Lazada vs MatahariMall in Indonesia with Rama Mamuaya

Lazada vs MatahariMall in Indonesia with Rama Mamuaya
Rama Mamuaya, founder of discuss the fierce competition on ecommerce in Indonesia between two powers: Lazada (Rocket Internet) vs MatahariMall (Lippo Group)

In this episode, Rama Mamuaya, founder of discussed the fierce competition on ecommerce in Indonesia between two powers: Lazada (Rocket Internet) vs MatahariMall (Lippo Group). What are the implications to the whole Indonesia ecommerce market? Rama dissects how the war between both ecommerce entities will play out and how it affects the other ecommerce companies such as Tokopedia (which raised US$100M from Softbank) in Indonesia. We reviewed the Indonesia ecommerce market in general with respect to growing internet and mobile penetration, modes of payment from bank transfer to cash on delivery, and also how the second tier cities beyond Jakarta are fuelling the growth of the tech industry.

Here are the interesting notes and links to the discussion (with timestamps included):

  • Rama Mamuaya (@rampok) of (Check out their english version). Check out his earlier interview with us.
  • Ecommerce on the Rise in Indonesia [1:00]
    • Growth of Internet users 20% year on year.
    • Modes of payment (Credit Card, Cash on Delivery, Bank Transfer)
    • Growth of ECommerce from Jakarta to 2nd tier cities (Bandung) and provinces (Sumatra)
    • Reference: 9 Top ECommerce Facts in Indonesia by Singapore Post
  • MatahariMall vs Lazada [2:43]
    • Matahari Mall from Lippo Group. Who is the Lippo Group and why are they influential in the Indonesia landscape? Lippo Group controls $15B in assets, focus on regional property development projects, warehousing, hospitals, banking and education and listed on the Indonesia stock exchange with a market capitalisation of  127 trillion Indonesian ruppiah (US$10B) (source: Reuters). [3:20]
    • Is is a corporate venture or a startup funded by the Lippo Group? [5:58]
    • Do the leaders of MatahariMall report to the hypermart group or directly to the top of the Lippo Group? [6:50]
    • Is MatahariMall similar to Amazon or Lazada or adopts a marketplace approach like EBay? [9:45]
    • Will MatahariMall focus on integrate the offline and the online together as they have the largest supermarket and shopping malls all over Indonesia? Will they build an independent logistics arm instead of relying on ACommerce?
    • Even for fundraising, they are leveraging on heavy weights such as Credit Suisse and Bank of America to do their fundraising. Already US$500M in the war chest, what do you think is their gameplan? [17:00]
    • Talent acquisition philosophy between MatahariMall vs Lazada. Lippo Group hired Hadi Wenas (former ACommerce CEO) from Indonesia, Goh Yiping from AllDealsAsia and top tiered entrepreneurial talent against Rocket Internet which hire professional managers, consultants and investment bankers. [21:40]
    • What are the implications against Lazada (Rocket Internet) who are building their own logistics in Indonesia with the US$200M funding from Temasek Holdings? Lazada is also invested heavily by JP Morgan.
  • Indonesia Government and Startups: With MatahariMall being a homegrown story leads to Indonesia supporting its own similar to how China has done for her Internet startups against US/European companies? Reference: The [Indonesian] Government will support the ECommerce Industry by shutting it down [25:00]
  • Tokopedia [28:00]
    • Where are they after the US$100M from Softbank?
    • Are they still focused on building the online marketplace or have they branched out to other parts of the business?
    • How will will affect Tokopedia?
  • Why Indonesia is the next exciting market after India and China.
  • Is there a tech investment bubble forming in Indonesia given that Singapore VCs are moving to Indonesia? [31:40]

Podcast Information:

The show is hosted by Bernard Leong (@bleongcw) and are sponsored by Ideal Workspace (Twitter, Facebook and LinkedIn) and Linkcious (and check out their other product, Chiibi).