The digital revolution has reshaped the way we shop, with e-commerce and social commerce taking centre stage. Indonesia, with its burgeoning online population and rapid digitalisation, has emerged as a hotspot for e-commerce growth. In particular, the rise of social commerce, epitomised by platforms like TikTok Shop, has been a game-changer in the Indonesian market.

However, recent regulatory developments have cast a shadow over this thriving sector. In this article, we will delve into the growth of e-commerce and social commerce in Indonesia, the prominence of TikTok Shop, and the implications of the ban regulation on this innovative marketplace.

The explosive growth of e-commerce and social commerce

According to We are Social (January 2023), Indonesia boasts a total population of 276.4 million, with a significant digital presence as 77 per cent of its populace, totaling 212.9 million individuals, are internet users. Among these, a remarkable 60.4 per cent or 167 million people are active on social media platforms. What’s striking is the level of engagement, with the average Indonesian spending an impressive three hours and 18 minutes per day on social media through various devices. These statistics underscore the nation’s substantial online presence and its robust social media culture, making it a key player in the digital landscape.

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E-commerce in Indonesia

Indonesia’s e-commerce landscape is on a meteoric rise. According to predictions by experts, the Gross Merchandise Value (GMV) of the e-commerce industry in Indonesia is set to soar to US$104 billion by 2025. This growth is fueled by a staggering 158.6 million e-commerce users, representing 57.9 per cent of the total population, as per the Social Commerce Report 2022 by DSInnovate.

Social Commerce in Indonesia

With 60.4 per cent of the population being active on social media platforms, this colossal user base has provided fertile ground for the emergence of social commerce, where buyers and sellers can interact freely and transact directly on social media platforms. This novel approach to shopping has attracted a massive following, with social commerce transactions contributing approximately US$3 billion to Indonesia’s total of US$8 billion GMV in 2020, as stated by Digitalpreneur Diatce G. Harahap, as stated by the Digitalpreneur Diatce G. Harahap on the Spire Insights article by technobusiness.id.

E-commerce vs Social Commerce

In line with a report titled “E-commerce in Southeast Asia 2023” released by Momentum, the cumulative sales value of TikTok Shop in 2022 did not achieve the top spot in Indonesia. According to this data, the GMV in Indonesia, encompassing six e-commerce platforms, reached US$51.9 billion or IDR803.7 trillion. The report disclosed that sales on TikTok Shop only contributed to five pe rcent, which equates to approximately IDR40.1 trillion in 2022.

TikTok Shop still trails behind Shopee, which maintains a dominant position in e-commerce revenue within Indonesia. Shopee managed to amass a total revenue of 36 per cent or IDR289.3 trillion from the sale of goods. Following closely are Tokopedia, Lazada, and Bukalapak.

Interestingly, sales on TikTok are on a steady upward trajectory despite not leading the pack. Shoplus, an analytics tool for TikTok, reported an upswing in supply and demand within the TikTok e-commerce sphere during the fourth quarter of 2022. In December 2022, the number of creators on TikTok Shop surged by 92 per cent in comparison to October, and during the same timeframe, e-commerce-related videos registered an impressive increase of 127 per cent.

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It is worth noting that the proliferation of influencer-based e-commerce activities, as per the report, played a pivotal role in broadening TikTok Shop’s content and expanding its reach. Consequently, the proportion of e-commerce influencers in total sales revenue in Indonesia has seen a substantial surge. The count of TikTok Shop influencers reached its zenith in December 2022, which subsequently sparked fierce competition in Indonesia.

In the fourth quarter of 2022, sales generated by TikTok Shop influencers constituted 34 per cent of the total sales in TikTok Shop Indonesia, making Indonesia the leader among other countries. Shoplus, in general, indicated that 8.4 per cent of TikTok Shop influencers accounted for a significant 86.9 per cent of the market share during the same period. In Indonesia, influencers in professional services, finance and investment, fashion, vlogs, and other niches rapidly garnered followers.

To provide context, according to CNBC Indonesia, the Gross Merchandise Value (GMV) on TikTok Shop in Indonesia over the past year tallied at US$2.5 billion. This figure formed the majority of the total GMV in Southeast Asia, which amounted to US$4.4 billion. This implies that TikTok has set its sights on transactions worth over US$5 billion (IDR75 trillion) in Indonesia for 2023. This information stems from credible sources familiar with the matter. On a broader scale, the GMV of TikTok Shop for all of Southeast Asia is projected to exceed US$15 billion, marking a remarkable triple-fold increase from the previous year.

The emphasis on Indonesia is not without reason. Insider Intelligence’s research firm reported that by Q1 2023, active TikTok users in Southeast Asia had reached a staggering 135 million, with Indonesia contributing a significant chunk, boasting 113 million users. The potential of TikTok Shop has not escaped the attention of established e-commerce giants such as Shopee, Tokopedia, and Lazada, despite TikTok Shop’s relatively recent introduction to Southeast Asia in 2021.

