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THE 50 HOTTEST FINTECHS

MARCH 2019 • VOLUME 10 ISSUE 3

WWW.FORBESINDONESIA.COM

THE
UNICORN
BREEDER
ALPHA JWC
VENTURES
IS SETTING A BENCHMARK
IN THE VC INDUSTRY

RP 60,000
Contents MARCH 2019

10 | FACT & COMMENT // Steve Forbes


The euro how to make it great

17 | MARKETING INSIGHTS // Hermawan Kartajaya


OMNI Human: Orchestrating Your Passions

18 | UPDATES
Sinar Mas and Oriente Partners in P2P Lending;
BP and AKR Announced Joint-venture

20 | UPDATES
East Ventures Invests in The Fit Company;
IFC invests $275 million on Trans Corp’s Projects

22 | LEGAL VIEW // Eddy Leks


Awaiting the Agrarian Law Reform

24 | SUSTAINABLE DEVELOPMENT // Scott Younger


Dealing with Disasters

FINANCIAL REVOLUTION
28 | GUEST COLUMN // Alexander Rusli
Mobile Payments Will Lead Indonesia’s Digital
Transformation

30 | THE UNICORN BREEDER


Alpha JWC Ventures is setting a benchmark in
the VC Industry.
BY ARDIAN WIBISONO

38 | FINANCING FUTURE
Could fintech help elevate higher education in
Indonesia?
BY ULISARI ESLITA

40 | SIMPLE WORK
Jojonomics is taking over employees’ administrative
work so they can focus on what matters.
BY MARELLA PUTRI

42 | REDEFINING BANKING
DBS Indonesia is redefining banking experiences in
digital era.
BY ESTER CHRISTINE NATALIA
COVER PHOTOGRAPHS: AHMAD ZAMRONI/HKV FOR FORBES INDONESIA

4 | FORBES INDONESIA MARCH 2019


TO BREAK THE RULES,
YOU MUST FIRST MASTER
THEM.

THE VALLÉE DE JOUX. FOR MILLENNIA A HARSH,


UNYIELDING ENVIRONMENT; AND SINCE 1875 THE
HOME OF AUDEMARS PIGUET, IN THE VILLAGE OF
LE BRASSUS. THE EARLY WATCHMAKERS WERE
SHAPED HERE, IN AWE OF THE FORCE OF NATURE
YET DRIVEN TO MASTER ITS MYSTERIES THROUGH
THE COMPLEX MECHANICS OF THEIR CRAFT. STILL
TODAY THIS PIONEERING SPIRIT INSPIRES US TO
CONSTANTLY CHALLENGE THE CONVENTIONS OF
FINE WATCHMAKING.

ROYAL OAK
CHRONOGRAPH
IN YELLOW GOLD
AUDEMARSPIGUET.COM

JAKARTA: PLAZA SENAYAN · PLAZA INDONESIA |


SURABAYA: TUNJUNGAN PLAZA 4

MARCH 2019 FORBES INDONESIA | 5


Contents MARCH 2019

Eka Tjipta Widjaja,


founder of Sinar
Mas group, one of
country’s largest
conglomerates, has
LEADERBOARD passed away at the
age of 98.
26 | DIGITAL TRANSFORMATION
Eka Tjipta Widjaja was one of the most successful businessman
in the country. He founded the Sinar Mas group, years ago and
turned it into Indonesia’s largest conglomerates. And now, the
family’s next generation is taking the group to a new level.
26
BY ULISARI ESLITA

46 | 30 UNDER 30 EUROPE 2019


From a tonic-water tycoon to a 3-D-printing top dog,
our annual roundup of the Continent’s brightest young
entrepreneurs and innovators.

TECHNOLOGY
48 | SMART KIOSK
Warung Pintar empowers micro-entrepreneurs
for digital inclusion.

42 40
BY ALEX KONRAD

50 | GOOGLING BLOCKCHAIN
In the late 1990s, Google transformed the Web by creating a
fast, accurate and easy-to-use search engine. THE 50 HOTTEST FINTECHS
BY MICHAEL DEL CASTILLO
54 | WITH FRIENDS LIKE THESE…
Ryan Williams is one of the most successful 30 Under 30 honorees
ever, a tech founder reinventing real estate investing via Cadre—
and building a $160 million personal fortune in the process.
BY NATHAN VARDI

64 | DATA’S CARTOGRAPHERS
Two philosophers are using machine learning and artificial
intelligence to create a real-time map of the global economy, and
the world’s largest financial firms are lining up at its door.
BY ANTOINE GARA

68 | COMMON SENSE PROPHET


Growing up in a two-bedroom Bronx apartment shared by 12 family
members, Wendy De La Rosa learned to make every dollar count.
BY KRISTIN STOLLER

