Gojek Commissioner Has High Hopes for an IPO

Indonesian energy industry tycoon Garibaldi Thohir, also known as Boy Thohir, was appointed to the board of advisors in ride-hailing firm Gojek in July.

After Gojek founder Nadiem Makarim joined President Joko Widodo’s new cabinet, Thohir stepped up as president commissioner to lead the company’s non-executive board. Thohir had been Gojek’s independent commissioner since July.

Thohir belongs to a family of entrepreneurs that are internationally recognized for their success in the business world, and his father is the co-owner of Astra International, an investor in Gojek.

KrASIA recently interviewed Thohir about his role as president commissioner with Gojek, as well as his investments in digital businesses.

KrAsia (Kr): How familiar were you with Gojek prior to being appointed as its commissioner?

Garibaldi Thohir (GT): I knew Nadiem before he began to develop Gojek. I partnered with Northstar Pacific’s founders Patrick Walujo and Glenn Sugita [the early investors of Gojek] for years.

Six years ago, Patrick told me that Nadiem began expanding Gojek. He said he would support Nadiem’s business. Sometimes Nadiem would come to me for my advice. Gojek grew until it expanded to other countries in Southeast Asia. One day, Nadiem and other friends [in the company’s management] at Gojek officially asked me to be its commissioner. I was interested because I could contribute more to Gojek, an Indonesian creation.

During the past six years, I sometimes gave them advice concerning the management style and direction. Even though it is a startup, it is going to become a big company, like eBay or Amazon. Gojek does not need to change its DNA. It is going to become a publicly traded company one day.

Kr: Are you worried about Gojek’s loss-making status?

GT: I do not really know the details, because I’m not an active part of its day-to-day operations. But if we look at Gojek, there are other businesses such as GoFood, GoRide, and GoPay. We should not only look at individual parts of its business, but also its whole ecosystem.

GoFood is the most phenomenal. The other services that will boost the business are transportation and the payments space.

I think in the future, every part of Gojek’s business will be profitable. The goal is to reach a certain size. To achieve this, it has to spend money. When it achieves its growth targets, Gojek will become profitable. Ultimately, as investors, we expect our portfolios to be profitable.

Kr: Have you encouraged Gojek to become a publicly traded company?

GT: Yes, I think every startup company will evolve to become a publicly traded company. It is a way for investors to exit. I think there are still big tech companies in China that earn profits. We can learn from them.

In Gojek’s case, I believe Gojek has a viable business model. If it achieves scale, its costs will reduce.

Kr: Should Gojek pursue an IPO in Indonesia or other countries? If they choose Indonesia, is the market capable of absorbing the market valuation of Gojek?

GT: As the commissioner of the Indonesia Stock Exchange (IDX), I encourage Gojek to have an IPO in Indonesia, as this will create a multiplier effect.

I have had discussions with the IDX directors; we definitely have to beat the market size of Singapore or Thailand. Many Indonesian companies have listed on Singapore’s SGX. So we have to rethink the value and attractiveness of IDX, so companies will prefer to carry out their IPOs in Indonesia. I encourage Gojek to have an IPO in Indonesia. IDX should be proactive in providing added value to startups. If Gojek succeeds, other industry players will follow suit.

Kr: How do you view Gojek’s expansion in Southeast Asia? Why has it gone smoothly in some countries?

GT: You need to view things from a growth perspective. Growth in Thailand and Vietnam has been extraordinary. Gojek is a potential champion. In Southeast Asia, Indonesia is currently the largest market. The player who can dominate the Indonesian market becomes the champion, because Indonesia represents half of the market in Southeast Asia.

I am sure that Gojek will be the champion in Southeast Asia. It should be and must be. Even as its competitors may have a lot of funding, I think money is not everything. Indonesian companies have to support Gojek.

KR: The World Bank has downgraded Indonesia’s growth outlook for 2019. What do you think the impact will be?

GT : Many economists predict there will be a recession in the United States. Money will flow out of the US. Europe is an old economy. Capital will not come from or flow into the European market. The Indian and Chinese economies are challenging.

However, in Indonesia, the elections went smoothly. Joko Widodo became president again for the second term. If the new cabinet and regulations are market-friendly and attract more foreign direct investment, I believe there will be a bigger chance for direct investments to flow into Indonesia, including its digital businesses, as Indonesia is the largest and most attractive market in Southeast Asia.

