Indonesia 4.0 Bisa! - Mercedes me Lifestyle Store Comes to Chengdu - Jardines
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VOLUME 2 2019
Indonesia 4.0 Bisa!
Preparing for
a Blockchain
Future
Mercedes me Walk Up,
Voice Up
Lifestyle Store
Comes to Chengdu
Riding Indonesia’s Digital Wave Astra is moving fast to embrace Indonesia’s significant digital opportunity in both the consumer and industrial sectors. Djap Tet Fa, President Director of PT Astra Digital Internasional, shares more about the company’s digital plans and current focus areas. Page 10
Contents
A Collaboration
to Fast-forward
New Concepts
Page 07
Multiple
Accolades
for Cycle
& Carriage
Page 22
Thailand’s Love
of Coffee Leads
Opportunity
Page 17
Hong Kong
Colleagues
Urged to
Go Green
Page 30
The Pulse 04
Group-wide Senior Management Changes
Chongqing’s Express Economic Growth
Perspective 10
Indonesia 4.0 Bisa!
Front Runners 14
Virtual Lifestyle Bank livi to Launch in Hong Kong
JEC Thailand Wins Contracts for Eco-Friendly The Forestias Project
Celebrating Success 22
New Training Astra Strengthens its CSR Leadership Reputation
Programmes Hactl Celebrates in Munich and Hong Kong
Support For Our Future 26
Continuous MINDSET Initiatives Showcased at Singapore Mental Health Conference
Improving Access to Education in Cambodia
Learning Across Our People 34
the Group New Training Programmes Support Continuous Learning Across the Group
Jardine Motors Group E-book Celebrates Inspiring Colleagues
Page 34 and their Achievements
Thistle Volume 2 | 2019 01
Jardine Foundation
Scholarship Awards 2020
Applications for undergraduate courses
are now open for students who wish to apply to
our affiliated Colleges at Oxford,
and Cambridge for the academic year
commencing in October 2020
APPLY NOW Deadline: 21st October 2019
The Jardine Foundation was set up in 1982 to mark the 150th
anniversary of the Jardine Matheson Group. The Foundation
provides scholarships covering tuition fees and living expenses
to students originating from the countries where Jardines
operates, primarily in Asia.
The goal of the Foundation is to develop future leaders who
aspire to give back to their communities.
Scholarships are available for courses at the following Colleges:
University of Cambridge –
Downing, Magdalene, Peterhouse, Trinity
University of Oxford –
Exeter, Oriel, The Queen’s, Trinity
https://www.jardines.com/en/community/foundation.html
MD’s Desk
Six Reasons
to be Excited
Resilient is one of the best words to sum up the Group business
performance in the first half of the year, which saw continuing
strong results from our motor interests in China, as well as good
contributions from Hongkong Land’s investment and
development property businesses.
Dairy Farm also delivered improved sales in most divisions and
saw green shoots from its ongoing investment in its
These projects
transformation plans. But there were also headwinds including
weaker consumer sentiment impacting some of Astra’s
showcase the diversity
businesses, and challenging trading conditions in Southeast Asian and dynamism of our
car markets. Looking to the rest of the year, while we have
everything to play for, potential geopolitical and macroeconomic businesses and
a growing spirit
factors – which continue to unfold – could be significant for us.
Taking a longer view, I am encouraged by the strategic focus of our
businesses, and their long-term plans, and six exciting of collaboration.
partnerships are profiled in this issue of Thistle, including:
1. Maxim’s partnership with Starbucks is a good example of
long-term vision and cooperation with a great partner, and Executive Chairman and
Maxim’s – with a local partner – recently took over the right to Managing Director
operate and develop Starbucks stores throughout Thailand. Ben Keswick
2. Michael Wang, Chief Executive of the virtual bank livi, provides
a progress report on this joint venture with Bank of China Hong
Kong and JD Digits, outlining its potential benefits.
3. Astra is also embracing Indonesia’s vast digital opportunity
and the Perspective feature looks at Astra’s ambitious digital
plans, collaborations, and innovative mobility offerings.
4. A digital partnership between Startup Autobahn (an open
platform powered by Plug and Play and backed by Daimler) and
Jardine Cycle & Carriage, Zung Fu, and Jardine Motors Group in
the United Kingdom has helped ‘fast-forward’ several projects.
5. A hackathon partnership between the Jardine Restaurant
Group and the Hong Kong University of Science and
Technology could also see the introduction of ‘Lord of the
Wings’ – an AR game – at some KFC restaurants soon.
6. Finally, to celebrate Jardine Cycle and Carriage’s 120th
birthday, a university scholarship programme was launched
to support ASEAN students. The first school built under the
ACLEDA-Jardines Education Foundation also opened in a
remote part of north Cambodia.
These projects showcase the diversity and dynamism of our
businesses and a growing spirit of collaboration across the
Group, and with external partners, which provides a tremendous
springboard for more exciting opportunities in the future.
Ben Keswick
Thistle Volume 2 | 2019 03
The
Pulse
Preparing for a From left: Dr Paul Sin, Leader of Fintech Practice and APAC
Blockchain Lab for Deloitte China; Gregory Simon, CEO
and founder of Loyyal; Martin Baumann, co-founder and
Blockchain Future
Managing Partner of CMCC Global; and Emma Cui, CEO
and founding partner of LongHash, with event organiser
and moderator Laura Goldwyn, Jardine Executive Trainee.
The transformative benefits offered by blockchain Blockchain Opportunities for Jardines
technology – and relevant applications that might be
Loyalty programmes, automatic data reconciliation,
suitable for Group businesses in the future – were the
supply chain tracking and smart contracts were
focus of a recent Speaker Series forum hosted by
highlighted by the speakers as areas where blockchain
Innovate Jardines (IJ) in Hong Kong.
applications could make a significant difference for
Blockchain experts including consultants, fund Group businesses.
managers and project leaders were among the
Eager to learn more, over 50 guests, including Y K
panellists in the session, which provided a
Pang, Deputy Managing Director, John Witt, Group
comprehensive introduction to the emerging
Finance Director of Jardine Matheson Group, and Mark
foundational back-end technology. Citing real-world
Lunt, Group Managing Director for JOS, participated
examples, the speakers explained how blockchain’s
enthusiastically in the Q&A session. Questions
peer-to-peer network system enables participants to
covered the potential risks associated with blockchain;
interact and trade digital assets without the need for
what makes a good blockchain provider; how urgently
an intermediary, thereby cutting costs and simplifying
do we need to adopt new technologies; how to
how we do business.
determine the most relevant technology and more.
