ITOCHU Announces Capital Alliance between Benefit One Indonesia and MidPlaza Holdings
-Aimed to Enhance Sales & Service Development in Indonesia-
October 22, 2014
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that PT. BENEFIT ONE INDONESIA (headquartered in Jakarta, Indonesia; Norio Shiraishi, President & Director; hereinafter, "Benefit One Indonesia"), which mainly operates a points-based incentive program in Indonesia, has reached an agreement to form a capital alliance with PT. Karang Mas Investama, an Indonesian-based investment company which forms part of Midplaza Holdings (hereinafter, “KMI”), to boost sales activities and service development in Indonesia.
Benefit One Inc. and ITOCHU Corporation established Benefit One Asia Pte. Ltd. (60% owned by Benefit One and 40% owned by ITOCHU; hereinafter "Benefit One Asia") in Singapore of October 2013, to provide fringe benefit services for companies in Asia.
In May 2014, Benefit One Asia established Benefit One Indonesia in Indonesia, a region which is experiencing continuing economic growth. Benefit One Indonesia began providing the Incentive Point program in August. The Incentive Point program allows employers to award points to employees as incentives for positive performance or behaviors such as efforts to improve themselves or good attendance records. The employees can then exchange the points with products provided by Benefit One’s platform.
Benefit One Indonesia’s alliance with PT. Karang Mas Investama will further accelerate its growth in Indonesia by boosting sales activities to acquire new customers utilizing KMI’s network, strengthen service development, and draw on KMI’s management expertise to strengthen personnel, legal and technology related matters of Benefit One Indonesia. PT. Karang Mas Investama is an investment company affiliated with Midplaza Holdings, a holding company engaged in a range of businesses spanning from property, information technology, and hospitalities, among others.
Outline of capital alliance
|Date of conclusion of contract||
By the end of October (tentative)
Transfer of 10% stake in Benefit One Indonesia to PT. Karang Mas Investama
(10% stake includes 9% stake of Benefit One Asia and 1% stake of Benefit One)
Shareholder structure after the transfer of shares:
Benefit one Asia (90%), PT. Karang Mas Investama (10%)
To enhance the Incentive Point business in Indonesia
(i)Boost sales capability
(ii)Strengthen service development of Incentive Point program
(iii)Increase management expertise concerning personnel, legal and IT systems in Indonesia
Reference: About PT. BENEFIT ONE INDONESIA
|Company name||PT. BENEFIT ONE INDONESIA|
World Trade Centre 2, 18th floor Jl. Jend. Sudirman kav. 29-31
Jakarta 12920 Indonesia
|Establishment||May 12, 2014|
|Stated capital||10,000 million IDR|
|Representative||Norio Shiraishi, President Director|
Incentive Point program services
The Incentive Point service provides “points” to employees with strong performance or those who work hard to improve themselves or employees with good attendance. Employees can exchange points to products and services of their choice. The program is implemented as a HR system that aims to elevate employees’ motivation and engagement as well as foster loyalty to the company.
In Indonesia, we offer a lineup of goods that take into account the country’s culture and religion. Points may be exchanged for entertainment purposes such as traveling and restaurants. There are also items that support people’s everyday life such as coupons that alleviate food and telecommunication expenses. Additionally, in light of the fact that Muslims account for 90% of the Indonesian population, there are items explicitly provided for Muslims such as a travel package for pilgrimage to Mecca, vitamins and supplements as well as clothing for the month of Ramadan.