Pandu Sjahrir Reveals His Dream Scenario in Indonesia’s Tech Industry

This article is a part of DailySocial’s Mastermind Series, featuring innovators and leaders in Indonesia’s tech industry sharing their stories and point of view.

In the past few years, Pandu Sjahrir has captured spotlights all over the tech industry. From the Chairman of SEA Group Indonesia, Board Member of Gojek, and the latest one is appointed to be the youngest IDX’s Commissioners.

Starting off with a productive hobby of investing, he currently has a full-time business as a professional and one of Southeast Asia’s leading investors in the seed and early growth stages. He is also the Managing Partner of Indies Capital, which controls Indies Special Opportunities Fund, the leading alternative asset manager in the region, and Indies Pelago, a secondary tech fund in Southeast Asia. And most recent, is the new entity called AC Ventures.

With the economic-mindset runs in his genes, Pandu Sjahrir managed to survive through a financial struggle and admit to not afraid of failure. As long as he has a very supportive family and a strong team on his side. He has quite a big dream for Indonesia’s tech industry, and here’s the scenario.

As an active investor with a focus on the growth companies, how do you see the current investment landscape in Indonesia during COVID-19 pandemic?

Pre-COVID is a different world than today, technology has become a much bigger part of the business. Every quarter, the number increases very strongly because of the adoption. In terms of shopping, playing games, even now working and studying online. People are adapting to this new world using technology platforms to connect to each other. That also changes the way we should look at investing. Starting from businesses that can benefit from this new way of relating, communication, or interacting. In fact, life goes on and people still have to do their daily needs, but the way to deliver has changed. We have to be very open-minded about the new COVID-19 world, on how should we look at the new world stage.

Another thing worth mentioning is the role of deglobalization. What happens in the US companies doesn’t t necessarily translate into happening in Indonesia. The same thing applies to China companies. We’re seeing more local solutions to everyday problems, not necessarily a global solution. What’s good about what has happened within the last 30 years of this “globalization” has been the improvement of human capital as well as tier countries, developing countries turning into more developed countries.

Where do you think Indonesia will be in this deglobalization era?

Indonesia will be Indonesia. As globalization shaped our economic development as well as other large countries, with billion-dollar companies that now exist in our economic portfolios, we will eventually find local solutions. If that makes it a thesis, obviously, it’ll take time. In terms of logistics, our world is actually a global supply chain as we still rely on other countries to develop a product. Imagine if it’s true a lot of countries to become deglobalized. Indeed, it’s another reason to do the risk assessment.

Interestingly, there used to be a big trust deficit in new companies in Indonesia. Our previous generation might not be as digital-minded, but today generation actually adopts and capable of giving trust. Not only for those over-20 year big companies run by the government or state-own institutions but also for the past 10 year companies. Imagine the fact of all these tech companies have done in the last decade and also the behavior of the younger generation willing to give a try. Nowadays, that’s obviously quite prevailing. It takes time to build trust.

You’re first known as the Executive of Toba Bara Sejahtera, also head of the related association. However, in the past few years, you’ve seen quite active in the Indonesian tech sector. What triggers you to chip in the digital industry?

When I finally moved back to Jakarta for the family business in the energy sector, my family was barely into digital. Therefore, it was basically just me. I was the first employee at Toba, built the name Toba Bara and took it public in 2012.

In fact, I started investing in technology in 2013-2014, but quietly. Back then, nobody even knows the name of the companies, starting from Garena turn into SEA, but then Shopee was the company that they built. I’ve been doing it for the last 7 years, but nobody knows until the last couple of years due to the company’s increasing popularity.

During this time, I met fellow investors, also learned this and that along the way. It was practically my own capital until around 2017, I joined Indies Capital, a leading alternative asset manager focusing on Southeast Asia, especially Indonesia. And recently, the new entity called AC Ventures. It was actually just a productive hobby that turned into a full-time business. Now, people know me as an investor, early-stage to many different things.

You’re recently appointed as IDX commissioner, what kind of plans do you have in mind to drive the Indonesian tech business to a better future?

Pandu Sjahrir at IDX Commissioners Inauguration

The aim goes further in 10-12 years ahead. In fact, America’s top ten companies are technology companies. In Indonesia, it is still being dominated by banking and telco companies –exactly how it was 10 years ago. It is our job to capture the economic value of all these technology companies to get there. I’d like to call them outliers, amazing companies growing really fast, to look at Indonesia, to be listed, and set us as the main destination.

Next, deepening the capital market and providing a safe and reliable investment towards a better future. There’s always this kind or two issues, essentially with today’s institutions. We have to be proactive in terms of managing that issue. We have to be able to say, “We are investor-friendly, especially minority investors, and we’re able to have great companies listed in Indonesia.” Following our goal to be the top five economies in the world by 2025, our capital market has to be there as well.

At your current position(s), have you had any difficulty to cope up with the fast-moving industry? Would you share some stories, bad decisions, rough season, or any kind of hardships?

It was one of my darkest, after experiencing the loss of a family member also down in financial. I invested a lot, I failed a bit. Along the way, I learn how to manage risk better and more to this lesson. However, I was glad to know the fact that it couldn’t be more at a bottom than that. As long as it doesn’t kill me, financially, I’m okay. I learned a lot about people that way. In the end, I invest in principles, character, and business models.

Failure is inevitable, but how you stand up again is what matters. It’s classic, but it’s true. I’m so glad to have a great family, a supportive wife who also very active in building her business, and a lovely daughter. In terms of work, we’ve turned into a strong team.

To be honest, the Covid-19 situation should’ve let me down, instead, I feel personally healthy and thankful. Although, the whole uncertainty creates such a financial effect that I and most other people can’t deny. I always taught myself that this is just like the other crisis where you have to go through before you start to adapt.

On what or who can you attribute the current success or achievement? Do you have any figure, or role model, that keeps your dream high, or the kind of support system that stops you from giving up?

When it comes to role models, my father is one. He was an idealist, somehow it’s really got to me how he used to think. Also, my mother is also a very strong-minded person, as well as my uncle who is now served as one of the Indonesian ministers. He also the one who encouraged me to moved back to Indonesia and helped me understand this country better through his point of view.

Interesting story, it started off when my parents told me “We have no legacy for you other than education and work ethic”. Instantly, the fear of having nothing to live off hits me and that encouraged me to start working early. If I won’t be inherited anything material, I better make my own. This is also the beginning of my investing hobby. Otherwise, the family will always be my number one support system.

In terms of educational background, do you think it’s a privilege to be able to study abroad and learn about other country’s mindset?

Having both parents who only cared about education is quite a mixed feeling. They’re really concerned about the way I put up with mine that they sent me abroad to provide the best-guaranteed education. Back then it was in the US. I studied economics in Chicago and later went to Standford for business school. I met a bunch of tech-based companies and lots of friends.

Fortunately, living abroad gives me a sense of discipline due to the high-cost and everything in between. Moving back to Jakarta, it was very hard for a New Yorker-minded person like me. For the first two to three years, Indonesia was very difficult. However, from listening well and communicating well, I’m learning progressively to make better decisions. I have my lessons by living abroad, but moving back to Indonesia is another blessing.

Have you ever picture yourself as a tech founder? Given the circumstances of most VCs in Indonesia also created by ex-Founders or formerly working at tech companies.

I haven’t thought that far. I’ve never put myself or thought of myself that way. It’s simply a blessing the fact that I mattered enough to have this conversation. I don’t think I’m quite enough to be said an expert in marketing. My mindset is always been about investing first. I still have a lot to learn.

Cerita Perjalanan Bisnis Andi Boediman: Ketika Passion Mengendalikan Rasa Cemas dengan Integritas

Artikel ini adalah bagian dari Seri Mastermind DailySocial yang menampilkan para inovator dan pemimpin di industri teknologi Indonesia untuk berbagi cerita dan sudut pandang.

Serial entrepreneur itu langka. Terutama ketika seseorang berhasil mengubah passion menjadi sesuatu yang menghasilkan uang. Andi Boediman sangat beruntung menjadi bagian dari klan spesial ini. Saat ini ia sedang sangat antusias dengan hasratnya dalam industri film sembari menjalankan bisnis investasi, Digital College, serta Digital Marketing Agency.

Setelah mengampu pendidikan di US, tujuan awalnya adalah menjadi seorang desainer. Dalam perjalanannya, ia membangun karir sebagai orang yang kreatif, memulai sebuah perusahaan desain yang berubah menjadi agensi pemasaran. Semangatnya terhadap pendidikan mendorongnya untuk membangun sekolah teknologi dan kreatif bernama IDS Digital College.

Aksi debutnya di industri digital adalah ketika ia mendirikan Plasa.com, sebuah perusahaan e-commerce di bawah grup Telkom. Andi mencicipi pahit manisnya dunia entrepreneurship untuk mendirikan perusahaan dari bawah hingga berhasil menjalin kemitraan dengan eBay.

Ia mendirikan Ideosource sebagai modal ventura untuk menanamkan modal di perusahaan tahap awal (startup) dan dalam 9 tahun terakhir telah berinvestasi di 27 perusahaan teknologi.

Saat ini, ia menjabat sebagai CEO di Ideosource Entertainment, kini telah berinvestasi dalam 15 film, dan akan terus bertambah. Selain itu, ia juga duduk sebagai Komisaris di Bhinneka.com, salah satu e-commerce B2B terkemuka di Indonesia. Ia juga seorang pendiri dari IDS Digital College, sebuah sekolah teknologi & kreatif.

Andi Boediman akan memasuki usia emasnya di tahun ini. Ia telah ditempa selama lebih dari 20 tahun dan bersedia berbagi beberapa pengalaman berharga melalui sesi ini.

Dimulai dari kapan Anda pertama kali mengalami ketertarikan dengan industri kreatif atau film secara spesifik?

Saya pernah belajar film di New York pada tahun 1999. Ketika saya kembali ke Indonesia, hampir tidak ada industri film lokal yang berjaya. Setelah berpetualang di industri kreatif, saya memulai Ideosource Venture Capital bersama Edward pada tahun 2011, kami mpraktis menjadi dana kelolaan pada tahun 2014. Sekitar tahun 2017, ketika seluruh dana telah didistribusikan, kami memikirkan apa yang harus dilakukan selanjutnya?

Pada 2016, saya menonton film Cek Toko Sebelah dan sangat menyukainya. Lalu, ketika saya menonton film Kartini, karya itu solah-olah berbicara kepada saya. “Seseorang disebut pahlawan, bukan karena perjalanan hidupnya, namun ditentukan oleh satu momen”. Kartini, misalnya, adalah ketika ia mengorbankan dirinya untuk menikah agar dapat membangun sekolah bagi anak perempuan. Saya sangat terinspirasi oleh sudut dan perspektif film ini.

