Startup investments in Indonesia have grown exponentially in the past five years. With 78 percent of local investors planning to maintain or increase investments, Indonesian corporations and conglomerates are also keeping up with the startup revolution.
Here’s a look at how three Indonesian top players innovate and collaborate in the startup era.
Telkom: Growing the local startup community
Telkom, Indonesia’s largest telco, is one of the most visible companies in the country’s startup scene.
Telkom established a venture capital arm, MDI Ventures, which has committed to disburse US$100 million in funding. The company has also been running its own startup programs: Indigo Incubator and DDB Accelerator, which have supported notable startups such as Kofera, Jarvis Store, and YesBoss.
Aside from its business ventures, the telco has also made initiatives to support and grow the startup community. Telkom has opened three co-working spaces in Indonesia’s booming startup districts: Jakarta, Bandung, and Yogyakarta. They also launched programs to encourage and nurture startup founders and ideas such as the NextDev Academy, which educates startup founders in app development and entrepreneurship, and the Digital Amoeba Program, which encourages its over 23,000 employees to build startups of their own.
Lippo Group: Expanding and diversifying its market
Lippo Group, known to be one of Indonesia’s largest conglomerates with holdings in real estate, banking, and retail, also stands as one of the country’s most ambitious conglomerates in the startup scene. Aside from investing in startups through its venture capital arm, Venturra Capital, Lippo Group has also launched its own digital ventures in different verticals.
Its ecommerce website, MatahariMall.com, was launched in September 2015 and aims to rival Indonesia’s largest ecommerce startups. Lippo Group is also beefing up its mobile payment platform, Ovo, which has already secured its license from the Bank of Indonesia.
Lippo Group also launched a B2B/B2G platform in March last year. MBiz, an ecommerce website providing online procurement solutions for businesses, is also the government’s official partner for online procurement. MBiz was able to gain over US$97 million in sales on its first year.
Emtek: Strengthening strategic partnerships
Media giant Emtek, which owns two national TV networks in Indonesia, continues to expand its properties beyond television. KMK Online, an Emtek subsidiary, has invested in startups in different industries such as publishing, ecommerce, travel, and IT services. Emtek has become one of the most active startup investors in the country and continues to strengthen its portfolio by connecting the different startups under its belt.
Emtek has also recently entered partnerships with Alibaba’s Ant Financial and Blackberry Messenger (BBM). Despite the decline of Blackberry handsets, BBM has evolved into an independent messaging app with over 63 million active users per month in Indonesia, maintaining a strong position the country. Emtek is transforming BBM into a one-stop ecommerce and mobile payment platform similar to WeChat. BBM Indonesia launched BBM Shopping and BBM Travel in December last year. These features are connected to Bukalapak and Reservasi.com respectively – two startups under Emtek’s portfolio.
In a growing startup scene like Indonesia’s, these large companies’ efforts to innovate and collaborate can result in a win-win solution not only for startups but also for the whole ecosystem.
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Converted from Indonesian rupiah. Rate: US$1 = IDR13,378.
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