04
Key Takeaways
Prepare your businesses to be blockchain-ready Blockchain has the potential to
sooner, rather than later, was the main call to action
from the event. Speakers noted that there is an urgent transform the way that we do
need to learn about and prepare for a future when business. What all of our people
blockchain technology goes mainstream and impacts need to do is to really SWOT up
all parts of business.
on it, learn all about it, come to
Commenting on the session, IJ Chief Executive Michael events like this, and prepare
Poon said, “The speakers explained blockchain in very
practical terms, and the various ways it can be adopted ourselves for when this
across our businesses. They also provided potential technology will arrive and be
reasons for us to start our own blockchain trial projects part of our daily lives.
to ensure we stay ahead of the curve and [are] well-
positioned to optimise benefits in the future.”
If you would like more information about blockchain, Jardine Matheson Group
please contact the IJ team, who can provide more Deputy Managing Director
learning materials or host a blockchain workshop. Y K Pang
Group-wide Senior
Management Changes
Important changes are being made in senior
management at Jardine Matheson Group, effective
October. These reflect the evolution of the Group and the
achievements and commitment of its leadership team.
Deputy Managing Director Y K Pang will take on the newly
created role of Chairman of Hong Kong. Mr Pang is well
respected in Hong Kong due to his involvement in the
Hong Kong Tourism Board, Hong Kong Management
Association, Employers’ Federation of Hong Kong and
Hong Kong General Chamber of Commerce. As the city’s Y K Pang Alex Newbigging
largest private sector employer, the Group makes a
significant contribution to the local economy and holds a
leading position in the market. Mr Pang will continue to
develop the Group’s strategy in Hong Kong to take
advantage of the opportunities expected to arise from
the proposed Greater Bay Area initiative.
Joining Mr Pang in Hong Kong is Alex Newbigging,
currently Group Managing Director of Jardine Cycle
& Carriage (JC&C). Mr Newbigging has been appointed
Chief Executive Officer of Jardine International Motors
(JIM), the unified motors group launched this May
– he will hold responsibility for managing the Group’s
relationship with Zhongsheng, in which Jardine Strategic Benjamin Birks John Witt
has a 20% interest.
Benjamin Birks will move to Singapore to replace
Mr Newbigging as Group Managing Director of JC&C.
With a strong history as a senior executive, Mr Birks will
be driving future growth at JC&C and further developing
key partner relationships in Southeast Asia.
John Witt, currently Group Finance Director, who has
been a Commissioner and Excom member of Astra since
2016, will also become the Chairman of Astra’s Excom.
Mr Witt has many years’ experience working in
Southeast Asia and has built an extensive knowledge of,
and familiarity with, Astra.
Thistle Volume 2 | 2019 05
The Pulse
Chongqing’s Express On the revenue front, Jardines businesses in Chongqing
generated RMB29 billion (US$4.1 billion) in 2018 with
Economic Growth 48% from retail, 40% from property development, and
12% from the car dealership business.
Connecting the northern, southern, eastern and The businesses are benefitting from the enhanced
western parts of China, Chongqing’s central location connectivity resulting from the OBOR and YREZ
means it is well positioned to benefit from growth initiatives, said Mr Hsu. A good example of this is Zung
opportunities offered by China’s expansive One Belt Fu’s agreement with Mercedes-Benz to transport cars
One Road (OBOR) and Yangtze River Economic Zone from Germany to Chongqing via the Sino-European rail
(YREZ) development plans. link. Similarly, Yonghui Superstores now imports more
This was one of the key points made by Jardine high-value products such as seafood and fruit, thanks
Matheson (China) Chairman David Hsu during his to increased air cargo services and faster, more efficient
speech at the Belt and Road Forum for Interconnected custom clearance processes.
Land-Sea Development, organised by the Silk Road
Think Tank Association and Chongqing Municipal
Government on 3 June.
During his ‘Shaping a New Shared Future for
Interconnected Land-Sea Development’ presentation,
Mr Hsu said OBOR enables global partnerships in
several important areas, including the New
International Land-Sea Trade Corridor, industrial
cooperation and people-to-people connectivity.
Significant Investment in Chongqing
Given these factors, Chongqing’s potential for growth
is significant, said Mr Hsu, noting that in terms of
investment in China, Chongqing is the city where
Jardines has invested the most in recent years.
Speakers and VIP attendees at the Belt and Road Forum for Interconnected Land-Sea Development
included Guo Yazhou, Deputy Minister of CPC International Department (front row, seventh from left),
David Hsu, Jardine Matheson (China) Chairman (front row, sixth from left) and Pan Yiqin, Vice Mayor of
Chongqing (front row, sixth from right).
2019 Belt and Road
Forum for International
Cooperation
As Chairman of the China-Britain Business Council
(CBBC) and Director of Jardine Matheson, Lord
Sassoon attended President Xi Jinping’s Second Belt
and Road Forum for International Cooperation in
Beijing from 24 to 26 April.
Deputy Group Managing Director Y K Pang also
attended the Forum as a member of the Hong Kong
delegation, led by Chief Executive Carrie Lam. In
addition, Lord Sassoon attended a banquet hosted
by International Department of the Communist Party of
China (IDCPC) Minister Song Tao. He also spoke at a
British Embassy/CBBC reception at the British
Embassy, along with UK Chancellor Philip Hammond,
From left: UK Ambassador to the People’s Republic of China Dame Barbara Woodward; Lord Sassoon;
UK Chancellor of the Exchequer Philip Hammond; UK Minister of State for Trade and Export Promotion to launch the latest CBBC Belt and Road report, and
Baroness Fairhead; UK Trade Commissioner for China Richard Burn; China International Contractors
Association Chairman Fang Qiuchen; and the UK Treasury’s Special Envoy to the Belt and Road
had individual meetings with IDCPC Vice Minister
Initiative Sir Douglas Flint. Li Jun and Asian Infrastructure Investment Bank
President Jin Liqun.
06
A Collaboration to Fast- Are there exciting projects in the pipeline?
forward New Concepts
There are three today: the first is the roll-out of Salesforce for an
end-to-end future-proof solution for sales and aftersales services.
