Tag: Indonesia

  • Indonesia to Work With Alibaba’s Jack Ma to Increase Exports: Minister

    Indonesia to Work With Alibaba’s Jack Ma to Increase Exports: Minister

    Indonesia will partner with Alibaba chief executive Jack Ma to look into ways to use of the e-commerce giant’s ecosystem to increase its exports, particularly to China, Communications Minister Rudiantara said on Sunday.

    “We are also discussing how to work together to develop tech talents to meet the needs of Indonesia and the region,” Rudiantara said after meeting Ma and President Joko “Jokowi” Widodo on Saturday.

    The Alibaba founder and chief executive, who was in Jakarta for the 2018 Asian Games, was named an e-commerce adviser to the Indonesian government in 2017.

    McKinsey estimated in a report released on Aug. 30 that the value of Indonesia’s e-commerce market will grow to at least $55 billion by 2022 from $8 billion in 2017.

    Alibaba is China’s biggest e-commerce firm, but its ecosystem includes payments platform Alipay and a cloud computing arm.

    Rudiantara told Reuters the details of the deal would be finalized during a second visit by Ma in October.

  • Uniqlo to open new store in Bali

    Uniqlo to open new store in Bali

    Japanese apparel retailer Uniqlo has announced plans to open its first store in Bali this year.

    The new store will be located at Mal Bali Galeria in the heart of Kuta city centre on Bali island. It will feature a total sales area of nearly 2000sqm.

    Satoshi Hatase, Uniqlo’s CEO for SEA and Oceania said: “Since entering Southeast Asia and Oceania in 2009 and Indonesia in 2013, Uniqlo has been growing together with local communities around the region, and receiving a warm welcome with our LifeWear products.

    “We are now thrilled to have the opportunity to introduce our brand to Bali, one of the world’s favourite holiday destinations and well known for its relaxed and casual lifestyle.”

    Uniqlo Indonesia currently has 18 stores, located in Jakarta and five other major cities.

  • CAE to train 400 pilots for AirAsia

    CAE to train 400 pilots for AirAsia

    Group Bhd wants CAE to train about 400 cadet pilots to support its growth in the various markets it operates over the next five years.

    The first batch of cadet pilots will begin training in the second half of the year for a 18-month competency-based Multi-Crew Pilot Licence (MPL) programme.

    The airline signed a new agreement with CAE for the training of 400 cadet pilots in Singapore on Tuesday.

    The training will be held at CAE Kuala Lumpur, CAE Melbourne and CAE Phoenix. After the 18-month training programme, the next generation of pilots will become AirAsia’s first officers.

    Apart from Malaysia, AirAsia has operations in Thailand, Indonesia, the Philippines and Japan. It is also looking at setting up operations in Vietnam and China in the medium to long term.

    The entire training cycle involves the rigorous cadet selection process, integrated English language training, a blended training methodology with emphasis on crew resource management and threat/error management.

    CAE said the training cycle followed the airline’s standard operating procedures.

    It said the comprehensive programme also followed the highest industry pilot training standards in the world.

    “CAE has been a tremendous partner since we first started the MPL programme together eight years ago, not only launching an innovative programme that sparked conversations in the industry but continuously refining and adapting the training programme,” AirAsia group chief operations officer Adrian Jenkins said.

    CAE group president, civil aviation training solutions, Nick Leontidis adds that this “new agreement highlights our dedication to effectively train and prepare this next cadre of cadets as they begin their careers as professional pilots.”

    CAE introduced the MPL training programme with AirAsia as a launch customer in 2010, complementing the offering in training paths and programmes for cadets.

    CAE said that since 2010, about 85 AirAsia cadets have been trained through the MPL programme. Since 2017, the first nine AirAsia-sponsored CAE MPL cadets have been flying as captains.

     

  • Grab to invest US$250m in Indonesian startups over next three years

    Grab to invest US$250m in Indonesian startups over next three years

    Grab will invest US$250 million (RM1.025 billion) in Indonesian startups over the next three years through its newly launched innovation arm, as the ride-hailing firm aggressively pushes to cement its position in the Southeast Asia’s largest economy.

