Indonesia Market Summaries 21 May 2013

The government proposes once-every-two-years wage adjustment

The Ministry of Manpower and Transmigration proposes wage adjustment to be done once every two years as opposed to the current one year cycle to avoid conflict between the labor and the enterprise. Some other points included in the Government Regulation Draft on Wage Mechanism are wage adjustment differentiation based on the company’s scale of business with labor’s productivity level also considered (Kontan)

Agung Podomoro posted Rp2.2tn marketing sales as of April 2013

As of April 2013, APLN has recorded marketing sales of Rp2.2tn or approximately 37% of the company's full year target. The marketing sales implies a 44.2% yoy growth. Contribution is as follows: Podomoro City Extension (57%), Vimala Hills (15%), Soho Pancoran (7%), Metro Park Residence (7%), Grand Taruma (6%), and Parahyangan Residence (3%). (Company Release)

Comments: The marketing sales is 30% to our expected full year marketing sales of Rp7.3tn.

Honda aggressively expands network as it enters the low MPV segment

PT Honda Prospect Motor, the dealership for Honda 4W, is aggressively rolling out dealerships network in Indonesia to support the upcoming launching of low MPV before April 2014. The car, which many called as Brio MPV, would be assembled at Honda’s new assembling plant in Karawang, which has an annual production capacity of 120,000 units. The arrival of Honda into the low MPV segment would further give competition to the incumbents like Toyota Avanza, Daihatsu Xenia, Suzuki Ertiga, Nissan Evalia, Mazda VX-1, Proton Exora, and Chevrolet Spin. (Bisnis Indonesia)

for Indonesia Market Summaries 21 May 2013