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It is a digital learning and experience center where SMEs can learn how to be a merchant, how to use the app, make online-to-offline (O2O) transactions, use digital payments and financial services, and more. In terms of SMEs, we have Tokopedia Center that is spread across various villages and districts. PC: Yes, we are aware that customers in small villages have different needs and preferences than those from Jakarta, so we personalized our services for them. Kr: Do you work with local governments for that? It creates a more level playing field, provides equal access to goods and services, and is therefore a new business opportunity for them.
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After one year, the app has been downloaded by over two million Android users.Īt the same time, we also helped build better infrastructure with technology, especially around logistics and fulfillment, also leveraging on technology to get the goods closer to shop owners as they can even choose to become a pick-up or drop off point. We designed the Mitra Tokopedia app simply so that they can grasp it quickly. For instance, we help them to restock their inventory faster through the “Grosir” feature, and we have provided them with working capital so they can purchase more (inventory) faster too. We currently have 350,000 mom-and-pop shop partners, what we call “Mitra.” We leverage our technology and platform to provide value-added services to them. According to recent research by the University of Indonesia, Tokopedia has created 857,000 new jobs, from active sellers residing from Aceh to Papua, which is equivalent to 10.3% of total new jobs for Indonesia in 2018. Not only have we helped existing SMEs, but we have also created new batches of entrepreneurs with our platform. Today, there are more than 60 million SMEs in the country, and we contributed by empowering 6.6 million of them as of last month.
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Patrick Cao (PC): Small and medium enterprises (SMEs) are the backbone of the Indonesian economy. KrASIA (Kr): William has publicly said that Tokopedia will focus on “go local” rather than emulating its peers by going international. KrASIA recently sat down with Tokopedia’s president Patrick Cao to discuss the company’s business strategies and the details of its IPO preparation. In fact, this move is expected to pave the way for other tech companies to follow suit. This has been generally well-received by the public and analysts, considering that the company has been proving its positive track record in Indonesia’s digital economy. The company recently made headlines when its co-founder and CEO William Tanuwijaya announced plans to go public within the next few years. According to to recent research by the University of Indonesia’s economic and social research institute, Tokopedia is projected to contribute USD 12 billion to the Indonesian economy this year, factoring in transaction value, the number of jobs created, and the rise in sellers’ income throughout the country. On its tenth anniversary, the firm expressed interest to become a “super ecosystem” for local customers and businesses. Indonesia’s largest e-commerce platform Tokopedia is entering its second decade.