According to a survey by Cube Asia, users’ spending habits have shifted away from platforms such as Shopee and Lazada in favour of TikTok Shop. User spending on Shopee, Lazada, and offline stores in Indonesia, Thailand, and the Philippines witnessed declines of 51 per cent, 45 per cent, and 38 per cent, respectively. Nevertheless, it’s crucial to note that Shopee still maintains a significantly higher GMV than TikTok Shop, with Shopee’s Southeast Asia GMV reaching US$73.5 billion in 2022, while Lazada achieved a GMV of US$21 billion.

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The rise of TikTok Shop

 

Among the array of social commerce platforms in Indonesia, TikTok Shop stands out as a frontrunner. Alongside Facebook Shops and Instagram Shopping, TikTok Shop offers a unique blend of social media engagement and direct shopping. A Populix survey conducted in 2022 revealed that TikTok Shop is the preferred platform for the majority of Indonesian respondents who have shopped via social media. This thriving marketplace caters to a diverse range of products, with clothing, beauty products, food and beverages, and cellphones and accessories topping the list of items frequently purchased.

Challenges for TikTok Shop in Indonesia

Despite its rapid growth, TikTok Shop faces formidable challenges in its quest for sustained success. According to experts at Cube Asia, TikTok must operate flawlessly to achieve its GMV target of US$15 billion in Southeast Asia. Recent challenges include regulatory scrutiny, such as the Vietnamese government’s investigation into TikTok for disseminating negative content, and the Indonesian Ministry of Communication and Information blocking content related to “online begging.”

Jianggang Li, CEO of Momentum Works research firm, underscores that regulatory challenges aren’t confined to TikTok in the United States and Europe. TikTok must convince governments in Southeast Asia that its service benefits the local population and SMEs.

Additionally, TikTok Shop faces challenges related to product pricing and limited logistics. Products on TikTok tend to be lower-cost, leading to impulsive purchases. For pricier items such as electronic devices, TikTok has yet to gain preference. Moreover, TikTok Shop relies on third-party courier services, and Indonesia’s archipelagic nature often poses logistical challenges, particularly for deliveries to remote islands.

Roshan Raj, Head of Research at Redseer, notes that customers outside Java may feel underserved by TikTok Shop, as established e-commerce platforms possess stronger internal logistics capabilities. Consequently, TikTok’s delivery ratings still trail behind those of established players.

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Looming Competition

These challenges present opportunities for established players such as Shopee, Tokopedia, and Lazada to solidify their positions. The Financial Times reports that Lazada, led by Jiang Fan, has secured additional funds from Alibaba to bolster its competitive strategy. Shopee, on the other hand, is anticipated to intensify competition after two consecutive profitable quarters. The e-commerce landscape in Southeast Asia, particularly in Indonesia, is set to witness intriguing developments in the coming year.

An in-depth look at the ban regulation

In an unexpected turn of events on September 25, 2023, the Indonesian government unveiled a significant policy shift by implementing a comprehensive ban on e-commerce transactions conducted through social media platforms, as outlined in Regulation of the Minister of Trade (Permendag) No. 31 of 2023. Trade Minister Zulkifli Hasan, in a statement to the press, highlighted that the primary objectives of this regulation are to foster “fair and just” business competition while also safeguarding the data protection rights of users. This multifaceted approach aims to address a variety of pressing issues affecting Indonesia’s business landscape.

Impact on local business

One prominent concern that led to this ban was the adverse impact of social media-based e-commerce on the local small and medium-sized enterprises (SMEs). The rapid influx of imported goods, particularly from China, through platforms such as TikTok Shop disrupted the equilibrium of the market. Traders in Tanah Abang, Southeast Asia’s largest wholesale center, voiced their grievances, reporting a staggering profit loss of over 50 per cent due to their inability to compete with imported products offered at significantly lower prices on TikTok Shop.

In a recent interview with Temmy Satya Permana at tvOneNews, Assistant Deputy of Financing and Investment for Small and Medium Enterprises (SMEs) at the Ministry of Cooperatives and SMEs in Indonesia, it was revealed that Indonesia ranks as the world’s second-largest TikTok user base, with users spending an average of 3.5 hours per day on the platform. TikTok had already become a widespread habit among Indonesians even before it received official permission in May 2023. Surprisingly, he added that within just one year, TikTok’s revenue matched that of Alibaba’s 10-year earnings in China. However, concerns about pricing have emerged, as some items, such as shoes and hijabs, were sold at extremely low prices, with a majority being imports. The World Economic Forum reported that Indonesia is the largest buyer of hijabs globally, with 75 per cent of these products being imported.

Impact on Offline Business

Moreover, the “live” feature on TikTok, enabling individuals to directly sell goods, was deemed detrimental to local MSMEs that predominantly operate offline. Iyal Suryadi, a textile seller, expressed frustration over the situation, highlighting that the prices of items sold on TikTok Shop “do not make sense.” This is because goods are sold directly to consumers at factory prices, bypassing distributors or resellers, disrupting the traditional business model.