    The Singapore-based firm has raised US$2 billion in funding in recent months and also launched the Grab Ventures arm to develop technology start-ups in sectors beyond ride-hailing as it locks horns with Indonesia’s Go-Jek for regional dominance.

    “We are looking at startups in both series A and B, which we could integrate into our ecosystem,” Ridzki Kramadibrata, managing director for Indonesia said.

    The company, which counts Chinese ride-hailing firm Didi Chuxing and Japan’s SoftBank Group Corp among its backers, has already starting looking at startups and will start funding rounds later this year, he added.

    Grab is interested in healthcare and food-and-grocery delivery startups as well as those that facilitate digital payments and automated processes, he added.

    Grab’s rival Go-Jek has already evolved from a ride-hailing service to a one-stop app allowing Indonesian clients to make online payments and order everything from food, groceries to massages. It is now looking to expand in Southeast Asia, to Vietnam, Thailand, the Philippines and Singapore.

    Kramadibrata said Grab is currently the top ride-hailing player in Indonesia and that he was confident the firm would be able to maintain the lead. The firm is valued at around US$11 billion, according to sources.

    “We hold 65% of (Indonesia’s) ride-hailing market, as based on total rides and transactions,” said Kramadibrata. “And it won’t stop there, our market share is increasing.”

    He reckons Grab holds majority market share in 137 cities in Indonesia, compared with Go-Jek’s roughly 50. Kramadibrata said he based his estimates on internal and third-party data that he declined to reveal.

    Its CEO, Nadiem Makarim, said that this month that the company’s app was a market leader in Indonesia, processing more than 100 million transactions for 20-25 million monthly users.

    He did not specify how many of those transactions were only for ride hailing.

    Ride hailing services in Southeast Asia are expected to
    surge to US$20.1 billion in gross merchandise value by 2025 from US$5.1 billion in 2017, according to a Google-Temasek report.

  • Indonesia tour prices rise as Vietnam enters Asiad semis

    Indonesia tour prices rise as Vietnam enters Asiad semis

    As soon as the final whistle blew in Vietnam’s victorious Asian Games quarterfinal game, Indonesia tour prices rose.

    Vietnam’s first ever semifinal game in the Asian Games will be played against defending champions South Korea on Wednesday, August 29, at the Pakansari Stadium in Cibinong, Indonesia.

    The match will begin at 4 p.m. local time.

    The unexpected progress made by the national team in football crazy Vietnam has seen demand for Indonesia tours soar, accompanied by a rise in prices.

    A representative of HanoiRedtours said airline and entrance ticket prices have gone up, forcing the tour operator to increase its tour prices from Monday night, right after Vietnam beat Syria by a goal in the 108th minute.

    HanoiRedtours said that the price for a one-day tour to Indonesia to watch Vietnam’s semifinal match went up $43 to $683 per person, while those for the final match on September 1 have to pay $812, up $86 against the earlier listed price.

    “We are offering tours to Indonesia for football fans costing VND15.9 million for those departing from Hanoi and VND12.9 million from Ho Chi Minh City,” a Viettravel representative said.

    Such prices are common at most local tour companies, he added.

    Nguyen Tien Dat, deputy director of Transviet Tourism Company, said it has reserved around 150 seats for Vietnamese supporters to Indonesia to cheer Vietnamese men’s football team for the semifinal match.

    For the final match, customers only need to pay VND2 million in advance. In the event of the Vietnamese not making it to the final, customers will be refunded, Dat said.

    In response to higher demand, airlines have also increased the number of flights to Indonesia.

    On Monday night, Vietnam Airlines announced it would add three direct flights to Jakarta from Hanoi, Saigon and Da Nang to serve Vietnamese football fans.

  • Indonesia’s Rice Imports to Be Largest Since 2011

    Indonesia’s Rice Imports to Be Largest Since 2011

    President Joko “Jokowi” Widodo may import 2 million tons of rice this year, falling short of fulfilling his 2014 presidential campaign promise of rice self-sufficiency.

