The complicated lives of Indonesia’s e-wallets

More: TikTok rival to go public, JD Health plans for IPO, and Uber to sell Didi stakes [Read from your browser]( Daily Newsletter Hello {NAME} Fun fact: Almost half of China’s population uses Alipay - that’s 711 million monthly active users (MAUs). Seeing that astronomical number would make any founder green with envy, and those in fintech startups would start thinking, “Why can’t my startup do that too?” That’s especially true for those based in Indonesia, as industry experts believe the archipelago will reach China’s penetration rate within the next five years. So today we look at: - E-wallets in Indonesia and whether they can break through [their stagnation]( - When AI comes and takes over - The startup that feeds you grasshopper snacks Oof, our sponsor today has some cool growth secrets to share from Google, Branch, CleverTap, and GrowthX. Why not check them out for yourself [here](. *Sponsored  ---------------------------------------------------------------  PREMIUM SUMMARY  We’re soarin’, flyin’: Can e-wallets in Indonesia break free from low adoption? Most e-wallets in Indonesia would love to get hit by the e-wallet wave that’s sweeping China. Currently, platforms like Gojek, Ovo, and Dana are seeing an average MAU rate ranging between 2% to 11% of the Indonesian population — a significant difference when compared to Alipay’s penetration rate in China. But industry [sources stay bullish]( about the next five years. - Right place, right time: Alipay’s timing was impeccable. It was launched during the initial wave of ecommerce and around the time when China was rapidly growing, which allowed the population to have a much higher spending output. As for Indonesia, its GDP per capita is still a lot lower than China’s, making it harder for the population to spend and, consequently, for e-wallets to earn. - Change is on the way: The Covid-19 pandemic can help accelerate e-wallet adoption in Indonesia. Already, ecommerce apps in the country are seeing a 25% surge in weekly active users. And similar to how shoppers who buy on Alibaba stay on as Alipay consumers, these users might also become frequent e-wallet users in the long run. - Another lies in wait: Ecommerce is not alone. Two more factors that could push Indonesia’s fintech players to achieve 50% penetration would be servicing micro, small, and medium-sized enterprises (MSMEs) and reaching Indonesian consumers living outside major cities. Read more: [Indonesia’s e-wallets have hit a ceiling – but there’s a way to break it](  --------------------------------------------------------------- When AI comes and takes over This is the stuff dreams — or nightmares — are made of: More companies have an urgent need for artificial intelligence. That means AI could soon replace us humans and knock us off our jobs...[or maybe not]( - Hello, world: 85% of companies say that they want to use AI. As more companies move toward that goal, 1.8 million jobs will be eliminated. But at the same time, AI adoption will also create 2.3 million more jobs. - On the up and up: Jobs that require AI skills have increased 4.5x since 2013. Asia Pacific, in particular, will show the highest compound annual growth rate of 59.5% between 2018 and 2025. - Dream job?: Jobs in data management and analytics offer pretty good salaries. In Singapore, the median salary ranges from US$48,609 to US$121,534 while in Indonesia, the monthly gross base salary could go up to US$3,355. Read more: [With APAC’s growing need for AI talent, a consultancy company presents a salary benchmark](  ---------------------------------------------------------------  QUICK BITES  1️⃣ TikTok rival goes public Chinese online short-video app Kuaishou looks to raise up to [US$5 billion]( in a Hong Kong IPO as early as January. The company has a valuation of over US$50 billion and is backed by investors that include Tencent Holdings, Sequoia Capital China, and Temasek Holding.  2️⃣ American VC firm Lightspeed enters SEA Lightspeed Venture Partners will be [expanding]( into Southeast Asia with plans to deploy US$4 billion into the region’s enterprise and consumer sectors. Its portfolio includes camera and social media company Snap, food delivery GrubHub, ride-hailing major Grab, social commerce platform Chilibeli, and marketplace app Ula.  3️⃣ Foodpanda heads to the land of the rising sun The food delivery company is [launching]( operations in Japan, starting with six cities, including Kobe, Yokohama, and Nagoya. This move will heat up competition with rivals Uber Eats, Rakuten Delivery, and Amazon Japan in the Japanese market.  4️⃣ Uber to sell Didi stakes The US ride-hailing giant is [seeking to sell]( part of its US$6.3 billion stake in China's largest ride-hailing player Didi Chuxing. The company is reported to be in talks with Didi and Japanese conglomerate SoftBank, which is a major shareholder in both companies. Just a few days ago, Uber is also said to be [selling part of its stakes]( in Grab to Alibaba.  5️⃣ JD Health to file for IPO The healthcare subsidiary of ecommerce giant JD.com is [planning to file]( for a Hong Kong initial public offering this month. The company could raise at least US$1 billion in the share sale. Earlier this year, JD Health was ranked as the [second most valuable]( among the new global unicorns that emerged last year, with a valuation of US$7 billion.  6️⃣ Tencent signs broadcast deal with Premier League The Chinese tech giant has scored one of the world's most popular sports competition [broadcast deal](. Tencent will make half of the matches free to watch, with the remainder accessible via subscription. While financials are not disclosed, the deal replaces Premier League’s US$700 million contract with its former broadcasting partner, Chinese retail group Suning’s PPLive Sports. Tencent continues to stay on top of its content game. Just a few months ago, it beefed up its original content [by buying]( Iflix, one of the biggest producers of local content in Southeast Asia.  ---------------------------------------------------------------  STARTUP FEATURE Dear Kevin, thanks for your submission. Your company is our featured startup of the week! - Elevator pitch: [Ento]( is an alternative protein company specializing in farming insects - particularly crickets - for human consumption. They offer their products in the form of consumer packaged goods, baked goods, and powder as raw material. - Story: After Ento founder Kevin Wu left his career in corporate law, he spent three months travelling around the world. One of his trips was to Mexico where he stumbled upon fresh tacos — topped with fried grasshoppers. It was love at first taste, and he became curious why more people weren’t using insects in their recipes. This brought him into a whole new industry called ”alternative protein”. - How many years in operation: Almost two years. - Number of customers: They are currently serving over 300 customers each month and have served more than 3000 customers over the past 12 months. - Sales: US$5k+ monthly revenues - Opportunities: There is lots of growth potential as more consumers are looking to change the way they consume protein. Many of them are already open to testing new food products in the market. - Challenge: Consumer adoption. The idea of consuming insects is still totally new, and non-early adopters find it unpalatable.  ---------------------------------------------------------------  EVENTS HAPPENING - Tech in Asia Startup Arena Semifinals [Singapore edition]( September 22 [Vietnam edition]( September 24 [Indonesia edition]( September 29 [Other Southeast Asia countries edition]( October 1 - [Tech in Asia Virtual Conference]( from October 19 to 22. Our biggest annual event has everything you need to prepare for Southeast Asia’s Golden Age: expert panels given by founders, decision-makers, and investors, startup-investor speed dating, and networking sessions to connect with those who matter. If you’re already a Core or Live subscriber, you can [RSVP at no additional charge](.  ---------------------------------------------------------------  WHO'S HIRING - [Product Management - Listing]( at Sea Group (Singapore, Singapore) - [Machine Learning Engineer]( at NRI Indonesia (Jakarta, Indonesia) - [Partnership Manager]( at Payfazz (Jakarta, Indonesia)  --------------------------------------------------------------- Before you go on your Happy Hour, share this email with your friends to make their TGIF conversations a little cooler. And if you have any comments about our newsletter, hit us up [here](. Today’s edition is written by Betty Chum, with contributions from Putra Muskita and Doris Yu. It’s edited by September Grace Mahino. 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