Breaking down Indonesia’s public tech landscape

Opening Bell 🔔 is Tech in Asia’s free newsletter that brings you the biggest news and latest trends around Asia’s publicly listed tech companies. [Read from your browser]( Opening Bell 🔔 Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by [registering here](. --------------------------------------------------------------- IN FOCUS In today's newsletter, we spotlight: - [The shifting dynamics of Indonesia’s public tech landscape]( - How AI is deepening its roots in Asia - Other newsy highlights such as Sea winding down its investment arm, Sea Capital --------------------------------------------------------------- Hello {NAME} Just imagine if Mark Zuckerberg were to resign as the CEO of Meta (META, NDAQ) - Facebook’s parent firm - out of the blue. It would send newsrooms across the world into a tailspin. Well, something similar actually occurred in Indonesia’s public tech sphere last week. In a surprise shakeup, tech giant GoTo Group (GOTO, IDX) announced that Andre Soelistyo will step down as CEO and be replaced by [Patrick Walujo]( the founder of private equity firm Northstar Group who currently serves as one of GoTo's commissioners. The comparison isn’t as outlandish as it first seems if we look at it from a country perspective. GoTo’s 2020 revenue figure [was equivalent]( to about 2% of Indonesia’s GDP in 2020 while Meta’s 2021 revenue was roughly 0.5% of the US‘ GDP. “We have always talked about professionalizing the company so that it can move beyond its founders,” Soelistyo, who will become deputy chairman in GoTo’s board of commissioners, said in [his farewell letter to staff](. A telling quote that hints at the end of the firm’s startup days and signals its transition to a more corporate structure. Throw out the hoodies and bring in the suits? Well, the market appeared to give its stamp of approval - GoTo’s shares rose about 7.8% on the day of the announcement, albeit they are still trading over 60% below its IPO price. With the poster child of Indonesian tech businesses undergoing seismic changes at the helm, today’s featured piece sheds light on the current state of the archipelago’s public tech landscape as a whole. In addition to unpacking the relatively robust performance of ecommerce major Blibli (BELI, IDX) and tracking the roller-coaster journey of minnows such as metaverse builder WIR Group (WIRG, IDX), the premium story lays out a host of big-name firms that are closing in on their market debuts in Southeast Asia’s largest economy. -- Shravanth  ---------------------------------------------------------------  THE BIG STORY [Mapping public tech companies in Indonesia (updated)]( WIR Group, GoTo Group, Blibli, and Venteny Fortuna International have been added to the list of over 20 public tech companies in Indonesia. ---------------------------------------------------------------  3 TRENDS TO KEEP EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1️⃣ Rise of the incumbents: It’s easy to swat aside established players when startups in the same industry are growing at a rapid pace. I’m guilty of this when it comes to digital banking in Indonesia. The success of Bank Jago (ARTO, IDX), Bank Neo Commerce (BBYB, IDX), and Allo Bank (BBHI, IDX) - which are backed by GoTo, Akulaku, and Bukalapak (BUKA, IDX), respectively - has perhaps warped my views on this space. But the incumbents such as Bank Mandiri (BMRI, IDX), Bank Rakyat Indonesia (BBRI, IDX), Bank Central Asia (BBCA, IDX), and Bank Negara Indonesia (BBNI, IDX) are there for a reason. They have [begun nullifying]( one of the biggest advantages these new players have over traditional banks: the usability of its online platforms. Participants of a survey by Boston Consulting Group gave similar scores to both fintech platforms and traditional banks in onboarding and ease of use, two areas that the former group used to lead in. 2️⃣ AI in Asia: The palpable excitement (and fear) over artificial intelligence is beginning to find its ways to the largest continent. One key benefactor of this surge in interest is SoftBank Group (9984, TYO), which has seen its shares rise nearly 14% in the last month. The Japanese conglomerate, which is preparing for an IPO of chip designer Arm, [will tie up]( with US-based Nvidia (NVDA, NDAQ) through its wireless carrier unit to develop a platform for generative AI and 5G/6G apps. Over in Singapore, the leading players in the generative AI space, including Google (GOOGL, NDAQ) and Microsoft (MSFT, NDAQ), [have joined]( a foundation aiming to develop AI testing tools that promote responsible use of the tech. PropertyGuru (PGRU, NYSE) is getting [in on the act]( as well. The real estate portal is working on how agents can use generative AI for property listings.  See also: [Digging into Southeast Asia’s generative AI excitement]( 3️⃣ US SEC escalates crypto crackdown: The US Securities and Exchange Commission launched a full-scale offensive against the crypto industry last week. First, it levied serious charges against Binance, the world’s largest crypto exchange, and its CEO Changpeng Zhao. Among the alleged offenses is the unregistered offer and sale of the firm’s crypto assets as well as the mixing of customer funds with their own and diverting them to third-party companies belonging to Zhao. Binance said it [will]( “vigorously” defend its business against the lawsuit. Then, the regulatory body [sued]( Coinbase (COIN, NDAQ), the largest crypto trading platform in the US. The SEC accused the firm of operating without proper registration since 2019. Coinbase shares have fallen roughly 15% since the announcement of the lawsuit. 2 EYE-POPPING NUMBERS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. - [US$3,499]( For those of you living under a rock, that is the eye-watering price of Apple’s (AAPL, NDAQ) Apple Vision Pro, an augmented and virtual reality headset. The device is set to launch in the US early next year. - [US$739.5 million]( The deposit balances at Singapore-based Trust Bank have exceeded the aforementioned figure since its launch in September 2022. The company, which is targeting to break even by 2025, was formed through a partnership between Standard Chartered Bank (STAN, LON) and FairPrice Group. THE ONE YOU DIDN'T SEE COMING We spotlight the story that had everyone talking and social media buzzing during the past week. Sea’s investment arm goes overboard and South Korean unions take on ecommerce mainstays: It doesn’t take a genius to recognize that market conditions have been turbulent for quite some time now. While some may view this as a buying opportunity, others would prefer to take a backseat. Sea Group (SE, NYSE) appears to belong to the latter category after the tech giant [dismantled]( its investment arm as volatile economic conditions weigh on valuations. The unit stopped investing in new firms last year and its staff members have been assigned to other roles in the group. In other news, there appears to be discontent brewing in South Korea’s ecommerce universe. Big-name platforms Coupang (CPNG, NYSE) and Woowa Brothers, an indirect subsidiary of Delivery Hero (DHER, ETR), [have caught]( the attention of the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions. The Korean unions are urging the two platforms to provide higher wages and better working conditions for their delivery workers. That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. Happy investing and see you next week! Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice. [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2023 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894