    Since 2015, Indonesia has imported 3.35 million tons of rice. This year the imports are going to be increased, as severe droughts are expected to disrupt harvests. A price spike in the country’s staple food would not be beneficial to the president who is seeking reelection next year.

    Last week, the Ministry of Trade issued a permit for the the national procurement agency, Bulog, to import 1 million tons of medium quality rice for the second half of the year. The year’s total rice imports would then become 2 million tons, the highest since 2011.

    Said Abdullah, coordinator of the People’s Coalition for Food Sovereignty (KRKP), a farmers’ advocacy group, said droughts may continue until the end of the year, making it hard for the government’s rice production target of 47 million tons to be achieved.

    “Rice harvests dropped by at least 50 percent due to droughts, even there are regions that failed 100 percent, especially those far from rivers, lacking irrigation,” Said told the Jakarta Globe on Sunday (27/08).

    According to the Meteorology, Climatology and Geophysics Agency (BMKG), most of the country’s rice-producing regions, especially in Java, will see no rains before October.

    Bulog data shows in mid-August the agency’s rice supplies were 2 million tons in its warehouses across the country. The amount, Said said, should be at least 3 million tons to be safe.

    Nailul Huda, economist at the Institute for Development of Economics and Finance (Indef), said this year’s imports are meant to secure Bulog’s rice supplies during the 2019 election campaign.

    “As harvests are between April and May, the beginning of next year is the most crucial time, because there is a risk of price fluctuations. Importing rice at that time would be [politically] suicidal. Therefore, the safest way is to issue import permits this year, with less political risk,” Nailul said.

    Trade Minister Enggartiasto Lukita said the rice imports are meant to keep the inflation rate at 3.5 percent, in accordance with this year’s state budget, not because of the upcoming election.

    “We are not talking about the election, we are talking about inflation, the rising prices, so we cannot leave it unattended,” Enggartiasto told reporters on Monday.

    “We need to import … because we see there is a tendency for the prices to increase while the supplies decrease. We need to fill the stock,” Enggartiasto said.

    Jokowi has been importing rice since 2015, the highest imports so far were in 2016, with 1.28 million tons, up a 49 percent from a year earlier. The country’s imports then decreased by 76 percent to only 305,275 tons last year.

    According to data from the Ministry of Agriculture, Indonesians will consume 33.8 million tons of rice this year, compared with 30.65 million tons in 2017. Last year, 47 million tons were produced domestically.

    Edhy Prabowo, a Great Indonesia Movement Party (Gerindra) lawmaker who sits at House of Representatives Commission IV, which oversees agriculture, has questioned the government’s decision to import rice again, as to him rice supplies seem sufficient.

    “I can’t understand the logic of importing rice again. Programs that we provide in the agriculture sector are supposed to have fulfilled the country’s rice needs for one year … Import is allowed only if [a commodity] is not available domestically,” Edhy said.

    Rice consumption in Indonesia is among the highest in the world, with the average citizen consuming 114 kilograms every year. In comparison, the average annual consumption of rice in Vietnam is 191 kilograms per person, in Thailand 147 kilograms, in India 78 kilograms and in China 75 kilograms, according to data compiled by the Organization for Economic Cooperation and Development in 2016.

  • Gov’t Raids Miner Suspected of Destroying Orangutan Habitat in West Kalimantan

    Gov’t Raids Miner Suspected of Destroying Orangutan Habitat in West Kalimantan

    Nickel miner Laman Mining is suspected of illegal bauxite mining operations, disrupting orangutan habitat in West Kalimantan’s Tulak River forest.

    The Ministry of Environment and Forestry raided the company’s sites in Puring and Kempapakon on Aug. 20, finding seven heavy-duty vehicles for excavation.

    Laman Mining claimed the areas were included in its mining business permit (IUP). According to forest maps, however, Puring and Kempapak belong to the Tulak River convertible production forest area, to which Laman has no rights. Convertible production forests are forested areas that the government can designate for a limited use such as farming.

    The Tulak River forest area is also Palung Mountain National Park’s buffer zone as well as orangutan habitat, neither of which should be disrupted.