The second is online e-commerce for new and used vehicle sales
and we are talking with several start-ups, including Roadstar.ai, to
launch an online vehicle sales solution for the group. The third is a
business-wide review and rationalisation conducted with Tata
Consulting to standardise and simplify our IT stack.
How does working with start-ups differ from projects
developed internally?
The collaborative spirit runs strong across Jardine Matheson’s
Group of companies, with many seeking partnerships with Start-ups don’t have a legacy or preconception of how things
start-ups to create new solutions to improve customer service. should be done; their innovation perspective is ‘anything is
A good example is the alliance with Startup Autobahn – a mobility- possible’, which is hugely refreshing. They’ve also clearly defined
focused open innovation platform powered by Plug and Play and their vision and point in the market. Often their view of the world
backed by Daimler. The partnership was facilitated by Innovate is ‘an inch wide and a mile deep’, whereas ours tends to run ‘a mile
Jardines (IJ) and to date has involved Jardine Cycle & Carriage, Zung wide and an inch deep’.
Fu, and Jardine Motors Group (JMG) in the United Kingdom. What are some of the key skills needed to advance partnerships
The partnership enables companies to be ‘matched’ to late-stage with start-ups?
start-ups in Startup Autobahn’s network (Europe, Singapore and Have an open mind and accept we won’t get it right first time.
China). Once matched, they collaborate to ‘fast-forward’ the We’re not going to buy a fully-tested turnkey solution at Startup
development of new concepts. Jason Cranswick, Commercial Director, Autobahn. We must be willing to partner, mentor, be open-minded
JMG, shares more about the alliance and what we can expect. and have compassion for these young start-ups who are often very
What strengths do we bring to this partnership with Startup daunted to work with a large corporate – just like we’re daunted by
Autobahn and vice versa? rapid changes happening in our industry.
We bring the interface with the consumer – and scale – to provide Finally, what are some of the biggest benefits to working
high-quality intel for start-ups. We also bring the reality of our ‘as is’ with start-ups?
business. The start-ups become more aware of the complexities Without IJ or Startup Autobahn, our default would still be more
we’re dealing with and this often determines if we are a good match. defending the status quo rather than challenging and disrupting. I
Startup Autobahn brings very open-minded automobile come back from Startup Autobahn events with vision, energy, ideas
manufacturers to the table and a genuine interest in understanding and confidence that our initiatives are the right thing to do. I’m
our business challenges. The team works very closely with us to energised to get us ready for the future – our data, IT, technology
curate a portfolio of people to meet during expo events and stack and mindsets. The benefits are multifaceted, and not always
alongside Daimler and Porsche, they really show that they’re up obvious, but we’ve learned huge amounts from the partnership and
for the fight and that they’re interested to see how our ecosystem from start-ups. We’re very excited for what lies ahead.
is changing. It’s a unique collaboration.
Jason Cranswick (second from right)
discusses with Salesforce reps the roll-out
of the company’s end-to-end sales and
aftersales solution, the need for which was
driven by JMG’s interaction with start-ups
in Startup Autobahn’s network.
Thistle Volume 2 | 2019 07
The Pulse
AI and RPA Tech Powers Receive
Document Scan
Document Data
Extraction
Upload to
SAP FICO
Dairy Farm Singapore’s
Classification
Digital Transformation
Scanning
Machine
RPA Learning RPA
Data Analytics
Workflow
A platform powered by Artificial Intelligence (AI) and Robotic We have transformed paper-based invoices from warehouse
Process Automation (RPA) that has transformed invoice into SAP (Systems, Applications and Products) entries to
processing for the Dairy Farm Singapore finance team has significantly improve speed, scale and accuracy.
the potential to do the same for other Group businesses, says
What were some key learnings?
Tom van der Lee, Dairy Farm Finance Director for South East Asia.
As this was our first dip into AI and robotics, there was a lot of
Designed by WorkFusion, the platform has revitalised invoice
learning with the vendor, WorkFusion, IJ, and the finance teams.
management, changing it from a slow, manual process to one
While things can look straightforward on paper, when you start
that is digital, accurate, predictable and scalable, delivering
to automate manual operations, you forget that many decisions
a host of tangible business benefits. Here, Mr Van der Lee
are made subconsciously, and that we all have our own way of
shares more about the project’s backstory, the benefits so far,
doing things. So, it was challenging to program these factors
the process of collaborating with Innovate Jardines (IJ), and how
into the AI and robots. There was an element of trial and error,
the platform has been received.
and the project took a bit longer than anticipated.
How did this project get started and what were the objectives?
We also learned a lot from the collaboration with IJ, who played
A review of our processes in 2016 was the starting point. This a major role in identifying a suitable vendor for this specialist
revealed that our operating costs were too high compared to the request, as well as in negotiations and providing great advice
benchmarks set, and the information generated was low-quality, and support throughout the trial phases.
which impacted important financial decisions made by our
Although it is early days, what have been some of the positive
businesses. So, we developed a vision: to become best-in-class
outcomes so far?
in finance discipline delivering more business impact.
We’ve shown that automation can be deployed successfully
To do this, we needed new systems to lower costs and improve
in various roles. We can process invoices faster, our statements
outputs. As a first step, we identified processes that could
are more accurate, and our suppliers are paid on time, which
be simplified, before analysing opportunities to standardise
is important. Overall, there are far fewer errors and processes
processes across the business. As different financial approaches
are smoother.
had been adopted by various brands over the years, we
wanted to standardise as much as possible before looking On the people side, we have automated tasks that were quite
at automation opportunities. mundane and time-consuming, so the teams who used to do
this now focus on more interesting work. And when you bring
What was automated and what was involved in making
automation and cutting-edge technology to the function, many
this happen?
people are more motivated to explore and learn.
Several changes were implemented, beginning with an RPA
Now that this project is off the ground can it be adopted by
solution to automate bank statement processing and month-end
other businesses?
reporting. Pre-RPA, colleagues had to download bank statements
every morning and then upload them to different systems before We did the trial in Singapore and hope to replicate it for Dairy
they could be processed. As this was a simple, specific and Farm in Malaysia and Indonesia, and potentially Vietnam. I want
regular operation, RPA was well-suited to automate the process to stress that this system can be very easily copied and adopted
and could also be managed by the finance team themselves. by any of the other Group businesses. Because the pain points
that we faced – and have addressed – are shared by many other
Invoicing processing presented bigger challenges; how did
businesses and functions, I think there will be strong interest
an AI solution overcome these?
and I am very happy to talk to Group colleagues who would like
Invoicing is a big pain point because many invoices from to learn more.
suppliers are paper-based or PDFs. This makes automation
quite challenging because every invoice looks different; and Business Impact
companies often change the format of their invoices. Given
the high variation, a lot of manual intervention was involved. Customer Experience Time to Value
To make this more efficient – and this is where AI came into play 90% 78% 14
– learning bots were trained to manage the diverse invoices sent
less time to process less time to process weeks from discovery
by our more than 2,000 vendors by scanning and continually complex invoices simple invoices to production
learning and fine-tuning to produce a new solution.
