Alibaba Eyes Stake In Indonesia’s Tokopedia ‘Don’t Scare Off Investors’ Jokowi Tells Ministers

Alibaba Group Holding is discussing a major investment in local e-marketplace Tokopedia, marking perhaps the greatest push into Southeast Asia’s largest economy for the ever expanding Chinese e- commerce giant.

Bloomberg reported the move Tuesday,

July 25, citing a source close to the matter speaking on the condition of anonymity. Alibaba is eyeing to lead a funding round of up to US$500 million, which would see it join SoftBank Group and Sequoia Capital. Named representatives from Alibaba declined to comment while Tokopedia was not immediately available, the Bloomberg report said. Tokopedia had earlier been in talks with Alibaba rival JD, which is likely to now back off according to sources quoted by Bloomberg. Alibaba already controls Singapore-based Lazada Group, another of Southeast Asia’s most successful e- commerce sites and a direct rival to Tokopedia in Indonesia. Southeast Asia has become the latest battleground for China’s tech firms with the home market reaching saturation point. Southeast Asia’s growing middle class and booming economy has turned the region into one of the most attractive untapped markets in the world. Tokopedia, founded in 2009, has a similar set-up to Alibaba’s Taobao marketplace which matches customers and sellers. According to Bloomberg, Tokopedia set a record for funding, raising US$100 million from SoftBank and Sequoia Capital in 2014. President Joko ‘Jokowi’ Widodo has called on ministers to be aware of business and investment interests when issuing ministerial regulations amid a push for massive investment. “Be careful and make thorough calculations of all relevant factors before issuing ministerial regulations,” Jokowi said during a cabinet meeting on Monday, July 24, as quoted by Antara news agency. Adequate public education campaigns and stakeholder consultations should be made before issuing regulations so as to ensure the business sector continues to develop, he said. "Ministerial regulations should not serve to strengthen the authority of the ministers concerned," Jokowi added. The comments reflect Jokowi’s longrunning priority in supporting investment and boosting economic development to create more jobs and fill infrastructure gaps.