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29 MAY 2015

Jessica Kurnia
Researcher

News and analysis on business families and controlling shareholders in Asia. Subscribe for full access.

jessica.kurnia@capitalprofile.com

The Startup Network: Tycoon Financiers Behind


Indonesias Growing E-Commerce Scene
Indonesia, backed by the fourth largest populace in the world,
has in recent years emerged as the next destination to create
the newest e-commerce giant as investors hope to be part of
the next Alibaba, Amazon or Rakuten.
Local tycoons have been pumping cash into a diverse portfolio of IT-type investments to ride this e-commerce wave. Several have also launched investment funds to nurture a promising wave of start-ups, while others have formed joint ventures with more established operators to help them gain a
foothold in the market.
Backers like the Hartono family symbolize the bold manner in
which the latest generation of Indonesian scions have been
diversifying their business portfolios. It was among the first to
spot the opportunity and Martin Hartono second son of Budi
Hartono launched GDP Ventures in 2010 to invest in Internet companies and help start-ups through its Merah Putih
Incubator, which offers seed funding, business support and
mentoring.
Foreign investors have also flocked to the Indonesian ecommerce scene including Japan-based Softbank and USbased Sequoia Capital, which invested USD 100m in one of
Indonesias leading marketplace website, Tokopedia, in October 2014. Then there is AliExpress, backed by Alibaba, which
partnered Indonesia-based e-payment solution provider DOKU
recently to aid its business in the country. AliExpress also partnered with associates China Smart Logistics, Singapore Post
and Indo Post to enable faster goods delivery from China to
Indonesia. AliExpress is the sixth leading shopping website in
Indonesia as at April 2015, according to SimilarWeb.
There have been a variety of factors motivating investment in
Indonesias e-commerce market including a relatively young
population, a nascent middle class with more spending pow-

Sze Toh Yuin Munn


Editor
yuinmunn.szetoh@capitalprofile.com

er, an increase in internet penetration and usage of social


media. Smartphone adoption is also on the increase in Indonesia and is expected to reach 42.6% of the population by
2018 from 23% in 2014, according to a June 2014 Nielsen
Indonesia report.
To-date, boutique advisory firm for the technology sector Redwing estimates there are around 88 million internet users in
Indonesia, while 28% of the population owns a smartphone. It
estimates the e-commerce market is now worth USD 8bn
USD 10bn.
Earlier this year, Indonesia's Riady family made a grand entrance in the e-commerce space with the bold claim of developing the "Alibaba of Indonesia". Lippo Group announced a
USD 500m commitment to build up its online retailer MatahariMall.com within the next few years, where it expects to generate USD 1bn in sales. Lippo Group heir John Riady has been
quoted as saying "online commerce is a USD 100bn opportunity" as the group competes directly with Rocket Internet's
Lazada Indonesia, backed by the Salim family.
Lazada Indonesia was first launched in 2012 and quickly became become one of the leading online marketplace in the
country, earning it the nickname The Amazon of South East
Asia. Lazada Indonesia ranked as the sixth biggest website in
Indonesia, but first in the shopping category in the country,
with 59.7 million visits in April 2015, according to SimilarWeb.
Indonesias leading business families have also been quick to
spot the opportunities that have been spawned by the countrys huge and growing consumer base. In this report, Capital
Profile aims to shed insight on some of the IT and ecommerce portfolio of Indonesian tycoons based on public
information.

Top Shopping/Marketplace Websites in Indonesia by Monthly Traffic (April 2015)


Rank in Indonesia Visits (m)