08Coming to a KFC Outlet Students flexed their creative skills in two challenges: hardUST,
a 48-hour hardware development challenge to create a working
Soon: Lord of the Wings prototype of their idea, and hackUST, a 24-hour software
development contest. Throughout the 48 hours, JRG employees,
‘Lord of the Wings’, an augmented reality game for KFC customers, as well as colleagues from Innovate Jardines and Group Human
and Chick N’ Go, an automatic food vending machine optimising Resources in Jardine Matheson, were on hand to mentor and offer
KFC kitchen operations, were some of the outstanding ideas feedback to the teams.
generated at the recent 2019 Hackathon@HKUST (Hong Kong After a fun – and sometimes gruelling – 48 hours, Chick N’ Go, a
University of Science and Technology). vertical, automatic food vending machine to reduce food prep time
These projects, and more, were brainstormed by more than 500 and kitchen clutter was judged the winner of the hardUST contest.
students from 33 countries at the annual HKUST hackathon, of The winner of hackUST meanwhile, was ‘Lord of the Wings’ – an
which the Jardine Restaurant Group (JRG) was the title sponsor. augmented reality gaming solution that customers can play; if
It was the first hackathon backed by JRG and its brands, KFC they win, they can redeem rewards from their dining tray.
and Pizza Hut; and it may the first of many, said JRG Chief Cash prizes and internship opportunities were presented to Chick
Executive Andrew Wong. N’Go and ‘Lord of the Wings’ teams to reward their efforts. JRG
“As we accelerate our digital transformation – and triple our also provided seed funding to further develop ‘Lord of the Wings’.
investment in digital initiatives over the next three years – we will Commenting on the hackathon, JRG Chief Digital Officer Matthew
look to support more hackathons, as they are great platforms to Chan said, “It is a great platform to show the next generation
generate bold, fresh ideas and nurture new talent,” said Mr Wong. of potential talents what the F&B industry is really about, and
“Our involvement in the Hackathon@HKUST is a starting point through engaging them to tackle industry-wide challenges, we
to not only cultivate new ways of thinking, but also drive a cultural hope to give students a better understanding about the industry,
change within the organisation and inspire our 23,500 employees and ultimately become interested to join and make an impact
to come up with new entrepreneurial ideas to take our business in the future.”
to new heights.” Following Hackathon@HKUST, the students visited JRG’s newly
hardUST and hackUST opened office in Hung Hom to participate in a knowledge-sharing
and reflection session.
Hackathon@HKUST 2019 challenged students to develop creative
solutions to either optimise operations or improve the customer
experience at JRG restaurants.
JRG staff Wesley Zhai (left) and Jason Klanderman interacting with and guiding students during the mentoring session at the competition.
Thistle Volume 2 | 2019 09Perspective
Indonesia 4.0 Bisa!
Indonesia’s middle-class opportunity is
especially bright and key numbers back
this up. With 264 million people, it is the
Our growth prospects today,
most populous country in ASEAN and the
fourth largest consumer market in the and in the future, are tied to
world in terms of population behind China, Greater China and Southeast
India, and the United States. Asia. This is our backyard – it’s
Powered by a burgeoning middle-class and where we have a competitive
fast-growing consumer base, the Indonesian
advantage. In short, we
economy has enjoyed an annual GDP growth
rate averaging 5% over the past decade. believe strongly in the future
Longer-term, the outlook remains positive of Asia’s middle classes.
because 60% of the population is below 30
years of age, and it is growing at a rate of 2.9
million a year. Urbanisation is also expected Ben Keswick
to reach 71% of the total population by 2030.
10Urbanisation to reach 71%
of total population by 2030*
ASEAN
Population of 264 million
Largest in ASEAN^
Fourth largest
consumer market#
Digital market value prediction:
triple increase from US$27 billion in
INDONESIA 2018 to US$100 billion by 2025∆
*McKinsey and Company, The Evolving Indonesian Consumer, 2014; ^The Jakarta Post, Indonesia has 171 Million Internet Users: Study, 2019 #The Hong Kong Trade Development Council, ASEAN
in Focus: The Indonesian Consumer Market, 2017 ∆The Jakarta Post, Indonesia’s Digital Economy to Dominate Southeast Asia by 2025, 2018
Indonesia’s Rising Digital Wave As Indonesia moves forward with Making Indonesia
4.0 initiatives, and with the country predicted to be
For Astra these macro trends point to a positive future the largest digital economy in Southeast Asia by 2025,
in the industries it operates in: automotive; financial how is Astra preparing to embrace this opportunity?
services; heavy equipment; mining; construction and
energy; infrastructure and logistics; agribusiness; We have identified a few key areas to focus on and get
IT and property. While these sectors are diverse, they right. Knowing our customers better to get a deeper
are linked by new opportunities offered by Indonesia’s understanding of their purchasing behaviour was the
vast digital potential and aspirations. On the industrial first essential step – quality data enables us to design
front, the government’s Making Indonesia 4.0 campaign products and services to meet the needs and
aims to accelerate the digitisation of industry and behaviours of our customers.
manufacturing, and auto is a focus sector. Designing and analysing the business models best
Indonesia’s digital economy is also poised to become suited to our businesses was the second focus area.
the largest in Southeast Asia. Driven by e-commerce, Do we stay with what we have? Or look at more
online travel, ride-hailing services and online media, disruptive options? Building our competence and
the digital market value is predicted to triple to US$100 capabilities was the third area and we are doing this
billion by 2025 from US$27 billion in 2018. Modernisation organically via Astra Group Holding, and investments
and expansion in the industrial and consumer sectors, including a joint venture between Astra and WeLab
coupled with the passionate ‘bisa’ (can-do) attitude to launch Maucash, a peer-to-peer lending app.
shared by millions of Indonesians towards digital, We have also made two rounds of investments
signals a major wave of opportunity for Astra. Djap Tet (totalling US$250 million) in Gojek, a leading
Fa, President Director of PT Astra Digital Internasional ride-hailing decacorn in Indonesia, and we anticipate
(Astra Digital), shares more about the company’s digital strategic Astra-Gojek collaborations in the near future.
plans and focus areas in the near and medium term. In addition, we have also joined Plug and Play, an
incubator company that connects us with leading
start-ups in Indonesia, Asia, and the rest of the
world. Last but not least, Astra has also established
Astra Digital, an incubation arm with a goal to build
an Astra-owned ecosystem while offering innovative
solutions for the next generation of customers,
covering areas such as marketplace, personal
mobility, loyalty and big data analytics, and more.
