:00:00. > :00:00.was cancelled because it was behind schedule. Now on BBC News all the
:00:00. > :00:21.latest business news live from Singapore.
:00:22. > :00:24.$1 billion, that's the amount of money Indonesia is aiming to raise
:00:25. > :00:33.by reaching out to a new pool of investors. And, doing business in
:00:34. > :00:41.China, Mercedes`Benz is the most recent company to face penalties on
:00:42. > :00:45.the mainland. Thanks for joining us for this
:00:46. > :00:52.edition of Asia Business Report on BBC World News. Indonesia is on a
:00:53. > :00:58.drive to raise funds. Today is the first of a roadshow for a $1 billion
:00:59. > :01:02.global Islamic bond, and Islamic bond is different from a
:01:03. > :01:06.conventional government bond because it complies with Shari Law.
:01:07. > :01:11.Indonesia needs to raise cash to finance its budget deficit and by
:01:12. > :01:15.making the Islamic bonds available globally, they hope to reach a nuke
:01:16. > :01:21.all of investors that are not tapped yet `` Sharia. Although it has the
:01:22. > :01:25.biggest Muslim population in the world, its industry lags behind
:01:26. > :01:30.Malaysia which is the biggest issuer of these bonds in South East Asia. I
:01:31. > :01:40.speak with 80 that capital markets lawyer about these bonds. `` debt
:01:41. > :01:43.capital. These are Sharia compliant products, including the prohibition
:01:44. > :01:50.on payment of interest. Investors want to receive a return so we have
:01:51. > :01:56.to structure the arrangement in a way that gives that return and in a
:01:57. > :02:00.way that the market has done that is to invest the assets, the funds that
:02:01. > :02:05.investors put into the product in various assets which either create a
:02:06. > :02:08.profit or an income stream, which is then used to give a return to the
:02:09. > :02:14.investors are. Why would a government to 80 Dominique Gisin
:02:15. > :02:25.state of a conventional bond? Lots of reasons. They want to diversify
:02:26. > :02:31.those investments, they want to tap a broader range of investors and
:02:32. > :02:39.that would include issuing a variety of investors. Countries which have a
:02:40. > :02:43.large Muslim population would have an interest in providing a Sharia
:02:44. > :02:49.compliant investment product to support the ethical concerns of the
:02:50. > :02:53.population. That was Vicki Jones, debt capital market lawyer. Reports
:02:54. > :02:57.from China that the German car maker, Mercedes`Benz, was found
:02:58. > :03:00.guilty of price`fixing has given foreign businesses and other reason
:03:01. > :03:04.to question whether it is being unfairly targeted by the
:03:05. > :03:10.government. China is the world's largest car market and other brands
:03:11. > :03:14.like BMW, Chrysler and others have been accused of anti`competitive
:03:15. > :03:18.behaviour. I spoke earlier with our correspondent, John Sudworth, for an
:03:19. > :03:24.update on the fine Mercedes could face. We don't know yet what level
:03:25. > :03:32.of fine the authorities will level of Mercedes`Benz. Ahead of the
:03:33. > :03:36.announcement, under the shadow of the investigation, Mercedes and the
:03:37. > :03:42.other carmakers you mentioned have already been engaging in heavy
:03:43. > :03:46.cost`cutting. They have slashed the prices of spare parts after sales
:03:47. > :03:53.services. Too little avoid the attention of the
:03:54. > :03:58.authorities. There are some suggestions that a 20% reduction in
:03:59. > :04:06.the cost of spare parts in China might cost a carmaker around 1% of
:04:07. > :04:09.net profit. China has been saying that it doesn't discriminate between
:04:10. > :04:15.domestic and overseas companies. The European chamber in China feels
:04:16. > :04:21.otherwise. There is concern about this, not only in
:04:22. > :04:25.but across foreign business sector. We have seen a number of industries
:04:26. > :04:30.targeted, pharmaceuticals, technology companies, food
:04:31. > :04:32.companies, all under the spotlight. There is a worry that foreign
:04:33. > :04:38.business is singled out for political reasons. The cost`cutting
:04:39. > :04:41.in the car industry shows that margins are high, the Chinese
:04:42. > :04:46.authorities will suggest that proves there a point, that there is a case
:04:47. > :04:50.to be answered. People think that in many ways these companies are
:04:51. > :04:54.victims of their own success. The reason they can charge these prices
:04:55. > :04:58.is because the real monopoly they have in China is a perceived
:04:59. > :05:07.monopoly on quality. John Sutton worth in Shanghai. In other news,
:05:08. > :05:12.making headlines, US `based oil and gas giant says it has discovered a
:05:13. > :05:15.big oil well over the coast of Western Australia. Estimates say it
:05:16. > :05:19.could be the largest find in Australia in decades. It is said
:05:20. > :05:24.that the world is being evaluated could result in as many as 300