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Misuse of personal data

Another factor that drove the Indonesian government’s decision to prohibit e-commerce transactions via social media channels, including TikTok Shop, was the need to prevent the misuse of personal data. Trade Minister Zulkifli Hasan (often referred to as Zulhas) shed light on the necessity of this move, emphasising the clear distinction between social media and social commerce. He asserted that social commerce should serve as a platform for promoting and directly selling goods and services, separate from the broader realm of social media.

The amalgamation of social media and social commerce raised concerns about a potential monopoly over algorithms, which could be exploited to misuse consumer personal data for business purposes. Minister Zulhas underlined the importance of segregating these realms to prevent such misuse. By implementing the ban, the Indonesian government sought to maintain a clear boundary between the two and safeguard the integrity of consumer data.

No PMSE Permit

Furthermore, another significant reason for TikTok Shop’s closure was the absence of a necessary Trading Through Electronic Systems (PMSE) license. TikTok, despite being a widely used social media platform in Indonesia, was registered as an Electronic System Provider (PSE) with the Ministry of Communication and Information Technology (Kominfo). However, it lacked the requisite PMSE license, a critical permit for conducting e-commerce transactions through electronic devices or procedures.

The distinction between PSE and PMSE licenses is essential. PSE licenses encompass the use of electronic systems for both public and non-public services by state administrators, individuals, businesses, and the general public. In contrast, PMSE licenses are specifically tailored for online trading activities carried out through electronic means, essentially enabling companies to engage in e-commerce.

Tragically, TikTok Shop’s absence of a PMSE license rendered it incapable of facilitating direct buying and selling transactions on the TikTok platform. In light of these regulatory and compliance issues, the Indonesian government’s decision to ban TikTok Shop aligns with its commitment to upholding legal and data protection standards while fostering a fair and competitive business environment within the country.

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Impact on merchants and affiliates

Unsurprisingly, this ban has sparked mixed reactions among stakeholders. TikTok Indonesia expressed its commitment to adhering to the new regulations while highlighting concerns for the millions of local sellers and creator affiliates who rely on TikTok Shop for their livelihoods. The platform reportedly said it has received complaints from local sellers and sought clarification from authorities regarding the ban’s implementation.

Proponents of the TikTok Shop ban argue that it levels the playing field for traditional merchants and curtails the onslaught of online businesses that undercut prices. Market Promotion Manager Herry Supriatna from Tanah Abang Market welcomed the ban, foreseeing healthier price competition and the potential for increased turnover for traditional traders.

Similarly, textile seller Iyal Suryadi and seller Mr. Raden from Tanah Abang Market have welcomed the move, emphasizing the adverse impact of cheap online prices on their businesses. They propose restrictions on the sale of items through social media rather than an outright ban to accommodate those who have adopted TikTok Shop as a selling channel.

Conversely, some argue that TikTok Shop has been a lifeline for businesses, especially during the challenges posed by the COVID-19 pandemic. Sellers such as Fahmi Ridho believe that online platforms offer a way for stores to recover and adapt in a changing landscape.

Andre Oktavianus, a children’s clothing business owner, credits TikTok Shop for a dramatic increase in income and nationwide reach. He highlights how the platform’s social media features enable improved product quality and consumer engagement.

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Content creator Wenny Wijaya echoes this sentiment, stating that TikTok Shop has provided her with an opportunity to increase her income, transcending her role as a housewife.

Public dilemma on the TikTok Shop ban

During a recent interview with Raymond Chin at tvOneNews, a business consultant, several critical points regarding the state of TikTok Shop and its impact on the Indonesian market were discussed. Chin highlighted the remarkable strength of China’s manufacturing capabilities and supply chains, which have allowed products imported from China to flood the Indonesian market at exceptionally low prices. This phenomenon has raised concerns about predatory pricing as local businesses in Indonesia struggle to compete with the cost-effective manufacturing power of China.

Despite TikTok Shop achieving a Gross Merchandise Value (GMV) of 2.5 billion dollars last year, it still lags far behind other e-commerce giants with GMVs of around 50 billion dollars. However, Chin predicts a significant upswing in TikTok Shop’s performance, potentially growing four to five times its current value in the coming year.

The dilemma lies in balancing the desire for consumers to access affordable and high-quality products with the need to create a fair competitive landscape for local Small and Medium-sized Enterprises (SMEs). Chin emphasized the pivotal role that SMEs play as the backbone of the Indonesian economy and suggested that policies and regulations should be put in place to support their growth and competitiveness.

On a more positive note, Chin acknowledged the positive impacts of TikTok Shop, which has emerged as a new marketing platform. This development has led to the rise of content creators and local sellers, with some indigenous brands achieving remarkable success, with up to 80-90% of their sales coming from TikTok.