PHILANTHROPY
72 | REALITY CHECK // James S. Kallman
Excess Fat is Bad for You

74 | THE PRINCESS OF THE DUMP


Resa Boenard has dedicated her life empowering children growing
up on the largest landfill in Southeast Asia.
BY MADDIE MANWARING

FORBES LIFE
48 76 | THE EYE

6 | FORBES INDONESIA MARCH 2019


SIDELINES

PUBLISHER Jusuf Wanandi

EDITORIAL DEPARTMENT
IT’S ALL ABOUT NUMBERS
EDITOR-IN-CHIEF Taufik Darusman
BY TAUFIK DARUSMAN
SENIOR EDITORS Ardian Wibisono, Ulisari Eslita,
Yessar Rosendar taufik@forbesindonesia.com

I
SENIOR WRITER Ester C. Natalia
WRITER Marella Putri n 2015, three young Indonesian professionals with vast experience in the
SENIOR GRAPHIC DESIGNER Hidayat Abubakar
realm of finance got together and set up Alpha JWC Ventures, an invest-
GRAPHIC DESIGNER Dennis A. Pratama
PRODUCTION MANAGER Mudafid Riyanto
ment company that focuses on technology-based start-ups. The rest, as it is
VIDEOGRAPHER Wijayanto often said, is history. Well, not quite—four years on it continues to embark on its
EXECUTIVE ASSISTANT Hanna Azuraa already illustrious journey and is set to become a formidable business force.
A venture capital company, Alpha JWC Ventures has been doing well and all
BUSINESS DEPARTMENT
MANAGING DIRECTOR Roger Finnie
signs show it promises to be doing even better in the future. No less noteworthy
EXECUTIVE DIRECTOR Tanti Jumiati is the founders’ sense of glowing optimism as they extend the company’s reach
SENIOR EVENT & SALES MANAGER Bardan A. Sayid beyond national borders to, in more recent times, Vietnam. And they have the
ASST. MANAGER EVENTS & COMMUNICATIONS numbers – and the right ecosystem—on which to base their upbeat sentiment.
Rio Zikrizal
With a population of 260 million people and as the region’s largest online
EVENTS & SALES EXECUTIVE Melissa Tunggadjaja
MARKETING SUPPORT Josephine Hanna M. retail market, Indonesia is in the crosshairs of private investors. It is estimated
CIRCULATION DIRECTOR Seli Widiati there will be over 139 million internet users by 2022 and that members of the
CIRCULATION MANAGER Habibie Hasanuddin middle- and upper-class over the next five years will rise from 63 to 128 million.
ACCOUNTING MANAGER Hendra Gunawan
Meanwhile, smartphone penetration is set to increase in the same period
ACCOUNTING SUPERVISOR Inge Stephanie
ACCOUNTING EXECUTIVES Tjhin Anna
– from 85 million to 148 million – as the country’s online shopping base jumps
ACCOUNTING STAFF Aldina Anggraini from 11 million to 42 million browsing customers. With start-ups showing huge
potential, investors—both domestic and foreign—are descending with lucrative
PT WAHANA MEDIATAMA
cash injections to fuel business growth across the region and beyond.
PRESIDENT DIRECTOR Millie Stephanie Lukito
VICE PRESIDENT DIRECTOR Dewi Victoria
In a nutshell, a venture capital (VC) firm provides funding to the private
PRESIDENT COMMISSIONER Jonathan Tahir sector in exchange of equity or shares. If banks lend money and get paid
back with interest and are not involved in the management (and do not hold
FORBES MEDIA LLC
CHAIRMAN & EDITOR IN CHIEF Steve Forbes equity), VC firms take part in making strategic decisions that may impact a
CHIEF EXECUTIVE OFFICER Michael Federle company’s future. So, VC firms, basically, provide investment funds to start-
CHIEF CONTENT OFFICER Randall Lane ups and at the same time obtain equity stakes in them.
CEO/ASIA William Adamopoulos
The first venture capital company in Indonesia is PT Bahana Pembinaan
EDITOR, FORBES ASIA Tim Ferguson
SENIOR VICE PRESIDENT, FORBES ASIA Tina Wee
Usaha Indonesia (BPUI), a Finance Ministry-Bank Indonesia joint venture es-
tablished in 1973. Nothing much has been heard from BPUI since 1993, though,
when its subsidiary, PT Bahana Artha Ventura (BAV), set up operations in sev-
eral provinces to finance small businesses. Typically, the private sector picked
up where the state left after recognizing the huge potential VC business holds.
MARCH 2019 — VOLUME 10 NUMBER 3 Today, some 60 VC companies operate in Indonesia, with funding said
to come mostly from China, Japan and the U.S. Many have linked up with
FORBES INDONESIA is published by PT Wahana Mediatama under
a license agreement with Forbes LLC, 60 Fifth Avenue, New York, tech start-ups, bringing with them sophisticated technology laced with
financial savviness. Indonesia’s rising fintech and healthcare sectors are
New York 10011. “FORBES” is a trademark used under license from
FORBES LLC. ©2010 PT Wahana Mediatama • ©2010 FORBES LLC,
as to material published in the U.S. Edition of FORBES. All Rights
Reserved. ©2009 FORBES LLC, as to material published in the edition said to be the main targets as the middle-class market has shown a pro-
of FORBES ASIA. All Rights Reserved.
FORBES INDONESIA is published monthly, 12 times per year.
pensity for tech-enabled products and services.
Copying for other than personal use or internal reference or of articles
or columns owned by FORBES INDONESIA without written permission
President Joko Widodo, a former businessman in his own right, wishes
of FORBES INDONESIA is expressly prohibited. to see 1,000 new digital start-ups worth $10 billion by 2020. It is a long shot
CONTACT INFORMATION indeed, but with JWC and the likes in the horizon, it is not implausible for
Forbes Indonesia: Mayapada Tower 1, 8th Floor, Suite-03 A
Jalan Jendral Sudirman Kav. 28, South Jakarta 12920. the president’s vision to become a reality. F
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1. On page 36: Samuel Wongso, 27. The correct title is “Suit Designer at Wong Hang Tailor”, not “CEO of Wong Hang Tailor”. And
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8 | FORBES INDONESIA MARCH 2019


