Some of us may be surprised from foreign companies that have investment plans in Indonesia, but does it feasible?
Here is my analysis (from my imagination) on failed investment that (may or has) shock Indonesia.
Metro AG goes to Indonesia.
Metro AG its a shopping chain from Germany, they said it is a big company. As far as I can remember, there is no store named Metro in Germany. Yeah, maybe they use and operate their subsidiaries instead of their real company name.
Anyway, To enter Indonesia there is at least three obstacles exists.
First is that there is already Metro Dept Store, singaporean company selling high price brands and items. To enter Indonesia with their name Metro means conflicting with name, copyright and there'll be long fight in intellectual property right before enter the real battle (store).
Second problem: that Jakarta as capitol city of Indonesia already dense with shopping center, especially A class malls, full with high foreign retail chains like Debenhams, Metro, Sogo, Seibu, Lotte etc.
Third problem is that there is no more empty space for A class mall in at least in Jakarta, and to enter/conquer Indonesia is by enter the capitol city then spread to other cities. But align to Metro AG target market are middle-high income that mostly located in big cities, so Metro AG (i think) must open in Jakarta then spread to other cities.
Bullet train Jakarta-Surabaya.
Yes, this news i've read twice.
The first one that american investor want to invest in bullet train that took only 4 hours from Jakarta to Surabaya, aaaaand its gone.
The second news i'be heard from french company that operates TGV, the bullet train that want to invest in Indonesia, also aim the same market as the american, and its gone. Why?
At least there are two point thats make them unwilling to proceed.
First, that investment in rail/train are expensive, cos you have to build your own railroad, station, electrical network, signaling etc and as far as i can remember that both foreign company wanted to join/put their business on existing infrastructure made by PT KAI. If i am PT KAI i will reject it, it will be messing my current business, even though they offer interesting project (bullet train). The foreign business use my infrastructure to run their business here, and they should know that Javanese railroad has high traffic.
Second problem is that LCC (low-cost carrier) in Indonesia is booming, it costs you rp400.000 to fly from Jakarta to Surabaya one way and it took around an hour compared to bullet train, that i assumed cost more than rp1.000.000 to afford (consider the investment, technology (train etc) and profit).
So, bye bye bullet train hehe.
Another failed investment will be brainstorm soon.