    “This is an extraordinary evil,” Rasio Ridho Sani, the ministry’s director of law enforcement, said in a statement on Sunday.

    The ministry is questioning Laman’s directors and commissioners.

    “We are also investigating the possibility that money laundering was involved in this illegal mining operation,” Rasio said.

    Under a 2013 law on prevention of forest destruction, the company’s officials may face between eight and 20 years in prison, if convicted, while the company may face a fine of Rp 20 billion ($1.37 million) to Rp 50 billion.

  • Indonesians Show Enthusiasm for 2018 Asian Games

    Indonesians Show Enthusiasm for 2018 Asian Games

    The 2018 Asian Games captured the attention of many Indonesians, who are currently glued to their television screens to watch matches, or flock to sports venues to catch a glimpse of their heroes.

    The live television broadcast of the opening ceremony in Jakarta on Aug. 18 was watched by 14 percent of the country’s total viewership, according to Nielsen Indonesia.

    The extravagant show, broadcast between 7 p.m. and 9:30 p.m., was watched by 57 percent of all viewers – mostly middle-aged women – who had their televisions on at that time.

    Broadcasts of Asian Games matches, particularly those involving Indonesian athletes, also consistently score high ratings.

    The football match between Indonesia and Laos at Patriot Chandrabhaga Stadium in Bekasi, West Java, on Aug. 17, was watched by 9.1 percent of Indonesia’s total viewership, or 37 percent or viewers who were watching television at the time, Nielsen said.

    In comparison, Indonesian soap operas, or sinetron, which usually dominate television ratings, only attract between 4 percent and 5 percent of the total viewership.

    Matches in the badminton mean’s team final between Indonesia and China last week drew 7.9 percent of the total viewership, Nielsen said.

    “The national pride of the Indonesian audience is also reflected in their enthusiasm to watch every sports match at the Asian Games,” Nielsen Indonesia marketing communication director Miladine Lubis said in a statement on Thursday (24/08).

    Nielsen conducted the survey using data collected by its Peoplemeter devices, installed in more than 2,200 households in 11 cities, that automatically record what programs people watch.

    Indonesians’ enthusiasm for the event can also be seen at the various sports venues in the host cities, Jakarta and Palembang, South Sumatra.

    This enthusiasm can is also reflected in long queues at the official 2018 Asian Games merchandise store at Gelora Bung Karno Stadium in Jakarta. The store sells copies of the Asian Games mascots, known as Kaka, Bhin-Bhin and Atung, for between Rp 70,000 and Rp 5 million ($4.80-$340), in addition to commemorative coins and replica medals.

    Tickets for Asian Games events are regularly completely sold out, with some enthusiasts often queuing for more than eight hours to purchase tickets for matches in some of the more popular sports in Indonesia, such as badminton, football and volleyball.

    Heavy traffic congestion was also reported on the Jakarta-Cikampek Toll Road ahead of Friday’s quarterfinal football match between Indonesia and Wibawa Mukti Stadium in East Cikarang, Bekasi, due to residents flocking to the area to show their support for the national team.

  • Indonesia to Unveil Higher Import Tariffs Soon Amid Push to Aid Rupiah

    Indonesia to Unveil Higher Import Tariffs Soon Amid Push to Aid Rupiah

    Indonesia will release a list of goods subject to higher import taxes in the next few weeks, ministers said on Friday (24/08), part of efforts to shrink a widening current account deficit and curb pressure on its shaky currency.

    The rupiah on Friday slipped to 14,660 to the dollar, its weakest level since October 2015.

    A central bank official on Thursday blamed the rupiah’s drop on high demand for dollars by local importers. But the currency has also been caught up in a flight from emerging market assets as US interest rates rise and worries about global trade fights increase.

    Indonesia’s July trade deficit was the biggest in five years and the second-quarter current account deficit, at 3 percent of gross domestic product, was the largest in nearly four years.

    “We are reviewing 900 imported commodities to see the domestic industry’s capability in producing them,” Finance Minister Sri Mulyani Indrawati told a news conference with other ministries and Bank Indonesia (BI).

    Indrawati previously said the government would impose a 7.5 percent tariff on about 500 imported goods that can be locally made.