Kr: Do you think conglomerates have come to recognize the importance of digital transformation?

GT: Frankly, this is a big gamble. Indonesia is a big market. The tendency of large groups is to set up investment arms. For instance, Djarum Group has GDP Ventures, and Sinar Mas Group has Sinar Mas Digital Ventures, which has emulated people such as Masayoshi Son with his Vision Fund. Indonesian firms are headed that way, because they see the need to transform.

Kr: Why were you interested in investing in Umma, an Islamic community focused app?

GT: It’s simply because 80% of the total population of Indonesia is Muslim and this is a big market. I saw a need in the market, which if we could meet, would create a big opportunity.

Another reason why I was interested is because the Muslim population in Indonesia comprise the mid to mid-low income segments. Somehow, they might not get the right information, so they could be misled by religious propaganda. Therefore, we would like to offer legit products and services to these people.

My group and Erick [my brother] have already invested in Umma. We have some businesses that we will integrate into the app, such as Republika [Indonesian national daily newspaper, known as a publication for the Muslim community], umrah and hajj travel services, and sharia insurance. Umma has been downloaded by more than 26 million users; the daily user count currently stands at 200,000.

I realized that a religious app is sometimes too sensitive for some people. Therefore, the app is focused on creating a sharing community among Muslims. The app has several topics for the community, such as Muslim content, fashion, halal food, and lifestyle.

It is expected to generate revenue from advertisements. The plan is to offer services such as sharia financing, as well as umrah and hajj travel options once the app has garnered 20 to 30 million users.

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This article first appeared on KrASIA. It’s republished here as part of our partnership.

Bagaimana Sejatinya Sebuah Perusahaan Fintech Syariah?

Asia mendorong pertumbuhan bisnis jenis baru dalam dunia fintech. Dengan perkiraan dana senilai $22,7 miliar yang disalurkan pada akhir 2018, industri keuangan di kawasan ini telah mengalami perubahan signifikan dalam hal teknologi.

Hal ini termasuk dalam industri finansial syariah yang kian menjadi fokus di negara Asia Tenggara dengan jumlah populasi umat muslim terbanyak, seperti Indonesia dan Malaysia. Sejatinya, finansial islami atau berbasis syariah mengacu pada aktivitas finansial yang dijalankan sesuai dengan syariat Islam. Terdapat sekitar 1,6 miliar umat Islam di Asia – mayoritas bertempat di Indonesia – yang menuntut solusi finansial berbasis syariah yang inklusif dan efektif, memungkinkan segmen lain yang jangkauannya lebih luas dalam masyarakat, termasuk mereka yang belum terjamah layanan bank atau underbanked.

Menurut sebuah perusahaan akuntansi global, KPMG, terdapat sekitar 438 juta orang yang belum terjangkau layanan bank di Asia Tenggara, dengan mayoritas konsumen pada ekonomi layaknya Indonesia, Malaysia, atau Filipina memiliki akses sangat sedikit terhadap layanan finansial. Bagi 240 juta umat Islam di Asia Tenggara, perusahaan fintech berbasis syariah menjadi alternatif solusi finansial, seperti platform P2P dan urun dana, dengan proses penerimaan yang cepat dan aksesnya luas.

Berbasis syariah

Dari penuturan Shabana M Hasan, seorang ahli dari Akademi Riset Syariah Internasional pada Finansial Islami di Malaysia (ISRA), finansial Islam adalah sistem finansial yang diteruskan dari kitab suci Islam (Qur’an) dan tradisi nabi (Sunnah). Prinsip dasar sistem finansial Islam adalah penegakan keadilan dan kesetaraan dalam semua kesepakatan dan transaksi. Hal ini diwujudkan melalui empat larangan fundamental: riba, spekulasi (qimar), pendapatan di muka (masyir), ketidakpastian (gharar).