In conclusion, Chin believes that social commerce, exemplified by TikTok Shop, represents an innovative frontier in the market. Rather than advocating for its closure, he suggests that the platform should be subject to proper regulation to ensure fair competition and equal opportunities for all players in the market.

In conclusion

The ban on e-commerce transactions through social media platforms, particularly affecting TikTok Shop, represents a significant regulatory shift in Indonesia. As the first Southeast Asian country to implement such a ban, Indonesia’s decision has sparked debates and discussions among stakeholders. While the ban aims to protect traditional businesses and curb predatory pricing, it also disrupts the livelihoods of millions of sellers and creator affiliates who rely on TikTok Shop.

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The long-term impact of this ban remains uncertain. Some argue that it will drive businesses back to established e-commerce platforms such as Shopee, Lazada, and Tokopedia, which offer more trusted options for online purchases. Meanwhile, others contend that the ban may stifle innovation and economic growth by limiting opportunities for small entrepreneurs and content creators.

In this ever-evolving landscape, Indonesia’s approach to regulating social commerce will continue to shape the future of e-commerce in the country and serve as a case study for other nations grappling with similar challenges.

How Orderfaz can help enable Social Commerce on TikTok

As TikTok continues to evolve as a platform for social commerce, with features such as FYP, Live Stream, and TikTok Ads, Orderfaz emerges as a compelling solution for Tiktok Shop Merchants. Our platform offers a range of features designed to empower users and enhance their success in the realm of social commerce:

1. Checkout Link: Every product listed by our users is equipped with a unique checkout link. This checkout link can be seamlessly integrated into livestreams or advertisements, enabling customers to complete their purchases with a single click. This technology streamlines the shopping experience, as buyers only need to fill out their information the first time they use an Orderfaz link.
2. WhatsApp Keyboard: For sellers who prefer to finalise transactions through WhatsApp, our platform provides a smart keyboard compatible with both Android and iOS devices. This keyboard simplifies the customer service process, offering features such as AutoText, Send Checkout Link, Send Invoice, Send Shipping Rates, and Order List.
3. Landing Page Builder: To captivate potential buyers and provide them with comprehensive information about products, Orderfaz offers a versatile landing page builder. Sellers can create customised landing pages to showcase their products, explain their unique features, usage instructions, and the positive impact their products can have on customers.
4. Storefront: Our Storefront feature empowers users to establish their own online shops effortlessly, without the need for coding skills. Sellers can share their storefront links on their social media profiles, allowing potential customers to explore their offerings. Additionally, these links can be conveniently shared via messaging apps such as WhatsApp, serving as a convenient “Catalog” for potential buyers.

With these powerful features, Orderfaz is poised to transform the social commerce landscape on TikTok, enabling sellers to provide a seamless shopping experience, streamline customer interactions, and effectively showcase their products to a wider audience. Embrace Orderfaz to thrive in the dynamic world of social commerce on TikTok.

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The article was written by Orderfaz Founder & CEO Reynaldi Gandawidjaja for DailySocial and was first published on October 5, 2023.

Image Credit: RunwayML

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Ejen2u, a startup providing a reseller digital ecosystem in Malaysia, has secured an undisclosed sum in a pre-Series A funding round led by Gobi Partners through the Gobi Dana Impak Ventures fund.

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Artem Ventures also participated.

Ejen2u will use the funds to expand its product catalogue to cater to various segments of the direct-to-consumer industry, including dropshipping, online storefronts, and setting up fulfilment services.

Founded by Sheikh Ezaiddin, Imran Hadi, and Taufiq Zakir, Ejen2u helps micro, small and medium enterprises — including brand owners, stockists, agents, and drop-shippers — increase their business. Its offerings include a cloud-based reseller management platform, reseller education platform, reseller-based venture builder, and several fintech solutions.

Also Read: Malaysian recommerce startup CompAsia rakes in Series A funding led by Gobi Partners

It has three primary offerings:

• EjenGO, a SaaS solution, empowers SMEs and brand owners to amass over 500 clients and achieve a gross merchandise value of US$125 million.
• EjenVenture caters to large enterprises and brands to help them build their own reseller distribution channel.
• Women Empowerment Entrepreneurship Programme (WeMap) aims to upskill women entrepreneurs with over 100 topics. Launched in 2022, they have served 249 clients and educated over 15,000 participants on over 100 topics, such as marketing strategy, video and photo editing, sales, and business management.

Currently, Ejen2u’s platform serves over 340,000 resellers across Malaysia, including 600 women leaders since its 2019 inception. Nearly 85 per cent of Ejen2U’s users are women looking to generate additional income while staying home to care for their children.

