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Economic Barriers to the Digital Economy in the Global Economy

10

Mar

Economic Barriers to the Digital Economy in the Global Economy

Farmers feed billions across the globe via precision agriculture – eliminating further depletion of increasingly scarce natural resources. [...]

Economic Barriers to the Digital Economy in the Global Economy. Farmers feed billions across the globe via precision agriculture – eliminating further depletion of increasingly scarce natural resources. Consumers collectively converge to transform a 130-year-old soft drink recipe for the better, driven by nutrition.There’s no denying that hyperconnectivity and the data it generates is transforming our lives and upending the business world.According to The Economist Intelligence Unit (EIU) study, “The Impact of Hyperconnectivity on Your Organization,” we are merely scratching the surface when it comes to realizing the full potential of the Digital Economy. Businesses which successfully integrate hyperconnectivity into their strategies are more likely to experience streamlined collaboration across divisions and geographies, adopt a data-driven approach to organizational decision-making, and accelerate process improvement. The real gains, however, lie in the transformative changes taking place across the enterprise.Digital Economy imperativeBeyond how machines, people, processes, and things are connecting with one another, several business cases are proving that the Digital Economy is upending the business world. In the EIU study, 59% globally cite embracing hyperconnectivity as imperative to keep pace with ever-changing market demands – and 69% claim that a failure to adapt represents significant risk and missed opportunity.Here in Indonesia, a report by the Indonesian Internet Service Providers Association (APJII) and the University of Indonesia’s Communication Studies Research Center, states that by the end of 2014, Indonesia already had 88,700,000 mobile Internet users. This number is projected to steadily increase to 112 million mobile Internet users by 2017. With this, Indonesia has significant potential to become a hub for new digital economy growth. This is further strengthened by Indonesia’s young and growing population, which is projected to reach 280 million by 2030, contributing to an average annual GDP growth of 2.4% from now until then.As Indonesia’s population continues to grow, so too will their engagement with social media. These social media trends are popular among the middle class, which business leaders see as a positive development. Aside from its rapid growth and undeniable pervasiveness, it presents a substantial opportunity to engage with digitally connected consumers.The Indonesian government and its stakeholders need to work closer to push for a sustainable growth of the Digital Economy. Indonesia is now starting to catch up with countries that focus on their digital economy, by beginning to increase the provision of broadband infrastructure, including fixed and mobile broadband, and the deployment of fourth-generation (4G) technology. The target of Indonesia’s Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI) is to transform 135 cities/districts by 2019 as a legacy of the current President. This will further fuel Indonesia’s growth as a digital nation.The Digital Economy is not only leveling the playing field, but also enabling every business regardless of size, industry, or geography. Here are four areas of any business responding favorably to the increased speed, collaboration, and insight hyperconnectivity brings:1. Strategy and business developmentTraditionally, expanding into international markets has been viewed as a risky move. Now, many businesses are capitalizing on the removal of barriers that once discouraged them.According to the EIU study, while 39% remain apprehensive that moving forward will strain established markets, almost half of the respondents agree that their plans for global expansion are a strategic way to compete against ever-changing digital channels. Furthermore, knowing where to go next is only getting easier – 40% will be better able to identify new geographies ripe for their current offerings.2. Product developmentToday’s customers have a greater voice in how products are created and delivered than ever before. But the future will see customer and business relationships becoming even more intertwined through digital channels. The EIU study reports over 50% of respondents plan to customize products and services to meet individual needs. Even more striking, 41% foresee incorporating customers into the product development process.The primary source of competitive pressure, however, does not come from customers. Rather, it’s the digital offerings of established rivals that loom largest. More than half (57%) admit to experiencing “moderate” or “severe” competitive pressure as a result of incumbents’ digital offerings. And there seems to be no relief in sight – with 69% expecting significant competition from the same established players.3. Supply chainSignificant cost savings – at least for the 35% of respondents the EIU study cites. As more businesses seize the opportunity to expand their operations, 38% also find that hyperconnectivity empowers them to work just as effectively with international suppliers.Why? Not only does the Digital Economy open doors to every supplier across the globe, it opens buyers to your products. As a result, businesses will become more selective about the suppliers they choose (39%) and increase the variety of materials purchased through the supply chain (27%).4. Human resourcesIn the EIU study, the most cited impact of hyperconnectivity is the acceleration of business processes. In fact, 46% indicate the automation of business processes as their most adopted response to the interconnectedness of data, processes, and things. Going forward, almost half of respondents believe that hyperconnectivity can help their organizations become more agile and innovative while reducing centralized control.Take PT Kereta Api Indonesia (Persero) for instance. The 151-year-old Indonesian state-owned enterprise that manages the railway transportation in Indonesia is currently aligning its business models with business processes brought about by the digital world.By streamlining services through hyperconnectivity, PT Kereta Api Indonesia (Persero) is building customer trust by delivering what customers value most – reliable and responsive customer service, and competitive pricing.PT Kereta Api Indonesia’s IT vision is to become a business driver in realizing the company’s vision of transforming into the best railway service provider. To reach this vision, the company’s management turned to SAP solutions to power their business. They implemented the key ERP solutions for their Railstar Project to enable improvements in railway infrastructure maintenance. This drive for improvement enabled effective changes for its administration and financial reporting processes, as well as better management of its receivables and payables, leading to increased efficiency.No matter how you transform, automate or accelerate processes, people are always at the heart of such transformation. With the influence of hyperconnectivity, more than a third have introduced digital training to support such shifts as automated business processes (46%), outsourced functions (33%), and agile development practices (39%). However, this appears to merely be the tip of the iceberg.