Singkatnya, riba mengacu pada semua bentuk bunga yang melipatgandakan pengembalian pada pinjaman. Dalam finansial Islam, hal ini tidak diperkenankan karena dapat menimbulkan ketidaksetaraan kekayaan, peningkatan jumlah hutang, dan mengarah pada eksploitasi. Spekulasi (qimar) sama dengan istilah zero-sum game dimana dalam transaksi keuangan, pemenang akan mendapat kekayaan dari jumlah pengeluaran yang kalah. Islam melarang spekulasi finansial karna merepresentasikan sebuah tindakan persuasif yang tak bermoral. Pendapatan di muka (maysir) mengacu pada jenis pendapatan yang dihasilkan sesuai peruntungan. Ketidakpastian (gharar) meliputi setiap transaksi yang memiliki unsur ambiguitas, ketidakpastian, dan beresiko. Misalnya, penjualan dengan harga atau barang yang sifatnya tidak jelas dan dianggap tidak valid. Hal ini juga yang menjadi dasar pelarangan berbagai instrumen keuangan yang sifatnya diteruskan – seperti futures dan options – dalam finansial Islam.

Dalam rangka menghindari riba serta berbagai larangan, finansial berbasis syariah kini memanfaatkan kesepakatan berbasis aset dan ekuitas demi mempromosikan pembagian resiko. Alasannya untuk menyelaraskan kepentingan semua pihak dengan adil dan sama rata.

Kehadiran industri fintech, menurut Shabana, akan membawa dampak besar bagi pelanggan, terutama dalam hal inklusi finansial dan kenyamanan. “Startup fintech Syariah telah membuka sebuah sumber pendanaan baru bagi UKM [usaha kecil dan menengah], yang nyatanya akan mengalami kesulitan untuk meraih pendapatan berbasis syariah dari bank. Jadi, dengan layanan fintech syariah, mereka yang belum terjangkau layanan bank bisa memulai riwayat kreditnya demi mencapai inklusi finansial.”

Perusahaan fintech syariah juga mencanangkan aktifitas keuangan yang lebih sederhana, nyaman dan ramah pengguna bagi pelanggan yang menginginkan transaksi berjalan selaras dengan prinsip-prinsip di keyakinan mereka. “Efisiensi dan transparansi yang dilakukan fintech tidak hanya memberi kenyamanan, tapi juga membangun kepercayaan publik terhadap sistem secara keseluruhan.”

Hingga kini fintech telah mentransformasi banyak area dalam finansial syariah di Asia. Jenis layanan utama yang ditawarkan oleh perusahaan fintech syariah adalah pinjaman peer-to-peer (P2P) , crowdfunding, transfer uang, pembayaran mobile, platform perdagangan, manajemen kekayaan, dan asuransi.

Perkembangan Lanskap

Dengan persyaratan khusus syariah, apa yang menjadi tantangan dalam perkembangan fintech syariah? Menurut lanskap fintech syariah IFN – inisiatif internasional yang memetakan pasar perusahaan fintech syariah – terdapat banyak bisnis yang terjun ke dalam industri ini. Pada akhir 2018, terdapat total 113 perusahaan aktif atau dalam tahap peresmian; 46% nya berada di Asia.

Alami, sebuah perusahaan yang menawarkan marketplace untuk pendanaan UKM berbasis syariah, berhasil menyalurkan dana senilai Rp17 miliar (USD 1.2 juta) melalui platformnya ke berbagai UKM di Indonesia pada Agustus 2019. Menurut pendiri dan CEO Alami, Dima Djani, ada permintaan pasar yang signifikan terhadap solusi fintech berbasis syariah di negara ini.

“Indonesia memiliki populasi Muslim terbanyak di dunia, terdapat lebih dari 200 juta orang dengan penetrasi industri perbankan Islam hanya 8%,” kata Dima. “Kami percaya potensi pasar keseluruhan bisa mencapai setidaknya dua kali lipat dari jumlah itu dalam waktu lima tahun, mengikuti rencana pemerintah Indonesia untuk meningkatkan penetrasi pasar menjadi 15% pada tahun 2023. Sementara permintaan UKM untuk solusi finansial syariah kian meroket, pergerakan bank cenderung lambat dari yang diperkirakan. Inilah yang menjadi alasan Alami untuk mengadopsi pendekatan finansial P2P untuk akselerasi.”

Finansial P2P, yang juga dikenal dengan crowdfunding syariah, adalah solusi fintech yang umum ditawarkan dalam pendanaan syariah. Menggunakan format ini, investor mulai berkontribusi pada proyek-proyek yang sesuai dengan syariah yang ada dalam platform perusahaan fintech, sebagai imbalan untuk pembayaran pokok dengan profit.