FACT & COMMENT
“With all thy getting, get understanding”

THE EURO
HOW TO MAKE IT GREAT
BY STEVE FORBES, EDITOR-IN-CHIEF

THIS YEAR marks the 20th anni- try’s economy markedly improved.
versary of the euro’s introduction, • The euro is a straitjacket. One of
and not many champagne bottles the most pernicious myths afflicting
have been uncorked in celebration. current economic policymaking is
Since 2008, the EU has been beset that devaluations are a great way to
by economic crises that have dulled boost a troubled economy. Exports
any luster the new currency had. suddenly become cheaper, goes this
Too bad. Had Europeans un- happy talk, thereby ginning up over-
derstood the proper principles of seas sales. An artificially enlarged
monetary policy, the euro would be money supply will stimulate activ-
a resounding success, doing for par- ity. But the reality is this: No state
ticipating EU countries just what in history ever devalued its way to
the dollar has done for the U.S.— strength and prosperity. An unstable
a common currency that enormously facilitates currency hurts productive investment and, worse,
prosperity-creating investment and commerce. But misdirects capital. Have we forgotten the housing
this extraordinary creation has been bedeviled by bubble, whose root cause was a cheapening dollar?
profound misunderstandings that could ultimately Nonetheless, a host of economists lament that
threaten its very existence. countries such as Greece and Italy can’t devalue
Many critics moan that the euro has prevented their currencies since they’re tied to the euro. Every-
Greece, Portugal, Spain, Ireland and others from one should rejoice that this is the case. Otherwise,
using devaluations to help their economies recover Greece would have become the EU’s version of Ven-
from terrible contractions. Still others carp that the ezuela, and Italy’s lira would resemble Argentina’s
euro enabled Germany to rack up big trade surplus- chronically shrinking peso. (The state of Illinois is in
es without fear of having to revalue its currency, as severe financial straits, but no one talks about it leav-
previously would have happened. The biggest con- ing the “U.S. dollar zone” to cope with its woes.)
demnation has been that the euro is doomed unless • The euro can’t work without a single, Europe-
the EU has a united financial and banking regula- wide regulatory and tax/budget arrangement.
tory system as well as a united fiscal/budgetary sys- Nonsense. A country can use any currency it wants.
tem. Panama, Ecuador, El Salvador and Timor-Leste
These and other negative assessments are off base: (East Timor) directly use the U.S. dollar. Coun-
• Prosperity. The euro did make it easier for capi- tries such as Costa Rica allow the dollar to be used
tal to flow across borders, thereby reducing costs alongside their own national currencies. The euro
of exchanging individual currencies and hedg- is legal tender in Monaco and Vatican City. Numer-
ing against the risks of the currencies’ fluctuat- ous nations employ currency boards to rigidly link
ing against each other. However, the Continent’s their money to a hard currency, such as the dol-
chronic subpar economic performance didn’t im- lar or the euro. (Under a currency board, the local
prove as much as had been expected because the currency is backed 100% by, say, the dollar.) Hong
problems are structural: excessive taxation and Kong has done this with the greenback since the
regulation, particularly with regard to inflexible la- early 1980s. Bulgaria has done the same thing with
bor practices. When Germany made some labor and the euro for more than 20 years. Several countries
pension-rule reforms in the early 2000s, the coun- in Africa are pegged to the euro.

