Category: business

The call to boycott Traveloka

I posted this in the Maverick blog today:

 

A snarky comment on the eagerness of the mob to boycott brands at every slight whiff of suspicion

 

Deliberate misunderstandings and righteous piety seems to be the order of the day in Indonesia’s poisoned and acrimonious political settingThe latest flap involves a call to boycott travel site Traveloka and uninstall their mobile app following a walkout by detractors when newly installed Governor Anies Baswedan delivered the keynote speech at Canisius College’s 90th anniversary on November 11.

The walkout was led by well-known composer Ananda Sukarlan who objected Anies’s politicking methods to win the gubernatorial election.  The walkout generated lots of publicity and social media chatter and somewhere out of this mess t someone somewhere gan to spread information that one of Traveloka’s founders, Derianto Kusuma, had walked out on Anies together with Sukarlan. Derianto had been slotted to receive a recognition award from the College.

From there things snowballed an soon a “movement” was formed where its supporters asked other netizens to uninstall the Traveloka app on their mobile phones as a sign of protest against Derianto’s action.

The fact of the matter, however, was that Derianto, as explained by Traveloka in a press release, was unable to attend the event as he was traveling overseas. So he couldn’t have joined the walkout.

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Go Jek, Uber, Grab and other ride-hailing services is a KPPU issue

The demonstration by taxi and the public transport rivers yesterday received much criticism from the Netcitizenship, who naturally gravitate to things Webby, disruptive and saves them money.

The transport drivers are apparently disgruntled over dwindling income caused by their ride-hailing services and the ostensible reason for objecting to the latter’s presence are claims that they do not pay tax, do not have proper permits and may be foreign companies invading Indonesian turf.

 

These are wrong reasons to demonstrate, even though a demonstration is justified. It is justified because the ride-hailing services are engaging in unfair trade practices. It is unfair to the taxi and other public transport drivers because they cannot compete against heavily subsidised prices of Go Jek and the other ride hailers. The ride hailers aren’t making money at this stage but trying to win market share through heavily discounted prices. They can sustain their discounts because they have investors who are willing to pump money into them in the gamble that they would turn out to be the Next Big Thing.25d067bf-a9b8-4276-b8a9-53df94733391_169

How long will these subsidies last? As long as investors are willing to inject capital into the ride hailers. It may be six months ayear or beyond but what’s interesting are the repercussions they cause in the meantime.

Never mind the fly-by-night and dubious taxi companies who provide shoddy and unreliable service. They deserve to perish. But a company such as Blue Bird that has won the trust of many Indonesians because they had relative clean and serviceable cars and reliable drivers when the market was full of bad ones are affected too.

So a scenario could develop where the taxi companies, even Blue Bird, all start to fold or deteriorate because of reduced revenues. This situation, however, is no guarantee that the ride hailers would succeed or become a viable replacement. What if most of them fold because the investors got bored or dismayed by the continual financial losses? Where would we be then? Bereft of quality traditional public  transport as well as affordable ride hailers?

This issue also raises a question of how much and how long it is fair to provide discounts to win market share. Most products hold promotions and provide discounts to do just that but they are usually short-lived ones as the real economic pressures assert themselves. But with ride hailers the only economic hidden hand is that of the investor, often with access to huge funds.

So is this unfair business practices, that should be looked at by the KPPU? Or is this the new world of disruption that will herald new business models for public transport?

 

Contracts not valid if it ain’t in Indonesian?

Whoa! This may have far reaching implications for foreign companies that have signed contacts with Indonesian companies — and result in lots of work for Indonesian lawyers and translators.

Another mess for the Jokowi government to try to sort out if they want to attract foreign investment.

INDONESIAN HIGH COURT AFFIRMS FIRST INSTANCE COURT DECISION THAT CONTRACTS WRITTEN IN ENGLISH LANGUAGE ARE VOID

There has been continuing uncertainty and concern about the Indonesian legislative requirement that the Indonesian language be used in contracts with Indonesian parties.

In the absence of anticipated implementing regulations, there are many unresolved questions about the meaning and applicability of the broadly expressed requirement.

In May 2014 the Jakarta High Court rejected an appeal against the 2013 ruling by the West Jakarta District Court which declared an Indonesian law governed loan agreement between an Indonesian borrower and a foreign lender to be void on the basis that the loan agreement was written in English in contravention of the requirements under Indonesia’s Law No. 24 of 2009 concerning Flag, Language and Symbol of State and National Anthem “Law 24/2009” – please click here for our previous e-bulletin on the impact and effect of the first instance decision.

