.  

“I am leading this delegation to China to promote collaboration on major events between our two strong economies,” Sydney Lord Mayor Clover Moore said.

“Sydney is now the top travel destination for all visitors from China to Australia. This is about strengthening our close ties with southern China and opening doors of opportunity for businesses and tourists from China to host and attend events in Sydney.”

Business Events Sydney (BESydney) CEO, Lyn Lewis-Smith, said Asia continued to be a key driver of incentive business travel into Sydney.

“In the last three years, BESydney has secured an estimated $230 million worth of Asian incentive business, and we’ve seen 20 per cent year-on-year growth over the past decade in the value of events secured out of this region. Approximately 50 percent of this business is from China,” Ms Lewis-Smith said.

Thanks to the City of Sydney’s Chinese New Year and New Year’s Eve celebrations, as well as Vivid Sydney, Sydney is now the leading travel destination for all visitors from China to Australia as reported by Tourism Research Australia.

According to new figures from Destination NSW, Chinese visitors to NSW spend 93.5 percent of their time in Sydney.

The Australia China Business Council (ACBC) is part of the Guangzhou delegation, and will lead a contingent of 30 Sydney business leaders for a trade and investment forum and business matching event during the Guangzhou visit.

ACBC NSW president, Jim Harrowell said Sydney was a “key gateway” for both business travellers and holiday makers.

“This visit to Guangzhou will forge meaningful business partnerships that will provide an extraordinary opportunity for Sydney in particular to showcase its unique events and business conference hosting services, which will help accelerate overall economic growth," Dr Harrowell said.

Other recent research shows Sydney is well-placed to further tap into lucrative event-based tourism from China:

  • Sydney’s Chinese New Year Festival is the largest Lunar New Year celebration outside of Asia with more than a million visitors this year – an increase of 67 percent on 2015;
  • More than 46 percent of people travelled from overseas specifically for this year’s Sydney’s New Year’s Eve – the most watched and one of the biggest one-night events globally, generating more than $130 million annually for NSW;
  • Destination New South Wales last year found more than 42 percent of international Vivid Sydney travel packages were purchased from China. The international spend contributed $63.2 million to Sydney’s economy;
  • Sydney Airport witnessed in December 2015 a 31.4 percent increase in inbound traffic from China, majority coming from Guangzhou;
  • Chinese tourism numbers are expected to continue to grow with projections seeing at least two million Chinese visitors to Australia each year by 2025; and
  • Business Events Sydney reported 75 percent of business incentive delegates arrived from China.

Latest NSW Government figures show China remains Australia’s largest market for service exports, including financial, ICT, travel and education sectors. These exports grew 20 percent in 2015 to $9.8 billion.

Sydney’s events industry will receive a further boost with the opening of the International Conference Centre in late 2016. This new convention and exhibition facility will help Sydney accommodate increasingly high levels of Chinese visitation.

The City’s delegation visit to Guangzhou will include:

  • Orchestral works performed by the Sydney Symphony Orchestra and guest performers from the Xinghai Conservatory of Music;
  • A sustainability forum led by the University of Sydney, the University of New South Wales and the University of Technology Sydney;
  • An alumni event hosted by Sydney’s six leading universities;
  • A full-day business conference headed by the Australia China Business Council, hosting around 100 attendees from both cities; and
  • An arts exhibition exploring trade and migration between the two cities.



Victoria's China strategy embraced by business

THE Victorian Government's new China strategy has received the 'thumbs up' from the Victorian Chamber of Commerce and Industry.

Victorian Chamber of Commerce and Industry chief executive Mark Stone said he welcomed the recent release of the Victorian Government’s Partnerships for Prosperity China engagement strategy.

The Victorian Chamber had previously called for the development of a new international engagement strategy that would align Victoria’s strengths with opportunities in high growth countries in its recent 2016-17 State Budget Submission.

Mr Stone said the strategy was a good example of how Victoria’s sectoral strengths can be aligned with China’s needs.

“It includes not only targets for trade, investment and jobs growth, but practical steps to establish new engagement platforms, attract new investment and build connections through reciprocal cultural partnerships," Mr Stone said.

“It is encouraging to see the Victorian Government supporting businesses to become more internationally competitive and forge new business opportunities in the fast growing Asia region.

“The $66 million boost in the upcoming budget for the Victorian Government Business Office network will help connect Victorian businesses with other important trading partners in the region as well as in traditional markets like Europe and the USA.

“While the strategy represents an important step forward in fostering market opportunities in China, it must be supported by economy wide reforms that keep our internationally engaged industries competitive. These include lower business taxes, less red tape and improvements in trade related infrastructure," Mr Stone said.

“The Victorian Chamber’s upcoming International Engagement Taskforce report that will be released in coming weeks will explore a range of issues relating to engagement with China and the greater Asian region and will deliver a suite of recommendations that will compliment and build on the China strategy."