    Southeast Asia’s largest economy currently applies a 2.5 percent import tax on a vast range of products for registered importers, but it charges 7.5 percent for unregistered importers.

    Suahasil Nazara, head of the finance ministry’s fiscal policy office, said the government was rethinking the tariff difference between registered and unregistered importers.

    “We will hike the import tariffs from the current rates to give a signal, ‘let’s use domestic production,’ ” Nazara said.

    Trade Minister Enggartiasto Lukita said the measures to contain imports should not disrupt investment because the list would not include raw materials for production.

    A senior government official told the list, which is not finalised, will focus on semi-durable and perishable goods, including consumer goods used by hotels and restaurants.

    Stabilising the rupiah has been a top priority for the government and BI. The central bank has raised interest rates four times by a total of 125 basis points since mid-May.

    BI governor Perry Warjiyo said the central bank continues to intervene in the FX and bond markets to defend the currency.

    The government’s measures to control imports also include delaying some infrastructure projects and forcing a greater use of biodiesel.

  • Indonesia’s Pertamina EP Discovers New Gas and Oil Reserve

    Indonesia’s Pertamina EP Discovers New Gas and Oil Reserve

    Pertamina Exploration and Production, the exploration arm of state energy firm Pertamina, announced on Thursday (23/08) a discovery of a new gas, oil and condensate reserve in West Java.

    The company, known also as Pertamina EP, found the reserve while drilling the Akasia Maju wells at the company’s Jatibarang field in Indramayu. The operation was completed on Monday, at a final depth of 2,517 meters.

    In a production test, from one of the wells the company managed to extract 1,700 barrels of oil per day. Currently, the Jatibarang field produces 5,180 barrels of oil per day. The company wants increase it to 5,890 barrels.

    “Thank god all the effort we’ve put into it gave positive results. We’re certain that with our synergy and hard work we can contribute to the nation’s achievements in production,” Pertamina EP exploration and new discovery project director Achmad Alfian Husein, said.

    The discovery also opens the possibility of further exploration of the area.

    Jatibarang field has been in operation since 2017. Pertamina EP currently manages 50 onshore structures and one offshore, with 170 oil and gas producing wells in the field.

  • Uniqlo plan to double its store in SEA

    Uniqlo plan to double its store in SEA

    Japanese apparel giant Fast Retailing is eyeing massive expansion in Asia-Pacific.

    The Uniqlo Southeast Asia and Oceania store network is set to double by 2022 to about 400 stores, Fast Retailing’s group senior VP Satoshi Hatase said in an interview.

    The company plans an emphasis on stand-alone suburban stores as it expands its Southeast Asian footprint, seeking to move beyond its traditional shopping mall locations.

    “We opened our first roadside store in Asean in Thailand in March, and it has been a huge success,” he said, adding that stand-alone stores in suburban locations were the key to Uniqlo’s original growth in Japan.

    Regionally, Uniqlo has now reached a level of recognition where “the timing is right” for suburban stores, he said.

    Fast Retailing executives in Thailand, Malaysia and the Philippines are talking with leasing agents to identify suitable sites for such stores.

    In Southeast Asian markets, middle- and high-income consumers are the ones which will fuel the Japanese company’s growth.

    “Lower-income people cannot buy Uniqlo [yet],” Hatase said. But in 10 years, “a significant number of Asean people will be able to”.

    Fast Retailing has previously said it aimed to triple its sales in the region to 300 billion yen (US$2.7 billion) in the year to the end of August 2022. Last year’s regional sales were 100 billion.

    Fast Retailing already has stores in Australia, Malaysia, Singapore, Indonesia and the Philippines. Its next target in the region is Vietnam.

    “We want to have stores in all countries [in the region],” Hatase said, especially Vietnam, Laos and Myanmar.

  • Australia Expects Free-Trade Deals With Indonesia, Hong Kong This Year

    Australia Expects Free-Trade Deals With Indonesia, Hong Kong This Year

    The Australian government expects to seal free-trade agreements with Indonesia and Hong Kong by the end of this year, its trade minister said on Friday.

