Reza Aryabima – Bagus Raditya – Marsisca W.

– Widya Paramitha
Market Review:
Huge Potential in
Online World!

Why? Here are the REASONS 

 Welcome to the Internet Era!
1989 World Wide Web (www) created by Sir. Tim Berners Lee

1993 Mosaic was the first browser that was largely used at that time
1995-Present Internet Explorer (IE) included in every Windows OS
Package
 Internet User in the World
1 out of 3 people in this world is Internet Users!

*Based on the report from International Telecommunication Union (ITU), U

N’s Agency for Information & Technology, by the end of 2010, internet users
reached 2.08 billion, increased from 1.86 billion in 2009. (World population:
6.8 billion)

57% are from the developing country

 Internet Users in Indonesia
• Up to Mid 2010, there are 45 millions internet
users in Indonesia. In 1999 there’s only 1 millions
users (source: Asosiasi Penyelenggara Jasa
Internet Indonesia)

• 49% growth each year, second largest in South

East Asia after Vietnam. 1000% growth in the last 9
years. In the next three years, predicted will be 100
millions internet users in Indonesia

• Number of tweet updates is number 6 in the world,

and number 1 in Asia

• 1000% growth of Facebook user. In early 2009,

Facebook users in Indonesia were 1 Millions, in
March 2010 19 Millions.

• In early 2011, Indonesia is the second largest

facebook user in the world, after United States Implications:
POSITIVE Future Investment for
Indonesian Online Market
 E-Commerce

“E-commerce describes the process of buying,

selling, transferring, or exchanging products,
services and/or information via computer
networks, including the Internet”
(Turban et al. 2004:7)
 Types of E-Commerce
According to Turban, et al.,2000:
• Business-to-Business (B2B)
• Business-to-Consumer (B2C)
• Consumer-to-Consumer (C2C)
• Consumer-to-Business (C2B)
• Non-Business Electronic Commerce
• Intrabusiness (organizational) electronic commerce
 E-Commerce in Indonesia

In 1996, the first online book store in Asia

and Indonesia, shut down in 2000 
www.sanur-online.com

*Reasons: Small number of Internet Users at that time, due to internet

infrastructure limitations
 E-commerce in Indonesia:
Bubble DotCom Era (2000)

www.lipposhop.com

*Failure Reasons:
Small Number of Internet Users, Bad Internet Infrastructures, Traffic Jam,
and in that era, people still rather to choose go to the nearest supermarket
 E-Commerce in Indonesia

“E-commerce retail growth in 2011 will be increased to 50%"

(Director of Retail Service Nielsen Indonesia Yongky Susilo)

Based on the data by International Data Corporation (IDC), value of

transaction in 2009 through e-commerce in Indonesia:
US$3,4 Billion (Rp 30 triliun)

Number of E-commerce Business in Indonesia:

3% of total population
Characteristics of Indonesian’s E-commerce Customer
Result from the research done by The Nielsen Company of Indonesia about online shopping behavior, 8 – 28
Maret 2010 with more than 500,000 internet users in big cities around Indonesia.

Type of website that’s most visited to shop online:

25% respondent choose website that only provide online shopping services
21% websites that also have the offline shop
18% websites that allowed respondent to choose product from multiple sites
and only 4% web that sells product through catalog and telephone.

32% respondent had never done an online shopping. Compared to year 2009, 37%.

Number of budget spending percentages in online shopping from total monthly expenses:
<= 10% (76%),
between 11%-50% (23%)
and only 1% respodent who spend 50-75% from their total monthly expenses.

62% respondents use the help of social media and family recommendation before decided to online shopping

Most use payment method:

PayPal (22%), Debit Card (20%), Bank transfer (18%), Credit Card (17%) and money transfer (14%).
*Compare to global consumer that uses Credit Card (44%), PayPal (15%), Debit Card (12%) and COD (12%).
Some Example:
Tokobagus.com were developed in 2005.

Number of visitors each month average 70 millions.

Based on Alexa.com (web rank service), Tokobagus.com now placed in the 31st rank
the most visited website, up from number 45 in April 2010.
*About 70-80% of all traffics to tokobagus.com comes from Jakarta, the rest comes from other big cities in Indonesia.

Tokobagus.com claimed to have 10.000 ads/day posted by 600.000 members.

“Two or three months ago, there were only 2,000 to 3,000 ads per day"
Director of Tokobagus.com, Arnold Sebastian Egg
*Most of the ads comes from Fashion and Automotive category.
Some Example:
“In Desember 2010, there were 90.000 times transactions,
with value of Rp300 miliar,”
Remco Lupker, Director of Tokobagus.com

In 2010, accumulation of sales revenue from e-commerce web

Tokopedia.com were IDR 6 billion, Plasa.com IDR10 billion, and
Bhinneka.com IDR 60 billion.