Pada 2017 saya memutuskan untuk kembali menoleh pada hasrat saya dalam film dengan mempelajari industrinya. Saya menyadari bahwa saya harus memanfaatkan pengalaman saya dalam investasi untuk bisa memasuki industri film. Pendekatan yang kita gunakan adalah manajemen risiko, tidak jauh berbeda dengan konsep Modal Ventura.

Dengan pendekatan yang didorong oleh passion disisipkan sejumlah perhitungan dan logika yang sesuai, kami sekarang telah berinvestasi dalam 15 film secara total. Dengan beberapa film terkenal seperti Keluarga Cemara & Gundala, dana pertama ini sebenarnya dapat dikatakan investasi ramah tamah. Saat ini kami tengah menggalang dana untuk berinvestasi dalam film & serial untuk beberapa kekayaan intelektual (intellectual property) terbaik di Indonesia.

Dari sisi venture capital, apa yang mendorong Anda mendirikan Ideosource? Ada cerita apa dibalik didirikannya modal ventura ini?

Pada tahun 2009, saya direkrut untuk memulai startup di Telkom. Saya mengatur Plasa.com sebagai situs web e-niaga dan membawa eBay menjadi mitra. Kontrak berakhir pada 2011 dan saya memutuskan untuk tidak melanjutkan. Bersama dengan mitra saya Edward Chamdani, saya bertemu dengan pendiri ekuitas swasta Northstar dan pendiri Trikomsel.

Mereka berbagi wawasan yang bijaksana. Dengan lansekap ekonomi saat ini, pertumbuhan teknologi dan populasi Indonesia berjalan sepanjang waktu itu, itu adalah waktu yang tepat untuk berinvestasi dalam startup melalui modal ventura.

Kami mulai dengan model inkubasi. Satu perusahaan yang menunjukkan hasil positif adalah Touchten, itu dikalikan 7 kali lipat. Setelah keluar dari beberapa ekuitas kami, kami memulai struktur dana yang tepat pada tahun 2014. Kami bertemu dengan Sinarmas Group dan mereka menjadi LP eksternal dan mitra pertama kami. Hingga saat ini, kami telah tumbuh hingga USD $ 15 juta.

Plasa.com launching — Launching Plasa.com

Dalam menentukan portfolio, apa yang menjadi metrik Anda dalam menilai sebuah perusahaan layak untuk di-invest?

Ketika Anda melakukan investasi, Anda berinvestasi dalam dua hal. Pendiri dan masalahnya. Pertama, apakah Anda percaya pendiri adalah seseorang yang mampu menyelesaikan masalah? Kedua, seberapa besar masalahnya? Ketika Anda yakin masalahnya cukup besar dan ini adalah pendiri yang baik, maka Anda memberinya sumber daya tanpa batas. Model ini bekerja terutama dalam investasi benih.

Sebagai contoh, salah satu portofolio kami adalah eFishery. Kami hampir tidak mengerti tentang industri perikanan. Kami melihat bahwa pendiri adalah pendiri yang kuat dan benar-benar memahami masalahnya. Kami memutuskan untuk berinvestasi bersama dengan modal ventura lain yang memahami industri akuakultur, sementara kami berkontribusi untuk membuka jaringan lokal. Dengan semakin masuk ke dalam rantai nilai industri perikanan, perusahaan tumbuh secara signifikan dan sekarang bernilai 20 kali lipat dari saat kita masuk ke perusahaan.

Dalam industri film, kami berinvestasi pada produser, yang bertanggung jawab untuk memproduksi film dan menjalankan bisnis. Dia mempekerjakan sutradara film. Kami berinvestasi pada produsen berpengalaman dengan kemampuan yang telah terbukti dalam merilis dan mendistribusikan film komersial.

Masalahnya dengan produsen baru ke industri, seseorang dapat membuat produk tetapi tidak menjamin kesuksesan komersial. Hanya ada segelintir direktur yang dapat menarik perhatian orang melalui kreasi mereka. Setelah melihat angka industri, kekuatannya terletak pada film berbasis IP dengan produser berpengalaman.

Anda akan segera memasuki usia emas tahun ini. Selama mengarungi perjalanan sebagai seorang serial entrepreneur lebih dari 20 tahun, bagaimana Anda mengetahui bahwa sudah berada di jalur yang tepat?

Saya tidak pernah memutuskan sesuatu secara instan dengan mengetahui itu adalah keputusan yang tepat. Kebanyakan keputusan besar yang saya buat melibatkan insecurity. Misalnya, ketika saya menerima tawaran Telkom pada tahun 2009, pekerjaan itu membuat saya sangat tidak aman karena saya tidak pernah membangun bisnis e-commerce sebelumnya. Namun, saya mengerahkan semua upaya, waktu, dan sumber daya dalam mengerjakan segala sesuatunya. Hal ini kembali terjadi ketika saya pertama kali mendirikan VC atau memasuki industri film. Saya menempatkan diri dalam sebuah hal yang penuh tantangan lalu berusaha yang terbaik dalam menjalankannya.

International Young Design Entrepreneur Award

Selama pandemi, bagaimana masa krisis ini berdampak pada bisnis dan investasi Anda?

Kita kerap kali berhenti berinvestasi di saat krisis. Pelajaran hidup mengajarkan saya bahwa investasi di masa krisis memiliki kemungkinan untuk berdampak besar. Keputusan ini dibuat untuk bertahan hidup, melawan segala rintangan. Kami berinvestasi di GoPlay, dan menciptakan sinergi dengan Cinepoint, aplikasi pemeringkat film box office yang sebelumnya juga kami investasikan.

Kami membangun beberapa model bisnis baru selama pandemi. Kami membuat distribusi film. Selanjutnya, memugar beberapa hak cipta dari IP lama untuk mengubahnya menjadi film. Selama pandemi, kami memiliki waktu luang untuk finalisasi beberapa model bisnis. Satu hal mengenai krisis, naluri bertahan hidup menjadi lebih tajam ketika Anda memiliki tekanan besar.

Menurut Anda, apa pengalaman berharga selama menjadi serial entrepreneur yang bisa menjad contoh untuk orang-orang di sekitar?

Menurut saya, untuk bisa berhasil, seseorang tidak bisa hanya mencontoh perbuatan orang lain, namun pembelajaran terjadi ketika kita memiliki wawasan dan pola pikir yang tepat guna. Apa yang telah saya pelajari sepanjang perjalanan ini adalah memiliki pola pikir yang scalable. Jika kita hanya berpikir untuk menggandakan ukuran bisnis kita saat ini, biasanya kita berpikir untuk menggandakan usaha. Tetapi jika kita memiliki objektif 10 kali lipat dari skala saat ini, kita akan bisa menganalisis rantai nilai, model bisnis dan mengeksplorasi inovasi lainnya. Kemudian, cobalah untuk mencapai objektif ini dalam waktu 5 tahun.

Apakah Anda merasa bahagia dengan pencapaian saat ini? Apa yang menjadi target selanjutnya?

Saya bercita-cita untuk pensiun sebagai filmmaker. Di sini, saya berkesempatan untuk membuat sejumlah film. Jadi, jika ditanya bagaimana perasaan saya, tentu hal ini membuat saya bahagia.

Saya belum bisa menjawab apa yang ingin saya capai selanjutnya, tetapi paling tidak hal itu harus bisa berdampak 10 kali lebih baik dari apa yang saya lakukan saat ini.

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Artikel ini ditulis dalam Bahasa Inggris, diterjemahkan oleh Kristin Siagian

Andi Boediman’s Story: When Passion Beats Insecurity Through Integrity

This article is a part of DailySocial’s Mastermind Series, featuring innovators and leaders in Indonesia’s tech industry sharing their stories and point of view.

A serial entrepreneur is a rare breed. Especially when one gets to turn his passion into something that makes money. Andi Boediman is very lucky to be part of the special breed. He is recently working on his passion for the film industry while also running the investment business, a Digital College, and a Digital Marketing Agency.

After studying in the US, his initial goal was to be a designer. Along the way, he built his career as a creative person, started a design company that turned into a marketing agency. His passion towards education encouraged him to build a technology and creative school named IDS Digital College.

His forays into the digital industry was when he set up Plasa.com, an ecommerce company under Telkom group. He learned the hard way to set up the company from ground up and initiate the partnership with eBay.

He set up Ideosource as a venture capital to invest in startups and within the past 9 years, he invested in 27 tech companies.

He is now the CEO at Ideosource Entertainment, already invested in 15 films, and still counting. He also sits as a Commissioner in Bhinneka.com, one of the leading B2B e-commerce in Indonesia. And he founded IDS Digital College, a technology & creative school.

Andi Boediman is to hit the golden age this year. It is worth over 20 years of experience and he’s willing to share some through this session.

Let’s start from when you first catch interest in the creative industry or specifically film/filmmaking?

I used to study film in New York in 1999. When I went back to Indonesia, there was barely any local film industry. After an adventure in the creative industry, I started Ideosource Venture Capital with Edward in 2011, we practically became a fund in 2014. Around 2017 the money has been deployed, and we were thinking on what’s next?

In 2016, I watched the movie Cek Toko Sebelah and I love it. And when I saw the movie Kartini, it really speaks to me. “A hero becomes one, not because of the whole life journey, but determined by one particular moment”. Kartini, for example, is when she sacrificed herself and got married to be able to build a school for girls. I was very inspired by the angle and perspective of this film.

In 2017 I decided to revisit my previous passion in film by studying the industry. I realized that I have to use my experience in the investment to enter the film industry. We should use the risk management approach, similar to the Venture Capital model.

With a passion-driven approach supported by a little math and appropriate logic, we have now invested in 15 films. With some film hits like Keluarga Cemara & Gundala, the first fund is actually more like a friendly investment. We’re currently fundraising to invest in film & series for some of the biggest intellectual property in Indonesia.

In terms of venture capital, what makes you think Ideosource is a good idea? Tell me the story behind its creation.

In 2009, I was recruited to initiate a startup inside Telkom. I set up Plasa.com as an ecommerce website and brought eBay to be the partner. The contract ended in 2011 and I decided not to continue. Together with my partner Edward Chamdani, I met the founder of Northstar private equity and the founder of Trikomsel.

They shared a thoughtful insight. With the current economic landscape, technology growth and Indonesian population run along that time, it was the right time to invest in startups through venture capital.

We started with the incubation model. One company that shows the positive result is Touchten, it multiplied 7 fold. After exiting some of our equity, we started a proper fund structure in 2014. We met with Sinarmas Group and they became our first external LP and partner. To date, we have already grown to USD$15 million.

In terms of portfolio, what do you see in a company that makes you want to invest? Please reveal the metrics.