Oil Jumps on Drop in U.S. Gasoline Stockpiles

10

Mar

Oil Jumps on Drop in U.S. Gasoline Stockpiles

The US benchmark, West Texas Intermediate (WTI) for April delivery, surged $1.49 (4.9 percent) to end at $37.99 a barrel on the New York Mercantile [...]

Oil Jumps on Drop in U.S. Gasoline Stockpiles. The US benchmark, West Texas Intermediate (WTI) for April delivery, surged $1.49 (4.9 percent) to end at $37.99 a barrel on the New York Mercantile Exchange, its highest level in more than three months. In London, Brent North Sea crude for May delivery, Europe's benchmark for oil, jumped to settle at $41.07 a barrel, up $1.42 (3.6 percent) from Tuesday's close. The US Department of Energy's (DoE) weekly petroleum supplies report Wednesday showed that commercial crude oil inventories rose by 3.9 million barrels to 521.9 million barrels in the week ending March 4. CMC Markets analyst Jasper Lawler said the increase in crude oil was `well below last week's surprise inventory build of 10.4 million barrels.` More significantly, gasoline supplies fell by 4.5 million barrels, three times more than expected. And distillate supplies, which include diesel and heating oil, dropped by 1.1 million barrels, rather than rising by the predicted 900,000 barrels. `The gasoline draw was more than what traders were looking for, that's definitely been somewhat supportive,` said Oliver Sloup of iiTrader.com. Sloup said the European Central Bank's (ECB) policy meeting Thursday was adding some support to the commodity, amid expectations the ECB will announce fresh stimulus measures for the sluggish eurozone. He said a larger-than-anticipated stimulus package would likely put downward pressure on the euro and lift the dollar, `which could potentially put some short-term support underneath crude`, which is priced in dollars, according to AFP. (Uu.A026)

CPO PRICE MARCH 7: CPO Rallies Sharply as Stockpiles Thin

07

Mar

CPO PRICE MARCH 7: CPO Rallies Sharply as Stockpiles Thin

May 2016 CPO futures contracts, the most active contract on Bursa Malaysia, opened up 0.52% to a price of 2,520 ringgit per ton and continued to gain [...]

CPO PRICE MARCH 7: CPO Rallies Sharply as Stockpiles Thin. May 2016 CPO futures contracts, the most active contract on Bursa Malaysia, opened up 0.52% to a price of 2,520 ringgit per ton and continued to gain 1.08% to 2,534 ringgit or Rp8.01 million per ton at 10:29 WIB.
The price of the commodity rose, following the surge in the crude oil price. The Brent contract rose 1.78% to US$ 39.41 per barrel at 10:35 WIB after closing up 4.45% last weekend
The condition of palm oil stocks in Malaysia also boosted CPO prices. Bloomberg estimated CPO stocks in the neighboring country to be 2.11 million tons in February, down 8.7% compared to the previous month. This stock is the lowest since March 2015.
May 2016 CPO Price Movement

