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Indonesia Briefings: Gojek acquires 22% stake in tech-based bank

Last updated on January 12th, 2021 at 01:15 pm

19 Dec 2020

Homegrown unicorn startup Gojek shelled out IDR 2.2 trillion to acquire a 22% stake in Bank Jargo, a technology-based bank, as part of Gojek’s efforts to expand its digital banking footprint. Gojek’s acquisition of a minority stake will not alter control of Bank Jargo as current controlling shareholders Metamorfosis Ekosistem Indonesia and Wealth Track Technology (WTT) will continue to hold a combined 51% stake in Bank Jargo. 

Gojek is currently considered to be super app – similar to that of Chinese tech giant Tencent’s WeChat (HKG:0700). Gojek’s acquisition of a stake in Bank Jargo is part of a long term plan to strengthen its ecosystem of financial services.

Indonesia enters first recession in 22 years

05 Nov 2020

Southeast Asia’s largest economy slid into recession with its economy contracting 3.49% YoY in Q3 2020, following a contraction of 5.32% YoY the previous quarter as the Covid pandemic and weeks of lockdown continued to batter the economy. The two successive quarters of contraction mean Indonesia has entered a technical recession. The last time Indonesia was in recession was during the 1998 Asian financial crisis.

Microsoft joins e-commerce startup unicorn Bukalapak’s USD 100 million funding round

04 Nov 2020

Technology giant Microsoft (NASDAQ:MSFT) is joining Indonesian e-commerce startup Bukalapak’s USD 100 million funding round which includes investment from existing backers GIC, and Emtek Group. As part of Microsoft’s strategic investment, Bukalapak will be hosted on Microsoft’s Azure cloud platform.

GIC-Backed Data Center Provider SpaceDC Opens New Data Center In Indonesia

04 Nov 2020

GIC-backed data center provider SpaceDC has opened its inaugural data center facility, JAK2, in Jakarta, Indonesia, in an effort to tap into the country’s rapidly growing digital market. Indonesia is Southeast Asia’s largest digital economy.

Indonesia food service startup Mangan raises undisclosed amount in latest funding round

23 Oct 2020

Indonesian B2B on-demand food service startup Mangan has raised an undisclosed amount in funding from Richard Avila, Senior Director at American foodservice  distributor US Foods. Barely two years old (the startup was founded in 2019) the latest funding round brings Mangan’s post-money valuation to USD 1 million. The fresh capital will be used for product development.

Mangan’s platform connects restaurants and eateries with companies to offer company employees an expanded and diversified variety of menu options to choose from besides the standard, and often rarely changed fare offered at company canteens. The startups has already partnered with more than 200 restaurants, helping deliver more than 40,000 orders to abut 80 office locations in Jabodetabek and Surabaya.

Social Bella, Indonesia-based beauty tech startup to expand into Vietnam

15 Oct 2020

Indonesia-based beauty-tech startup – Social Bella – is set to expand into its first international market – Vietnam – through its e-commerce platform Sociolla. Social Bella is aiming to profit from Vietnam’s fast-growing online beauty and personal care market which the company says grew 80%, citing a report by Cosmetics Design Asia.  “As one of the fastest-growing markets for beauty and personal care in Southeast Asia, with a young and highly digitalized population, Vietnam shares many similarities with Indonesia,” said Christopher Madiam, co-founder and president at Social Bella.

Indonesian government develops National Logistics Ecosystem (NLE) 

24 Sep 2020

The Indonesian government is developing a reformed National Logistics Ecosystem (NLE) which expects to lower the logistics costs from 23.5% to 17% of the country’s GDP. 

Bukalapak onboards 3 million new merchants in the first seven months of 2020

14 Sep 2020

Homegrown e-commerce startup Bukalapak said 3 million merchants joined its ecommerce platform in the first seven months of the year, with the strongest growth recorded in rural areas and smaller cities. Bukalapak president Teddy Oetomo said that “Almost 70% of our TVP (total processing value) comes from the outside of the tier-one cities due to our previous infrastructure penetration through our (offline) partners”.

Indonesia August inflation hits 20-year low

02 Sep 2020

August inflation in Southeast Asia’s largest economy dropped to a 20-year low due to weakening purchasing power according to Statistics Indonesia (BPS). The Consumer Price Index (CPI) declined to 1.32% in August, the lowest level since May 2000.  The Covid pandemic has caused rising unemployment in the country.  

eBay-backed Blanja.com ceases operations

02 Sep 2020

Blanja.com, the e-commerce platform co-owned by American e-commerce giant eBay (NASDAQ:EBAY) and state-owned telecom giant PT Telkom Indonesia (IDX:TLKM), has ceased operations on September 1, according to an official statement. Founded in 2012 as a C2C marketplace famous for offering gadgets bundled with an internet data package from Telkomsel, the wireless net arm of Telkom Indonesia. Blanja.com reportedly struggled to competed against e-commerce unicorns Tokopedia and Bukalapak. 

Fashion e-commerce startup Sorabel shuts operations

25 Jul  2020

Fashion e-commerce startup Sorabel has ceased operations. Sorabel, which has so far secured about US$27 million in four rounds from the likes of Gobi Partners, Golden Equator, Open Space Ventures, and InnoVen Capital, was on the verge of raising a new massive funding round when it changed course and decided to close business.

The Covid pandemic was a boon to e-commerce startups that focused on essentials such as Sayurbox and Tanihub which focused on groceries or Halodoc which focused on healthcare, or even Carsome which focused on financing second-hand vehicle sales. Sorabel however which focused on fashion struggled as consumers, faced with an economic downturn curtailed non-essential expenditure. The Covid pandemic resulted in as much as a 50%-70% drop in revenue for the fashion industry (which was particularly devastating as the Ramadhan season is a time of relatively high fashion sales). Although Sorabel made an effort to pivot to masks and PPE, the startup’s lack of cash reserves impeded this effort. 

Mandiri Capital looking to invest USD 5 million in startups

12 Mar 2020

Bank Mandiri’s venture capital subsidiary Mandiri Capital is on the hunt to expand its portfolio of startups with about USD 5 million of capital available for investment.  Since its launch in 2016, he corporate venture firm has so far invested about IDR 1 trillion in 13 startups.