Djap Tet Fa at media gathering Astra Digital Menyambut Indonesia.
Thistle Volume 2 | 2019 11Perspective
Astra has invested in Indonesian ride-hailing phenomenon, Gojek.
What online solutions or offerings do you have today? E-commerce, travel, ride-hailing services and media
are anticipated leading growth sectors for digital in
As we have a vast customer base and broad reach
Indonesia – what else do you see as emerging sectors?
nationwide, we have range of offerings from Astra
Digital including Seva.id, an online marketplace to Fintech, whether lending, payments, insurance or
showcase the full range of Astra products, and attract other services, has big potential here. I think the ability
more visitors to track their purchasing behaviour. By to get a loan quickly and relatively hassle-free online
doing so, this helps us provide personalised offerings would appeal to many Indonesians. Right now, getting
to customers. As transportation is a big issue for a loan from a bank in the traditional way can take days
Indonesia – an archipelago with more than 18,000 or even weeks. Healthcare is another growth sector
islands – we also have mobility solutions covering – more Indonesians are spending more on healthcare
parking and ride-sharing for urban residents, as well and increasingly they will want services and support
as those who want to travel from city to city – we call they can access online. This is also compounded by
this the ‘hitchhike’ solution. the fact that Indonesia’s middle class is growing,
with many moving up the socio-economic pyramid.
We also have an aggregator business run in
collaboration with 25 intercity travel agencies to
provide a united, seamless online booking system
for inner-city shuttle buses. Our other mobility solution
called MoviC is an online rental product with more than
3,000 cars listed and a presence in 46 cities, which is
especially popular with car rental SMEs who serve as
the supply side on the platform.
Given Astra’s scale, do you currently run big-data or
analytics-driven programmes to better understand
customers in various sectors?
Getting to know our customers better – especially
their consumption and payment behaviour – is vital
for our businesses, considering the low engagement
frequency in Astra’s businesses today. So, we have
started several big data projects including an AI
(artificial intelligence) initiative. We have built
AI prototypes such as facial recognition and crowd
counting, with the aim of gathering in-depth information
about customers to provide our businesses with better
insights that they can use to improve their products and The Maucash app provides a
variety of services to meet the
services, and how they engage with customers. daily needs of Indonesians.
12The rise of the digital economy has led to the New Digital Offerings to
development of a strong collaboration culture; Get Indonesians Moving
even between long-time competitors. Is this
something Astra is open to? Whether taking on Jakarta’s frequently gridlocked roads
or making plans for inter-city travel across a nation of
Right now, our collaboration efforts are mostly 18,000 islands, getting around Indonesia is a challenge
internally focused to strengthen our businesses, for many. That’s why several of Astra’s latest digital
but in time I can see more partnerships evolving, offerings are transport-related with a focus on enhancing
such as the one between Gojek and Astra. urban commuting (and job creation) and inter-city travel.
Internally, how does Astra support and encourage GOFLEET, a mobility solution for people who don’t have
a culture of innovation and disruption? Do you run access to a car – but want to work with a ride-hailing
training programmes or innovation challenges? platform as a driver-partner – is the latest offering from
Our drive to build a culture of innovation is ingrained Astra and Gojek. As well as getting access to a car,
within our DNA. One of our high-profile programmes GOFLEET driver-partners will also be given free
is InnovAstra, an internal innovation competition maintenance service at Astra-owned workshops, road
that has been held annually since 1980 to showcase, safety training, 24-hour emergency support, and
accelerate, and recognise innovation across all accident plus life insurance.
Astra companies. Speaking at the launch in July, Astra President Director
Within Astra, the demand for data scientists has Prijono Sugiarto said, “GOFLEET is an implementation of
grown exponentially. To meet this demand, Astra Astra and Gojek’s strategic partnership that was
Digital runs a programme to grow the next generation established since our investment in Gojek in February
of data scientists through a Data Scientist Bootcamp, 2018. We endorse partnerships between [the]
where we actively provide mentorships to fresh automotive industry and technology to bring more
graduates from top universities. Upon completion positive socio-economic developments to the public, in
of the programme, we offer full-time positions in line with Astra’s goal to prosper with the nation.”
Astra Group companies. GOFLEET is available in greater Jakarta initially, with
We also run Astra Digital Forums regularly, where we plans to roll out the programme to other cities and
invite external experts from the likes of Microsoft, provinces in the near future.
Facebook, Twitter and Google to share best practices Sejalan, meanwhile, is a social ride-sharing app that
with us, and vice versa, followed by a Q&A session. facilitates carpooling. It is designed primarily for the
Sharing expertise is also the focus of our Data Demo many people who drive from neighbouring cities such as
Day, during which data experts from our various Depok, Bekasi and Tangerang to Jakarta every day for
businesses talk about their projects and learnings. work. The app enables drivers to offer a seat in their car
We also have a Digital Marketing Community where to fellow commuters from their home town. The driver
our various content management, digital marketing, can share the costs of transport, and play a part in
and social media teams come together to update us reducing traffic. Besides the work commute, the app is
all on their projects and experiences – it’s a great popular for those planning long drives to other cities and
way to collaborate and share knowledge. have room in their vehicle for ‘hitch-hiker’ passengers.
Finally, Indonesian internet users today spend
an average of eight hours and 36 minutes online
every day – why do you think Indonesians love
the internet so much?
Yes, about 65% of the population – about 170 million
Indonesians of all ages and in urban and rural areas –
are online every day. But one reason why we have
big numbers is the fact that we have a huge millennial
population who make up about a third of all internet
users and social media – sharing photos, videos,
comments – is where they spend a lot of their time.