Also Read: Khazanah-backed Gobi Dana Impak Ventures invests in Care Concierge

“While our EjenGo platform serves as an initial attraction for our clients, our true differentiator lies in our holistic approach beyond technology. This includes our comprehensive soft skills workshops and the impactful WeMap programme for women who represent 85 per centof our users. We firmly believe that the core strength of any brand resides in its human capital. By relieving our clients of burdensome bookkeeping tasks, we empower their agents and resellers to represent the brand more effectively, leading to enhanced sales and overall brand growth,” Ejen2u Founder and CEO Sheikh Ezaiddin said.

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Image Credit: Ejen2u.

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In an industry where lives are at stake and privacy is paramount, ensuring seamless, effective patient experiences has been no small undertaking. Patient expectations, growing demand for digital healthcare services, staff shortage, and a plethora of evolving challenges continue to put pressure on healthcare organisations across Singapore and the region. Unsurprisingly, Mordor Intelligence expects the Asia Pacific (APAC) healthcare IT market to register a CAGR of 8.5 per cent between 2023 and 2028.

While Singapore’s Smart Health Initiatives look toward adopting emerging technologies to vastly improve patient experiences, data breaches underscore the importance of cybersecurity in healthcare, where legacy network security infrastructures can have serious implications for both the healthcare organisation and the patient.

As the industry continues to push towards digital-first healthcare services, a modernised network will be critical in empowering healthcare organisations to digitally transform in a secure manner, all the while positively reimagining the patient experience.

Protecting healthcare networks from edge to cloud

Network surface areas have expanded rapidly, and so, too, has the potential for cyberattacks. In response, healthcare organisations have begun to adopt a micro-segmentation strategy that aligns with implementing an edge-to-cloud Zero Trust security model.

By utilising software-defined authentication and authorisation controls and policies that ensure users receive only the necessary network privileges, edge-to-cloud Zero Trust security models pose several advantages, such as the ability to dynamically segment devices and users through contextual considerations versus just device type.

As a result, healthcare IT teams can provide a differentiated level of access regardless of whether the device belongs to staff, the facilities department (think IoT and building automation), visitors, or patients — enabling all users to connect their devices to the network seamlessly.

Also Read: The state of cybersecurity in 2023: How APAC organisations can stay ahead of the curve

A comprehensive Zero Trust network security model should also perform ongoing security checks, as continuous monitoring helps identify abnormal behaviour as needed and enables remediation in the case of a cyberattack on critical healthcare data.

For environments that offer access from anywhere, healthcare organisations should also consider security controls that can be applied to devices no matter where they connect. Secure Access Service Edge (SASE) architectures and Security Service Edge (SSE) capability offer the flexibility to choose integrated solutions using a multi-vendor approach or, ideally, embrace a Unified SASE approach from a single vendor. This way, new medical devices or assets can be easily integrated and managed across the healthcare organisation, thereby augmenting efficiency across patient touchpoints.

Reimagining network operations with intelligence

With the right infrastructure, artificial intelligence (AI) can assist IT teams by reducing time spent on manual tasks, streamlining troubleshooting, and unlocking a slew of opportunities for optimisation.

AI networking features not only help healthcare organisations understand their networks’ performance but also proactively identify issues. AI-powered profiling of endpoints even provides an accurate view of the types and number of devices connected to healthcare networks — empowering a holistic overview of the edge.

By minimising guesswork associated with older management solutions and infrastructure, real-time insights and alerts enable IT teams to put together better security profiles. Healthcare practitioners can also focus on more important strategic tasks and ensure an optimal environment for critical high-performance clinical applications.

Advancing healthcare modernisation with Wi-Fi

Alongside an increased attack surface and a lack of resources and skills to properly secure medical equipment, guest wireless devices, and more from cyberattacks, healthcare organisations face significant vulnerabilities that put sensitive patient data at risk. Above all, these vulnerabilities put patient safety at stake.

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Fortunately, new Wi-Fi standards have consistently offered connectivity futureproofing for older and newer devices without any negative effects. Wi-Fi 6E standards, for instance, allow older devices to remain connected to the 2.4 GHz Wi-Fi network but put high-performance endpoints — such as laptops and mobile devices — on the “workhorse” 5GHz Wi-Fi network. With the newest Wi-Fi 6E capable devices connected to the 6GHz Wi-Fi network, this division of radio frequency bandwidth facilitates less radio interference and ensures seamless performance in the long term.

As Singapore forges ahead with its Smart Health Initiatives to develop increasingly digital-first healthcare solutions that proactively meet the needs of an ageing population, the industry will no doubt move towards featuring easy-to-use IoT devices more broadly.

In this endeavour, the significance of a robustly secured IoT infrastructure cannot be overstated. The incorporation of IoT necessitates an extra layer of caution, given its potential impact on patient well-being, where even the slightest disruption to connectivity can have catastrophic consequences.

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Wego, an online travel marketplace in the Middle East and North Africa (MENA), recently snapped up Travelstop, a business travel and expense management company.

With this acquisition, Wego aims to enter business travel and expense management. The deal will also empower Travelstop to tap into Wego’s regional network and provide enhanced services to its customers.

e27 spoke to Wego CEO and Co-Founder Ross Veitch to learn more about the deal, the post-COVID-19 trends in the travel sector in Southeast Asia and the Travel, and more.