Date
Level
Change

7/3/2016 (10:29 WIB)
2.534
+1,08%

4/3/2016
2.507
+0,24%

3/3/2016
2.474
-0,64%

2/3/2016
2.490
-1,78%

1/3/2016
2.535
-0,51%

Source: Bloomberg 
Editor : Gita Arwana Caktihttp://market.bisnis.com/read/20160307/94/525799/harga-cpo-7-maret-stok-menipis-cpo-menguat-tajam

MARCH 7 RUBBER OUTLOOK: Rally Extends on Thailand Supply Focus

07

Mar

MARCH 7 RUBBER OUTLOOK: Rally Extends on Thailand Supply Focus

The commodity increased 2.23%, or 3.90 points, to 178.50 yen per kilogram or IDR20,514.43 per kg at 10.12 WIB. Previously, rubber was open to [...]

MARCH 7 RUBBER OUTLOOK: Rally Extends on Thailand Supply Focus. The commodity increased 2.23%, or 3.90 points, to 178.50 yen per kilogram or IDR20,514.43 per kg at 10.12 WIB. Previously, rubber was open to increase at 175.60 yen per kg.
`Supply from Thailand plantation, fell because they have stopped tapping the trees,` said the President of Komoditi Intelligence in Tokyo Masayo Kondo as quoted from Bloomberg, Monday (March 7, 2016).
The winter period causes the rubber trees to drop their leaves, so that the farmers have postponed their shipment. Thailand, Indonesia, and Malaysia agreed to cut rubber shipment by 615 kilotons in the six months since August 31.
Thailand is still the largest producer and exporter, while China is the largest rubber consumer.
Rubber Price Movement for August 2016 in TOCOM

Date

Price (Yen/Kg)

Change

March 7, 2016 (10.12 WIB)
178.50
+2.23%

March 4, 2016
174.60
+6.01%

March 3, 2016
164.70
+1.86%

March 2, 2016
161.70
+3.26%

March 1, 2016
156.60
+0.97%

Source: Bloomberg

German finance minister: UK would be ‘economic poison’

07

Mar

German finance minister: UK would be ‘economic poison’

The UK’s decision to leave the European Union will damage Britain, Europe and the world economy, German Finance Minister Wolfgang Schaeuble has [...]

Darmin: rupiah gains as foreign capital flows in

07

Mar

Darmin: rupiah gains as foreign capital flows in

"Fund owners consider investment in Indonesia promising, so the money comes in here (Indonesia). If it comes in here, our rupiah will strengthen," [...]

Darmin: rupiah gains as foreign capital flows in. `Fund owners consider investment in Indonesia promising, so the money comes in here (Indonesia). If it comes in here, our rupiah will strengthen,` said Darmin in Jakarta on Friday. Darmin said that the capital inflow into Indonesia occurred because of the trend of negative interest rates in the European Union and Japan, and economic weakness in developing countries such as China. Foreign investors, he continued, want to redirect their funds to Indonesia because the national economy is currently in good condition at an adequate key interest rate, although it is still relatively high. According to Darmin, the government has prepared various steps so that funds remain in Indonesia, although a capital reversal may occur later. However, he predicted that the possibility of a capital reversal would not disturb rupiah performance too much. `We will certainly take care of it by continuing the steps that we have done so far. But I believe this is not like in the past, when the US wanted to increase its interest rate, the atmosphere was already in turmoil,` he said. Previously, the rupiah exchange rate traded interbank in Jakarta on Friday afternoon had strengthened by 89 points to Rp13,143 compared to the previous position at Rp13,232 per US dollar. `The rupiah currency is continuing to strengthen in line with the weakening of the US dollar in the Asian region due to the global crude oil price trend that is strengthening. This external sentiment is maintaining the pace of the domestic currency,` said Samuel Sekuritas Economist Rangga Cipta. It was observed that the price of WTI Crude crude oil on Friday afternoon was at the US$34.48 per barrel level. Meanwhile, Brent Crude crude oil was at US$36.88 per barrel. Rangga added that the negative pace of the US dollar also followed sentiment from US non-manufacturing sector data, which had declined following the manufacturing sector index. US non-manufacturing activity declined to 53.4 in February from 53.5 in January.
Editor: B Kunto Wibisono
http://www.antaranews.com/berita/548503/darmin-penguatan-rupiah-karena-masuknya-aliran-modal-asing

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