Bukalapak, one of e-commerce big player in Indonesia, made the first move toward fintech service. Bukalapak recently launched BukaReksa, a micro site for users to invest through mutual funds. Working together with Bareksa, the first integrated mutual funds marketplace in Indonesia, BukaReksa has started to operate since January 2017.
According to Bareksa, Bukalapak position is platform provider for BukaReksa visitors while Bareksa acts as the sales agents. The transaction process in BukaReksa is similar with Bukalapak only with more details and confirmations. Only with IDR10,000 or US$0.74, which will be placed exclusively in CIMB-Principal BukaReksa Money Market, users can start investing. This will make it easier for Bukalapak users to join and invest.
Preparing for the Future
Collaboration and synergy between e-commerce, fintech companies, and financial marketplace has succeeded in China. Alibaba and Yu’e Bao collaboration has proved it, according to Tempo. From this bold move, Fajrin Rasyid (Co-founder Bukalapak), hopes that BukaReksa will cultivate Indonesians interest to invest. He is also optimist as there are already 11.2 million users in Bukalapak.
Bareksa has guaranteed that they already got official licence as mutual funds sales agent from Financial Services Authority (OJK). CIMB-Principal Asset Management as the investment manager has also claimed that they are registered and monitored by Financial Services Authority (OJK). All of this is an effort to make sure it is not an attempt for fraud.
Although fintech is still unfamiliar concept in Indonesia, according to research conducted by Daily Social and Indonesia’s Fintech Association (IFA), there is still hope. 74.47% out of 1000 respondents believe that fintech can push better financial literacy and financial inclusion in Indonesia.
Both government and fintech players have shown efforts to educate people regarding fintech and investments. In this case, CIMB-Principal Asset Management has provided thorough explanations to those who have interest in the investment. The government has also prepared fintech guidelines and regulations regarding this new sector.
Another Player to Join
Bukalapak’s competitor, Tokopedia, has also shown interest to explore fintech sector. Last year, the e-commerce giant launched a new credit card application feature to enable users to apply for loans, insurance, and investment. This move is an effort to make it easier for people to pay online. “There is a huge gap for online users as they still cannot do the payment online,” said William Tanuwijaya, CEO of Tokopedia to DailySocial.
Tokopedia is the first e-commerce to provide credit card submission service. Until now, since it is a new service, Tokopedia is still educating people. With huge number of users and well-know brand, Tokopedia has advantages against another fintech players in the same service. Tokopedia also provides offers and promotions to those who want to apply for credit card through Tokopedia. “We will also provide payment service for credit card’s bills,” said Tanuwijaya.
According to research by IFA, only 9% people use credit card for payment. This number is relatively low considered Indonesia e-commerce is growing rapidly. Tanuwijaya said that this move would make it easier for people who have never been touched by financial services to access and use the service.