10 | FORBES INDONESIA MARCH 2019


FACT & COMMENT STEVE FORBES

Needless to say, in none of these a clock measures time. Money


cases are budgets, taxes, government works best when it has a fixed value,
spending and financial regulations just as markets work best with fixed
coordinated with the U.S. or the EU. weights and measures.
• The euro will eventually fail • The best way to achieve a stable,
because it obliges Germany to trustworthy currency is to tie it to
bail out profligate countries like a fixed weight of gold. Contrary to
Greece. No, it won’t, and no, it myth, this no more restricts the size
doesn’t. Back in the 1970s Wash- Be sure to watch the riveting of an economy than the 12 inches in
and illuminating one-hour
ington refused to bail out New York a foot restricts the size of a building
documentary airing on PBS
City when it was on the verge of a contractor may wish to construct.
In Money We Trust?, which
bankruptcy, even though they share is based on the book Money:
Four thousand years of experience
a common currency. How the Destruction of the have proven that a gold standard
The euro would do just fine if au- Dollar Threatens the Global works better than anything else.
thorities took to heart the following Economy—and What We Can Do Robert Mundell, the Nobel Prize-
fundamental but out-of-fashion truths: About It, co-authored by yours winning economist regarded as the
• Money is not an instrument for truly and Elizabeth Ames. For euro’s godfather, believed that his
guiding an economy. It isn’t simi- more information, go online to conception would lead to a stronger,
lar to the steering wheel of a car. inmoneywetrust.org. more prosperous Europe and would
Attempts to misuse it in this way re- become a global alternative to the
tard economic progress. Countries dollar that would force the authori-
with stable, trustworthy money European central banks have tried ties of both currencies to pursue
always do better than those with to use monetary policy to overcome sound monetary policies. He never
weak currencies. Always. structural barriers to growth. imagined that both would remain in
Too many times American and • Money measures value the way the thrall of funny-money theorems.

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12 | FORBES INDONESIA MARCH 2019


MARKETING INSIGHTS HERMAWAN KARTAJAYA
HERMAWAN KARTAJAYA IS THE FOUNDER AND EXECUTIVE CHAIRMAN OF MARKPLUS, INC., ONE OF SOUTHEAST ASIA’S LEADING MARKETING AND PROFESSIONAL SERVICES
FIRMS. IN 2003, HE WAS RANKED AMONG THE “50 GURUS WHO HAVE SHAPED THE FUTURE OF MARKETING” BY THE CHARTERED INSTITUTE OF MARKETING IN THE U.K.

OMNI HUMAN:
ORCHESTRATING
PASSION FOR
KNOWLEDGE

YOUR PASSIONS THINKER +


PRACTITIONER
LEARNING +
SHARING

PASSION PASSION
FOR OMNI HUMAN FOR
BUSINESS SERVICE
THE 91st ACADEMY
Awards will soon be pre- WORK +
PLAY
INDIVIDUAL+
SOCIAL