    Concluding the two agreements would wrap years of talks, which in the case of Indonesia have dragged on since 2010, stalling along the way as diplomatic tensions between the two sides flared.

    “I think by the end of this year we’ll conclude successfully an FTA with Indonesia, an FTA with Hong Kong,” Trade Minister Steven Ciobo said at a business lunch in Sydney, when asked about the outlook for the next 12 months.

    He gave no further details on timing, though a deal with Indonesia, Southeast Asia’s largest economy but only Australia’s 13th-largest trading partner, could come as soon as next month when Australian Prime Minister Malcolm Turnbull is scheduled to visit.

    Ciobo, who has already sealed Australian trade deals with Peru and with the 11-nation Trans-Pacific Partnership this year, also said United States President Donald Trump’s protectionist rhetoric had made his counterparts elsewhere more willing negotiators.

    Since Trump’s election, there has been a “desire from a number of countries to double down” on trade pacts, Ciobo said, helping him to seal deals.

    He added that he was “hopeful” of also signing Australian agreements this year with the Pacific Alliance, a Latin American trade bloc and with the China-led Regional Comprehensive Economic Partnership.

    A deal with Hong Kong, Australia’s 12th-largest trading partner, has been under negotiation since last year.

    Two-way trade between the pair is worth roughly A$16.3 billion ($12 billion), according to Australian figures, nearly the same as the country’s two-way trade with Indonesia.

  • Jokowi Says Indonesia Committed to Closing Wealth Gap

    Jokowi Says Indonesia Committed to Closing Wealth Gap

    President Joko “Jokowi” Widodo said his government will continue its efforts to reduce income inequality in Indonesia, following encouraging results in overcoming wealth disparity over the past few years.

    “Economic justice is a serious concern for us, especially regarding the poorest 40 percent of our population… efforts to achieve social justice for all Indonesians will never stop,” the president said during his state-of-the-nation address in the national legislature in Jakarta on Thursday (16/08).

    Southeast Asia’s largest economy has managed to reduce its Gini ratio to 0.389 – the lowest in the past six years – thanks to land redistribution and cash transfer programs aimed at the country’s poorest.

  • Indonesian Retailers Need Better Digital Integration

    Indonesian Retailers Need Better Digital Integration

    Integrating with digital platforms will enable Indonesian brick-and-mortar retailers to better engage with customers, who are increasingly shifting their spending from goods to experiences.

    “In Indonesia right now, our retailers underperform… because our customers are already shifting,” Roy Nicholas Mandey, chairman of the Indonesian Retail Association (Aprindo), said in a keynote speech last week during a conference titled “Consumer in Focus.”

    “They are already shifting from a shopper lifestyle to a leisure lifestyle,” he said. In the pre-2014 “shopper lifestyle,” customers took time to explore retail selections at shops and made more frequent purchases, Roy said.

    The “leisure lifestyle” after 2014 has seen customers spend less time at shops, directly buying the products they are looking for and leaving, he said. That has diminished opportunities for retailers to entice customer to make additional purchases.

    Central bank data shows that retail sales only grew at 4.9 percent in the second quarter of this year compared with the same period last year, while annual sales growth used to be in double digits prior to 2014.

    Capillary Technologies, a Singapore-based customer relationship management and e-commerce omnichannel service provider, has pointed out that the integration of brick-and-mortar shops and digital platforms may be the key to surviving the challenges in the current retail environment.

    “Consumers do not perceive brands independently of the platform or medium in which they appear, necessitating a cohesive ecosystem where brand and consumer can smoothly interact,” Abhijeet Vijayvergiya, president and managing director of global accounts and Asia Pacific at Capillary Technologies, said in a press release last week.

    “Additionally, multiple touch-points are needed to connect everything to a single system, such that a unified perception of the brand is conveyed to the consumer. Surrounded by disruptive technology, brands must possess adaptability to turn this obstacle to their advantage, as well as engage in introspection and consumer-readiness for the sake of surviving the industry’s current environment.”