Many also get their news from social media
platforms only.
YouTube is especially popular, and it is a channel we
target a lot in our digital marketing. E-commerce is
also big here and it makes sense as our country is
massive, and some communities live a long way from
city centres or malls. Chat apps such as WhatsApp
are also popular. The final driver is the fact that
internet data plans and devices are quite affordable
now and embraced by everyone.
GOFLEET provides driver-partners with a car, accident insurance and
maintenance service at Astra-owned workshops.
Thistle Volume 2 | 2019 13Front
Runners
Virtual Lifestyle Bank livi Chief Executive Michael
to Launch in Hong Kong
Wang (in foreground)
with the livi team.
The previous issue of Thistle announced a high-profile joint Several virtual banks are set to be launched in Hong Kong
venture (JV) between Bank of China (BOC) Hong Kong, JD Digits, – what makes livi unique?
and Jardines to launch a virtual bank called livi in Hong Kong.
The expertise of our shareholders, a good mix of talents from
Here, livi Chief Executive Michael Wang shares more about the
different industries, excellent support from a partner network,
progress of the project and how livi will make an impact.
and resources from our backers are among livi’s significant
What is a virtual bank and what is livi’s primary target market? advantages. Put these factors together and I think we bring
a unique perspective and offering to help consumers rethink
In simple terms, a virtual bank is branch-less as it’s totally
how they bank and manage their finances.
online. We want livi to be a lifestyle bank to meet the everyday
needs of many people in Hong Kong – our mission is to help our What are some of the anticipated benefits for our retail businesses
customers save smartly, spend consciously and live a lot more. in HK – and how do you plan to work together with them?
Because our bank will be open all hours and available to anyone Jardines’ consumer businesses – including retail, F&B, hotels and
who has a smartphone, you can – and should! – become a livi motors – will enjoy access to livi’s exciting products and services
customer. Our products and services will have broad appeal that will help them better serve their customers. In addition, as
and we hope to redefine what that means to banks in Hong Kong. Jardines businesses in Hong Kong have relationships with a deep
In addition, an important part of our bank will be our small and and broad ecosystem of suppliers – particularly SME suppliers –
medium-sized enterprises (SME) services, helping to grow Hong livi’s online solutions can enhance those interactions.
Kong businesses with simple, easy-to-use financial services.
What are the next major steps for the project team, and when
What does each JV partner – BOC Hong Kong (Holdings) Limited, is livi expected to launch?
JD Digits, and Jardines – bring to the table?
We are working hard to develop the banking system with
This project is incredibly lucky to have a powerful partnership of several major goals to achieve in the next few months, including
established backers pushing it forward. Robust risk management developing a brand-new, secure banking system. We also want
and banking expertise from BOC Hong Kong (Holdings) Limited, to deliver a seamless, easy-to-use app design and user
the technology development capability from JD Digits, and the experience to match the everyday routines of customers.
broad customer touchpoints offered by the Jardines network give We want to create an open bank that really makes an impact
livi a unique competitive advantage in this brand-new industry. – if you are interested in participating in app testing or anything
else to do with livi, please get in touch with the team!
14Second Mandarin Oriental The owners and developers of the project are Astaș Holding A.Ş
and Yapi & Yapi. This is the group’s third venture in Turkey with
Property in Istanbul Astaș Holding A.Ş, owner of the group’s two other Turkish
properties: the award-winning Mandarin Oriental, Bodrum and
Istanbul’s exclusive Etiler central residential area is the location of Mandarin Oriental Bosphorus, Istanbul, which is scheduled
Mandarin Oriental Hotel Group’s second luxury hotel in the city, to open in 2020.
scheduled to open in 2022.
One of the three towers of the property will house Mandarin
Oriental Etiler, Istanbul, with 158 guest rooms and suites, and 16
serviced apartments. The others will house 251 luxurious
Residences at Mandarin Oriental.
“We are delighted to announce a second Mandarin Oriental
property in Istanbul, together with an exciting luxury residential
project. We look forward to extending further the group’s presence
in one of the world’s most historic and vibrant cities,” said James
Riley, Group Chief Executive of Mandarin Oriental.
“Operating two complementary hotels in a single city is something
that the group has already done successfully in Hong Kong and
will soon do in London. We believe there is room for more than just
one Mandarin Oriental hotel in certain select destinations around
the world,” he added. The hotel will have three restaurants and
bars, meeting spaces with outdoor areas for business and leisure
events, a spa and fitness centre, and an indoor and outdoor pool.
Cycle & Carriage Expands Adrian Short, General Manager of C&C Myanmar said, “Since
representing the brand in 2014, we have delivered some 2,000
Footprint in Myanmar Mazda vehicles, which attests to the confidence our customers
have placed in the Mazda brand, its philosophy and drivability
Cycle & Carriage (C&C) has expanded its presence in Myanmar of the vehicles.”
with a new Mazda 3S facility in Yangon, as well as a second Mercedes-Benz Display Centre Opens in Mandalay
Mercedes-Benz Display Centre in Mandalay.
Following the launch of the first Mercedes-Benz 3S Autohaus in
New Mazda 3S Facility in Yangon Yangon in March 2018, C&C opened a second Mercedes-Benz
Following the establishment of the first Mazda showroom showroom in The Move Shopping Centre, Mingalar Mandalay,
in Myanmar in 2014, C&C opened another Mazda facility in which launched in April.
Yangon in March to reach more customers. The new The 255.5 sq. m. Mercedes-Benz Display Centre and showroom
1,060 sq. m. Mazda 3S facility boasts a showroom capacity of six boasts a contemporary design with exciting features such as the
display vehicles and five work bays to provide industry-leading new Mercedes-Benz iShowroom, a three-vehicle showroom
aftersales service. capacity and other services to provide customers the convenience
Since Mazda’s introduction to the market, it has won four of a single-point hub.
Myanmar Car of the Year awards and is now the fifth most popular C&C Automobile Myanmar Managing Director Aung Moe Kyaw said,
brand in Myanmar, with a year-on-year growth rate of 15%. Mazda “We have witnessed significant changes in Mandalay as investors
also ranks second in the Brand New Imported Vehicles sphere. are seeking opportunities beyond Yangon. With the opening of the
Mercedes-Benz Mandalay Display Centre, we believe we can offer
a vibrant sales experience to our discerning upper Myanmar
Mercedes-Benz customers.”
