Wolf Money/Bargain(5 things you need to know about Jakarta, Indonesia)
Indonesia just celebrated their 79th Independence Day on 17th of Aug. They have officially shifted their capital city from Jakarta to Nusantara. It was a joyous occasion for all Indonesians.
Let’s get going by mentioning the not so enjoyable part of Jakarta, The weather and air quality were less than ideal. Other than those two things which we can’t control, most parts of the trip were quite enjoyable. People were polite. In area of hospitality, the Indonesians are outstanding. I was greeted warmly everywhere I went. From GRAB drivers to security guards, they are the unsung heros of Indonesian tourism. To me, it is always about the people-to-people interactions that make the country worth revisiting. Terima Kasih(thank you) to those people whom we met for making our trip special. These are my Lone Wolf Investor’s 5 things you need to know about Indonesia.
1.) Indonesia economy
The country relies on exporting minerals and commodities with China being its largest trading partner. The domestic economy is growing with the increasing middle class among 278m inhabitants, making Indonesia the largest market in South East Asia. Indonesia is a net importer of oil, but the country produces a lot of natural gas. They rank 13th in the world based on proven gas reserves. Indonesia is also the largest producer of palm oil, accounting for 59% of global production. I saw a few buildings owned by some SGX listed Indonesian companies in the business district. They are quite impressive.
The news-grabbing headline this week was the visit by the pontiff, Pope Francis. There was an air of excitement and anticipation among the 8.6m Catholics in Indonesia. Other news included factory activity contracting in Indonesia to 48.9 from 49.3. The culprit of the weakness, as you would have guess, China. With China’s weak economy, it affected exports of raw materials like nickel and iron ore to China. China is Indonesia’s largest trading partner.
2.) Cost of transportation
Most people in Indonesia drive or ride a motorcycle if one can afford. A Toyota costs around IDR 450m (SGD $40,000). A new motorcycle costs around IDR 35m, approximately SGD $3000. The price of buying a car is expensive given the average income of Indonesians living in Jakarta is around IDR 12m, around SGD $1000 a month. The government has spent money on building public transport infrastructure. MRT and BRT(Bus Station) are part of the government initiative to improve the traffic situation. The public bus stops are on a raised platform which is different from the bus stops we have in Singapore.
Another initiative includes the odd-even number system for cars’ number plate that only allows alternate days traveling on the road. Non-compliance motorists will be fined IDR $500,000(SGD $42). Taxi, Gojek and GRAB are the main avenues for people to travel within the city. A GRAB within the city will cost anywhere from IDR $25,000 to IDR $35,000(SGD$3-$4). The duration taken to travel to and from airport is not as long as feared.
I also find an interesting observation. All taxis are named according to a different colour bird. Bluebird, Silverbird and Goldenbird, with Bluebird being the most established taxi company of all.
3.) Places of interest
My top three Include National Monument, PIK 2 and Shopping Malls. During our trip to the ex-capital, the sun was brimming. Shopping malls provide some relief to the warm Jakarta weather. Grand Indonesia and Plaza Indonesia are wonderful malls to enjoy some new-to-market f&b and luxury shopping. Luxury goods were sold at a higher price to those in Singapore due to the luxury tax imposed on imports. I saw a lot of Japanese-themed restaurants and one could enjoy local Indonesian food at a very reasonable price. Most of our meals fall within the IDR 300k to IDR 350k($25 to $30). PIK 2(New Chinatown) has a Singapore or Malaysian feel. Rows of familiar Singaporean and Malaysian F&B outlets operating out of the enclave. I saw a slice of Singapore life in the name of Beach Road Scissors Hainanese Curry Rice. The National Monument is worth visiting to have some photo opportunities.
4.) Value proposition
I didn’t find anything at a screaming bargain. The prices of sportswear are pretty similar to Singapore. A meal at a restaurant costs half of Singapore. Sate Khas Senayan which serves local cuisines, is value for money. We ordered a table full of food for a group of 4 adults and 3 children costing a reasonable IDR 800,000 (SGD 68). Sushi Hiro and Dewata@Sarinah Mall are my other top picks.
MRT is another cheap form of transport to get around the city. It cost IDR 3,000 to IDR 14,000 ($0.25 to $1.18) for a single trip ticket. The Indonesian black tea is a fantastic buy with some tea costing as low as IDR 10000 per pack. The granola bars are a third of Singapore prices. I am very impressed by the fast adoption of digital payments in the city. A few outlets don’t accept cash as a mode of payment.
5.) Alternative city for travel
With flight time less than 2hrs, Jakarta is a nice city to visit over the weekend. There are plenty of indoor playgrounds to keep the kids occupied. A lot of modern amenities make our travel in Jakarta a breeze. I am amazed by the progress of the city. It has transformed into a modern metropolis with it rich culture and diversity. The total spending for our trip, including air fares, accommodation and some spending money for a 4 days trip cost around SGD 700 per person. If you are sick of traveling to Johor Bahru, Jakarta does offer an attractive alternative. Last but not least, special mention goes to the hotel staffs at PARKROYAL Serviced Suites, Jakarta .They have performed over and above what was required. I am sure the late Dr. Wee will be proud of the high standard of services. Till we meet again, this is your Lone Wolf signing off.
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