Excerpts:

Can you share insights into how the travel industry has evolved in the MENA region post-COVID-19 and how Wego plans to adapt to these changes?

The MENA region has rebounded strongly and relatively quickly from the COVID-19 shutdown. The Gulf is experiencing a mini-boom from high oil prices. Consumers travel at record levels despite airfares being significantly higher than pre-covid levels.

Also Read: Wego acquires Travelstop to expand into business travel

During the pandemic period, Wego doubled down on product development. We started COVID-19 with our marketplace business but exited it with both marketplace and online travel agency (OTA) businesses. This allows consumers to book directly with Wego and enables us to help our users throughout the entire travel journey end-to-end.

With the acquisition of Travelstop, what trends in business travel and expense management do you foresee becoming more prominent in the post-COVID travel landscape?

Business travellers of today, particularly the younger generations, prefer to book their own travel and make their own choices rather than being forced to have a corporate travel agent do it for them. This generation has grown up with simple-to-use mobile apps and websites and expects the same for their business travel.

Travelstop has been designed to address the needs of this group while overlaying all the special deals, rules, approvals, reporting and duty of care requirements that businesses need.

How does Wego plan to leverage technology and innovation to meet the changing demands of travellers in a post-pandemic world?

From day one, Wego has been focused on solving problems in the travel sector by applying technology. Advances in AI are going to transform all industries. Within the travel industry, Wego will be at the forefront of figuring out how to innovate with the fantastic new toolkit we have at our disposal.

Please discuss some of the unique challenges that Wego might encounter while navigating the MENA market in the context of this new venture.

A challenge but also a massive opportunity is that most business travel in the MENA region is still self-managed or outsourced to an old-school travel agency. This is particularly the case with SMEs. We see an obvious opportunity to migrate these self-managed business travel bookers into Travelstop and then to sign up more travellers or departments within the same company.

How do you plan to address regulatory and cultural differences when offering business travel services in various countries within the MENA region?

Like Southeast Asia, the Middle East is a collection of separate countries, each with its own characteristics, consumer behaviours, regulatory requirements, etc.

Also Read: In SEA, Millennial Muslims in Indonesia are more confident about using AI for travel: HHWT

Wego has been operating in the Middle East for over a decade; indeed, we are now dual-headquartered between Dubai and Singapore. Our early years in SEA were great training for the challenges of the MENA region.

Travelstop has a presence in Southeast Asia. Could you elaborate on the maturity of the business travel and expense management space in this region and how Travelstop’s existing operations fit into Wego’s strategy?

The MENA and APAC regions are relatively under-penetrated in managed business travel and expense management, so they are wide open and ready to be disrupted.

Given the presence of established players in the business travel sector, what competitive advantages does Wego believe it has in Southeast Asia?

We’ve been designing, building and operating websites and apps for nearly 20 years now and will bring everything we’ve learned in the B2C trenches to the challenge of making it surprisingly quick and easy to get your work travel bookings and expense management done.

Also Read: Use Triphie to get highly customised itineraries for your next trip to Malaysia

Can you provide insights into the integration plan for Travelstop within Wego and how this will enhance the overall user experience for business travellers?

We’ll have more to announce about this shortly, but many synergies are obvious, for example, sharing suppliers across Wego and Travelstop.

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Image Credit: Wego

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Southeast Asian VC firm East Ventures and Seoul-based SV Investment have launched a new US$100 million fund

The East Ventures South Korea fund aims to open the investment corridor between the Southeast Asian and Korean venture ecosystems, including capital investment, knowledge transfer, and network sharing.

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The fund will invest in companies across biotech, healthcare, future mobility, green technology, and media & content.

“This fund represents a powerful synergy between East Ventures’s deep expertise in the Indonesian and Southeast Asia startup ecosystem and SV Investment’s rich experience in the South Korean market. Together, we aim to unlock the immense potential of the Southeast Asia-South Korea corridor, nurturing and accelerating the growth of startups within the region,” said Roderick Purwana, Managing Partner at East Ventures.

The partnership between Indonesia and Korea holds immense promise for collaboration in the tech industry and startup ecosystem. Indonesia offers a burgeoning market and a pool of young, tech-savvy talent, while Korea boasts a track record of technological excellence and global reach.

Also Read: Here’s why startups should consider South Korea for business expansion

By joining forces, Indonesia and Korea can catalyse the growth of startups, enhance technological capabilities, and tap into the vast opportunities within Southeast Asia and beyond.

The East Ventures South Korea fund will be managed collaboratively by leading VCs from both countries. It aims to facilitate Korean tech startups and companies in attracting foreign capital, promoting overseas venture company IPOs, and exchanging valuable expertise and know-how between the ecosystem.