Source: SimilarWeb; Capital Profile

Website

Business

Lazada

B2C

59.7

Avg Time Spent Avg Page Views Avg Bounce Rate


2:58

2.64

70.97%

OLX

C2C

15

14.4

15:39

19.09

20.44%

Tokopedia

B2C

28

7.9

12:20

11.78

32.56%

Bukalapak

C2C

42

6.2

8:42

9.09

41.73%

Elevania

B2C

99

4.1

5:03

4.2

55.39%

Zalora

Fashion

120

2.4

9:52

9.76

32.19%

Blibli

B2C

167

1.9

6:12

6.68

43.25%

Bhinneka

Gadgets & Technology

173

4.2

3:59

3.83

52.64%

BerryBenka

Fashion

333

0.59

12:00

16.37

35.81%

2015 Mergermarket Limited. All rights reserved.


For sales enquires contact Christophe Barel (+852 2158 9616; christophe.barel@capitalprofile.com)
Sources: Capital Profile research; company websites, company disclosures; press reports; wealth figures from Forbes and Globe Asia

The Startup Network: Indonesian


E-Commerce Tycoon Financiers
News and analysis on business families and controlling shareholders in Asia. Subscribe for full access.

Business Family

Notes

Hartono

Martin Basuki Hartono, the second son of Budi Hartono, spearheaded the familys IT expansion. He is the CEO

Flagship Company

of Djarum Groups subsidiary Global Digital Prima (GDP Venture), which is one of Indonesias early strategic

Djarum Group

investors for early and growing stage IT startups. GDP Venture acquired a strategic stake in Indonesias largest

IT/e-Commerce Vehicle

local online community Kaskus.co.id for an undisclosed sum in 2011. Its other investment, Blibli.com, is one

GDP Venture

of Indonesias leading marketspace websites. GDP Venture continues to invest in other tech startups via its

Merah Putih Incubator

Merah Putih Incubators. GDP Ventures undisclosed sum of initial funding came from the familys wealth, Mar-

Estimated Net Worth

USD 16.5bn

tin said in an interview with the Wall Street Journal in October 2012.

PORTFOLIO:

Kaskus.co.id

Lintas.me

Bolalob.com

Blibli.com

Infokost.com

Trenologi.com

DailySocial.net

Mindtalk.com

Kincir.com

Salim

First Pacifics PSE-listed subsidiary Philippines Long Distance Telephone (PLDT) acquired a 10% stake in the

Flagship Company

Germany-based Rocket Internet for EUR 330m in August 2014. The two companies also agreed on a strategic

Salim Group

partnership and established a global joint venture to develop mobile payment services solution in emerging

First Pacific Ltd

market in January 2015. PLDTs shareholding in Rocket Internet fell to 6.1% following its IPO in October 2014.

IT/e-Commerce Vehicle

Rocket Internets portfolio includes online marketplace Lazada and fashion retailer Zalora, both of which have

Rocket Internet
Estimated Net Worth

USD 5.9bn

gained traction in Southeast Asian markets including Indonesia. Rocket Internet also led a group of investors,
including Lippo Groups Lippo Digital Ventures, in a USD 2m series A fund raising exercise for Indonesian wedding-focused online marketplace Bridestory. Reuters reported in May 2015 that Rocket Internet was aiming to
list two of its holding subsidiaries, Global Fashion Group and Global Online Takeaway Group, on an unspecified
stock exchange by end-2015 or 2016 at the latest.

PORTFOLIO:

Lazada

Traveloka

Easy Taxi

Zalora

Foodpanda

Bridestory

Widjaja

Sinar Mas Groups IDX-listed subsidiary Dian Swastatika Sentosa acquired a 5.9% stake in Singapore-based

Flagship Company

internet service provider (ISP) startup MyRepublic for SGD 4.4m in May 2014. It made a further SGD 20m in-

Sinar Mas Group

vestment in MyRepublic via its Singapore-based holding subsidiary Sunshine Network in July 2014. In June

Asia Pulp & Paper Group

2014, Sinar Mas participated in USD 10.7m series A funding arranged by tech-focused Ardent Capital, whose

IT/e-Commerce Vehicle

flagship startup is e-commerce development company aCommerce. Sinar Mas repeated its commitment in

Sinar Mas Digital Ventures


Estimated Net Worth

USD 5.8bn

September 2014, when it led a USD 12.7m funding exercise for Ardent Capital to support further growth at
aCommerce. Aside from its investments, the group has separately partnered with Alibaba and Japans online
service provider Excite for their Indonesian operations. It was among eight companies that provided funds to
help launch online mutual fund marketplace startup Bareksa in January 2015. Sinar Mas Digital Ventures, the
venture capital arm of Sinar Mas Group, was incorporated in February 2015 with capital of USD 1m. Before its
inception was announced, SMDV had participated in Ideosource-led USD 1m funding for Female Daily Network
in November 2014 and Sovereigns Capital-led USD 2m funding for Gift Card Indonesia in January 2015.