When you make an investment, you invest in two things. The founder and the problem. First, do you believe the founder is someone who is capable of solving the problem? Second, how big is the problem? When you believe the problem is big enough and this is a good founder, then you give him unlimited resources. This model works particularly in seed investment.

As an example, one of our portfolios is eFishery. We hardly understand about the fishing industry. We see that the founder is a strong founder and really understands the problem. We decided to co-invest with the other venture capital that understands the aquaculture industry, while we contribute to open the local network. By getting deeper into the value chain of the fishing industry, the company grows significantly and now is valued 20 times than when we get into the company.

In the film industry, we invest in the producer, who is responsible for producing the film and running the business. He hires the film director. We invest in experienced producers with a proven capability in releasing and distributing a commercial film.

The thing with a new-to-industry producer, one can make a product but doesn’t guarantee commercial success. There are only less than a handful directors who can attract people by their creation. After looking at the industry numbers, the power lies in IP based movies with experienced producers.

You are to reach the golden age this year, you’ve been a serial entrepreneur for over 20 years. How do you know you’ve made the right decision?

I never decided something instantly knowing it’s the right decision. Most of my biggest decisions make me very insecure. For example, when I accepted Telkom’s offer in 2009, the job made me very insecure since I never built an ecommerce business before. Yet, I put all my effort, time, and resource into it. It is also what happened when I first set up a VC or entered the film industry. I put myself up to the challenge and just do it.

Also, during this pandemic, how the crisis impacts your business and investment?

We often stopped investing in times of crisis. My life lesson told me that investment in a time of a crisis is most likely to turn out very impactful. It was a survival decision, against all odds. We invest in GoPlay, and create a synergy with Cinepoint, a film box office rating app that we previously invested as well.

We established a few new business models during the pandemic. We create a film distribution. Next, Also, clearing some rights from old IPs to turn it into films. During the pandemic season, we got spare time to settle up some business models. That’s the thing with a crisis, the survival instinct gets sharper when you had the biggest pressure.

What do you think people could learn from your experience?

I don’t think people should follow from what other people did, but we definitely can learn from the insight and mindset. What I have learned throughout this journey is to have a scalable mindset. If we only think to double the current size of our business, usually we think of doubling the effort. But if we think 10 times the current size, we will analyze the value chain, business model and explore other innovations. And try to achieve this goal within 5 years.

Are you happy with what you have now? What’s next?

My plan for my retirement was to be a filmmaker. Here I am making a number of movies. So I am happy now.

I can’t answer what I want to achieve next, but it should be 10 times the impact of what I am doing now.

Fajrin Rasyid: From Social Mission to Sustainable Business

This article is a part of DailySocial’s Mastermind Series, featuring innovators and leaders in Indonesia’s tech industry sharing their stories and point of view.

Fajrin Rasyid is one of the familiar names in the startup industry. He’s the President of a leading e-commerce platform in Indonesia. A tech graduate from the high-profile local university, Bandung Institute of Technology. One fine day, he decided to help two of his friends from the same alma mater to create something impactful for people using their tech skills.

Prior to Bukalapak, Rasyid had experienced working in BCG (Boston Consulting Group), a prestigious consulting firm, before he took off and focus on the business. It’s always been his passion to contribute more for people, especially SMEs throughout this country, and he took the spirit into Bukalapak in order to create more impact in the society.

He used to lead the Financial team, then promoted into the President‘s seat in 2018. During his reign, Bukalapak has grown from a product of social impact initiative to a more sustainable business empowering over 5 million online merchants with 70 million users in all over Indonesia. It is one of Indonesia’s 6 unicorns with a $2.5 billion valuation as stated in DailySocial’s Startup Report 2019.

List of unicorn startups in Indonesia / DailySocial

For more insightful stories from the unicorn’s leader, let’s have a look at the excerpt of his interview with DailySocial team below

Entering the second decade of your career in the digital industry, how would you describe the whole journey?

I was just a student from not-so-big city and not-very-rich family in Pekalongan. However, I have quite a dream to work it out in the tech industry. I used to work in a consulting firm named Boston Group Consulting (BCG), but decided to retire early in order to help my two other friends, Zaky [Sragen], and Nugroho [Karanganyar] to develop business from scratch.

Indonesia has always been a country that heavily relies on the SME industry. Around 60% of the economy comes from SMEs. It was in 2010, we started Bukalapak with a vision to help people, particularly those having a small-medium business in all over Indonesia.

When we started Bukalapak as a product, we also opened a project-based IT consulting service named Suitmedia. It goes very well with Bukalapak, therefore, we focused on it. Overtime, the company received some positive feedback and we started to put numbers as our targets. The social impact initiative becomes a promising business as we spoke about a large potential market.

Have you ever dreamed of being the President of a Unicorn? From CFO (Chief Financial Officer) to President of Bukalapak, do you find any difficulty adjusting?

I used to work at a consulting firm. My job is basically focused on financial terms and helping the company with business strategy. In the process of building Bukalapak, I think I’ve worked on all aspects of a company from financial, marketing to legal compliance. In terms of roles, I think it’s quite common to have shifting or multiple roles on-demand as the company started to mature.

As a co-founder, and after being appointed as the President of Bukalapak, I need to see a wider range of business. There are many plans for collaborations, also meetings with the government’s representative. It is more like an end-to-end job, I should consider all aspects of the company’s business.

Currently, we’re struggling with the Covid-19 outbreak, how’s your view on today’s business landscape amid the pandemic situation in Indonesia?

This is not an ideal situation for everyone. There are many who affected by this pandemic. We talked about all sizes of businesses, yet mostly SMEs. Some product categories are increased by sales, but many others are getting significant drops in business. The online food and health products are part of categories gaining positive results of this national disaster.

photo_2020-04-16_09-43-09 — Bukalapak’s team members

Bukalapak, on the other hand, intends to contribute more for those businesses gaining traction from the Covid-19 outbreak can maintain positive results. Also, to help those affected in less fortunate ways to survive amid pandemic and look for collaboration opportunities. We’re currently in a discussion with the government to create a program to help the most affected industry, such as SME.

Do you see how long this pandemic would last? What do you see the future of this industry towards the end of this chaotic situation?

The truth is, I’m not a medical expert, however, from many projections I’ve read, this pandemic might stay for another few months. It depeñds on our behavior towards the pandemic. It requires commitment from everyone to stop this pandemic from spreading faster and wider.

The thing is, some people say the situation will soon get back to the way it was before the pandemic. However, there’s this thing some people called the new normal. Everything we did to survive the pandemic, every sacrifice we made has created a new habit, which can lead into the new normal.

In terms of Bukaplapak, the impact is quite minimal. People are shifting from offline to online. However, this pandemic brings much more harm than benefit and it will affect the whole economic situation. Without a certain source of income, public’s purchasing power will soon decrease and it will affect the e-commerce sector, particularly Bukalapak.

In fact, there are some startups significantly affected by this pandemic and had no choice than to shut down operational business or layoff some employees. What is your thought on this issue?

Again, everyone is affected by this pandemic, either good or bad influence. It depends on how we react to this situation. However, there must be something to it, lessons learned, opportunities available. People should be able to see the way out of this stuck-up situation and come up with ideas to further develop.

As your information, many successful startups today were founded during the 2008/2009 crisis. This could be a momentum, how a standstill situation can encourage people to create something powerful. Hopefully, when the situation finally recovered, a great opportunity awaits. Sometimes, problems create opportunities for solutions.

Over ten-year experience in the industry, working on all aspects on building a startup until becoming the President of a unicorn company. What is the biggest lesson you’ve learned?

This startup industry will make a great impact [especially when you’ve succeeded]. Bukalapak has now managed over 5 million online merchants with over 70 million users. This is quite an achievement. Some people say that this is the fast track [there’s some truth to that] to success, however, it also comes with a big chance of failure. In order to minimize the chance of failure, it requires strong will and big effort to stay in the game.

During your business journey, there must be one, if not too many challenges in building a venture. Would you mind to share some of the hardships?

Every business phase has its own challenge. I previously mentioned how I worked on every aspect of the business as the company started to mature. We used to have no legal temas and I served an opportunity to become a witness in court. There was also a time when the company experienced cash flow issues, therefore, we [founders] had to spare our income in order to pay the employee’s salary. I think most of the build-from-scratch startups have encountered these kinds of hardships.

It also happened, when I nearly lost faith at some point, and felt completely tired. Every phase holds different obstacles. Last year, we’ve had an issue of #UninstallBukalapak. To date, where Bukalapak is at the growth stage, any PR blunder can start a fire and create a big fuss.

Bukalapak's Series B investment by Emtek — Bukalapak’s Series B investment by Emtek

What is your current biggest ambition?

I always have this vision to create an impact for society and my country. This is a seed I plant to Bukalapak, to work further as a platform to support as many people and bridging them to the tech industry. Started from the e-commerce sector, then expanding to offline through mitra Bukalapak. It is yet to reach the end of this business. We’re very optimistic to expand widely to be able to support all layers of society.

How do you feel doing business with friends and have you ever had any emotional conflict between each other?

I’ve known Zaky since high school and our relation escalated over college. It is actually the same as doing business in general. How we react to hardships, trying to pull it together and solve it. Furthermore, without being aware, our environment has affected our judgement. We ended up making something we make something that we believe can solve the existing problem.

Some people only see the emotional side, they might overlook the fact that this is a professional business. When they put aside the competence assessment, the skill didn’t meet the expectation, hence conflict arose. Thus, the right team counts as an essential part of businesses. Character and competence are keys to a successful partnership

Nowadays, there are many platforms offering support to all tech geeks and startup enthusiasts on building a startup, do you think of it as an effective way?

In a way, it can be very effective vehicle for the long journey through the startup industry. However, it’s not the only way to generate ideas. Idea is there in every corner, also team and partners. We can meet the right partners on competition, as well in other places. The most important thing is do not be careless to identify our networks. That is why most startups formed based on good-old relations.

As the previous CEO, Achmad Zaky, retire from Bukalapak to make its own foundation center, do you see yourself “graduate” from Bukalapak and create a new venture?

Speaking for a long term in the future, it’s quite possible. In the current term, Bukalapak is still a place for me to deliver all of my social ambition and contribute to society. If some times in the future there’s an opportunity for me to make an impact in other companies or a new venture. I probably will do it long time in the future.

Natali Ardianto’s Journey on Becoming an Industry Expert: Set Up a Vivid Goal

This article is a part of DailySocial’s Mastermind Series, featuring innovators and leaders in Indonesia’s tech industry sharing their stories and point of view.

Entrepreneurship is not for everyone. It takes years of hard work, loads of responsibilities, high risk, and other important sacrifices. However, all those will not be an issue when you have a clear set of goals to achieve. At least, it’s what Natali Ardianto, the former tech leader in one of the leading OTA services, Tiket.com, has been doing through these years of paving ways into the tech industry.