Dana Syariah, perusahaan fintech lain yang berbasis syariah di Indonesia, juga menjalankan crowdfunding berdasarkan prinsip syariah. Perusahaan ini mengakhiri tahun 2018 dengan RP80 miliar yang disalurkan melalui platform urun dana dengan target Rp500 miliar di akhir 2019.

Atis Sutisna, pendiri dan CEO Dana Syariah menjelaskan bahwa untuk memastikan semua proyek dalam platform sudah sesuai dengan prinsip syariah, perusahaan mengawasi secara ketat selama proses seleksi hingga selesainya. “Misalnya, sebelum membiayai proyek properti, analis kami akan lebih dulu menganalisis kelayakan proyek tersebut untuk pendanaan. Saat semua persyaratan sudah terpenuhi, tim kami akan menentukan biaya untuk bahan bangunan, serta biaya operasional yang membutuhkan dana. Kami pun akan memantau seluruh proyek pengembangan untuk memastikan semuanya sesuai kontrak dan syariah.

Atis juga mengatakan bahwa setiap transaksi dalam platform harus berdasarkan hukum syariah dan atas persetujuan Dewan Pengawas Syariah. Di Indonesia, dewan penasihat ditunjuk oleh Majelis Ulama Indonesia.

Dima Djani dari Alami menegaskan persyaratan dari peraturan ini “Produk dan bisnis model kami harus terlebih dulu disaring oleh Dewan Pengawas Syariah dilanjutkan ke divisi syariah Otoritas Jasa Keuangan Indonesia (OJK). CEO dan kepala divisi produk kami juga mengikuti pelatihan produk finansial syariah yang ditawarkan Majelis Ulama Indonesia. Di Alami, kami tidak hanya fokus pada kepatuhan syariah, tetapi juga prinsip-prinsipnya.”

Di Indonesia, untuk mendapatkan lisensi, OJK dan Majelis Ulama Indonesia mengharuskan setiap perusahaan fintech syariah untuk memiliki Dewan Pengawas Syariah sendiri.

Isu Kepercayaan

Kendati permintaan atas finansial syariah tidaklah sulit, untuk mendapatkan kepercayaan pasar adalah suatu perjuangan bagi perusahaan fintech syariah. Atis Sutisna dari Dana Syariah mengatakan bahwa kredibilitas adalah sesuatu yang penting dalam sektor ini. “Permintaan pasar atas finansial syariah kian meningkat, mereka sedang mencari alternatif investasi tanpa riba. Namun, tantangan terbesarnya adalah ketika menyinggung kredibilitas brand.”

“Ada stigma yang beredar di sekitar bisnis terkait Islam. Dahulu, banyak kasus penipuan bisnis yang mengatasnamakan agama, hal ini menciptakan persepsi negatif di kalangan masyarakat yang mengaku patuh pada hukum syariah. Inilah alasan mengapa penyuluhan publik itu penting bagi kami, “Kami mencoba mendidik masyarakat tentang perusahaan kami melalui keterlibatan masyarakat, pemasaran digital, talkshow di radio, dan penampilan di TV,” tambah Dima.

Dima Djani dari Alami sependapat. “Kami menanggapi kredibilitas dengan sangat serius. Alami pun telah memenangkan beberapa penghargaan bergengsi seperti Kompetisi Ventura INSEAD dan Taqwatech di Malaysia Tech Week. Tim kami juga adalah mantan pekerja bank, yang memahami bisnis dan pasar.”

“Bagaimanapun juga, ada isu kredibilitas terkait bisnis syariah di Indonesia yang dijalankan oleh orang-orang non-profesional. Hal ini terkait dengan pemahaman publik atas konsep finansial syariah itu sendiri. Kami merasa bahwa kurangnya edukasi pasar untuk model P2P dan keuangan syariah,” ujar Dima. “Indonesia adalah negara dengan populasi Muslim terbesar di dunia, tetapi sistem finansial Islam tidak diajarkan di sekolah, dan kami melihat ini sebagai tantangan yang signifikan ketika datang untuk mengenalkan masyarakat dengan layanan kami.”

