G20 Economic Benefits Twice as Big as IMF Annual Meetings

            The Coordinating Ministry for Economic Affairs predicts that the economic benefits of the G20 2022 Presidency for Indonesia will be 1.5 to 2 times greater than the IMF World Bank Group Annual Meetings in 2018. Head of the Bureau of Communications, Information Services, and Sessions, Haryo Limanseto, said that a physical meeting in the series of G20 Presidents will boost domestic consumption. In addition, many MSMEs will be involved during the G20 Presidency.

“If the meeting is held physically, there will be an increase in domestic consumption of up to Rp. 1.7 trillion,” said Haryo on the official website of kemenkeu.go.id. In addition, physical meetings will also increase the national Gross Domestic Product (GDP) up to Rp7.4 trillion. Then, Haryo predicts that there will be a workforce absorbtion of 33.000 in various sectors. Another benefit of the G20 Presidency for Indonesia is international branding.

The G20 forum will also encourage investment from G20 members and international organizations in Indonesia. Then, the international event will also broaden the public’s knowledge, especially the younger generation. The G20 presidency will discuss various matters, such as the financial pathway and sherpa pathway.

The sherpa pathway is part of the engagement group represented by civil society organizations, so that the discussion results from the sherpa pathway are not limited to top-down interests, but also open up opportunities for various stakeholders. The sherpa pathway will also focus on empowering MSMEs, such as encouraging the digitization of MSMEs, training in the context of upskilling MSMEs, and encouraging various pro MSME policies. “Thus, the output of this forum could have an impact on the community,” said Haryo.

January 14, 2022, CNN Indonesia

(https://www.cnnindonesia.com/ekonomi/20220114093505-532-746484/manfaat-ekonomi-g20-dua-kali-lebih-besar-dari-imf-annual-meetings)

Giant Moves Closer, Allo Bank Becomes a Serious Player for Indonesian Digital Bank

            Several leading technology companies in Southeast Asia have announced that they will invest in Indonesian digital bank issuers, marking the entry of Allo Bank Indonesia as the newest major player from the new economy sector into the banking industry in Indonesia. Several large companies such as CT Corp, Salim Group, PT Bukalapak.com Tbk (BUKA), Grab, Traveloka, Carro, and Growtheum Capital Partners to PT Allo Bank Indonesia Tbk (BBHI) will further enlarge Allo Bank’s business ecosystem going forward.

            The seven companies stated that they would absorb a total of 70% of new shares in the corporate action to increase capital with Pre-emptive Rights (HMTED) or PT Allo Bank Indonesia Tbk (BBHI) rights issue worth Rp4.8 trillion. The new shares from the rights issue will be traded on the IDX from January 13 to 19. PT Bukalapak.com Tbk (BUKA) will hold 11.49% stake in Allo Bank, Salim Group will hold 6.00% stake, two Singapore-based companies, Grab and Carro, both through separate affiliates, will each hold 2, 07% and 0.69%, while CT Corp will hold a 1.88% stake.

            The investment into Allo Bank by Bukalapak, Grab and Carro is the latest example of growing interest among technology companies in the ASEAN region in Indonesia’s digital banking sector. Previously, Indonesia’s largest private technology company GoTo has invested in and owns 21.4% shares of digital lender Bank Jago, while Singaporean technology conglomerate Sea Ltd has transformed Bank Kesejahteraan Ekonomi into SeaBank’s digital bank in Indonesia after the acquisition.

            “Online and offline ecosystems are now in the bank, and with the right strategy, leadership, execution, and technology, Allo Bank become a serious challenger in Indonesia’s digital banking landscape,” added the multinational financial services provider from the United States (US), Citi.

Indonesia’s Financial Services Authority (OJK) relaxed foreign ownership rules on banks last year, which is likely to spur more regional technology players to enter the banking business. Mini-banks in Indonesia need to raise funds to meet minimum capital requirements, while technology companies see opportunities to take a stake in an industry they see as the next growth sector.

January 7, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220107082351-17-305372/raksasa-merapat-allo-bank-jadi-pemain-serius-bank-digital-ri)