    During last week’s conference, jointly hosted by Capillary Technologies and its business partner GenieTech, the company discussed four areas for retailers or brands to become more consumer friendly. These include understanding customers in the digital age, being seamless, technology-powered one-on-one engagement and powering commerce with artificial intelligence.

    Capillary Technologies is currently working with several Indonesian companies, such as hardware chain store Mitra10, gas retailer Badak, smartphone retailer Erajaya Group, restaurant chain Mujigae and bakery Mount Scopus Group Indonesia to improve their customer relationship management.

    “We want to become the first big IT product company from Asia that is expanding globally,” Vijayvergiya said during a post-conference interview.

    “So, whether it is working in Indonesia, working in China, working in Thailand, working in Malaysia – so we want to really localize. So, our approach is that, while we build global products, but we localize in the markets we go to solve local problems.”

     

  • Go-Jek Close to Profit in All Segments, Except Transportation

    Go-Jek Close to Profit in All Segments, Except Transportation

    Go-Jek, Indonesia’s first billion-dollar startup, is “extremely close” to achieving profitability in all its segments, except transportation, its founder and chief executive, Nadiem Makarim said.

    Launched in Jakarta in 2011, Go-Jek – a play on the local word for motorbike taxis – has evolved from a ride-hailing service to a one-stop app allowing clients in Southeast Asia’s largest economy to make online payments and order everything from food, groceries to massages.

    “We’re seeing enormous online-to-offline traction for all of our businesses and are close to being profitable, outside of transportation,” the 34-year old chief executive said.

    The startup is expected to be fully profitable “probably” within the next few years, Nadiem added.

    Already a market leader in Indonesia, where it processes more than 100 million transactions for its 20-25 million monthly users, Go-Jek is now looking to expand in Southeast Asia.

    Ride-hailing services in Southeast Asia are expected to surge to $20.1 billion in gross merchandise value by 2025 from $5.1 billion in 2017, according to a Google-Temasek report.

    Go-Jek said in May that it would invest $500 million to enter Vietnam, Singapore, Thailand and the Philippines after Uber struck a deal to sell its Southeast Asian operations to Grab – the bigger player in the region.

    Go-Jek is seeing strong funding interest from its backers as it targets an aggressive expansion, Nadiem said.

    “Since its Aug. 1 launch, the app has already grabbed 15 percent of market share in Ho Chi Minh,” Nadiem said. The firm this week opened recruitment for motorcycle drivers in Thailand.

    The startup expects anti-monopoly concerns swirling around the Grab-Uber deal, which Singapore said had substantially hurt competition, to help clear a path for its expansion.

    “We’re bringing back choice. The Singapore government is particularly eager to bring back competition,” Nadiem said, adding that the order of overseas rollouts had not been set.

    Overseas Push

    Go-Jek’s offshore push comes at a time when Singapore-based Grab is stepping up funding to expand in Indonesia and transform itself into a consumer technology company, starting with a partnership with online grocer HappyFresh.

    “Mimicking Go-Jek’s strategy is the highest form of flattery,” Nadiem laughed.

    “The super app strategy has been around for a while now and no Southeast Asian player can claim to have pioneered it,” Grab said in a statement. The company also said Grab has not lost market share in Ho Chi Minh City since August, but declined to provide market share data.

    Nadiem believes Go-Jek’s understanding of food merchants will give it an edge over Grab, which counts investors such as Chinese ride-hailing firm Didi Chuxing and Japan’s SoftBank Group among its backers.

    Nadiem, who sees food delivery as Go-Jek’s core business, said he was not concerned about funding, without giving details.

    Go-Jek was reported in June as being in talks to raise $1.5 billion in a new funding round and was valued at about $5 billion in a prior fundraising, sources said. The firm had said in March it was considering a domestic initial public offering.

    Nadiem noted Go-Jek’s backers were sharing both capital and expertise. The company is collaborating with Google on platform mobility, Tencent on payments strategy, JD.com on logistics operations and Meituan Dianping on merchant transactions and deliveries.

    Go-Jek has set up a venture capital arm, Go-Ventures, to invest in startups in Southeast Asia “with strategic importance to our business,” the chief executive said.