Ardianto is now the Co-Founder & CEO at Indopasifik Teknologi Medika Indonesia, the company he built after sailing through several industry sectors. From city directory, OTA, fintech, and now healthtech, each venture has taught him different lessons and shaped him as the industry expert he is now.

As a tech enthusiast and computer geek, he was struggling with chronic introvert but eventually managed to overcome the issue and master the communication skill. One of the key points he suggested is to have a clear vision, a vivid goal, one that you can cling on to, and be precise about it.

As stated on his profile “Life is a journey, not a destination”, DailySocial has an opportunity to dig deeper into his journey and here’s what we discover.

Let’s start from your current position, Co-founder & CEO at Indopasifik Teknologi Medika Indonesia. Tell me a bit about the latest venture.

This is my 5th startup, a healthtech company under the name PT Indopasifik Teknologi Medika Indonesia. We provide a digital solution focused on supplement products. It’s a machine learning that fully personalized your data to give recommendations of the best supplement for your health. People may have question, why healthtech?

Simply put, do you think health as primary or secondary? Actually, most people will put health above anything, health will always be positioned first. In fact, it [health] becomes a basic need that people willing to spend money. While other leisure industries require thorough calculation as it is not the primary need. In terms of profit, it surely be a good thing. As the average revenue per user (ARPU) can get few times higher than other leisure industries. In other words, a goal can be achieved with less effort.

Twelve years ago, when you first jumped into the startup life, what were you thinking? How did you start the whole tech-business journey?

In 2008, when startup hype is yet to penetrates the region, we only thought to build a digital company. Also, own a company has been my dream since I was a child. I had my first encounter and fall in love with the computer in the 5th grade, I also started coding around that age. I keep my eyes and mind focused on tech until I make it into Computer Science in Universitas Indonesia.

In 2003, I already started some freelance projects, and it crosses the region. While startups are getting popular in 2010, I had my struggle with Urbanesia, the first company where I learned a lot after 13 months of development. I have mindset that life is about solving problems. When we solve the problem over and over again, we master the skill. It is what happened to my second company that took 8 months of development, and then we make it only 3 months for Tiket.com.

What I want to do is very clear from the very beginning. I labeled myself as a hardcore engineer. However, I’m aware that engineers without basic knowledge of communication will not get any further. Especially if you want to be a leader. Leadership is all about directing and delegating, it makes communication very important.

As a tech geek, do you have any issues regarding communication? You have something to say to other engineers out there?

It’s actually simple, just talk to people. This is not only about literature yet a learning-by-doing process. After two years of teaching, I get better at marketing myself. The problem with engineer is they can’t do marketing. I’m lucky to have a partner to help me learn on how to manage people and share essential insights.

The very first book that’s important to read is “How to win friends and influence people” written by Dale Carnegie. It’s the foundation of communicating with people. And then “7 Habits of Highly effective people” by Stephen Covey, on how we make the right decisions for ourselves and the other. The rest is usually biography and books about different kinds of leaders, such as Elon Musk, Steve Jobs, or even “Bad Blood” Elizabeth Holmes.

Natali Ardianto with Semut Api Colony team

You have an educational background in technology information, experienced in several industry sectors, from city directory, OTA, fintech, and now healthtech. How would you describe each venture?

I am an industry-agnostic, I had my first startup focused on city directory without any related background. My second company is named Golfnesia, with a fact that I’ve never been playing golf in my life. Next, in my third company, Tiket, none of the board of directors have background in the OTA service. The previous one is a fintech company named Pluang [used to be EmasDigi], and now my ship anchored in healthtech.

Among all these, there’s a silver lining that one must have, a value named industry expert. It’s not only about the educational background, personality traits, or family pictures. In order to reach that stage, one must get through almost everything.

I am, myself, believe in the secret. There’s something called RAS (Reticular Activating System) in our brain that can filter the mind of significant things. When you have something you really want and plant it in your head as clear and vivid as possible. Eventually, you’ll get it.

In the last four companies, you’ve been serving as a tech leader for the last four companies, now you’re a CEO. How do you see the gap in the transition? Is there any specific skill for that?

In a big picturem when we started Tiket, I created the pitch deck and financial plan. I was always been working a business part for the CEO sometimes. Also, I have background as a project manager in the consulting company. If I must say, I’m always be the business-oriented CTO. I’m very aware of budgets and numbers.

Most of the CTOs are very high maintenance in terms of technology. They only want to use the latest and coolest technology, but high costing, In fact, you can still create something impactful with the simple technology you already have. I create Tiket’s system in a very corporate way and financial detaill. Every transaction is recorded, avoiding fraud and corruption. I’m the type of person who likes to learn things, therefore I can’t just focus on tech, but also business.

However, some people get misled just because they’re learning piece by piece, not end-to-end. The agile thing is quite interesting but without vision it’s no longer effective.

Strategic thinking. As a CEO the keyword is you know what you’re going to achieve in 5 to 10 years. Some CTOs still on to 6 to 2 years plam due to the dynamic industry. In fact, foundations such as legal, finance, businessm is what really matter. I’m lucky to have a good mentor and eleven years of experience. Honestly, today I kinda feel relieved, because decision is a repeating process. When you already know the strategy it’s only time to repeat the previous overcomes.

In terms of Business and Life, do you have someone or something that you really look up to? Either a mentor, companion, things that shaped you into the current position?

In terms of companion, I’d say my wife. I met her in 2002 in time of my chronic introvert issue. Actually, she helped me changed too, on how to communicate, dress well and many others. She’s now a master in psychology counseling. she’s my learning partner, especially in understanding people.

The keyword to the leadership position is to manage people. You have to find a way to make them stay, even though what you offer is not as big as the giant company out there. I try to understand and fulfill the emotional part not only financially. Because we try to create a foundation not only based on money. The problem when people have money, they try to solve everything using it. A way to solve a problem is to become an effective person. When you become an effective person, you also become an efficient person.

Personally, in terms of running a company, Jonggi Manalu of Tiket is my inspiration. In general, Larry Page & Sergey Brin are always the best example, but the first 11 years, Eric Schmidt becomes the seasoned executive and makes google very corporate. I called it corporate agility, corporate is the foundation of a company while agility is how we run the company. Why the foundation must be corporate? Because I often find a company struggling with cash leak, corruption, financial weakness, legal issue, and under management.

Running a startup means running a company, not just a product. You can make a product but if you don’t know anything about marketing, business development, things related to a corporation it won’t work. I found out two things that can make a company going down, it’s when the founder gives up and the cash runs out.

Natali Ardianto at Tiket grand launching — Natali Ardianto at Tiket’s grand launching

Among the several industries you’ve been managed, which one is the most challenging? What is your biggest lesson for these past experiences?

In terms of entrepreneurship, the key point is timing. Running a company that is not commerce-based is really tough. In order to gain one transaction, either big or small margin need practically the same effort.

In running a company, I’d rather called it a hardship. When running something to be profitable, everything is restricted by budget. As an example, when I’m in the OTA industry, with the current small team competing against the horsepower of our competitor is one hell of a struggle. If I were to say it, not the lowest point, but hardship. The toughness of trying to run a profitable company.

What do you aim next? Is there any unfulfilled dream or something you really want to do after all these?

After exiting from Tiket.com, I wanted to take a year of “retirement”. My wife and I travel around 5 continents, over 30 cities. But I didn’t enjoy that kind of retirement at all. Eventually, in the 7th month, I help co-found another startup. Building something from scratch and turn it into a big thing has always been my passion. I guess I wouldn’t trade it for anything. Even if I will do this until I am 70 years old, I would still do the same thing. Creating a great product that everyone uses and loves. Also, one day I would like to pursue a Ph.D. in entrepreneurship or e-commerce.

Andi Taufan Believes Perseverance Will Eventually Pay Off

This article is a part of DailySocial’s Mastermind Series, featuring innovators and leaders in Indonesia’s tech industry sharing their stories and point of view.

As the sole founder of Amartha, Andi Taufan Garuda Putra has poured blood, sweat, and tears in building the company. With the story of being left by co-founders, the dilemma of choosing study over its own company. It’s all lead to the current situation where the peer-to-peer lending platform has delivered Rp1.25 trillion successful loans to over 200 thousand micro-entrepreneurs in the rural area.

He began the journey with a dream to enable financial inclusion throughout Indonesia. It’s a challenging one, considering the loan business is full of loophole and fraud potential. However, with perseverance as the foundation, he works his way up to the point where micro-businesses can contribute more to Indonesia’s economy.

In fact, he was recently appointed as one of the presidential expert staff by Jokowi. It’s definitely creating more pile of work on his desk. However, he’s eager to accept the challenge, it’s because he believes this country is moving towards a better economy and it’ll be incredibly great to be part of the change.

Let’s hear more of Andi Taufan Garuda Putra’s story through the excerpt from his interview with DailySocial’s team.

To begin with, you are one with an academic background in business. What’s your first thought on starting Amartha? What encouraged you to create such a thing with social impact?

I was getting my business degree without any aspirations to become an entrepreneur. My parents are struggling with their professional career, so I was just planning to follow their path. I was also planning to get my master’s degree and build a professional career worth living. Once I become successful, I would spare some for those less fortunate people. I used to have a simple definition of success, it’s when I turn 50 and have nothing to worry about on my plate.

After graduating from college, I was working at IBM for two years as a business consultant. My job is basically involving palm oil companies to implement the IT system in rural areas. While circling around the less-urban spots, I found out a significant gap between the rural and urban areas, such as Jakarta. It encourages me to make a move, how to contribute more to this issue. In my exploration days, I decided to create something more targeted. Instead of helping conglomerates bulking up their organizations, I need to make something more impactful for small businesses to grow.

It was in the early ’00s, nobody thought of fintech or application platform. After digging into some ideas, I finally settled with microfinance. It has a clear view, once you inject the first capital, cashflow will work out, it also comes with a significant increase in income. It also creates a multiplayer effect in the family, aside from growing business, their children can grow along and have a proper education.

You started Amartha in a cooperative form. Can you spare me the detail on your journey in building the leading peer-to-peer lending platform?

One afternoon, I was visiting a rural area in Bogor named Ciseeng. While exploring the village, I met some people and talked about the issues that often come up in the area. Most of them who stayed at home are women, their husbands were at someplace working informal jobs. As the head of the household didn’t earn much, the wives have to work part-time to improve the family’s welfare.

Based on this phenomenon, I thought they need some additional support. I started to provide small loans, starts from 500 thousand for 100 people in the first year. Talking about productivity, they take the loan seriously and use it for something useful, such as sewing machines and many more. Most of them are responsible enough to return the money on time. We grew by providing a thousand people the next year.

