TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Bukalapak feels the pinch from CEO's controversial tweet

Brand image is everything for a company, and in gadget-clinging society like Indonesia, where more than half of the population are internet users, what happens on social media does not stay on social media.  

News Desk (The Jakarta Post)
Jakarta
Sun, February 17, 2019

Share This Article

Change Size

Bukalapak feels the pinch from CEO's controversial tweet President Joko “Jokowi” Widodo (right) and Bukalapak CEO Achmad Zaky are pictured during the online marketplace’s ninth anniversary celebration in Jakarta on Thursday. In its ninth year of operations, the homegrown unicorn has connected 4 million sellers and 50 million buyers across the country. (The Jakarta Post/Wendra Ajistyatama)

O

nline marketplace behemoth Bukalapak experienced a steep ratings drop on the Apple and Google app stores over the weekend in the latest case of social media backlash that exposes the vulnerability of companies’ reputations in the internet age. 

The Indonesia’s unicorn rating dropped to 3 out of 5 stars on Sunday on the Apple App Store from 4.3 last week after CEO Achmad Zaky made a foray into the country’s election buildup by saying in a tweet “a new president” could increase the country’s research and development budget.

On the Google Playstore, where the company claims to be “best-rated marketplace”, Bukalapak is now rated 4.2 out of 5 stars, also lower than last week.     

Institute for Development of Economics and Finance (INDEF) economist Bhima Yudhistira Adhinegara said that Achmad should have been aware of how the public’s response to his remarks could affect the company.

“Consumers are becoming less interested in downloading the app,” he told The Jakarta Post on Saturday.

While the effects of the tweet might be temporary, Bhima said the company could face difficulties securing investment if it could not address customers’ negative perception.

Achmad stirred the hornets' nest via his Twitter handle @achmadzaky by criticizing the low level of government funding for research and development and saying he wished a new president could change this.

He was derided by supporters of incumbent President Joko “Jokowi” Widodo for the criticism and for implying that he opposed the President’s reelection bid.    

The tweet led to a mass Twitter movement using the hashtag #UninstallBukalapak.

Despite Achmad and the company issuing an apology, the controversial tweet sparked debate over whether a company, especially a unicorn like Bukalapak, and its CEO should ever publicly convey their political allegiance.

Brand image is everything for a company, and in gadget-clinging society like Indonesia, where more than half of the population are internet users, what happens on social media does not stay on social media.  

For a tech firm, negative sentiment translates into poor reviews and lower ratings, which in the long run may see people abandon the app, leading to a decline in sales.  

Last year, another unicorn, Go-Jek, also faced backlash for an executive’s statement in support of the LGBT community, which led to the hashtag #UninstallGojek to trend on Twitter.

In the aftermath of a sectarian rally against then-Jakarta governor Basuki Tjahaja Purnama in 2016, bread manufacturer PT Nippon Indosari Corpindo, which produces the Sari Roti brand, experienced a 1.31 percent drop in the value of the company’s shares after it issued a public statement denying involvement in any political activities related to the rally.

The company made the statement after reports that some Sari Roti street sellers gave free bread to protesters. Photos of the sellers posing with their empty carts bearing signs that read "Gratis untuk Mujahid" (Free for Mujahids) went viral and gained positive responses online before the company’s statement.

In 2017, PT Sari Coffee Indonesia, which runs the Starbucks chain in the country, experienced backlash following a call from the leader of Muhammadiyah, the country’s second-largest Muslim organization, to boycott the company for supporting the LGBT community.

The call for a boycott, which drew support from a number of Muslim clerics, resulted in a 5.54 percent drop in the value of Sari Coffee’s parent company, PT MAP Boga Adiperkasa’s, shares.

The Indonesian partners of Starbucks later clarified that PT Sari Coffee did not affiliate itself with any political or ideological groups.

The controversy surrounding Bukalapak also drew Jokowi’s attention, prompting the President to invite Achmad to the Presidential Palace in Jakarta on Saturday.   

The President did not express disappointment regarding Achmad’s statement but rather was concerned about the impact of the online furor on the company.

“We have to be wise and careful with our action. I ask everyone to stop the #UninstallBukalapak [movement]. We should support the young generation to innovate and move forward,” he said after the meeting.

Achmad, who never openly declares support to a presidential candidate, said he had apologized to the President for his statement and added that he appreciated what the government had done for tech companies.

He also refused to confirm whether there had been a decline in the marketplace's online traffic.  

“Bukalapak is also committed to research and innovation and is currently developing a research center in Bandung, with others planned for Yogyakarta and Medan,” he said. (das)

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.