19/08/2016 Asia Business Report


19/08/2016

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We expect the Asian economy will grow by 10%, but we are disappointed

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by those who say the country will collapse. The former finance

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minister in Southeast Asia's largest economy weighs in on the current

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state of affairs. And book a bright or halo taxi. Find out how cab

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drivers in more buy are battling the wave of ridesharing apps -- or hail

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a taxi. Good morning. It is Friday! The

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weekend is just around the We start off in Indonesia and the

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central bank will decide today on whether its key lending rates need

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to go lower to help spur economic growth. The country's struggle is

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partly due to slowing demand for its come -- commodities from China. We

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spoke to Indonesia's former finance minister and asked if there is room

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for interest rates to be cut. I think there is room for Indonesia to

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lower the interest rate, especially if this amnesty were to have an

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impact on capital as well. There are concerns about the impact that a

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potential hike in US interest rates could have on Indonesia's economy.

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What do you think that might be? I am not so worried about the

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possibility of the raising of interest rates. It will probably be

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short lived. In addition, it is better to have this weak currency in

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order to boost our manufacturing, otherwise the economy will continue

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to focus on natural resources. Indonesia has launched this new tax

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amnesty programme. It is very ambitious and claims, certainly from

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what we've been hearing from the government, they are expecting

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billions of dollars worth of revenue back to Indonesia. You think it will

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work? In general I think there will be some repatriations. But the

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question is by how much it will improve the tax space will the new

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minister of finance suggested the budget and I think it was the right

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decision because she put the budget in a very conservative way, taking

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this amnesty as a bonus, rather than taking it as part of the government

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decision. There were worries that the economy would continue to grow,

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and foreign investors are looking anxiously at Indonesia because they

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are hearing mixed signals. Indonesia is a disappointing country. It

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disappoints optimists who think the economy will grow by 10%, but it

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disappoints people who think that economy will collapse every day.

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Everytime there about 6.5% growth we are exposed with the problem of the

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deficit because we don't have enough to finance investment. So the only

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decision is to improve the activity. Indonesia, you can't rely on

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national resources any more or completely Bangladesh because the

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wages don't compare with ours, so the only solution is how to come up

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with a sector supported by human capital. That was the former finance

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minister of Indonesia. Sydney, Beijing, London and Rio have earned

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the privilege of being Olympic hosts. The sporting extravaganza is

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often touted as a major tourism boost, with millions of visitors

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guaranteed. But what happens after the Games to the stadiums and

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swimming pools, after the party is over? One architect has worked on

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many events over the decades and has spoken about what developers can do.

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There are huge budgets allocated to the Olympic Games and in a perfect

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world the vast majority of those funds are spent on legacy items, so

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for the roads, the railway lines et cetera. Those things are done

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because of the Olympic Games but are left as lasting legacies. For the

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monetisation of the individual venues, the key thing is creating

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flexibility in the venues and actually putting things inside the

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venues which is beyond the sports themselves. If you would like to

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name a couple or several host countries, which have been

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successful not only in hosting the Olympic dames but have also been

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successful in monetising the venues after the events? I would say it is

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almost impossible to host the perfect Olympic Games. There are

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always floors. However, I would think that for the Olympics I have

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participated in and witnessed, I would say that London is still

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perhaps the high watermark in my opinion, in terms of being

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responsible, in terms of delivering the Games and after the Games

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leaving a lasting legacy. As an example, I worked on the handball

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venue and the fencing venue, that was used inside the London Olympic

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park. However, it was designed in such a way as to be left as a

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lasting legacy. So kindergartens, fitness centres, cafes, all

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incorporated into the buildings so that that's actually what the

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community uses it for. The Olympics is just something that was used in

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the building for one month. The next Olympic Games will be held in Tokyo

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in 2020. Everyone will be looking ahead to the 2024 Olympic Games. For

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those who are interested to bid, what would be the ultimate checklist

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for countries looking for hosting rights? It is all about trying to

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create efficient Olympic master plans. It is about trying to

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minimise the amount of permanent buildings that are necessary for the

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future and maximising the temporary venues so that you don't leave too

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many so-called white elephants. But most importantly it is about

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creating long-lasting benefits for the people of that city. Olympic

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venue architect with us there. Samsung has just seen its market

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value cross the $200 billion mark, making it five times more valuable

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than Sony and pushes it closer towards the ranks of Chinese

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internet giants Alibaba and 10 cents holdings. Alibaba shares jumped 5%

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to an all-time high yesterday and this morning they are slightly lower

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in early sole trading. It is the end of the road for hundreds of workers

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in India's taxi company that try to compete with Uber. What are

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traditional cab drivers to do? For more than 50 years more by's

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black taxis have driven the city's roads, but these drivers have a

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problem, because instead of hailing a ride in a traditional cab more

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passengers are using their smartphones to make a booking

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through Uber, or one of its Indian rivals. This man used to own a --

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earn about $400 a month but over the past couple of years he has seen his

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income almost half and so drivers like him are hoping their fortunes

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can be reversed with an app of their own that lets customers book a black

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and yellow taxi on their smartphones. TRANSLATION: It is the

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age of technology, so even we have to use it to survive in the market.

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Hopefully this will help us get more customers. Five years ago there were

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nearly 55,000 black and yellow taxis in more by. Now there are only about

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35000 and that's because more and more drivers are signing up with

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what is seen as the modern alternative. Uber claims that nearly

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one third of its drivers in India used to use black and yellow taxis

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or auto rickshaws. To try to recruit more it is offering deals, so

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drivers can buy their own vehicle and then drive under the system. The

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benefit to us clearly and always is more drivers partners. There is a

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commitment we've given to create 75,000 jobs. Already in two and a

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quarter years 65,000 drivers are registered. Many more by taxi

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drivers still see the likes of Uber as unset competition and wants the

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government to regulate fares. But that's only part of the problem.

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Black and Yellow taxis are often too old or uncomfortable to travel in.

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This one's window doesn't even function. So little wonder that

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passengers are increasingly using their smartphones and booking

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air-conditioned cars. That means the survival of Black and Yellow taxis

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will depend not just on them embracing technology introduced by

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rivals, but also the standards. Before we go, a quick look at the

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markets. Asia is ticking a touch higher in early Friday trade.

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Surging oil prices meant they touch their highest in six weeks, lifting

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energy sector stocks, especially in Japan and Sydney. Brent crude is now

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at $50 per barrel. And the US dollar is hitting its lowest level in

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nearly eight weeks in an eight-week low, after the July meeting showed a

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bias. Thanks for investing your time with us. Goodbye for now.

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The top stories: Brazilian police accuse a

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