Under the COVID-19 outbreak, a new round of technological and industrial revolution are profoundly reshaping the global economic structure, leading to a new wave of globalization and democratization of ideas and opportunities. As the rises and falls in these turbulent times, seasoned enterprises and institutions are striving to live with crises.
Students of BRI (Belt and Road Initiative) Finance EMBA Program, are actively seeking new opportunities under the Belt and Road Initiative. They are explorers of the new economy and emerging markets, boldly scouting for market and technological innovations, leading enterprises to brave the storm in the post-epidemic era, as well as trendsetting the new globalization.
Guest in this Edition:
Pandu Sjahrir, student of the BRI EMBA Program Inaugural Cohort, is working to help tech enterprises to list at the IDX – a mission since he became IDX Commissioner. His mission is backed by his wealth of experience and achievements, unrivalled network, a strong sense of responsibility to serve the nation, and a passion to empower young people to understand and access capital markets.
Pandu talks about the present and future of the Indonesian stock market:
Q1: As a IDX commissioner, you mentioned that it’s your mission to help local tech companies go public. What progresses have you made?
At the IDX, my job is to help more companies go public, particularly the high-growth tech companies, and to make the stock market a more suitable platform for young people to invest. When I joined IDX last year, we had about two million active users, now seven million. The average age is as young as 26.
At the same time, it has been the best year ever for the new listings. Bukalapak, one of Indonesia's largest e-commerce companies, just raised $1.5 billion through its IPO, which is the country's largest IPO to date. We've had 2 IPOs over $1 billion this year and 3 over Rp1 trillion.
This shows strong interest in the Indonesian market from both local and foreign investors. At the same time, there is strong demand from young domestic investors who want to participate in our capital markets.
In addition, we just announced new listing rules that allow multiple share structures, similar to other markets, which means company founders can retain more say in how companies are run after listing. That could push Indonesia's biggest tech companies, like GoTo, to go public as early as next year.
Our stock market has made significant improvement and is steadily becoming more attractive. I would also hope to empower young people who have never had access to capital markets, to see the value of investment in capital markets and build their own wealth over time.
Q2: What are the opportunities and challenges for tech companies to go public in Indonesia?
In my opinion, the opportunity is immense right now, because the demand is surging. However, educating Indonesian investors on how to value tech companies is another matter. That's our challenge, and I see it as our job to give our young investors the skills they need to do so.
Q3: How do you decide whether a company is worth investing in? What aspects do you consider?
The first is the people, the founders and the team. I take the time to get to know the team and the founders and look at their characteristics to see if they are good in their roles, and if they have leadership potential.
The second is industry, e.g. its development prospect, the role of the industry, the market volume, the industry’s impact on customers, etc.
The third is how they use technology, e.g. whether the founders are trying to use new technology to help customers solve critical problems or improve efficiency.
Q4: According to your prediction, which industry will next unicorn emerge from, in Indonesia? What will be its characteristics?
I am very excited about e-commerce. It is still very new and will continue to grow. Especially e-commerce related logistics; because logistics is a key part of the entire e-commerce ecosystem, especially considering this year's rise in demand for e-commerce, logistics has ushered in a great development.
The next one is Fintech. There are many companies in the Fintech sector in Indonesia that are of high value and may be one or two steps away from becoming a billion-dollar company. If there is further segmentation, unicorns are likely to emerge between payment firms and lending firms.
The third is agricultural infrastructure, because agriculture is the biggest pillar of Indonesia's economy.
Q5: How do you see the impact of Belt and Road Initiative have on the current economic development and investment opportunities in Indonesia?
I think the Belt and Road Initiative has played a powerful role in promoting the relationship between Indonesia and China. First of all, Indonesia and China have excellent relations. Over the past five years, Indonesia has benefited not only from Chinese capital, but also from Chinese technology. I think the relationship, economic development and investment cooperation between the two countries have never been closer. In the future, Indonesia and China will need to develop even stronger ties so we can advance our shared common economic goals and promote our rich cultures while fostering prosperous and resilient societies.
Q6: What have the two years of study in the BRI EMBA Program brought to you?
Before I came to Tsinghua PBCSF, I was already holding an MBA from Stanford. But coming here has really exceeded all my expectations. I opened my eyes and learned a lot about culture and business practices that I wasn’t able to learn in Indonesia.
I think Tsinghua PBCSF’s BRI EMBA Program has a fine balance between academics and culture. Students of this unique BRI program are leaders from all walks of life around the globe. We are all very close and can actively communicate and learn from each other to better serve our countries.
Q7: What are your personal and business development plans next?
On the one hand, I hope to lead the companies to sustainable development. As TBS Energi shifted from coal to green energy, we are in the process of a mega energy transition and building a renewable energy platform. We just announced a partnership with Gojek a few weeks ago to sell two-wheeled electric vehicles.
On the other hand, we have been investing more in tech over the past two years. So far, we have invested more than $500mn into tech businesses, totaling more than 30 companies, making us one of the most dedicated tech venture capital firms in Indonesia. We hope to continue strengthening the financial ecosystem in Indonesia, so that it becomes more professional and mature.