sented, amid intense fasci-


nation and global fascina- PASSION FOR
tion. Oscars, as an event, PEOPLE

are not only anticipated by


the global film fraternity
but as movies are inspired seem paradoxical, but can actually be synergized (see
from our lives, the awards figure). The individuals who can achieve this synergy be-
also hold strong cultural rel- tween different paradoxes that arise from the various pas-
evance as an indicator of public behavior. sions, can be called OMNI Humans.
This year, the Oscars are no less vibrant. Much before Work + Play: This is the first paradox in today’s times
the event, there has been anticipation on who is going to be when we are always connected, the boundaries of work
the hosts, and of course, predictions of winners in each cat- time and play time are blurring. In fact, the rise of gig and
egory. Interestingly, even though films have inspired sev- creative economy, co-working spaces, and flexible work-
eral cool techs – from Star Trek-inspired mobile phones to ing hours, are all manifesting how work and play are no
voice-based operating systems, and the sci-fi movies con- longer as isolated. Research has even suggested that gam-
tinue to explore future technologies in the industrial era ing can improve productivity at work. The key is to bal-
4.0 and even 5.0, the most notable and talked-about movies ance both aspects of work and play.
in Oscars this year are Roma and The Favourite. Thinker + Practitioner: Thought leaders in today’s
Both films are period dramas. The Favourite took world are increasingly coveted for their ground-breaking
set in 18th Century while Roma from 1970s Mexico – ideas and thoughts, but without practitioners to follow
even made in black-and-white. There is no end to the the due course, these ideas will not materialize or reach
imagination of how sophisticated technologies can be their potential. You can’t be a practitioner alone; you also
shown in movies, but these two movies tell stories about need to be a thinker to be our best self at every aspect of
human nature and values. The Favourite tells the story your life. Similarly, you can’t just think, you must act on it.
of the personal and governing struggles of an England Learning + Sharing: As self-explanatory as that
Queen, while Roma follows the lives of housekeeping sounds, the simple idea is that learning without sharing
women in a middle-class Mexico family. will not bring desired results. In an era of shortening skill
The attention of human aspects of our lives, as narrat- lifecycles and fast evolving technology, it is important
ed by these movies, is what I also identify in my new book, to remain on the learning curve, and as you do that, it is
Planet OMNI: The New Yin Yang of Business. The term I equally important to share that knowledge with others.
use to describe this is OMNI Human. Because, it is indeed Individual + Social: This paradox relates to the deep-
in these times of increasingly sophisticated technology, seated vision that you may have as an individual, to accom-
that the human aspect of our lives needs to be more visible plish something, and you must do so, living in the social
and explored. But in doing that, we, as humans, must also environment around you, fraught with challenges and
stay abreast with the ever-changing environment around limitations, but opportunities and wisdom. As an individu-
us. And what is it that makes us OMNI Human? al, you must find a purpose, supported by a strong commit-
To answer that question, I like to bring up the “four ment, but such a purpose should not be personal ambition
passions” of an OMNI Human: Passion for Knowledge, but accompanied by care and compassion for society.
Passion for Business, Passion for Service, and Passion for These paradoxes, when synergized, and combined
People. These four passions, when intertwined with one with the various passions can help an individual be-
another in individuals, give rise to behaviors that may come OMNI Human. F

MARCH 2019 FORBES INDONESIA | 17


Updates ESTER C. NATALIA & MARELLA PUTRI

SINAR MAS AND ORIENTE as the President Director, Finmas


aims to provide easier access to
PARTNER IN P2P LENDING affordable and secure credit, con-
sequently contributing to spread fi-
nancial literacy and inclusion. The
partnership will also expect to cre-
ate over a thousand jobs in 2019.
They are particularly targeting
millions of underserved consum-
ers and SMEs in Indonesia who
do not have bank accounts, let
alone access to banking or finan-
cial services. Through Finmas,
people will be able to apply for
credit anytime, such as for educa-
tion tuition, household expenses,
emergency, or when they need
business capital. Consumers have
full control as they can monitor
the status of their loan application
and payment schedule.
Oriente itself was founded in
2017 by former founder of Skype
INDONESIAN conglomerate mas (PT Oriente Mas Sejahtera). Fol- Geoffrey Prentice and founder
Sinar Mas Group partners with lowing the beta version launched a few of LU.com, Hubert Tai; to help
Hong Kong-based financial service, months ago, the joint-venture officially improving financial inclusion for
Oriente, in launching their peer-to- launched the mobile application in underserved population in devel-
peer lending platform named Fin- mid February. Headed by Peter Lydian oping countries.

BP AND AKR ANNOUNCED JOINT VENTURE


UK-based oil and gas company BP, stations every year,” says Peter Molloy, to the high price of airline ticket. Per-
announced its joint venture with President Director of APR. tamina, as the sole supplier of avtur
Indonesia’s leading logistics, supply To make their service stands out from at Soekarno-Hatta airport, would be
chain and infrastructure company other stations, BP is also partnering with given two options: to lower the price
AKR Corporindo. Under their newly- various range of local businesses includ- or to let the government allowing new
set company, Aneka Petroindo Raya ing convenience store chain Alfamart, players to supply the fuel.
(APR) - which will operate under the SiTepat-operated motorcycle workshop Aside from BP-AKR joint ven-
name BP AKR Fuels Retail is foreseen Castrol Bike Point, local coffee chain ture, along with Pertamina, AKR
to open around 350 gas stations Toko Kopi Tuku and Martabak Orins. Corporindo was appointed by the
across Indonesia over the next 10 Prior to that, AKR Corporindo and Air Downstream Oil and Gas Regulatory
years. At their press conference last BP set a joint venture company named Air Agency (BPH Migas) to distribute
February they launched the first four BP-AKR Aviation to develop aviation fuel gasoline and diesel fuels across
stations which are located in Cibubur, business in Indonesia. As many are aware, the country since 2010. In line with
Jababeka, Serpong, and Bintaro. “We President Joko Widodo demanded Per- that, AKR then set up 130 gas sta-
are planning to set up to 20 more tamina, state-owned oil and gas company, tions all across Indonesia that sell
fuel stations this year and 35 fuels to lower aviation fuel (avtur) price, due subsidized fuel.