After five years serving over 7000 people in the rural, we’ve found the business quite challenging. At the end of the day, micro-loan has become more than just money, it is a hope for them. They started to make plans for the business and the family, and expect for more loans. With some bad credits and stuff, we were so close to run out of money and the “Amartha went bankrupt?” question has been thrown almost at every corner. It’s just hard, even for me too.

I then discovered that in this internet era, microfinance alone was not enough. We then come up with an idea to gain money from the public, such thing called marketplace peer-to-peer lending. With high-quality partners and the impactful loans, I had my pitch to the seed investors [BEENEXT and MidPlaza]. They turned out to love the idea and through ups and downs, Amartha finally launched its online platform in 2016.

The momentum is there, and more peer-to-peer lending platforms are to launch. Fintech industry is getting alive than ever. We also advised OJK to issue the regulations for the newborn p2p lending industry. Amartha then becomes one of the first batch p2p lending platforms to acquire the license from OJK in early 2019.

Amartha's current team — Amartha’s current team

Talking about the crucial season, how did you cope with the situation and rise up?

It was around the year 2014-2015. People have turned their backs on Amartha, I, too, have doubt in surviving this company. I’ve thought about something new, and the good news from Harvard arrived. In the same year, investors are coming to the Amartha-near-falling-town.

It’s a dilemma, whether to take the school or take care of the company. I finally talked to the investors and they decided to let me continue with my study, under one condition, the platform must be launched as soon. It did happen in 2016. I was working remotely in the US with lots of help from Aria and the developer team. It’s a blessing to have a supportive team and a positive environment around you.

Being a sole founder is a different challenge for me. In 2009, I used to have partners, until one by one left because of the current situation back then. I tried again in 2014 with some partners before eventually two were left and the last one departed with another priority. I then realized that we have co-founders for every stage of Amartha, it is indeed important. In fact, today’s C-levels are very critical to help us moving to the next stage.

What is the next stage for Amartha?

It is when we go beyond peer-to-peer lending. We’ve been very good at providing micro-loan for women in rural areas. Stay true to our mission to deliver equal welfare for people in the last pyramid. If we’re to define the welfare it would be to reduce their cost of living, provide them with affordable products, therefore, they can spare money for savings, and start investing. How Amartha can evolve beyond p2p lending? It’s not only about supporting the initial capital but also to provide other products that can improve the quality of their lives.

How can you make sure the company stays true to the commitment?

The key is to embrace the problem. As the loan business, there are always people with payment past the due date, a loophole in regulations, potential for fraud. If we’re not to embrace, we’ll never improve. What I learned until now the employee has reached 2500, is how to build team with a mission. Their spirit should be aligned with the company’s overall mission. It’s to plant a sense of belonging in each employee. Once done, they can start to explore and move towards the goal. It’s quite challenging but worth fighting for.

Taufan as the first speaker at #SelasaStartup

As one of the first-batch peer-to-peer lending platforms in Indonesia, who/what is your role model for Amartha?

I was looking up to the US and Europe markets. They already have unicorn LendingClub in the US, and Europe market with its Funding Circle and Prosper. I’ve never seen one in Asia. Therefore, with a different customer base, I worked with what we have. As most of the Indonesian population is in the low-end pyramid, Amartha created a business model targeting mass-market and high-quality borrowers.

In the p2p lending landscape, do you have any issue with banking or any other departments towards financial inclusion?

Since the beginning, we have a clear division of roles. Everything we’ve done will not happen without banking infrastructure. On the other hand, banking is not likely to serve this segment, it’ll cost them a grand. Amartha knows the way to serve them and vice versa. This is all about trust issues and we’re fancy collaboration over competition.

Since the trend emerged in 2016 and more players arise in 2017. In 2018, the illegal issue comes up, and even though it’s not us, we’re still affected. OJK is said to take care of the issues this year and association is doing its homework. I see the future will be filled with collaboration, not only funding with banking but something more solid and intense. Also, there will be new ones offering more sophisticated products to run financial inclusion. And I’m always positive with the new founders, because that is what we need, more aggressive and positive people.

In over 10 years, you have poured blood, sweat, and tears into this company. Have you ever thought of creating something new?

It’s still a long way to go for me to get there. Amartha is still in the growth stage, it’s also a different business scale with Google or others. Especially with my recent appointment as the presidential expert staff. I currently have a lot on my plate these days.

Startup players might have known to have “innocent” political views, but you’ve changed it. What makes you so eager to achieve the challenge?

We have a president who is sincere and I’m more than happy to support him. We had a discussion on Indonesia’s small businesses. He wants to make a change, for bureaucracy’s engine can move faster towards future trends. A mandate for Indonesia to be the world’s top 4 of the country with economic power. This is to be built with positive energy and optimistic people. I, along with the other staff, believe that this is a small step to create the confidence to bring Indonesia to the next level.

Taufan as one of the presidential expert staff

With the current framework thinking in startup companies, which is fast. Do you happen to experience a clash of culture with the bureaucracy?

It is our duty as the presidential expert staff to provide innovative thoughts and breakthroughs as the president move bureaucracy’s trains with technology and digital approach. First look at the goal, I have yet to face the clash of anything. It’s a good thing that I still get the chance to work in Amartha, therefore, I can balance the startup with bureaucracy stuff for now. Let’s see what’ll happen six months from now.

Looking back at where you start and how it turns out today, what can you say to the early entrepreneurs facing near-failure situations like yourself back then?

If I were to say something, it would be to stay true to your long term goal, because perseverance will eventually pay off. For those who just started, it’s not about the people, or the money, or the technology. It’s when you find the one thing to focus on and let no distractions come in the middle. Failure is part of the journey. We fail when we stop.

Willson Cuaca to Invest a Lot More than Just Money in People Business

This article is a part of DailySocial’s Mastermind Series, featuring innovators and leaders in Indonesia’s tech industry sharing their stories and point of view.

As one of the most active investors in the VC industry, Willson Cuaca has invested a lot more than just money in the people business. He is the early believer of Indonesia and Southeast Asia digital economy.

Many people only associate him with the VC industry, while he’s expert at much larger field. Cuaca was born to be in the tech industry, he started young in the computer field and achieved many firsts during his early career. Who knows that he is a person with guts that can make it into the industry through a different approach.

Was founded in 2009, East Ventures managed to have 160 startup portfolios in hand and some are getting profitable. This year marked their 10th anniversary and more stories to come. He believes in the power of this nation and its population.

He talks about beliefs and the core value to run a business. DailySocial has translated the conversation into paragraphs below.

You are best known as one of the most active investors in the VC industry. When did you start?

Many people might think I only about VC industry, meanwhile, my early days was full of computer stuff and network thingy.

I began my academic year at Binus University in 1996, this was also the year when it becomes a university – from previously named STMIK. My school year is filled with other activities besides study. I became a course instructor at BNTRC before renamed into Binus Center. Amidst the tight schedule, I still find time to have fun playing games.

I always tried to be the first to learn everything. In my college years, I learned all about the local area network and find out about Linux which was actually the core to Android and iOS systems. Slackware was my favorite distribution. I tried to fathom the knowledge and become one of the first people to learn about Cisco equipment. I was the first Cisco Certified instructor in Indonesia to trained Cisco’s engineer to be CCNA certified and the founding team of Cisco Networking Academy in Indonesia.

In 2000, I graduate university then hired as the Head of Infrastructure in an agriculture company. My job requires me to manage national wide intra-network connectivity.

Why did you move to Singapore?

Actually, I get bored easily, I need to find something new to do. It was 2001 when I observed the trend in internet security and learned enough to be a specialist, supporting firms in Singapore.

Around 2006, web-app was getting hype and I was encouraged to create my own app named Foyage. It was before iPhone launched and Blackberry widely used. I was also part of the first iPhone developer in Singapore and a few first Blackberry developers in the region.

After Foyage, I also created Apps Foundry with the aim to develop technologies and applications. Our first breakthrough is Scoop – #1 digital magazine reader in Indonesia- which was later acquired by Kompas.

Tell me about the early days of East Ventures? How did you meet the partners?

My relation with Batara is all the way to 1993 when we’re still in high school. When I went to Jakarta, he left for college in Japan. While I struggle with Foyage, he also exited his own company named Mixi. The website debuted on the stock market in 2006 and valued billions dollar, it was before the term unicorn coined. We then re-group again to create East Ventures in 2009 with 2 other partners. Taiga Matsuyama, the other partner, was the first investor of Batara’s Mixi.

Foyage raised first money from Singapore government investment scheme in 2008. Not until then, I realized that Indonesia also has a huge opportunity in this industry. In 2009, we decided to form East Ventures.

We started Jakarta Ventures Night, inviting few investors from Japan and some local startups. In 2010, DailySocial’s Rama Mamuaya also presented in the event and William Tanuwijaya from Tokopedia, the first in our portfolio. Later on, we invest in Disdus and made our very first exit. We’re actually the first VC to have a complete cycle and that instantly boosted our confidence. It helped creating the flywheels effect.

To date, East Ventures has invested in 160 companies, mostly are the early-stage startups focuses on consumer internet, mobile, SaaS, media, retail education and much more. Recently, some are getting profitable as Indonesia’s digital economy hit the inflection point.

With so many portfolios in hand, how could you manage?

The key is to invest in people. Once you meet the right one and clicked, you trust them enough to run independently and to bring out the best result through this deal.

We need 3 point of alignment with entrepreneur.
1. vision, what kind of problems to solve, what’s the goal?
2. strategy, it’s how to work things out, how to get it done?
3. tactical, this is more like the execution.

East Ventures and the founding team must have a same vision. In fact, I don’t believe that investors could change their portfolios. We might advise strategy but it’s the people (founders) who know what’s best for their company.

You’ve created your own app, built your own VC, run the business. During your journey, have you faced any stumbling block?

Of course, there are ups and downs, but one thing I always believe is “things that don’t kill you make you stronger”.

I was so desperate that I couldn’t raise funds for Foyage, but I’m not the kind of person who stops and stares while the industry’s rapidly growing. We founded East Ventures in 2009, it was really hard to gain trust from people that time. We went some places, but no one believes except some Japanese innvestors, it was due to Batara’s credential. However, I think it’s the power of not giving up until it gets to the point where all the pieces put down together.

Early days of East Ventures, managing the whole portfolios alone

If no one believes in Indonesia’s digital industry, why would you?

Emotionally, It’s because I’m Indonesian. If not us, who else?

In terms of business, there are 30 million internet users in Indonesia. A huge size market, why wouldn’t anyone make a move? At that time, there’s only one problem. If we start now, when will we make it? This is where the leap of faith is necessary.

The thing is, Indonesia is capable of making something impossible happened. Instead of talking about American Dreams, why can’t we create the Indonesian Dream. We are too focused on the story of some people who create big things somewhere, why don’t we work things out and have people look at us. This kind of inferiority complex should have vanished from our mindset. We are a great nation with lots of people.