PORTFOLIO:

Ardent Capital

Bizzy

Bareksa

aCommerce

Gift Card Indonesia

Female Daily Network

2015 Mergermarket Limited. All rights reserved.


For sales enquires contact Christophe Barel (+852 2158 9616; christophe.barel@capitalprofile.com)
Sources: Capital Profile research; company websites, company disclosures; press reports; wealth figures from Forbes and Globe Asia

The Startup Network: Indonesian


E-Commerce Tycoon Financiers
News and analysis on business families and controlling shareholders in Asia. Subscribe for full access.

Business Family

Notes

Riady

Lippo Group has a long association with the IT industry through the majority stakes it owns in IDX-listed inter-

Flagship Company

net service provider (ISP) Link Net and IDX-listed IT consulting firm Multipolar Technology. The Riady family-

Lippo Group

controlled Ciptadana Capital is also one of the eight investment management firms which participated in the

Siloam Hospitals

establishment of online mutual fund marketplace startup Bareksa. Lippos venture capital arm, Lippo Digital

IT/e-Commerce Vehicle

Ventures, participated in the Sovereigns Capital-led USD 2m funding for Gift Card Indonesia in January 2015.

Lippo Digital Ventures


Estimated Net Worth

USD 2.7bn

In February 2015, it announced the launch of MatahariMall.com with plans for USD 500m investment over the
next two to three years to develop the Alibaba of Indonesia. Lippo has mandated BoA Merrill Lynch and Credit Suisse for a USD 200m fund raising to finance the USD 500m investment. It went on to recruit former CEO of
aCommerce and Zalora Indonesia, Hadi Wenas, former country head of Google Indonesia Rudy Ramawy and
former CEO of state owned-air carrier Garuda Indonesia Emirsyah Satar to the board of MatahariMall.

PORTFOLIO:

MatahariMall.com

Gift Card Indonesia

Bridestory

Bakrie

The Bakrie family made headlines after announcing its acquisition of a minority stake in social network Path in

Flagship Company

January 2014, which was said to be funded by its internal cash. The USD 25m series C funding amounted to a

Bakrie & Brothers

less than 1% stake in Path, according to Path Inc CEO Dave Morin in an interview with Tempo in February

IT/e-Commerce Vehicle

2014. Path Inc announced on 29 May 2015 that it has signed a definitive agreement with Daum Kakao for

N/A

Daums acquisition of its social media app Path and Path Talk. Bakrie Group is also one of the financial back-

Estimated Net Worth

USD 2.5bn

ers of Indonesia-based venture capital Convergence Accel, whose portfolio includes food startup Qraved and
online local women community Female Daily Network.

PORTFOLIO:

Convergence Accel

Path

Ciputra

Ciputra Group joined hands with the Global Entrepreneurship Program Indonesia (GEPI) and established the

Flagship Company

Ciputra GEPI Incubator (CGI) in September 2013, according to its website. Aside from the incubation program,

Ciputra Group

CGI also provides coworking and event space for startups. It currently houses over 50 startups, including

IT/e-Commerce Vehicle

online food catering BerryKitchen and online tour operator Tripvisto. Junita Ciputra, daughter of the titular

Ciputra GEPI Incubator


Estimated Net Worth

USD 1.5bn

group founder Ciputra, said in a February 2015 interview with Tech in Asia that the family is not looking into
establishing its own venture capital as it might pose a conflict of interest with the holdings other startup initiatives.

