Archive for the ‘Indonesia’ Category

Asia Pacific Technology Exchange wins global attention (BEST PRACTICE)

April 13, 2008

 

The unstinting efforts of Cockatoo member, Geoff Mullins, were rewarded on 28 March with the launch of the Asia Pacific Technology Exchange by local federal member Maxine McKew MP. She said that ‘this is the innovation economy at work.’

 

The Exchange is designed to help establish a Silicon Valley-style business cluster in northern Sydney.

 

The launch also attracted global attention – excerpt of the article in the International Herald Tribune follows.

 

SYDNEY — A new Australian exchange, aiming to emulate the U.S. Nasdaq index with a focus on technology and innovation stocks, was established Wednesday with plans to become fully operational by the second half of 2008.

 

The Asia Pacific Technology Exchange, or Aptex, is a joint venture of the National Stock Exchange of Australia and Enterprise Pacific, a not-for-profit company. Based in Sydney, the venture plans to start with a minimum of 20 listed companies. The chairman of Enterprise Pacific, Geoff Mullins, said the new exchange expected to have 200 to 300 companies listed within its first 2-3 years. Mullins said he was not concerned about liquidity on the new exchange, which had been a problem in earlier attempts to establish exchanges in Australia, because of support from brokers and from connections being forged in the Asia-Pacific region. ”We are absolutely certain that this is under way. We have stakeholders signing up, we have companies signing up and we are ready to go.”

 

NSX had held discussions with stock exchanges in Korea, Malaysia, Thailand, Singapore, PNG and Fiji on their possible participation. Inquiries had also been received from companies in Taiwan and Korea, and it was possible that 5 of the first 20 companies on the exchange could be Asian. Mullins estimated the total market capitalization of companies listed on the exchange to initially be between $350-650 million.

Contact Geoff at gmullins@ventureaxess.com

Airline safety

October 26, 2007

The spate of airline crashes in Asia – most recently the Phuket crash involving a 24 year old airliner – has prompted considerable discussion about aviation safety.

We have therefore done some research. The Federal Aviation Administration (USA) says ‘there currently is no evidence in accident data that would support the ranking of individual airlines’.

We sensed a big cop out, and we searched and found www.planecrashinfo.com 
§          Top of the list are US airlines (e.g. Delta, AA, Continental), despite each having a number of ‘fatal events’ – their substantial number of flights work in their favour.
§          Bottom of list are Cubana, China Airlines, Indian Air Lines, Pakistan International Airlines, Iran Air.
§          Clean sheets over the last 20 years are BA, Iberia, JAL, Air Lingus, Cathay, Qantas, Air India, El Al, Air Canada and Southwest Airlines. Air NZ is there too courtesy of the 20 year time frame. 

The considered opinion is that airline safety is largely determined by four factors – aircraft age; maintenance; pilot skills; flying conditions (mountains, ice, rain).

The first variable can at least be quantified – Qantas doesn’t fare well with an average aircraft age of 10.8 years (explains its recent splurge on new aircraft). Others at the high end are North West (13.4), Delta (12.2) and JAL (12.1).

Airlines with young fleets include Emirates (3.1), Virgin Blue (4), Singapore Airlines (5.3) and Air NZ (6). Happy contemplating! 

Indonesian food investment opportunities

October 16, 2007

A no nonsense publication ‘An Investment Guide to the Indonesian Food & Agriculture Sector’ (33 pages) is now available.

 

It provide information for identifying trade and investment opportunities in fruit & vegetables, dairy products, beverages, poultry, beef products, bakery products, confectionery, snack foods, baby food, and food ingredients. The strongest growth area, perhaps not surprisingly, is poultry as well as baby food.

 The report can be accessed at www.daff.gov.au/foodinfo

Artisans in Africa

October 16, 2007

Following on from our dialogue with Indonesian officials about JVs in artisan work in third world countries, we sought advice from Graeme Simmons, a longstanding travel and lifestyle writer. He reports as follows: 

A good example I know of is Zambia, where some amazing crafts are being produced. However, business development is hampered by the unavailability of mortgage finance – Africans have no traditional system of land titles, so find it very difficult to get bank finance. Just lately, “microfinance” and “small scale development” are the buzz words in Zambia, with a number of lending institutions trying to get around the “no land titles” problem. 

With regard to marketing indigenous crafts to the West, it is vital to ensure that the sales proceeds get back to the people. Otherwise you get the situation that applies with some Aboriginal paintings, where the artist gets a small fee for a piece that will later fetch thousands of dollars in a top gallery in New York. One way around this might be to introduce training programs in marketing, and to develop joint ventures between local artisan communities and reputable galleries in the global cities.’ 

Contributed by simmo@globaltravelwriters.com

India second in global M&A deals ranking

October 15, 2007

India has been ranked second in the global M&A deals in the region, with a total outbound deal value of $13.5 billion, according to a report by global consultancy firm Dealogic.

Australia tops the Asia-Pacific cross-border outflow with 125 deals worth $30 billion, followed by India with 74 foreign acquisitions so far in 2007. Some of the significant outbound cross-border deals include Suzlon Energy’s acquisition of REpower for $1.7 billion, Vijay Mallya-led United Spirits buying out Whyte & Mackay for $1.11 billion, Tata Power picking up stakes in two Indonesian firms, and Essar Group’s purchase of Canadian Algoma Steel for $1.55 billion. The US is the most targeted for acquisitions by firms in Asia-Pacific with 135 deals worth 28 billion dollars, followed by the United Kingdom with $12.1 billion from 43 deals and Canada at $11.1 billion via 25 deals.  Contributed by Mahesh Rathod, Senior Investment Manager, Invest Australia (India)