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.
Bukalapak expands services to regional market
Online marketplace Bukalapak has expanded its services to regional markets through its recently launched Bukaglobal program, paving the way for its local merchant partners to tap into overseas markets
Change Size
O
span>Online marketplace Bukalapak has expanded its services to regional markets through its recently launched Bukaglobal program, paving the way for its local merchant partners to tap into overseas markets.
Through Bukaglobal, merchants can take orders from buyers in Singapore, Malaysia, Taiwan, Hong Kong and Brunei Darussalam in a service claimed to be the first of its kind offered by an Indonesian e-commerce platform.
Bukalapak president and cofounder Muhamad Fajrin Rasyid said at Bukaglobal’s recent launch event in Singapore that the strong presence of a middle class in the five territories, its proximity to Indonesia as well as the familiarity of the domestic populations to Indonesian products, were factors that influenced Bukalapak’s decision to launch the service in the aforementioned territories, while adding that Bukaglobal could be expanded to more countries.
“We believe that 350 million middle class people are present in this [Southeast Asian] region. Some [people] of these nations are already familiar with Indonesian products. That is why we started [Bukaglobal] from these five countries,” said Fajrin.
Fajrin said only selected sellers located near Jakarta could sell their products to overseas markets, adding that the merchants would also be curated by performance and capacity before allowing them to join the Bukaglobal program.
Bukalapak expressed hope that its Bukaglobal program would help micro, small and medium enterprises (MSMEs) in Indonesia step up their businesses and expand their customer base abroad, said Fajrin.
MSMEs dominate the business landscape in Indonesia as 62.92 million businesses, equal to 99 percent of all businesses, were categorized as MSMEs in 2017, according to data from the Cooperatives and Small and Medium Enterprises Ministry.
“We want to help MSMEs through the platform, both locally and globally,” said Fajrin.
Bukalapak partnered with Singapore-based logistics service provider Janio to handle all shipments to the five territories.
Janio cofounder and chief marketing officer Nathaniel Yim said the firm had partnered with local logistics companies to offer end to end deliveries from merchants to customers.
“We will work with partners to take products to the airport. Janio helps ship the product over [the border] and clear customs,” said Yim. “After that our last mile partner will help ship the products to the customer’s doorstep.”
Bukalapak’s latest move was commended by Communications and Information Minister Rudiantara, who was also present during Bukaglobal’s launch.
“The government appreciates what has been started by Bukalapak through Bukaglobal,” he said, adding that the government supported Bukalapak’s initiative to expand its services into the regional market.
He also said Bukalapak’s move would help debunk myths that e-commerce platforms were used as a means to distribute imported products, which contributed to the trade deficit booked by the country.
Indonesian Ambassador to Singapore Ngurah Swajaya shared Rudiantara’s view, adding that he hoped such a move would result in larger exports from MSMEs.
“We hope [Bukaglobal] will lead to increased exports, particularly from MSMEs for products that enjoy high demand but they [customers] do not know [how to buy it],” said Ngurah.
He expressed hope that the initiative would increase Indonesia’s nonoil and gas exports to Singapore to US$10 billion this year, which was recorded at $8.9 billion the previous year.
In the first quarter, Indonesia booked a $414.8 million trade deficit with Singapore, a significant improvement from the $1.5 billion deficit recorded over the same period last year.
Ngurah added Indonesia should not be discouraged from promoting its own products to the overseas market despite unfavorable global trade conditions because of escalating tensions between the United States and China, arguing that intensifying product penetration in the ASEAN market would provide alternative export destinations from traditional markets.
“If we could grab ASEAN markets, for example, that would be significant,” said Ngurah. “If we could improve [exports to ASEAN markets], that means we do not have to rely on traditional markets during times of volatility.”