David Junghun Bang, Managing Partner at SV Investment, said: “This collaboration will open up a gate for both Korean and Southeast Asian tech startups who have been pushing hard to scale up in the global market and represent our commitment to support them continuously.”

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Founded in 2009 in Indonesia, East Ventures has invested in over 300 seed and growth-stage tech companies, recorded strong financial returns, and created positive social and environmental impacts. Its portfolio companies include Tokopedia, Traveloka, Waresix, Xendit, Sociolla, and ShopBack.

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Malaysia-based coworking and flexible space provider WORQ has closed an undisclosed amount in a pre-Series B funding round from global asset management firm Phillip Capital.

Investors in this round include the Leong family office of property developer Mah Sing Group.

The funding raised will be used for space expansion. As per a statement, WORQ is currently on track to double its space under management by the end of 2023 and aims to triple that space to 450,000 sqft by 2025.

Also Read: There is an opportunity in every winter: Stephanie Ping of WorQ

Founded in 2017, WORQ aims to make real estate more accessible by offering office spaces designed like Google’s, making real estate available to users through a space-as-a-service approach.

In 2023, the company claims to have achieved an 80 per cent revenue growth while maintaining mid-teen net profit margins. The firm said the demand for flexible office space is on the rise, with growing interest not only from its traditional clients like tech startups and SMEs but also from global companies expanding into the region.

“We have built a network of one-stop business centres that serve as vital infrastructure for foreign and local business formation in Malaysia,” said CEO Stephanie Ping.

Ping also sees this as a pivotal element in the job creation cycle, fostering upskilling and knowledge transfer to support Malaysia’s long-term sustainable development through high-income job opportunities.

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In a world marked by rapid technological advancement and the relentless march of artificial intelligence (AI) and automation, it might seem paradoxical to suggest that the heart of public relations (PR) remains rooted in human connections.

Yet, as we at iOli have discovered, even amidst the tech revolution, the essence of PR continues to thrive on genuine human connections and a personal touch with clients and media. Our approach is one that marries tradition with innovation, recognising that while AI and automation have transformed the PR landscape, they have not diminished the irreplaceable value of human relationships.

The resilience of human connections

The digital age has brought forth transformative changes in PR, reshaping how businesses and individuals communicate with their audiences. AI-driven tools now help us analyse vast amounts of data, identify trends, and even draft press releases. Automated social media management platforms schedule posts with impeccable precision, and chatbots respond to inquiries around the clock.

While these technological advancements undeniably streamline many aspects of PR, they cannot replace the emotional intelligence and nuanced understanding that human PR professionals bring to the table.

It is important for PR practitioners to embrace these technological innovations as valuable tools in our PR arsenal whilst also understanding that PR is fundamentally about people.

Also Read: Empowering women entrepreneurs: Breaking stereotypes, building success

In an era where automation is often seen as the way forward, our commitment to maintaining the personal touch is our way of ensuring that the core values of PR are preserved. It’s a delicate balancing act between tradition and innovation, and it is what sets us apart.

The essence of PR lies in building relationships, fostering trust, and understanding the unique needs and perspectives of clients and the media. It’s about more than just disseminating information; it’s about creating connections that resonate.

While AI can help us identify media contacts and suggest communication strategies, it can’t replicate the empathetic conversations that human PR professionals engage in daily. It can’t understand the subtle nuances of tone, body language, or unspoken emotions that play a crucial role in effective communication.

One of the most vital aspects of PR is storytelling. Crafting compelling narratives that capture the essence of a brand or a client’s message requires an innate understanding of human psychology and emotions.

While AI can assist in data analysis and content generation, it cannot replace the creativity, empathy, and intuition that humans possess when it comes to storytelling. The ability to weave a narrative that resonates with the target audience and elicits an emotional response is a uniquely human skill that remains at the heart of PR.

Furthermore, the value of human connections in PR extends to crisis management and reputation repair. When a crisis hits, clients need more than automated responses and pre-programmed statements.

They need a trusted partner who can navigate the storm with them, offering genuine support and reassurance. The human touch in crisis communication is what can turn a potential disaster into an opportunity for redemption and growth.

Also Read: 5 common challenges marketing professionals face today

Media relationships are another cornerstone of PR success. While technology can help identify potential media contacts, it is the cultivation of genuine relationships with journalists and editors that leads to meaningful coverage.

Balancing tradition and innovation

Building trust and credibility with the media requires personal interactions, an understanding of their preferences, and a keen awareness of the stories that resonate with their audience. These connections are built over time through shared experiences and mutual respect.

In our approach at iOli, we embrace technology to enhance our efficiency and effectiveness, but we never lose sight of the fact that PR is fundamentally a human endeavour. We invest in ongoing dialogues and development for our team members, emphasising the importance of emotional intelligence, communication skills, and the ability to adapt to evolving media landscapes.