18 | FORBES INDONESIA MARCH 2019


Updates
EAST VENTURES INVESTED IN THE FIT COMPANY
EAST VENTURES invested an undisclosed seed
funding to a wellness startup The Fit Company. The
investment will support The Fit Company’s efforts in
building a technology-enabled ecosystem for wellness-
oriented products and services.
The Fit Company is a holding company focuses on
active and healthy lifestyle products. Currently, the
company has five business lines namely fitness tech
distributor Kredoaum, microgym 20Fit, conventional
gym Fitstop, healthy food restaurant Fit Lokal, and
healthy instant noodles made from konjac Fitmee.
“Currently, no one in the market is addressing the
issue of active lifestyle in a holistic way. It’s either
they provide only training or only food, but never tunity for a new ecosystem, especially in the health
the whole pipeline. With this knowledge, the idea of and wellness sector.
combining all of our products and services into one “As Indonesia’s infrastructure for on-demand
ecosystem came up,” says The Fit Company CEO Jeff and O2O platform has been solid, it could expand the
Budiman in a statement. growth in this category by offering holistic products
Willson Cuaca, managing partner in East Ven- and services: activity, FMCG, tools and equipment, and
tures, explained that there is a big potential in Indo- ready to eat F&B in one platform. We believe The Fit
nesian young consumer population who spend more Company team has the right vision and string execu-
on discretionary items. They see that this kind of tion capability to unlock Indonesia’s wellness economy
new consumption behavior creates a huge oppor- potential,” Willson said in an official statement.

IFC INVESTED $275 MILLION ON TRANS


CORP’S PROJECTS
International Finance Corporation (IFC), member of the preceding $300 million loan by World Bank to Indonesia in
World Bank Group and the largest financial institution October 2018, to support government’s strategic priority
focusing on encouraging private sector engagement in in developing the national tourism sector. By working with
emerging markets, made their first investment to Indone- global hospitality entity Accor, Trans Corp plans to develop 30
sia’s Trans Corpora (Trans Corp), a subsidiary of Chairul new hotels with almost 6,000 rooms across the archipelago.
Tanjung’s CT Corpora (CT Corp). The agreement on loan Lastly, to solve Indonesia’s housing deficit for the middle-
package worth $275 million was signed in mid February, income population, the Group will build more than 10,000
and will be used to support the growth of CT Corp’s opera- affordable apartment in various areas. Further addressing its
tion in retail, tourism, and property all over Indonesia. concern in the property sector, Trans Corp is also encourag-
Trans Corp plans to add more retail stores in 25 cities ing resource-efficient buildings, valuing at least $275 million,
COURTESY OF EAST VENTURES

by 2025 in which its operation is expected to develop local which meet IFC’s standard for green building named EDGE
supply chains and open 30,000 new jobs. By working with (Excellence in Design for Greater Efficiencies).
over 6,000 distributors majorly consisted of SMEs, an addi- The partnership between IFC and CT Corp was estab-
tion of 23,000 indirect jobs is also expected in the sector of lished since October 2018 upon the signing of Memorandum
farming and distribution. of Understanding by CEO of IFC Philippe Le Houerou and
The investment on the tourism sector followed the Founder and Chairman of CT Corp, Chairul Tanjung.

20 | FORBES INDONESIA MARCH 2019


tda_luxury_toys www.tda.co.id

tda.luxurytoys@gmail.com

Address Jl. Kramat Pela Raya No.31, Kebayoran Baru, Jakarta selatan 12130
LEGAL VIEW EDDY LEKS
EDDY M. LEKS IS THE MANAGING PARTNER OF LEKS & CO, A MULTI-SERVICES LAW FIRM BASED IN JAKARTA.