PORTFOLIO:
BerryKitchen

Wavoo

Bornevia

Wootag

Polatic

Tripvisto

Tanoesoedibjo

MNC Groups IDX-listed subsidiary Global Mediacom Tbk is a partner of Chinese tech giant Tencent for

Flagship Company

WeChats Indonesian operation. The partnership, which started in late 2012, was further cemented by the

MNC Group

establishment of their flagship joint venture MNC Tencent in February 2013. When local media reported in

IT/e-Commerce Vehicle

November 2012 that MNC Group was seeking to build its own search engine, Tencent was reportedly one of

Global Mediacom Tbk


Estimated Net Worth

USD 1.4bn

the frontrunners. MNC Group also partnered with Japan-based retailer Rakuten in 2011 for its Indonesian joint
venture Rakuten Belanja Online (RBO) but the partnership ended in March 2013 due to differences in visions. RBO is now wholly owned by Rakuten, CEO Ryota Inaba told Forbes in February 2014.

PORTFOLIO:

WeChat Indonesia

2015 Mergermarket Limited. All rights reserved.


For sales enquires contact Christophe Barel (+852 2158 9616; christophe.barel@capitalprofile.com)
Sources: Capital Profile research; company websites, company disclosures; press reports; wealth figures from Forbes and Globe Asia

The Startup Network: Indonesian


E-Commerce Tycoon Financiers
News and analysis on business families and controlling shareholders in Asia. Subscribe for full access.

Business Family

Notes

Jakob Oetama

Kompas Gramedia Group, via its Kompas Cyber Media, acquired online city directory site Urbanesia.com in

Flagship Company

January 2012. Another subsidiary, Gramedia Digital, also raised a SGD 3m series B funding for magazine and

Kompas Gramedia Group

e-book reader app Scoop in April 2013. In the same year, Kompas Gramedia Group partnered with Universitas

IT/e-Commerce Vehicle

Multimedia Nusantara to establish tech incubator Skystar Ventures and venture capital firm Skystar Capital.

Skystar Capital

Skystar Capital made its first investment in the advertising platform Adskom in August 2014. It then participat-

Estimated Net Worth

ed in the seed funding round of Indonesias first Muslim fashion ecommerce site HijUp in February 2015. It

USD 1.4bn

also participated in Rocket Internet-led series A funding for wedding marketplace Bridestory in March 2015.

PORTFOLIO:

Urbanesia.com

Bridestory

Scoop

Hijup

Adskom

Sariaatmadja

In June 2014, Emtek Group provided an undisclosed sum of seed funding for Indonesian game developer Ar-

Flagship Company

toncode. Emteks subsidiary Kreatif Media Karya (KMK) partnered with online property group PropertyGuru to

Emtek Group

establish a joint venture, which operates as PropertyGurus Rumah.com. KMK also acquired a minority interest

IT/e-Commerce Vehicle

in Rumah.com for an undisclosed sum. Emtek also staked an undisclosed sum in online marketplace BukaLa-

N/A

pak through series B investment in February 2015. Emtek has its own YouTube-style video streaming startup

Estimated Net Worth

USD 820m

called Vidio. In April 2015, KMK was the lead investor in a series A funding round for Indonesian lifestyle marketplace Bobobobo.

PORTFOLIO:

Artoncode

BukaLapak

Rumah.com

Vidio

Bobobobo

Panigoro

Medco Group invested USD 10m in venture capital firm Grupara Incubator in 2012, according to a February

Flagship Company

2014 Forbes Magazine interview. Aside from the financial investment, Medco provided Grupara with a 120

Medco Group

square metre co-working space for startups, the first free facility in Indonesia. Grupara is considered as one of

IT/e-Commerce Vehicle

the most active local venture capital firms investing in Internet businesses in Indonesia, according to the Feb-

Grupara Incubator

ruary 2014 edition of Forbes Indonesia.

Estimated Net Worth

USD 680m
PORTFOLIO:

Gravira

Maskool.in

Lolabox

2015 Mergermarket Limited. All rights reserved.


For sales enquires contact Christophe Barel (+852 2158 9616; christophe.barel@capitalprofile.com)
Sources: Capital Profile research; company websites, company disclosures; press reports; wealth figures from Forbes and Globe Asia