The synergy between tradition and innovation is evident in the way we blend old-fashioned relationship-building with cutting-edge data analytics. We understand that AI can help us identify emerging trends and target our outreach, but it is our human professionals who interpret the data, craft the messages, and establish the connections that truly matter. The two elements complement each other, creating a holistic approach to PR that combines the best of both worlds.

As I tell all my students and everyone who is listening, the PR landscape will continue to evolve in the digital age, but it is essential to recognise that the heart of PR lies in human connections. While AI and automation have transformed the industry and offer valuable tools, they can never replace the emotional intelligence, creativity, and empathy that human PR professionals bring to their work.

At iOli, we remain traditional in our commitment to genuine relationships while equally innovative in our use of technology. We believe that this balanced approach is the key to delivering exceptional results for our clients and maintaining the core values of PR in a rapidly changing world. In the end, it’s the human touch that makes all the difference.

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Image credit: iOli Communications

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Indonesia-based telehealth startup Good Doctor has secured US$10 million in a series A funding round led by MDI Ventures, with participation from existing investor Grab.

With the capital, Good Doctor plans to expand its services across Indonesia, aiming to provide access to one doctor for every family while achieving profitability within the next 18 months.

“The new funding will be used for several things, including tech platform development, especially to cater to our enterprise clients. We’ll also utilise the investments for new product and services development, as well as for company operations,” said CEO Danu Wicaksana.

Founded in 2018, Good Doctor allows customers to consult doctors online, buy medicines from Health Mall, and book offline doctor appointments at hospital partners.

Also Read: Healthtech data: The race for new oil in Southeast Asia

The funding shift has transformed the healthtech startup’s corporate structure, with MDI and Grab becoming minority shareholders, effectively ending the joint venture that included SoftBank Vision Fund and China’s Ping An.

Following its exit from the Thai market in February, Good Doctor has redirected its full focus to Indonesia. The startup claims it has experienced positive growth in Indonesia, operating both as a standalone app and as part of GrabHealth.

Good Doctor’s strategy within GrabHealth is geared toward individual consumers, while its standalone app primarily caters to enterprise clients.

The company boasts partnerships with over 2,500 doctors and 4,500 healthcare facilities, including pharmacies, hospitals, clinics, and official health laboratories. These partnerships serve a customer base of over 2,500 companies and 15 million users in both the B2B and B2C sectors.

Looking ahead, Good Doctor aims to enter the business-to-government segment and advocate for integrating telehealth services into Indonesia’s health insurance program, BPJS Kesehatan.

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Fintech funding raised by Indonesian startups plunged 94 per cent to just US$21 million in Q3 2023 from US$352 million in the same period last year, according to a Tracxn report. The fintech investments in Q3 2023 saw a 7 per cent drop from the previous quarter.

The sharp decline is due to the absence of late-stage investments in Q3 2023.

Seed-stage funding for the last quarter stood at US$1 million, a 94 per cent decrease from Q3 2022 and an 87 per cent drop from Q2 2023.

Also Read: Fintech investments in SEA see record drop in Q3: Tracxn

No new fintech unicorns emerged in Indonesia in the past two quarters, as against one new unicorn in Q3 2022. Further, only one acquisition was recorded in Q3 2023.

Payments and investment tech were the only funded sectors in Q3 2023. Payments startups raised US$20 million, a 92 per cent drop from US$250 million in Q3 2022. On the other hand, investment tech companies secured US$1 million in Q3 2023, an 82 per cent decline from Q3 2022. There was no funding in Q2 2023 in this space.

East Ventures, Mandiri Capital Indonesia, and Alpha JWC Ventures were the most active investors in the Indonesia fintech landscape. Iterative was the most active investor in the seed stage during Q3 2023, while SWC and XCV were the most active early-stage investors.

Furthermore, the fintech sector in Indonesia is showing a downward trend, with only US$343 million raised in 2023, the lowest in the last five years.

In contrast, the Vietnamese fintech startups secured US$29 million in funding in Q3 2023, a 190 per cent growth from Q3 2022 and a massive jump of 2,800 per cent from US$1.1 million raised in Q2 2023. This is despite the lack of late-stage rounds in Q3 2023.

The fintech sector in Vietnam attracted early-stage investments worth US$28 million in Q3 2023, a growth of 1300 per cent when compared with US$2.5 million raised in Q3 2022. Seed-stage funding stood at US$1.1 million, similar to Q2 2023, but fell 86 per cent from US$8 million raised in Q3 2022.

Also Read: The future of Indonesia’s payment services: 3 predictions for the advancement of direct debit

Alternative lending, banking tech, and insurance IT were the top-performing segments in the overall Vietnamese fintech sector in Q3 2023.

There was no activity in terms of IPOs and unicorns in Q3 2023. No local fintech companies went public in Q3 2023, and no new unicorns emerged. Further, only one acquisition occurred in Q3 2023, as against one in Q2 2023 and none in Q3 2022.

Y Combinator, Thinkzone, and Resolution Ventures were the most active institutional investors in Q3 2023.

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