Big Growth Opportunity
As the fifth largest country in ASEAN – with more than 50 million
citizens – and over 500,000 four-wheeled privately registered
vehicles currently, the auto sector growth opportunity in Myanmar
is huge. New vehicle sales have doubled year-on-year and the
government has introduced policies to try and reach the goal of
more than one million new car sales per annum by 2033.
C&C now has seven facilities in Myanmar representing different marques
and is well positioned to optimise growth opportunities in the country.
Thistle Volume 2 | 2019 15Front Runners
Mercedes me Lifestyle Store The store showcases the latest and future concept of Mercedes-
Benz models, with product concierges to organise test-drives in
Comes to Chengdu person or via the MercedesmeStore WeChat account. Seamlessly
integrating the retail components into the customer experience,
Chengdu car enthusiasts and shoppers can now get an the store features Mercedes-Benz accessories and Mercedes me
up-close and personal taste of the stylish Mercedes me store, merchandise, including localised products exclusively for the
which features retail and food and beverage outlets, and China market, and new concept food and beverage destinations.
an event space alongside the latest – and upcoming – Hungry visitors who enjoy fine cuisine can visit the Sifang
Mercedes-Benz cars on display. Sanchuan restaurant, a multipurpose venue that showcases
Located in the hip Taikoo Li shopping district in central Chengdu, Yun, Gui, Chuan, Yu-style dishes. Thirsty customers, meanwhile,
next to the famous Daci Temple and close to bustling Chunxi Road, can sip local and international craft beers at Brew Haus while
the 1,278 sq. m. store opened in spring with a unique line-up, enjoying live entertainment.
offering guests a bespoke lifestyle venue to experience The Chengdu Mercedes me store is the first to open in south-
the Mercedes-Benz brand through luxury hospitality. west China. It follows the successful launch of similar
Combining elements of food and beverage, retail flagship stores in Beijing and Shanghai, with more
and automotive, the new Mercedes me store expected to land in other parts of China this year.
has a clearly defined customer journey
with multiple touchpoints providing
personalised experiences to
its customers.
The Mercedes me store in the Taikoo
Li district is adjacent to the Daci
Temple and bordered by the
high-traffic Chunxi Road – a prime
central location in Chengdu.
Schindler Vietnam Schindler Vietnam Ltd was one of the first foreign-owned elevator
companies to begin operating in Vietnam, in 1995. Daily
Breaks Ground for operations include importing, installing and maintaining Schindler
elevators and escalators. In 1998, Schindler opened its own
Ho Chi Minh Factory factory in Vietnam, which produces brackets, beams and builder’s
elevators for both local and export purposes.
Earlier this year a ground-breaking ceremony for the Schindler
Vietnam Factory project was held at the Hiep Phuoc Industrial
Park, Nha Be District, Ho Chi Minh City.
To meet demand in a fast-growing elevator market, the new
10,000 sq. m. factory is expected to open for production in
October 2019. The factory will be outfitted with state-of-the-art
machinery, including laser cutting machines, CNC machines,
and a shot-blasting machine. In addition, the factory has been
designed and built to reduce waste and energy use.
The ceremony was attended by Chief Executive Officer of
Jardine Schindler Group Jujudhan Jena, General Director of
Schindler Vietnam Ta Huy Vu, factory manager Duong Quy Suu,
the management team of Schindler Vietnam, the board of
directors of Hiep Phuoc Industrial Park Joint Stock Company,
Director of Construction of Phan Vu Investment Corporation
Lu Trieu Duong, Director of SEAS Consultant Tran Xuan Ho
and other esteemed guests. Directors of Schindler Vietnam, board of directors of Hiep Phuoc Industrial Park Joint
Stock Company, Director of Construction of Phan Vu Construction Investment
Corporation, and a director of SEAS Consultant at the ground-breaking ceremony.
16Javanese Mountains
Inspire New Toll Road
Rest Area Project
Astra Property Group and Astra Infra recently announced a
partnership with PT Jasamarga Properti and PT Sarana Pembangunan
Jawa Tengah to build and manage the Tempat Istirahat dan Pelayanan
(TIP) rest area on the Semarang-Solo toll road.
Set to open in 2021, the RESTA Pendopo 456 rest pavilion will
consist of five buildings in two locations set over three ha. of
land. With design elements influenced by traditional Javanese
architecture and five mountains in Central Java – Mount Merapi,
Mount Merbabu, Mount Sindoro, Mount Sumbing, and Mount
Ungaran – it is expected to be one of the most striking TIP From left: Director of Technical and Operational of PT Trans Marga Jateng, Ali Zainal
Abidin; Director of Astra, Bambang Widjanarko Santoso; Semarang Regent Expert
facilities in Indonesia. Staff, Sukaton Purtomo Priyatmo, SH, MM; Central Java Regional Secretary, Sri Puryono
Karto Soedarmo; Salatiga Mayor, Yulianto SE, MM; President Director of PT Sarana
A recent ground-breaking ceremony for the project was attended Pembangunan Jawa Tengah, Adi Fitra and Director of PT Jasa Marga Properti, Dian
Takdir Bardsyah commemorate the ground-breaking ceremony of RESTA Pendopo 456.
by the Central Java Regional Secretary, Sri Puryono Karto
Soedarmo; Director of Astra, Bambang Widjanarko Santoso and
Director of PT Trans Marga Jateng, Novianto Dwi Wibowo. Other
guests included Director of PT Jasamarga Properti, Dian Takdir
Badrsyah and Adi Fitra, President Director of PT Sarana
Pembangunan Jawa Tengah.
Asya Project in Eastern Jakarta in Progress
Asya, a major residential property in Cakung, East Jakarta is
currently being built by PT Astra International Tbk through PT Astra
Modern Land, a joint-venture company. It is a city-scale project with
a strong eco-friendly influence offering quality housing for a broad
range of homebuyers. Set around a 15 ha. lake area, the property
will include a host of modern design features. Asya is not far from
Jalan Tol Lingkar Luar Jakarta, also known as the Jakarta Outer Ring
Road or JORR, which connects to other major roadways, including
the Jakarta Inner Ring Road and the Jakarta-Cikampek Toll Road.
Thailand’s Love of Coffee
Leads Opportunity
Thais love coffee. Although per-person consumption is about 300
cups a year – compared to 400 in Japan and 600 in Europe –
demand for lattes, cappuccinos, espressos and more is rising by
an average of 15% per year throughout Thailand.