Based on survey done by Tokobagus, 30% buyers spend IDR 1-5

millions, around 3% respondent spend Rp10 juta, and 3% spend
under Rp10.000 at Tokobagus.com.

42% visitors of Tokobagus do transactions 2-5 times every month.

The Competition: Direct Competitor
www.tokopedia.com
www.tokobagus.com
www.juale.com
www.belibarang.com
www.glodokshop.com
www.dinomarket.com
www.indoshopguide.com
www.kemana.com
www.rakuten.co.id

Current Competition Condition  Very TIGHT!

 The Competition: Indirect Competitor

Social Commerce
- Forum (www.kaskus.us  Forum Jual Beli)
- Facebook (Online Shop)
- Twitter
- Multiply.com
- Blogspot

Online Store from Offline Retailer

- Apple Store Indonesia
- Heatwave.com
- Accent.com

*The competition not only comes from the same player, but also tight
competition from indirect web online services, also offline stores
Organizational Review
 eBay
eBay Inc.
• Founded : 1995
• Active Sellers: 90 mio. (globally)
• Active Users: 200 mio. (globally, 2006)
• Total worth of goods sold on eBay: USD 60 bio. (2009)  avg. USD 2,000/second
• Revenue: USD 9.2 bio. (2010)
• Local websites: 200 countries

• Initial company Vision: to create the world's first global economic democracy, where
anyone in the world could sell or buy just about anything for a fair price

• Current Vision: to foster human connection through Social Commerce, which is a

powerful combination of commerce, communication and community that enhances
traditional buying and selling
 Plasa.com

• Re-established in 2010
• Founded: 1998 (as an email provider & online forum)
• Currently positioned themselves as an E-commerce portal that support and
encourage local SMEs to sell their products/services over the Internet by
providing access to wider market
• Avg. page view per day: 1.5 mio. viewers (2010)
• Active Sellers: 1,500
• Active Members: 550,000
• Product ranges: 250,000 items
• Plasa.com gain their profit by charging 8% fee of each successful transaction
 Plasa.com + eBay

• Partnership established in October 2010

• Aim:
• To push E-commerce climate in Indonesia;
• To help Indonesian SMEs to distribute their product overseas;
• Through training and counseling programs, eBay will actively
participate in educating Indonesian SMEs in market research,
marketing, and services in commerce
• Form of partnership: cross-border trading in form of co-branded
information portal plasa.com/ebay or sea.ebay.com/plasa
• IDR 20 mio. is targeted within 1 year of partnership
Strength & Weaknesses
 Plasa.com
Plasa.com + eBay Strength
• Local knowledge (Plasa) + Global coverage = strong partnership that will be
beneficial for both party

• Payment method that secured, involving many major financial institution (e.g.
BII, BCA, eSCROW)

•Strong capital from eBay & Plasa (as supported by Telkom Indonesia)

Plasa.com + eBay Weakness

• The relationship is relatively new, need time & effort to established further

• Vague collaboration between Plasa & eBay that confuse potential

sellers/buyers
 Plasa.com + eBay

Plasa.com + eBay Opportunity

• Increasing Internet awareness & intention to do e-commerce from Indonesian people

• Prior Plasa-eBay partnership: There are increasement of 200% from Indonesian

sellers that sell product globally through eBay (Jason Lee, Head of eBay SEA &
Middle East)

• 4 out of 5 Indonesian households are interested to do online shopping in 2010

• eBay’s brand equity that will strengthen Plasa.com’s positioning

• eBay’s strong infrastructure could support Plasa’s lack of technology

 Plasa.com + eBay

Plasa.com + eBay Threat

• Social commerce that already established within the Indonesian market

• Officials bureaucracy that often confusing and not helpful

• Indonesian customers’ fear to use online shopping because of security reasons

• The need to educate Indonesian SMEs about e-commerce, because of their lack of
knowledge of technological flair

• Poor infrastructure for Indonesian SMEs to entering the bigger market

• Future collaboration between MNC Network and Rakuten

The Strategy
 Strategy Objectives

“To become the trusted and leading e-retail

company in Indonesia that provides a
wide selection product with global
standard”
 How to Achieve Objectives
• To become Indonesia’s trusted e-retail company, eBay +
Plasa.com must create a system that assure the sellers
and buyers to feel safe in doing transaction at Plasa.com

