Failed investment

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.

Starbucks price in four countries

This time, fun writing. No more serious stuff :p

As coffee addict, who doesn't know Starbucks? The famous coffee chain in the world. 

So what's the special thing about Starbucks that I want to write today is about the price. I've been to three countries and I want to compare prices in Indonesia, Germany and Australia.

In Indonesia, the small/short cup of Caramel Frappuccino cost Rp. 34,000 or A$ 3.6, while in Australia it cost  A$ 5.3! On the other hand, a Tall Caramel Frappuccino in Berlin cost 3.90 Euro or A$ 4.9!

Here is some hint for what size is Starbucks cups has: 

Short - 8oz
Tall - 12oz
Grande - 16oz
Venti - 20oz

What I've bought in Berlin was Caramel Frappuccino in Tall size, as shown in this receipt.

So lets summarise the result on a table.

No.	Country	SBUX size	Price (AUD)
1.	Indonesia	Short	3.6
2.	Australia	Short	5.3
3.	Germany	Tall	4.9
4.	Japan	Short	5.2

The Japanese's Starbucks price was contributed from a friend that previously visited there, she said that the Short caramel Frappuccino cost Y 420 or A$ 5.2.

Well, the not-so-surprising data is that Starbucks coffee price is relatively low in developing country such Indonesia. But in developed countries as shown on table above it is quite surprising that Starbucks price is relative cheaper in Germany than in Australia and Japan!

I think I want to drink a coffee, not iced-coffee, but a hot black coffee from my kitchen :q

Happy sipping folks!

Its an International World

No more heavy substantial topic. This time only for fun.

Here is some of the “international world” evidence.

Design in California, made in China

 I bought the iPad in Germany, and the iPhone in Jakarta.

 

Coffee bean from Brazil, manufactured in Taiwan, sold in Melbourne.

 

This product is more way confusing, consist of imported coffee bean, roasted and packed in Germany and then imported by a company from Victoria, Australia.

FYI, blue mountain is one of the famous coffee beans originated from Jamaica, click here.

Its an international world.