This robust demand is fuelling expansive growth plans in the
sector, and Maxim’s Group, a long-term strategic partner of
Starbucks, recently announced a joint venture (JV) with its Thai
partner to operate and develop Starbucks retail stores in Thailand.
The JV combines the market expertise of the local partner and
the deep understanding of the Starbucks culture and brand that
Maxim’s Group has developed over 19 years.
Global brand, local flavour: the Starbucks outlet at Langsuan, Bangkok. Moving forward, the two parties aim to continue to deliver the
unique Starbucks experience to Thai customers and accelerate
growth in the country. Bangkok’s Convent Road was the location
of the first Starbucks store to open in Thailand in 1998, and there
are 372 stores nationwide today.
Since Maxim’s Group and Starbucks began their relationship in
2000 in Hong Kong, they have enjoyed consistently strong growth
and there are more than 400 Starbucks stores in Hong Kong,
Macau, Vietnam, Cambodia and Singapore today.
Thistle Volume 2 | 2019 17Front Runners
IATA CEIV Fresh-certified is optimum storage positions in cool rooms were other initiatives
launched. Already-stringent hygiene and pest-control practices
Another World First for Hactl have been tightened further and suppliers have been instructed
on what they must do to comply with the new standard.
Hong Kong Air Cargo Terminals Limited (Hactl) celebrated About CEIV Fresh
a global first in March when it was named one of the first
two cargo handling agents in the world to receive the new Growing global demand for fresh food throughout the year
International Air Transport Association (IATA) Centre of required an update in air transportation guidelines to standardise
Excellence for Independent Validators (CEIV) Fresh accreditation. time and temperature management to minimise food loss. Given
this, the CEIV Fresh programme was launched by IATA to raise the
The accreditation is the result of Airport Authority Hong Kong’s bar in managing and handling perishable logistics. It is designed
initiative to make the airport the world’s first CEIV Fresh hub. to improve staff competency through training, ensure food safety
Hactl Chief Executive Wilson Kwong said teamwork and a and prevent waste along the supply chain through quality and risk
commitment to world-class operating standards were key drivers management controls.
of this success, when he accepted the certificate at IATA’s World
Cargo Symposium in Singapore in March.
He added, “CEIV Fresh certification is very useful to benchmark
the quality and standard of an organisation, and Hactl applauds
both IATA’s initiative in driving the adoption of CEIV Fresh
throughout the industry, and Hong Kong International Airport’s
leadership of this project.”
The Road to Accreditation
Hactl’s quest for CEIV Fresh accreditation began in late
2018 when key staff attended an IATA training programme.
Changes were also made to facilities, such as the designation
of a new Fresh Lane to accelerate the unloading of perishable
cargo to place in temperature-controlled storage, or for
collection by customers.
Four critical control points were also identified and enhanced.
The use of thermal dollies to maintain optimum temperatures
was one upgrade. Segregating perishable commodities through
dedicated truck docks and the mapping and visual marking of Hactl’s Fresh Lane includes thermal dollies to maintain optimum
temperatures on the ramp.
JEC Thailand
Wins Contracts
for Eco-Friendly
The Forestias Project
Jardine Engineering Corporation (JEC) Thailand
was awarded a number of contracts for The Forestias
project in Thailand including the supply, installation,
testing and commissioning of the air-conditioning
and ventilation system, the sanitary and fire
protection system, as well as the electrical
and communication systems.
The Forestias is the world’s first mixed-use multigenerational lifestyle project to establish
The Forestias is a nature-integrated, mixed-use
and incorporate a large forest ecosystem. development located in Bangna, Bangkok with
a total area of 480,000 sq. m. It includes
a forest landscape, office buildings and a medical
complex, as well as a variety of community
developments such as residences, a community
space, a six-star boutique hotel, and a four-star
business hotel and serviced apartments.
The project incorporates green building technology
in its design and operation systems, and aims to
achieve a Gold rating in the Leadership in Energy
and Environmental Design (LEED) certification.
18Martabe Gold Mine Visit
Marked by Local Tradition
Astra’s Board of Commissioners and Directors paid a visit
to Martabe Gold Mine in North Sumatra, Indonesia, in March
to observe mining operations and the gold-making process on
a day infused with local tradition. United Tractors, a subsidiary
of Astra, acquired a majority stake in the Martabe Mine in 2018.
PT Agincourt Resources (PTAR), the operator of the mine, hosted
the entourage, which included Commissioners of Astra Alex
Newbigging, John Witt, Jeremy Parr, President Director of Astra
Prijono Sugiarto, Directors of Astra Gidion Hasan, Gita Tiffany
Boer, Chief of Corporate Affairs of Astra Pongki Pamungkas,
and several Astra Executives.
A presentation by PTAR was followed by a speech by
Mr Newbigging, and tours of the site including the
observation deck to view the entire mine field, which covers
1,303 sq. km., making it one of the largest in Indonesia.
Among the highlights of the visit was a Mangulosi ceremony –
the presenting of traditional Ulos cloth – to the guests of honour. Shake Shack Takes
Mr Newbigging, Mr Sugiarto, Mr Hasan, President Director of PAMA
Frans Kesuma (serving as Director of Astra at the General Meeting Shanghai by Storm
of Shareholders in April), Mulyadi Sutio, President Director of
PT Agincourt Resources, and Vice President of PT Agincourt
Resources Tim Duffy also signed an inscription to commemorate
‘The Pouring of 2,000,000 of Gold & 15,000,000 Oz of Silver.’
Shake Shack shook up Shanghai’s food
scene when it opened its doors in the city’s
hip Xintiandi district earlier this year.
The China debut of the cult New York burger
restaurant attracted long lines of
customers – braving cold temperatures –
to get a first bite of the famous Shack
Burger, Shroom Burger and other delicious
NYC delights.
Brought to Shanghai by the Maxim’s Group
in partnership with Shake Shack, the
restaurant furthers Maxim’s mission to
bring fresh, exciting dining experiences to
customers in China and other parts of Asia.
Since its big splash opening, Shake Shack
Shanghai has seen brisk business, with
Astra’s Board of Commissioners and Directors arrived at Batang Toru, South Tapanuli.
customers indulging in Shake Shack
classics as well as Shanghai-inspired menu
items such as the Strawberry Yu(zu) Garden
Shake and the On the Bund dessert.
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