• This strategy must be supported by strong and up-to-

date IT infrastructure that is hack-proof and accountable

• This strategy must stimulate sellers, buyers, and

members to perform good-practice in practicing e-
Commerce; thus, awards & punishment shall be
implemented to the good / bad parties
 How to Achieve Objectives
• To become Indonesia’s leading e-retail company, eBay +
Plasa.com must create strategy that cater its customers
which are:
– The UKM / SMEs
– Individual sellers

• The strategy must affiliated with Indonesian government

and focusing on educating and supporting customers in
terms of any technical issues in establishing an e-
Commerce business
 How to Achieve Objectives
• Regular communications with sellers and members must
be develop so that they know and understand what is
going on at Plasa.com currently, including:
– Any new website features (i.e. security improvements, etc.)
– Newly listed interesting product
– List of trusted / untrusted sellers, buyers, or members
– Special promotional activities, discounts, etc.
Strategy Implementation
Strategy #1
Co-operate with Dinas Koperasi dan UKM, APINDO UKM, Jaringan Nasional
Pendukung Usaha Kecil Menengah, FORDA UKM

1.Creating a national program “UKM-online”. Develop, Educate,

Training/ Workshop, and Facilitating UKM to open their online shop
through Plasa.com

2. Established a new partnership division in each Regional UKM

organization, under supervise of plasa.com with ebay, and Dinas
Koperasi and UKM, that’ll focusing in consultating, helping, maintaining
and guiding UKM with their online shop to be ready to lunch their product
in the global market.

3. Arrange a frequent seminar and workshop to gives new

knowledge about global e-commerce industry, also to motivate UKM
owner to raised their level

With this program, plasa.com will have a huge number of seller

(there are 51,26 million UKM in 2010), with same global standard
Strategy #2
Create and Develop Plasa Package

1. Knowledge material about internet technology, global e-commerce also Store set-up manual
book/ tutorial along with CD Tutorial to register and establish a store in Plasa.com/ebay

2. Special Price Package for Internet Set-Up contains Modem and Online Peripherals from
Speedy

3. Plasa Dashboard Software. This program will enable business owner to:
a. Get a quick access to Plasa.com (instead of opening IE/ Firefox and go to
plasa.com) with different display menu specifically designed for User
b. Get the daily, weekly, and monthly sales report
c. Get the forecast for the next month based on the previous sales data
d. Internet Connection billings
e. Chat room and Forum
f. and Newsletter for seller

*This package is available at all Plasa.com Business Centre, Plasa Telkom, or Telkomsel
Branch, Regional UKM office, and also on Reseller.
Strategy #3
Verified Seller: Plasa.com MEDAL SYSTEM

Objective
To give assurance for buyers that this certain seller is already been audited by
Plasa.com and qualified to do e-commerce business

How:
• By the time a seller is registering his/her business (s)he will be asked whether would
like to be audited or not
• If they are not agree, they are still eligible to sell on Plasa.com as a regular sellers
• If they agree, they audited process will be proceed
• If they are not qualified in the audited process, they are still eligible to do business as
a regular seller
• If they are qualified in the audited process, they will be granted a “Medal” award:
– Plain award when they pass the initial audit
– “Bronze Medal” when they gathered 100 positive buyer feedback
– “Silver Medal” when they gathered 300 positive buyer feedback
– “Gold Medal” when they gathered 500 positive buyer feedback
– “Platinum Medal” when they gathered 1000 positive buyer feedback
 Register Phase

Seller verification approval

Agree Disagree

Will be audited by Plasa.com Seller is allowed to sell as usual

Eligible?

Yes No • “Plain Medal” when they pass the initial audit

• “Bronze Medal” when they gathered 100 positive
buyer feedback
• “Silver Medal” when they gathered 300 positive
buyer feedback
“Medal” System • “Gold Medal” when they gathered 500 positive
is applied for sellers buyer feedback
• “Platinum Medal” when they gathered 1000
positive buyer feedback
Strategy #4
Call Center, Newsletter, and Plasa Biz
• Call Center, Newsletter, and Plasa Biz

• Call Center:
– To assist Buyers in conducting transaction at Plasa.com
– Will be standby 24/7 to answer any Buyers’ enquiries

• Newsletter:
– Will be spread around Plasa.com’s registered members
– Providing information about the current updates of the MarketPlace (e.g. if there
any new seller registered, new products registered, and monthly trends of
Plasa.com)

• Plasa Biz
– For direct consultation with Plasa.com representatives for both Buyers and
Sellers
– Collaborating with delivery service providers to arrange any delivery needs
required
Thank You!