AWAITING THE AGRARIAN


LAW REFORM
THE GOVERNMENT’S Land disputes are related to other factors such
plan to revise the current as land administration. A solid land administration
agrarian law – authorized will hugely reduce the number of land disputes. Ac-
in 1960 – has taken center cording to the Ministry of Agrarian and Spatial Plan-
stage lately, with officials ning, the root of land dispute is ownership proof and
saying the bill will be pro- inequality in land possession. Minister Sofyan Djalil
mulgated before the elec- noted that most disputes are among individuals,
tions in April. The question reaching 56.2% (6,071 cases) of all land disputes in
is whether the government Indonesia. Ambiguity on the certainty over land own-
and legislators will be able ership leads to unlawful land possession. Squatters,
to agree on the amendment on such tight schedule. for example, often consider the land they inhabit is
Professor Maria SW Sumardjono of University of theirs. This creates enormous problems in land pro-
Gajah Mada has commented that amending the agrar- curement for projects.
ian law is sensible to the extent that the land law car- Legal certainty on land ownership may be ob-
ries the spirit of the constitution’s article 33 paragraph tained cross Indonesia by filing a claim, after which
(3), especially on the phrase “(to provide) as much as a land certificate is issued. The latter is being under-
possible the prosperity of the people.” She further said taken by the government and is worthy of praise. The
that the proposed new time limitation provi-
norms must be support- sion needs to be abso-
ed by comprehensive
Minister Sofyan Djalil noted that lute and unassailable.
research to avoid dis- most disputes are among individuals, Therefore the regula-
tortions and contesta- reaching 56.2% (6,071 cases) of all tion on title insurance
tions. I think those are for the claimant, if the
crucial advice for the
land disputes in Indonesia. claimant wins a legal
government and legis- case, is significant.
lators as it is pointless to revise the existing law if the Limitation on land ownership must be regulated
new law makes it harder for the state to attain its goal by law, and not only in the ministerial level. Recog-
of creating prosperity for the people. nition of customary land must be stipulated un-
Some issues in the current agrarian law that needs der the law to clear the status of unregistered land
to be addressed are, among others, those related to legal and unlawful land possession. Land reform must be
certainty of land ownership, recognition and assess- implemented thoroughly with a clear schedule and a
ment on customary land right, unregistered land, land strong initiative by the government.
reform, limit on land area ownership for building and Looking at the massive land disputes among indi-
development, dispute settlements, unlawful land occu- viduals, the government should consider this matter
pation, land procurement, and land administration. as a central issue. The people, especially the farmers,
Legal certainty is a critical matter if we wish to see must have enough land for them to cultivate. Land re-
more foreign investment. Unregistered land and rec- form is highly interconnected to social justice.
ognition and assessment on customary land right are Indonesia should draw lessons from more than
highly related and pertain to unlawful land possession. 50 years of the current agrarian law. So many issues
Land reform is highly important to distribute justice have arisen, so many thoughts have been given, but
to the people, especially farmers. There is still no limit the commitment by the government (and legislators)
for land development despite the provisions on loca- is not sufficiently firm. The government must ensure
tion license. There needs to be a clear limit on land that the proposals to amend the existing law will
owned by an individual(s) or entity (ies). The current achieve the constitution’s goal, namely prosperity of
one only deals with agricultural land. the people, not individuals. F

22 | FORBES INDONESIA MARCH 2019


SUSTAINABLE DEVELOPMENT SCOTT YOUNGER
SCOTT YOUNGER IS A DIRECTOR OF PT NUSANTARA INFRASTRUCTURE TBK, PRESIDENT COMMISSIONER OF PT GLENDALE PARTNERS AND INTERNATIONAL CHANCELLOR
OF PRESIDENT UNIVERSITY.

DEALING WITH DISASTERS


INDONESIA experiences fortunately relative-
earthquakes every day, and
Indonesia has ly rare in the plan-
often more than once. These some 87 active et’s history. Sensible
are usually not significant volcanoes with mitigation measures
and people get on with their can be considered to
daily lives, taking the shak-
Mt. Agung in Bali, reduce the impact on
ing in their stride. While it Mt. Merapi in Java, people’s lives, struc-
is a wonderful country in so Mt. Sinabung tures and crops for the
many ways, the downside more frequent and less
is the number of dangerous
in Sumatra and severe events.
events it faces. This is because of where the country is Mt. Soputan in Many commu-
located on the surface of the earth. It is at the junction Sulawesi currently nities across the
of a number of highly active tectonic plates, the move- country are coastally
ments of which trigger earthquakes and periodic volca-
erupting. located and there is
nic eruptions, with sometimes tsunamis to follow. Since increasing awareness
the turn of the century, the number of events that have that there needs to be much more attention paid to es-
affected lives and property seems to have been more fre- tablishing tsunami warning systems and coastal man-
quent and this is causing raised concern. agement plan for locations likely to be affected by such
Indonesia has some 87 active volcanoes with Mt. disasters. In addition, with the steady urbanization as
Agung in Bali, Mt. Merapi in Java, Mt. Sinabung in Su- some 90 million more of the population forecast to re-
matra and Mt. Soputan in Sulawesi currently erupt- side in new towns and cities by mid-century, several of
ing. And in the past, the archipelago experienced the which will be on the coast, this form of hazard should
two largest violent eruptions in the world: Toba (North be included in the planning and design of new devel-
Sumatra) 74,000 years ago and Tambora (Sumbawa) in opment undertakings.
1815. While the Krakatoa, which led to the demise of Landslide is another significant potential threat. The
over 36,000 people in 1883, mostly from the tsunami recent deadly landslide at Sukabumi provides yet an-
that occurred in the final stages, is ranked 5th on the other warning. The prevalence of steep slopes is largely
world scale, which highlights the destructive power of due to Indonesia’s young volcanic geology. There should
major volcanic eruptions. be a landslide management plan under the responsibil-
Offshore, seabed earthquakes of some significance ity of the district concerned with appropriate appoin-
can create a tsunami. The worst recent one was that tees from public services in charge to mitigate the risk.
which destroyed Banda Aceh, the west coast of the Comprehensive identification of potentially dangerous
province, and Phuket in Thailand and Galle in Sri Lanka slopes and mitigation measures needs to be put in place
on 26 December 2004 with huge loss of life, in the order to avoid the deadly impact of a sudden landslide.
of a quarter of a million. However, the two recent tsu- There are several well-tried engineering solutions,
nami disasters in Palu on 25 September 2018 and Sunda including vegetative or green engineering, which can
Strait on 22 December 2018 were initiated in different stabilize vulnerable slopes. If not practicable, then
ways. At Palu, it was the presence of a significant stra- the communities involved should be strongly advised
tum of liquefiable soil on the slope leading down to the of the dangers and be encouraged to move out of the
bay being destabilized by the earthquake. For the Sunda way. And when new developments involve excavation
Strait event, it was related to an explosion of Mt. Anak into vulnerable slopes, then the design should nor-
Krakatoa, causing a shoulder breaking off and sliding mally include measures to avoid immediate and long-
quickly into the sea. term accidents. It is not rocket science to put in place
While the largest and most dramatic of earthquakes safety measures to warn of or avoid life-threatening
and volcanic eruptions and any ensuing large tsunamis water or land movements on the surface of the Indo-
are effectively impossible to defend against, these are nesian archipelago. F