What makes you decide to invest in one?

There are three hypotheses on people;
1. integrity, a moral standard, you do the right thing when no one sees,
2. self-awareness, to know yourself and what you’re capable of,
3. paradox, having contradictive traits, which means adaptive.
These things cannot be learned instantly or faked.

Once I met these criteria in people, no need to think or waste time. That is why most of our good deals were closed within 28 hours after the first meeting. These consistently happened overtime with Tokopedia, Traveloka, Kudo, Shopback, Ruangguru, Sociolla, The Fit Company, Kedai Sayur, Bahasa.ai and many more. Also, we tried to create a healthy ecosystem in this VC. Therefore, I wouldn’t invest in competing businesses. We back our founders wholeheartedly.

In terms of academic background, how do you see people with the overseas title have an impact in the industry?

Casually, people who study overseas will have the privilege to gain insight from the global knowledge. However, I don’t believe people who study overseas will always be more successful. In fact, I believe people should have global knowledge to know and what’s best for local execution.It is not always by studying abroad.

You survived many years in this industry. Do you have any specific support system?

Family is indeed the fundamental support that shapes your current self. I also believe that character was developed, not learned. That is why I find it hard to believe in the accelerator or mentoring concept that aims to turn someone into an entrepreneur.

The accelerator program, they might have done a very curated process to find talents, but in my concept, once a jewel, although it’s covered in dirt, is still a jewel. The potential was there from the very beginning and developed through times.

I believe in serendipity, that is why I put my focus on people. A Chronos and Chairos concept, everybody has their own timeline, and the moment we met, the decision was made, whether to involve or not at each other’s life.

If you really believe in Indonesia’s digital industry, why won’t you live in Indonesia?

In Singapore, we always get the best scenario, in terms of regulation and many more. While in Indonesia, everything is in the worst case, unexpected things often arose. I’d like to maintain my consciousness by having the contrast. The yin and yang, so to say. Therefore, My life could be more contrast and I have a clearer mind to identify the problem statement.

Also, Singapore is currently the hub in Southeast Asia.

After achieving many firsts in the computer and technology industry, also with East Ventures, what’s next?

This is also the question I always ask myself every day, What should I do next? How can I transfer my knowledge to my team, for they can do their own things, in their own style, and have their own investees.

I can’t have this role forever, that is why I have partners. I want to build East Ventures and make it institutional, raise the next generation team, and make sure it stays true to its mission, to be an Entrepreneurship Platform. Then, I will have time and space to think of something new again – or maybe I will do this forever. Let’s wait for the stars to align.

This year marked as East Venture's 10th year anniversary — This year marked as East Venture’s 10th year anniversary

If you have something to say about the industry, what would you say?

The industry currently has a much larger pie. Indonesia, with so many issues in the country, offers quite many opportunities. Thus, I think the VC industry will stay long here.

To me, the VC industry is all about people business, the technology is just a tool.

Izak Jenie Learned Not to Bite Off More Than What He Can Chew

This article is a part of DailySocial’s Mastermind Series, featuring innovators and leaders in Indonesia’s tech industry sharing their stories and point of view.

Izak Jenie was having an ordinary life before he got introduced to the tech industry. He was amazed by the technology and what he can do with it. He started many companies at such a young age and experienced some failures during his business era.

In his 40s, he never stopped to create value and making innovation. Sticks and stones may break his bones but technology and internet always excite him. He is now the CEO of JAS Kapital, Founder of MCAS Group, and contributors to many other tech-related activities.

Below is the excerpt to sum up the dynamic chart of his career in the tech industry.

Izak Jenie serves as a director of Jakarta Founder Institute

You’ve been having encounters with the tech industry at a very young age. What was your childhood like?

It was ordinary, spending most of my time playing around the neighbourhood. Back then, I was studying in one of the private schools in Jakarta with many regulations I’m not fond of. My health record was bad, I used to get convulsions and have asthma, thank God I’m still alive.

There is no academic issue back in the old days, but authority triggers me. I even made a petition when the school rescheduled PE to Bahasa Indonesia unnoticed, due to the absence of the teacher.

Who introduced you to technology?

My late father, Aldi Jenie. He was working at one of the state-owned enterprises, Pertamina, and also tech enthusiast. He often brought me to his office to see the latest technology and introduced me to the programming industry at the early days. When I was only 12 years old he introduced me to programming in the mainframe. I created my first programming language named APL (A Programming Language). I’m hooked! I learned so much from many computer books he brought while travelling/on duty, he even bought the first and very expensive IBM PC to support our interests in technology.

He taught me so much of technology and life itself. Having a position as a Group Head, we didn’t really dig a fancy life, he still made money out of freelance translation. The one thing he always says is to be grateful and don’t bite off more than you can chew.

Having a daily encounter with technology, are you having any issue with a social life?

Since I was a child, my father always told me to speak up. I do lots of public presentations, also learned so much about people interaction. I was a mentor in computer science since high school. I entered Trisakti university and took a major in Electrical Engineering because my friends doing so. Yes, I have friends.

My activity used to be doing music and computer all the time, I take it until my college life. I started computer clubs on campus also for the public and joined campus choir before I finally graduate after missing some classes because I’m too preoccupied with work. In fact, this is where I met my current wife, she motivated me to finish university.

Izak Jenie with the campus choir members

Have you ever worked in a company?

Yes, graduated in five years, I have difficulty in finding jobs. While my friends were working at high-profile companies, I was unemployed for 6 months. Most of the top-five companies reject my application, it was until an opportunity appears from BBS (Bulletin Board System) that one of the popular private company in Indonesia is looking for a high-skilled computer graphic graduate.

The interview went well and I got to talk so much on my favourite subject. After the not-so-long process, I got accepted with a salary above my expectation. It’s not even a week after my successful interview, I just declined an opportunity by another well-known firm. This is where I learned about commitment.

In 1994, you came up with VoIP. How did you come up with such an idea and make it into global recognition?

It was after I graduate college, my specialty is actually to solve a puzzle. Back then, when the internet was still a rare thing, there’s a specific modem that can convert voice into data. I initiated the idea to connect modems and create software to send signals. It might sound simple nowadays, but in the 90’s it was such a revolution. In current layman terms – it was P2P Community Phone Network in 1994.

I made a pact with two other internet enthusiasts, Jeff Pulver in New York and Brandon Lucas in Tokyo, we started to develop the idea and make it into the news in London Financial Times, Wall Street Journal and other big media. It really helps with my career until now.

After the discovery, what did you do? When were you started to build your own company?

First thing first, I resigned from the job I had. VoIP has taken most of my time at the company. Meanwhile, this world is too full of opportunity to just stay back by the desk. This has become my first and last job.

When we’re talking about building a company, actually, I started my own company of computer graphics at the 2nd semester in my college year, earned money by making flying logos to pay my own bills and tuition. It was long before I met some great colleagues and shared insights from many parts of the industry.

In my exploration time, I met someone in a similar industry which was fond of my idea and willing to invest some cash. Euphoria struck hard and I was spoiled by easy cash. My first trial is an online bookshop named Sanur.com and it didn’t work as planned. I’m having an argument with the investor and decided to step out. After a long process and a project worth Rp200 million, I can finally make peace with my last company. Jusuf Sjariffudin also took part in the success, with Ishak Surjana, we created a company named Jatis.

You started Jatis, build the whole company from scratch until making impact. Why you decided to leave?

We started Jatis as an Enterprise Consultant when foreign business arrived and dominate the market. My strategy was to sign contracts as much as possible by pitching with many potential clients. However, our attempt to create a perfect and solid project management model does not supported by good pricing model. Consultancy is a tough business when you are a local player since mostly you don’t command the pricing structure and it becomes an issue when we’re trying to scale-up.

Accelerating from small to middle-size might be easy, from that point further is the crucial part, whether to stay or to climb higher. I left Jatis because of my interest shifted in B2C technology market and I’m pretty tired back then as a consultant to do the same B2B over and over again every year. My business life was like spinning toy – I circling around in the same place for years and cannot innovate further. It’s not easy to leave a company where you’ve been working for 12 years.

During your business experience, how did you manage to rise from the failure?

I think it was the lowest point, there is no place for me in the industry, I was so close to being a public enemy. Finally, I had a meeting with my mentor, also my old friend – Simon Halim – he was ex-CEO of E&Y. He taught me to make plans and report the progress every week to him. He helps me carefully list all my problems, categorized it one-by-one and create a solution for each. Step by step, I get back on track and managed to get out of all my problems in three years. Fighting your problems and debt is like taking the swimming practice, you just start your long swim and take a breath every 10m or so. As long as the finish line does not move – you will get there eventually.

During this moment is also the starting point of Nexian era. I was in the long queue to buy the handset when I decided to approach the founder and declared my mission to create a better app for the product. It turned out well and Nexian becomes the hype that day. I created a company together with Nexian, focus on mobile content for handsets. We created dozens of handset concept with the help from notable celebrities like Slank, Anang, Ashanti, Syahrini and other innovative concepts. Nexian JV is my first highly-profitable company.

Currently, you are the CEO of JAS Kapital, Founder of MCAS Group, and contributor to many other activities in the industry. Tell me more about the journey.

My life becomes more interesting when I met my current partners — Jahja Suryandy, Martin Suharlie, and Michael Stevens. Together we started MCAS Group in 2017 with the vision to disrupt the digital ecosystem in Indonesia. We took the company public and now the business grows very fast. We are now conducting in-depth research on AI technology and Fintech, focusing on reshaping various industries for the next 20 years.

There is no single industry able to escape technology penetration, and in the next 20 years, we are to shift most of the work into machines. It doesn’t mean to be unemployed, but most people will move to much better jobs with more free time in their hand for the most important thing in life: family.

I might have made some bad decisions in the past, but hard-working, ideas, persistence will always help us progressing every day. I always look up the quotes “Lack of money doesn’t make you lose your value, but lack of idea is,” and I never stopped producing ideas up until now.

You’ve known as a speaker at tech-business events and also a mentor to many startup incubators. What do you think is very fundamental in building a business?

The hardest part of developing a company is to transform a personal-based business into an institution. In order to survive, one must build a system and fix the fundamental issue first. Also, focus on what you’re doing now, do not get too excited you started so many businesses you have no time to handle. Try not to bite off more than you can chew.

For those who want to start, let’s go back to the most fundamental part of the business – create a healthy profit. Basically, your cost should be less than your revenue, and the difference of it is simply called profit – please don’t try to come up with other definition as most startups do.