There was no new legal reasoning provided by the Jakarta High Court as to why the first instance judgment should be upheld. The judgment simply stated that the appeal submitted by the foreign lender to overturn the first instance judgment was rejected on the following grounds:the Jakarta High Court was of the view that the first instance decision was decided correctly in compliance with prevailing laws; andthere were no new facts submitted by the appellant that would undermine the first instance decision.

via 2014/09/17 – Indonesia Update | Indonesian High Court affirms first instance court decision that contracts written in English language are void.

Cutting through the clutter about the Cut the Crab incident

One of the ever-present threats of companies in the Food and Beverage business is food poisoning. This is especially so when you deal in seafood that spoils easily.

Cut the Crab, a hip new restaurant chain with a great gimmick – eat the crabs served on the table without plates, forks or spoons – recently found out how difficult it is to deal with allegations of food poisoning, especially when these allegations are boosted by social media. The allegations, and their consequences especially when they are amplified by Twitter, provide an interesting study for students of crisis and issues management.

So what are the salient learning from this incident (which has been summed up meticulously in  Zeit Post – see below)?

  1. Hip restaurants attract hip, young diners who use social media extensively. If they have a complaint, whether justified or not, they will Twit first, think later. Companies that court such clients must have a response plan or a SOP to handle complaints, especially when the swarm starts to scale up these complaints.
  2. The chances of seafood spoiling at some point in time are very high, even when you take all the right precautions. So anyone dealing with seafood – and food generally – must prepare for the probability of complaints of stale, spoiled food or food poisoning. The restaurant should have a response plan not only to investigate the complaints and how to reach out to the victims – but also to demonstrate these actions to the media.
  3. The media, especially news portals with dedicated food writers such as detikfood and Okezonefood, will pick up whatever is hot on Twitter and run with it. Their coverage will in turn fuel a spate of Retweets and comments, in a Voracious Cycle around the issue. Controlling the situation means slowing the momentum of this cycle by engaging both the individual users and engaging the media proactively to demonstrate that you regret the incident, the reasons why it could have happened and what steps you are taking to remedy the situation – the Three Rs of crisis management.
  4. When under siege it is never a good idea to sound defensive or to point fingers. It only arouses people’s suspicions of you when you are already under intense scrutiny. Therefore saying that you’re a victim of sabotage by rivals is a definite no-no

The Cut the Crab incident is still on the boil (ok, pun intended) at this posting. Will the franchise emerge out of this unscathed, as continued crowds at the restaurant even after the Twitter-news portal brouhaha broke out, seem to indicate; or will their business take a hit? Let’s watch the incident unfold.

 

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Cut the Crab, Pelanggan Keracunan Makanan – Zeit Post

FEBRUARY 26, 2014 BERITA

Mungkin akan terasa asing bagi anda mendengar nama restoran Cut the Crab. Tapi jika anda orang yang up to date dengan berbagai macam restoran seru di Jakarta. Cut the Crab adalah salah satu restoran seafood yang fenomenal.

Cut the Crab, Makan Kepiting dengan Bebas

 

Tentunya anda tidak makan kepiting layaknya di restoran all you can eat. Bebas yang di maksud adalah anda bisa makan dengan tangan dan bergaya seperti di rumah. Penyajian nya juga unik, pesanan anda akan datang di dalam kantong plastik bening dan di tuang begitu saja di meja makan. Tentunya meja sudah di sterilkan terlebih dahulu sebelumnya!

Ilustrasi: Penyajian Cut the Crab yang di sajikan di meja makan

Wow seru sekali bukan? Tentunya dengan penyajian yang unik ini, banyak orang yang penasaran dan kembali lagi untuk pengalaman lain menyantap makanan seafood. Restoran ini mengusung kepiting sebagai salah satu menu spesialisasi. Restoran ini juga ramai dan selalu penuh pengunjung pada akhir pekan.

Baru kali ini terjadi pemberitaan yang mencuat di media semenjak di bukanya restoran ini pada Mei 2013. (Belum di ketahui apakah ini restoran di CTC Cikajang atau cabang lain).

Masalahnya ..

Pelanggan yang Keracunan Makanan

Tentu tidak ada restoran yang ingin mencelakakan pelanggan, apalagi menyediakan sajian yang tidak segar dan berpontensi mengandung racun.

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