Hal ini menyulitkan perusahaan fintech syariah dalam merekrut personilnya, terlebih pada saat konglomerat teknologi mulai menyerap tenaga kerja berbakat. “Sebagai startup fintech tahap awal yang syariah, kami merasa kesulitan untuk bersaing dengan unicorn dalam kompetisi merekrut tim IT profesional,” ujar Atis.

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Artikel ini pertama kali dirilis oleh KrASIA. Kembali dirilis sebagai bagian dari kerja sama dengan DailySocial

What Does It Mean to be a Shariah-Compliant Fintech Company?

Asia is driving new developments in fintech. With an estimated $22.7 billion in fintech funding funnelled into the region by the end of 2018, the region’s financial industry has been seeing a steady technological shift.

This includes the world of Islamic finance, which has been a focus in countries in Southeast Asia with significant Muslim populations, such as Indonesia and Malaysia. By definition, Islamic finance, or shariah-compliant finance, refers to financial activities conducted in accordance with Islamic shariah law. Asia has over 1.6 billion Muslims—the majority of which are in Indonesia—and they require shariah-compliant financing solutions that are inclusive and convenient, allowing a wider reach to various segments within society, including the unbanked or under-banked.

According to global accounting firm KPMG, there are around 438 million unbanked individuals in Southeast Asia, with the majority of consumers in economies like Indonesia, Malaysia, or the Philippines lacking access to financial services. For Southeast Asia’s 240 million Muslims, shariah-compliant fintech companies represent alternative financing solutions, such as crowdfunding and P2P platforms, with fast approval processes and wide accessibility.

Shariah-compliance

According to Shabana M Hasan, an expert at the Malaysia-based International Shariah Research Academy for Islamic Finance (ISRA), Islamic finance represents a financial system that is derived from the Islamic holy text (Qur’an) and prophetic traditions (Sunnah). The basic tenets of the Islamic financial system are the enforcement of justice and equality in all dealings and transactions. This is manifested through four fundamental prohibitions: usury (riba), speculation (qimar), unearned income (maysir), and uncertainty (gharar).

In a nutshell, usury (riba) refers to all forms of interest that provide a predetermined, fixed rate of return to the lender. In Islamic finance, this is forbidden as it may encourage wealth inequality, increase indebtedness, and lead to exploitation. Speculation (qimar) is a “zero-sum game” where, in financial transactions, the winner gains wealth at the expense of a loser. Islam forbids financial speculation as it represents a form of immoral inducement. Unearned income (maysir) refers to a type of income that is randomly generated or luck-based. Uncertainty (gharar) covers any transactions that possess elements of ambiguity, uncertainty, and hazard. For instance, a sale where the price or nature of the goods is unclear is considered invalid. This is also the main reason for the prohibition of various financial instruments such as derivatives—such as futures and options—in Islamic finance.

“In a bid to avoid usury and other prohibited elements, shariah-compliant financial institutions presently utilize various equity-based and asset-backed arrangements with the aim of promoting risk-sharing. The reason for this is to align the interests of all parties in a manner that is equitable and fair,” Shabana said.

The arrival of fintech, according to Shabana, could bring substantial benefits to customers, especially when it comes to financial inclusion and convenience. “Islamic fintech start-ups have opened up a new source of funding for SMEs [small and medium enterprises], who in reality will find difficulties in getting shariah-compliant financing from banks. Overall, with Islamic fintech services, the unbanked segment of society is now able to create a new form of credit history, thus achieving financial inclusion.”

Islamic fintech companies also make financial activities simpler, more convenient, and user-friendly for end customers who require their transactions to align with tenets set by their faith. “This efficiency and transparency enabled through fintech not only provides greater convenience to customers, but it also establishes public trust and confidence in the overall system.”

To date, fintech has transformed many areas of Islamic finance in Asia. The main types of services offered by Islamic fintech companies are peer-to-peer (P2P) lending, crowdfunding, money transfers, mobile payments, trading platforms, wealth management, and insurance.

A Thriving Landscape

With shariah-specific requirements, how challenging is it for a shariah-compliant fintech company to thrive? According to IFN Islamic Fintech Landscape—an international initiative mapping out fintech companies catering to the Islamic finance market—there are plenty of firms that are tossing their hats into the ring. As of the end of 2018, a total of 113 companies are active or at the launch phase; 46% of them are located in Asia.