Izak Jenie as a speaker at SelasaStartup / DailySocial — Izak Jenie as a speaker at #SelasaStartup / DailySocial

Nowadays, startups are bleeding and it’s not really good for the industry. Toxic mindset is mushrooming where startup founders think that it is ok to lose money and chase the future nirvana. Well, not everyone will become Unicorn, only those who are persistence, have a good network and execute well are capable. The rest has to struggle for the company to stay afloat and it’ll be very difficult when you have no profit. I’ve seen too many cases where founders got exhausted and not only the business failed but their personal life as well.

Thus, as much as possible – make your startup profitable. VC money is a good way to jumpstart your business, however, don’t be spoiled with multiple series of VC money and try to run the company independently. Once you master it, most people can easily replicate.

Nicko Widjaja on the Tech Investment: The Rise of The Misfits and the Underdogs

This article is a part of DailySocial’s Mastermind Series, featuring innovators and leaders in Indonesia’s tech industry sharing their stories and point of view.

The tech scene is no joke, in order to succeed, one must not play by the book. As one of the pioneers in the tech investment, Nicko Widjaja, has been through hell and back looking at the industry. As the CEO of telco backed MDI Ventures, he manages to put the company as one of the few profitable venture capital firms in Indonesia.

In 2011, he started his own VC firm named Systec Ventures when many were unsure on how big the tech startup scene would be in Indonesia. Closed the fund in 2013, and became the head of Indonesia’s largest startup incubator program under Telkom Indonesia a year later with Telkom Indigo Incubator. In 2015, he went to head the new iteration of Telkom Indonesia’s creative capital thesis, MDI Ventures.

After successfully leading the exit of five overseas companies, setting up Singapore operation, and raising the second fund for MDI Ventures, Nicko Widjaja is now moving up to head the newly established BRI Ventures with fund eyes up to $250 million targeting fintech ecosystem of Indonesia.

All these achievements are through a series of hard work and dedication. Here’s the glimpse of his story.

Let’s start from the early days of Nicko Widjaja and what’s behind his brilliant mind?

Let’s say I was born on the right timing. If only I was born 10 years earlier, it would be too early, and later would be too late.

I was never a big believer of institutionalized education. It’s outdated, traditional, and somewhat resembled a factory – you’re in and, voila, you’re out for a placement somewhere. I was a rebel growing up. I like to challenge my peers in school most of the time – not the kind of rebel against parents or anything like that.

Growing up, I didn’t fit anywhere. A square peg in a round hole, so to speak. It was quite depressing actually to see the world around you like the movie ‘Divergent’ – the early 90s is somehow reflected in that movie. I was educated in a Catholic institution, like some sort of prep school for ‘successful people’, bred to commit to the family honor, career, reputation, blablabla for life.

And crazy thing was that some people I grew up with really became what they said would be now. Bankers, architects, doctors, or even someone’s son/daughter-in-laws – what the fudge?

As I struggled to fit it, I flunked many subjects. Math, Science, English, and so on. I might have this reputation as chronic procrastinator growing up, until I failed Sports, then the public opinion had begun to label me as rebel. Then the world around me changed. I became the ‘factionless’.

I think this is the beginning when I realized that I don’t have to follow what everybody is and have plenty of time to understand myself better. This is the very important foundation of becoming a Mastermind: Know yourself.

What major did you take? And why?

Oh well, that what we’re ‘designed’ to do anyway, isn’t it right? You graduated high school, go to college, get career/married, go on retirement. An endless cycle of pain.

My reason for going to university was different than most of the dudes back then. Most of them were like: “Hey, I’m majoring in accounting because I want to become an accountant later! Yippy!” or “Hey, I think I’m good at doodles, I’d like to try graphic design!”.

I went because I think I could learn more about myself. What excites/inspires/motivates me and what doesn’t. Where I can find greater purpose/goal/ambition in life and where can’t. Why this particular subject draws me in curiosity and why the other doesn’t.

I didn’t take up to decide a major until the third year of my university year. I’m lucky to have such supportive and understanding parents in that way. I took a bunch of engineering focus courses in my early years and realized that it wasn’t for me. Later took some business courses and I found them quite dull, until I finally found liberal arts. The study of human evolution, narrative and interaction had become a fascination in my life.

Whatever it is that I’m currently doing, it is all a homage to that particular school of thought.

Tell me the early days of your arrival back in Indonesia. What have you done?

After graduating from Oregon State, I moved to San Francisco in 2000. The city was blossoming with dotcoms, just a year before the bust – that what we called startups then. I was attracted to the whole pitch from e-commerce to pre-social media portals.

I did a few gigs in the dotcoms, mostly working in content development, business analysis, and all those chores you expected from a fresh grad.

I returned to Jakarta in 2004 when I joined Indofood as their corporate development officer reporting directly to the CEO where I learned most of the basic working experience and the helicopter view of corporate strategy. I’ve worked there for three years, and during that moment I started to hear chatters about someone was doing something on the Internet.

I resigned from Indofood in 2007, co-founded some businesses, Thinking*Room (multi-disciplinary design company), Mindcode (innovation and consumer research company), and investing in some movie productions. I described my pre-VC days as ‘I-wish-life-was-that-simple-again’ days.

During 2009-2010, I was brought to the early Indonesia’s tech scene by some friends who founded Koprol, Urbanesia, Dealoka, and this was the first time I knew Rama and the Dailysocial – look how we’ve shared this timeline together for almost 10 years!

How did you come up with Systec?

I was in my movie editing studios in 2009 and some friends called over the phone, “You got to come here and listen to this guy!”

Then later they invited to this pitch about a local startup trying to challenge Google in Indonesia, something like Google in Bahasa Indonesia, or something like that – quite a revolutionary too at that point of time. That was crazy, because Google could’ve just easily implemented all languages in instant just like that. But this guy somehow brought pride, nationalism mix together, and voila he collected a hefty $1-2 million easy.

Initially, they asked me to introduce them with some high net worth. I did some introduction here and there – I guess why not – until I found myself talking about the digital ecosystem altogether. Kind of finding myself in a fundraising mode when talking about digital.

Then a few months later, I co-founded Systec Ventures with some colleagues from Mindcode. It was super early ecosystem if you remember in 2011, there were only a handful of us at such events like Sparxup, Echelon, etc. Systec Ventures was a venture builder studio, a hybrid of incubator + investor + collaborator – similar to Science Inc. It was exciting because I can work closely with entrepreneurs. They can utilize our open space (much like what you see in co-working offices now) for free as long as you’re an investee. I think here you can get the bigger picture on how the ecosystem working its way up.

Systec Office Circa 2012 / Nicko Widjaja

Are you willing to share the demise story?

Many might not aware that VCs are making money from the sale of shares in the portfolio they invested in – not from dividends. In Systec Ventures, we’re so busy working on each of the portfolio to perfect their product, content, business model, that we realized until later that without follow-ons then there’d be no path to profit – again this was during the earliest day of Indonesia’s startup scene.

One by one, the portfolio was losing liquidity, while betting on the one or two feature products.

It was a huge lesson learned, and that what contributed to the whole conventional realization that ‘cash is king.’

What did you do next? Indigo?

In 2014, we’ve got introduced to Telkom Indonesia, and they are about to restart the Telkom Indigo Incubator for digital startups. We both learned from each other especially Telkom Indonesia started the open innovation program about the same year as Systec Ventures in 2011. In the past, Indigo Incubator was the kind of a lab when you arrange startup founders to eventually work for one of the projects in Telkom Group. Pretty much similar to Systec Ventures, or any other conglomerate backed venture wannabes out there.

When we (the ‘we’ is mostly Systec’s team) got into Indigo Incubator to help improve the program, we realized that follow-on should be the metric of success – just like any incubator program all over the world.

And back then… follow-on was rare. Most of the incubator programs (especially in corporates) in those days also failed to attract outside investors. (I think one thing about us at Systec Ventures got it right was access to high net worth who are about to venture in the digital business)

We invited our investor networks to even engage during the program as mentors/advisors. We managed to get 40% follow-on rate in our first batch and now Indigo Creative Nation is perhaps Indonesia’s most leading startup accelerator program with more than 70% follow-on and a market cap of $180 million with notable startups such as Payfazz, Nodeflux, PrivyID, Sonicboom, GoersApp, and so on.

How did you manage to find the good deals?

My investment philosophy is simple: You get good deals from someone who knows how to get the best deals. The next question is why would they give their best deals to you? We at MDI Ventures, we really develop and nurture our relationship with top tier global investors. Sharing and combining our resources together with Telkom Indonesia was part of the strategy for our upside in getting the best deals.

I’ve heard of one VC in Singapore giving away term sheets to startups without even honoring them in the end just to bring LP money in. That’s sad because, in this industry, news travels fast, and if you really want to thrive in this industry, your reputation is everything.

How about these past few days in MDI?

MDI Ventures is perhaps one of the few profitable VCs in Indonesia. Last month alone (June/July), we experienced three exit events, totaling of five exits thus far after only 4 years in operation, that is one IPO in the TSE and another one in the ASX. This signals the new dawn for the region’s startups as more money is flowing inbound. The team’s spirit is at all time high.

Let’s move on to BRI. How did you manage to go there?

MDI Ventures was one of the first models of Corporate Venture Capital (CVC). Rumor has it that we were referenced every time CVC is mentioned in corporate meeting rooms all over town. I believe the first validation to work with outside entity was when we collaborate with Mandiri Capital to launch Mandiri Digital Incubator in 2016. That was our first interaction with the banking sector.

Since then we’ve been working closely with Pegadaian and Pertamina to introduce startup x corporation collaboration synergy.

When you talk about digital transformation in the banking sector, BRI has been one of the most progressive implementing its digital initiatives starting in 2017. Started discussing about the fund in 2018 and the ecosystem thesis was coined.

I stated clearly that leaving for BRI Ventures doesn’t mean leaving MDI Ventures completely. Both are clearly in synergy in many ways and learning to leverage each other’s resources: the biggest bank, the biggest telco, and the tech startup right in the middle. We are definitely looking forward to forming up a collaboration sooner that you expected.

Taking a break from the investment story, tell me about your teaching experience?

Again, life sometimes takes a strange turn – especially for someone who hates school. I taught at UPH Business School during 2010 – 2015 (around the same time of Systec Ventures). It’s an exciting opportunity to experience the streams of thought from the next generation of leaders, entrepreneurs, etc.

My method was quite unconventional. I believe when you meet one of my students they could share one of their experiences of being inside my chaotic classroom. But most of the time I spoke more about the new digital economy, comparing case studies from Amazon, YCombinator, Yahoo, etc. and build some sort of relevance to what’s happening domestically.

If you can attribute your success, what would it be?

First, don’t be afraid to make mistakes as long as you try to learn as much from them. Second, some skin in the game.

Any suggestion for those who want to start their own startups?

I might be known for my bluntness when judging startups, but here’s what I think: You feel you can be the next unicorn? No, I don’t think so.