:05:25. > :05:29.million barrels of crude. A company says the potential of the world is
:05:30. > :05:32.extraordinary. The largest mining company in the world, BHP, is
:05:33. > :05:37.preparing to release its results on Tuesday, and is considering
:05:38. > :05:42.restructuring, announcing that a demerger is its preferred option,
:05:43. > :05:47.which is the company is keen to spin off assets which aren't big
:05:48. > :05:51.earners. An announcement is expected on the restructuring process as
:05:52. > :05:56.early as today. We will get a sense of global trade when we get half
:05:57. > :06:00.year results from China's big shipping company, Costco
:06:01. > :06:05.international. Revenues last year totalled $9 billion, down 7% from
:06:06. > :06:10.2012. Investor sentiment has recently taken a positive swing. I
:06:11. > :06:14.spoke earlier with our correspondent in Hong Kong and asked for an out
:06:15. > :06:18.lock on the industry and Costco international. That industry has
:06:19. > :06:28.been struggling since the financial crisis of 2009. They are struggling
:06:29. > :06:33.to pay that down. Also, there has been a slump in global trade. There
:06:34. > :06:38.are too many ships around so rates one can charge for shipping on those
:06:39. > :06:47.vessels are lower than they once were. This is something the industry
:06:48. > :06:51.is struggling with overcapacity. The Dyer Cosco say this is a problem
:06:52. > :06:57.that could continue `` Cosco say. They didn't have a great year, its
:06:58. > :07:01.profits were down by almost one third. We will see how they fared in
:07:02. > :07:08.the first six months of the year and for the whole year. Indeed, a very
:07:09. > :07:13.challenging environment for the industry. Surely, the focus is on
:07:14. > :07:18.cost`cutting. Absolutely. There is huge pressure in the industry to cut
:07:19. > :07:23.cost. The parent of Cosco International, the China Ocean Group
:07:24. > :07:27.has already cut some routes to Europe and America. Some developers
:07:28. > :07:33.are looking to developing ghost ships, ships without captains on
:07:34. > :07:40.board, where captains would sit on shore in an effort to cut costings.
:07:41. > :07:45.Family business is integral to developing nations and that is no
:07:46. > :07:50.different in South East Asia's largest economy, Indonesia.
:07:51. > :07:54.According to the latest Rich list, Indonesia's wealthiest million has
:07:55. > :08:00.come from family run companies. Keeping it all in the family can
:08:01. > :08:03.have its disadvantages. In the final instalment of the series, our
:08:04. > :08:10.correspondent reports from a plantation in western Indonesia.
:08:11. > :08:16.Survey in his empire from the clouds, this massive factory complex
:08:17. > :08:22.belongs entirely to the Kinoto family, with an estimated wealth of
:08:23. > :08:26.more than $2 billion, they are amongst Indonesia's top ten
:08:27. > :08:35.wealthiest families. This is the young man in charge on the ground.
:08:36. > :08:39.Only 25 years old, Anderson is a manager at a pulp and paper company
:08:40. > :08:48.whose product is sold in more than 75 countries. US educated, he is the
:08:49. > :08:53.younger son of the owner. This is a family business that has been handed
:08:54. > :08:59.down for two generations. The company realised on solid
:09:00. > :09:03.foundation. Working in a multigenerational team can bring its
:09:04. > :09:06.challenges. It isn't easy but it is our culture and our company that is
:09:07. > :09:13.not only about that but about fresh ideas. We have mutual respect. The
:09:14. > :09:17.more senior people in the company have respect for the younger people
:09:18. > :09:21.and the younger generation with fresh ideas. Likewise, the younger
:09:22. > :09:28.generation need to have mutual respect for the people they work
:09:29. > :09:31.with. My father said don't forget how lucky you are so you can
:09:32. > :09:36.appreciate where you come from. Anderson is the only son in the
:09:37. > :09:40.family business but he hasn't let his fast tracked career go to his
:09:41. > :09:48.head. You are no different to anyone else, yes? The day that you feel
:09:49. > :09:51.your sense of entitlement is the beginning of the decline, because
:09:52. > :09:57.everything that you have, you need to work for. You are not entitled to
:09:58. > :10:04.anything. This is the value that was imparted by my father and that is
:10:05. > :10:08.close to the whole family. This is the nervously dull at nursery
:10:09. > :10:15.growing the next generation of saplings. `` this is the nursery.
:10:16. > :10:23.This business is firmly rooted in family values and says that has been
:10:24. > :10:28.a key to its success. Thank you so much for investing your
:10:29. > :10:40.time with us. I am Rico Hizon in Singapore. Goodbye for now.
:10:41. > :10:43.I am Mike Embley in London with the main news stories