Alami, a company that provides a marketplace for shariah-based SME financing, has managed to channel financing worth IDR 17 billion (USD 1.2 million) through its platform to various SMEs in Indonesia as of August 2019. According to Alami’s founder and CEO Dima Djani, there is a significant market demand for shariah-based fintech solutions in the country.

“Indonesia has the most Muslims in the world, with more than 200 million people, yet with only 8% penetration of Islamic banking industry,” Dima said. “We believe the total market potential will be at least double that amount in five years’ time, following the Indonesian government’s plan to increase market penetration to 15% by 2023. While the SMEs demand for shariah-compliant financing solution was skyrocketing, the Islamic banks moved slower than anticipated. This is why Alami decided to adopt our P2P financing approach to scale faster.”

P2P financing, which is also known as term-based shariah crowdfunding, is a common fintech solution offered in Islamic financing. Under this format for lending, investors contribute to shariah-compliant projects listed on the fintech’s company platform, in return for principal repayment with profits.

Dana Syariah, another Indonesia-based shariah-compliant fintech company, also operates on a term-based shariah crowdfunding basis. The company ended 2018 with IDR 80 billion channeled through its crowdfunding platform for the year, with a target of IDR 500 billion of annual financing by the end of 2019.

Atis Sutisna, founder and CEO of Dana Syariah, explains that in order to ensure that all projects on the platform are shariah-compliant, the company employs a high level of scrutiny during the selection process and until each project’s completion. “For instance, prior to financing a property project, our analysts will first analyze whether or not the project is eligible for funding. When all the requirements are met, our team will work together to determine the actual cost for building materials, as well as other operational costs that will require funding. We will then monitor the entire development project to make sure that everything is shariah-compliant and according to the contract.”

Atis also said that every transaction made on the platform has to follow shariah law, as it’s subject for approval from the Shariah Supervisory Board. In Indonesia, this advisory board is appointed by the Indonesian Ulema Council.

Dima Djani from Alami confirms this regulatory requirement. “Our business model and product must first be screened by the Shariah Supervisory Board, and then by the shariah division in the Indonesian Financial Services Authority (OJK). Our CEO and head of product also joined the shariah financial training provided by the Indonesian Ulema Council. In Alami, we are not only focusing on shariah compliance, but also shariah principles.”

In Indonesia, to be officially registered, OJK and the Indonesian Ulema Council require every shariah-compliant fintech company to have its own Shariah Supervisory Board.

Trust Issues

While the demand for Islamic financing remains buoyant, earning market trust is an uphill battle for shariah-compliant fintech companies. Dana Syariah’s Atis Sutisna says credibility is crucial within the sector. “Market demand for shariah-compliant financing is high, they’re looking for an alternative investment that has no element of usury. However, the biggest challenge that we’re facing is when it comes to our brand credibility.”

“There’s stigma around Islam-related businesses. In the past, there have been cases of business fraud using religion, and this has created negative perceptions among the public for businesses claiming to be shariah-compliant. This is why public outreach is very important for us,” Atis said. “We try to educate the public about our company through community engagement, digital marketing, radio talk shows, and TV appearances.”

Alami’s Dima Djani concurs. “We take our credibility seriously. Alami has won several prestigious awards, such as the INSEAD Venture Competition and Taqwatech at Malaysia Tech Week. Our team also consists of former bankers, who understand the business and the market.”

“However, there’s a credibility issue for Islam-related business in Indonesia for being run by individuals who are not professionals. This is related to the public understanding of the shariah finance concept itself. We feel that there’s a lack of market education for P2P models and shariah finance,” Dima said. “Indonesia is the country with the largest Muslim population in the world, but Islamic finance is not taught in schools, and we think this creates significant challenges when it comes to educating the public about our services.”

That makes it difficult for shariah-compliant fintech firms to recruit the personnel they need, particularly when major tech conglomerates are soaking up talented labor. “As an early-stage shariah-compliant fintech startup, we find it challenging to compete with the unicorns when it comes to hiring top IT professionals from the talent pool,” Atis said.

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This article first appeared on KrASIA. It’s republished here as part of our partnership.