Unicorns didn’t even aim to be one. It’s the mindset of the underdogs that put Google, Facebook, Netflix on the pedestal. It’s the underdogs who won against the corporate arrogance of domination: Netflix Vs Blockbuster, Amazon Vs Barnes & Noble (and later the whole retail chains in America), Apple Vs IBM, and so on.

So, if you’re a startup and your aim is world domination before even begin to validate yourself, then you belong in the insane asylum.

Edy Sulistyo: “Fixing Fundamental Issues in The Entertainment Industry is not an Overnight Process”

This article is a part of DailySocial’s Mastermind Series featuring innovators and leaders in Indonesia’s tech industry sharing their stories and point of view.

Recently appointed as the CEO of Gojek Entertainment Unit, Edy Sulistyo’s journey wasn’t just a walk in the park. He started multiple businesses and had some valuable exit before taking a big step with Indonesia’s decacorn.

Sulistyo started his entrepreneurial journey since he was still in high school. He began to get recognized by his online event management service called eEvent.

After exiting his previous business to the local company in the US, he traveled back to Indonesia to start Loket.com. He decided to go all-in for the entertainment industry. The business grew up well up to the point Gojek came offering a new future.

DailySocial decided to have a Q&A session to dig further on his journey up to this point. Hereby the transcript:

What is your first entrepreneurial experience?

It was far back then in Surabaya. I started a website (back then we didn’t call it startup) called Kamus Online. It was out of necessity, due to lack of a complete dictionary. I need to learn for the test and had no choice but to create the online version of the printed dictionary. Apparently, it turns out useful for most people, a lot of people are using it. What I did was actually crowdsource-ing the vocabulary, and if there’s something that is not in our database, people can start added new terms. The website becomes smarter every day and then. At that time, I didn’t realize I just built what we called machine learning today. Time flies, Kamus Online grows even bigger. It has become ‘the dictionary’ and lasted for 8 years from 1999 to 2007.

What happened afterward? Did you create eEvent right away?

Not really, I started many other websites, such as Files upload, it’s similar to dropbox today. I make it simply because it was difficult to transfer files in large size at that time. During the operation, I have to deal almost every day with security services due to many uploads of illegal contents, not mentioning the cease and desist letters. It’s super annoying, dealing with dozens of letters, which when you didn’t reply, it’ll become stronger and continue to shut down your company. It lasted for 6 to 8 months, with more than 300 thousand users before I started another project named circlemail.com. It was created fundamentally to answer the lack of storage in mail services. I build this with the concept of unlimited storage by referral and it comes with drive and photo gallery.

During the years of running a business and creating another, what have you learned?

A lot of technical skills, but mainly the tough life of being a founder myself. I have to handle end-to-end services while earning my degree at the university. It’s really a hard time to focus. In terms of Files upload, I learned how to dealing with the grey area. Something very complicated involving violation of rights. Even the biggest online cloud is facing the same issue, but today’s technology is getting better. Back then, we worked with what we have.

Fast forward to eEvent, how did you come up with the idea?

It’s quite simple. My co-founder was organizing one of the biggest Asian festivals in town. He asked for help, so we give a hand. Apparently, they’re using the conventional way in order to manage at least 350,000 people over the weekend. Then, we come up with the idea to build a technology to simplify the process, and there it goes, eEvent. We handled some more event around Columbus to validate our business before starting to fundraise.

eEvent is your first project with venture capital funding. Why did you think you need that? Tell me more about your first fundraising.

I would say, eEvent is my first startup that is not a single man show. I need to hire people which means I have more responsibility. Considering our business model as B2B2C, we need many resources in order to scale up. That’s when I think it’s time for fundraising. My first funding was lucky. It was an angel, a highly recommended plastic surgeon in the world from Indonesia. Having an irrelevant investor did not turn out well. We’ve learned that in order to scale up, we should be strategic in choosing our investors. Not long after that, we raise a seed round from the institutional investors. This one is better because they held some kind of incubator program which is more related. We also happened to have a strategic partnership with a local investor named Ideasource.

As a Computer Science student with no financial business background, how could you manage to survive?

It’s a process as an individual. As a computer science (CS) student, my nature is always introvert. I don’t like to talk to people, I like to stay behind the computer screen. It was something I thought not sufficient, but when we run a business, it’s different. The thing that interests me might not very relevant to the customers. My brain tried to optimize things but turns out no one really cares. The biggest lesson is, we made a lot of mistake in program design because we think we know what the customers want.

What makes you think you can bring eEvent to Indonesia?

It was around 2009 that the rise of the local startups. We never aim to expand to Indonesia. Somehow, due to the startup local exposure, Indonesia has become our second biggest user base after the US. Then, we started to go back and forth to expand this business. However, the different market runs a different culture. The workflow, mindset, all the process we designed for the US market aren’t working as well as we thought it would be in Indonesia. We tried a lot of modification, but the market wasn’t ready. We decided to go back and focus in the US.

What happened before the acquisition and why did you decide to sell it?

Basically, at that time, we were growing and becoming number 1 in the midwest area, especially in Ohio. However, B2B2C is very tough because the burn rate is high and monetization is hard. We gain revenue, but given the money we burnt, it’s far from positive. We need to fundraise more from many investors in Silicon Valley, Los Angeles, met with a couple of high-profile mentors. At that time, the market was dominated by Eventbrite, and at some point, the discussion was getting very close to the possible acquisition by Eventbrite. Somehow, we get a surprise offer from a local company named Envision Point. It’s more attractive given the strategic value the company brings. It’s a pure exit.

Being a founder myself, there must be much consideration for you to sell this business. What was your vision?

We always had the vision to do something for Indonesia. Our company in the US has all Indonesian founders with local employees. Although we’re already making something to put Indonesia on the map, there’s something missing. We took this competition all the way in the US for what? Money is one thing, but we aim to make something more impactful to Indonesia. There are much bigger problems in Indonesia to solve with technology. It’s unfortunate to just let it slide. If we can make a successful business in the US, might as well do it in Indonesia.
The vision was to make event sell out faster. It’s hard to make a successful one due to lack of exposure and the conventional way of marketing. However, when we see further, the issue is much bigger than that. In terms of security, ticket corruption, and many more fundamental issues. Instead of only focused to sell faster, we feel encouraged to make disruption in the entertainment industry overall.

Why did you choose the event industry?

I never dreamed to be the king of events. The only thing we care is to fix the fundamental issue within the event itself. Then, we decided to go end-to-end in this industry, involving the TMS (Ticket Management Service), security system, making sure there’s no loophole in the event. We realize that the solution is not only to sell tickets but to improve the quality of the event. Because that is what makes a sustainable business and increase the overall industry.

There must be lots of experience you’ve got from the previous business, have you made any mistakes?

Don’t assume and validate. As someone with a very technical background, I should’ve talked more to customers. Realizing that mostly what we think is wrong is the eureka moment for me. When I created Loket, I can just copy from eEvent. However, I realize that it’s not going to work due to the different culture. Indonesian people prefer to be served than to do self-service. Instead of forcing our idea, we decided to take the wheel and make it happened for them.

What was it like your first day in Loket?

We started with 3 founders and some early employees. Actually, we’ve been selling out the product before it’s even developed. After quite a hard work, we realized that this is a problem people willing to pay for. It’s a painkiller, not a vitamin.

Part of being a founder, you have to constantly fundraise. Care to share some insights on the second time?

It’s internal fundraising. We have a B2B business model, it’s basically project-based and very lean. In terms of burning money, we better ensure the sustainability of the company. At the end of the day, we want to build a real business. Our dream is to solve and disrupt the industry in fundamental ways. That would require us to have a sustainable business, so we can go to fix the issue in Indonesia.

What is the darkest nightmare you’ve experienced in Loket?

It was very frustrating at the beginning, every time we run an event. Website down, miscommunication everywhere, double booking, and many more reasons for customers to make complaints. Especially when doing big stage events, it’s really earful and crushing our mind. Moreover, the security wasn’t without flaws, there are missing items, signal lost ruined everything, it was really a heartbreaking experience. All of them really makes us better, we learn so much in terms of business and technology. In terms of social factor, we learned how to handle people in the most human way.

What do you feel about a competitor?

For us, competitors are irrelevant. As long as we can focus to deliver the best experience to our customers, we’re fine.

Talking about personal life, how did you manage to work and take care of your family?

It’s super tough. Luckily, I’m working on the technology industry that allows you to work from anywhere. The good thing about doing something you really like and you fascinate about, there’s no difference between work and life. Also, it’s really important to have a spouse that supports you. With everything going on in financial or time management, as long as you’re doing it together, it’s bearable.

Do you have support system aside from your family?

My church friends. Being a startup founder is very stressful. There are many times I strive to scream and give up. Somehow, the biggest burden is not about me personally, but trying to understand other people’s problems. Thank God I have so many people praying for me.

What was the story behind Gojek’s acquisition?

At that time, Loket was ready to get into B2C, we’ve tried to build it ourselves and it’s hard because we have no expertise at all. Meanwhile, Gojek has a B2C platform called Gotix, it was also our reseller. At that time, we’re both in a really comfortable seat, just after East Ventures. After having a thorough conversation with the Founder and CEO of Gojek Indonesia, Nadiem Makarim, we happened to share the same vision. In order to make things faster, I decided to sell and join the Entertainment unit of Gojek Indonesia.

You might want to share the journey, what happened after the acquisition to the Gojek entertainment unit? Are you happy with the result?

It’s still a working progress, but personally, I’m happy. In terms of disrupting the entertainment industry, we started to realize missing pieces, not only from the event but also the filming industry. They already got a lot of support from the government. Still, it encourages us to do something about this. We decided to add the filming industry under the entertainment unit. It’s all learning process, nobody understands the industry and it’s very fragmented. Our work is not done, but we can see the growth. I also receive a lot of enthusiasm from the public and industry players.

What about Go-Play and how is it related to to your vision?

In terms of the film industry, we positioning Go-Play as a platform, where we provide content creator to have its own channel. The thing is we want to give them space to be creative. As a platform, we aim to improve Indonesia’s film industry. Lots of people might still consider Indonesian films not worthy. While in fact, some of them actually quite good to meet the international movie standard. It’s unfortunate to keep it hidden, we tried to be a platform that can also support the Indonesian film industry.

On a Gojek level you are now, is there any agenda you can share in the near future?

Gojek always focused on technology to make an impact. While we entering the entertainment industry, the mission derived. Go-Play is currently in beta version because we want to make sure the experiences are fit to customers. We really want to deliver the best value for customers, it’s a validation step for us.

What is your goal in the next few years?

I really want to be part of something that will make a really powerful impact instead of just money. We’re all at the point where we thought there’s something greater to achieve. Personally, for me, it’s self-gratifying. It’s like leaving a legacy, something that makes people around me proud and happy.