Grab, along with PT Elang Mahkota Teknologi Tbk (Emtek), formed a new page of collaborations by establishing a supreme digital ecosystem for Micro, Small, and Medium Enterprises (MSMEs), aiming to provide digital solutions in order to increase the pace of economic development in Indonesia. This collaboration started on Monday (7/26), when Grab and Emtek officially announced the start of their cooperation. Grab's Managing Director, Neneng Goenadi, explains how Emtek and Grab both have impeccable portfolios to complete each other, which can accommodate the needs in reaching the goals, inclusivity, and help gain the support of Indonesian citizens. With the enthusiasm that this plan entails, Grab and Emtek can accelerate this digital transformation, following the social distancing program. Many MSMEs used technology in making their sales; however, according to Grab, only 20% of those small businesses have been included in the digital ecosystem. The first step that needs to be taken in this collaboration has been communicated through an acceleration program for small businesses called "Festival Kota Mapan" in various cities in Indonesia. Sutanto Hartono, Emtek's Managing Director, explained how he hopes for commitment in helping to push the digitalization of small businesses everywhere. He also wishes that this digital ecosystem will be used wisely to further gain advantages for both groups.
Prior to the announcement of Emtek and Grab collaboration, based on the financial report of Emtek which was released on Wednesday (3/31), the company was recorded holding 34.39% of Bukalapak shares. Relating to the capital market industry, the Indonesia Stock Exchange (IDX) has officially granted the stock code "BUKA" for the upcoming Bukalapak Initial Public Offering (IPO) on Friday (8/6). Nevertheless, the valuation of this fourth biggest e-commerce in Indonesia is considered too expensive. However, according to Reuters, People in this industry are extremely enthusiastic about this event and it is clearly reflected in public demand for the stock, which totaled US$6 billion, or four times higher than its pegged price of US$1.5 billion. On the other hand, the form of collaboration between Grab and Bukalapak is different from Gojek and Tokopedia, which have formed into one group known as GoTo. Grab and Bukalapak have Emtek in the middle of their collaboration connector. In response, Edwin Sebayang, Director of MNC Asset Management, mentioned that he could not predict if it would be a collaboration like GoTo did in the future. However, Emtek is portrayed as the most advantageous side due to its positions as Grab and Bukalapak connector, he added. On top of that, Emtek stock increased by only 1.56% to Rp2,620 after the collaboration announcement on Monday (7/26) yet it has increased significantly by 87.14% throughout 2021.
The alliance between Emtek, Grab, and Bukalapak showed the formation of a robust ecosystem among those technological companies. In order to advance Indonesia's digitalization, Grab, Emtek, and Bukalapak targeted urban regions (tier two), as well as slow adopter cities (tier three), such Magelang, Prabumulih, Bangli, Solo, Makassar, Denpasar, and Semarang. Given that large e-commerce companies have targeted metropolitan residents as their client base, their targeted sites seem to be revenue-generating opportunities for them. The Emtek business ecosystem is divided into three distinct sectors: digital commerce, digital media, and traditional mass media. Emtek formed alliances with Bukalapak, Dana, TIX.ID, Karir, and Qerja in order to improve and grow its digital business area, which seems to be their main emphasis at the moment. Emtek works with Vidio in the digital media field, with roughly 70 million users and 1.5 billion page views each year. Meanwhile, to expand their conventional media market, Emtek has partnered with two of Indonesia's largest established media platforms, SCTV and Indosiar. Their collective audience covers almost 26% of the Indonesian population. Emtek's cooperation with their media platform and partnership with Indonesian MSMEs and Grab, which became the armada delivery for Bukalapak, would enable more intense and consumptive contact and communication among Indonesian MSMEs. This partnership exemplifies how digital commerce has exploded in popularity across Indonesia over the years, and it also symbolizes the beginning of Indonesia's digital era. As a result, it enables Emtek, Grab, and Bukalapak to accomplish their ecosystem objectives and strengthens their competitive position against GoTo and its ecosystem.
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