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Rakuten closes down in Indonesia
Bye: An internet user browses the web on a laptop
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span class="inline inline-center">Bye: An internet user browses the web on a laptop. Japanese e-commerce company Rakuten Inc. is set to close down its local unit in Indonesia, Rakuten Belanja Online (RBO), on March 1. (kompas.com)
Japanese e-commerce company Rakuten Inc. is set to close down its local unit in Indonesia, Rakuten Belanja Online (RBO), on March 1.
According to an announcement on www.rakuten.co.id, the website will be shut down by the aforementioned date and customers are urged to redeem their existing shopping points by Feb. 29.
In addition, Rakuten will reportedly close down its operations in Singapore and Malaysia.
RBO was launched in 2011 through a joint venture between Rakuten Inc. and listed local media conglomerate PT Global Mediacom (MNC Group), whose media outlets include Global TV, Rajawali Citra Televisi Indonesia (RCTI) and Sindo daily newspaper.
In 2013, the two companies went their separate ways following Rakuten Inc.'s decision to acquire a 49 percent stake in RBO from MNC Group for an undisclosed amount, increasing the Japanese company's stake to 100 percent from its previous 51 percent holding.
MNC now has its own marketplace called MNC Shop under a joint venture with South Korean GS Group.
The competition in the e-commerce sector is tough in Indonesia, with local players dominating the market. Bukalapak, for example, recently announced plans to increase its revenue by a factor of six this year and to double the number of small and medium enterprises (SMEs) operating on the site. Meanwhile, Tokopedia is reportedly among the ten e-commerce companies that spent the most on TV commercials in 2015. (kes)(+)