24 | FORBES INDONESIA MARCH 2019


SPECIAL ADVERTISING SECTION

New
Way
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䈀 䔀一 䔀 䘀䤀 吀匀 䘀伀 刀 夀伀 唀

to Buy
Cars

T
he digital era has in Indonesia that has been in additional direct discount that
brought many chang- operation since 2017. Bidbox other dealerships may cannot
es that makes our life also is a subsidiary of PT Mitra provide, also financing service
easier, almost every- Pinasthika Mustika Tbk (MPM can also be customized based
thing can be done Group) that established as a on the potential buyer. Further-
through the internet and smart- form of the company’s business more, customers can directly ask
phone including buying a car. innovation in the wake of chang- for offers and set up a booking
Previously car buying involves ing consumer spending behavior for a test drive online. While
a long process starting from in the past couple years. Bidbox for aftersales, Bidbox provides
visiting the dealership, choos- offers many conveniences from trade-in feature after three years
ing a car, having a discussion the buying process to after- and additional service beyond
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forms and other administrative id whenever and wherever, dealership. All the services and
processes. All the processes potential buyer can instantly advantages by Bidbox caters not
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three visits that will take too kinds of car from various brands. (B2C) but also for corporate or
much time. Luckily the digital Each car selection supported by business to business (B2B), for
transformation can shorten this specification information and instance corporate car purchase
long process and make buying its advantages, hence making or partnership for the Car Own-
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FORBES INDONESIA

LeaderBoard BY ULISARI ESLITA

Digital Transformation
Eka Tjipta Widjaja was one of the most successful
businessmen in the country. He founded the Sinar
Mas group, decades ago and turned it into Indo-
nesia’s largest conglomerates. Since the family
business will soon belong to the third genera-
tion, the Widjaja family has started looking for
new investments opportunities, apart from its
brick and mortar business. Undoubtedly, tech
is one of them. Franky Oesman Widjaja, 60,
is the one who initiated the investment by
founding Sinar Mas Digital Venture (SMDV)

SMDV is a corporate venture capital that fully funded by Sinar Mas group.
It provides venture investments, strategic network and mentorship. SMDV
portfolios, among others:

BUSINESS UNDER SINAR MAS GROUP

FRANKY OESMAN MUKTAR INDRA TEGUH GANDA


WIDJAJA, 60 WIDJAJA, 64 WIDJAJA, 66 WIJAYA, 74

AGRIBUSINESS >> GOLDEN AGRI-RESOURCES LTD · SInar Mas Agro Resources and Technology Tbk ENERGY AND MINING >> DIAN SWASTIKA SENTOSA
· Golden Energy Mines · Berau Coal Energy · Rolimex Kimia Nusamas (fertilizer and chemical trading) · Power plants in Tangerang, Serang, and Karwarang)
FINANCIAL >> SINARMAS MULTI ARTHA TBK · Bank Sinarmas · Asuransi Jiwa Sinarmas MSIG PULP AND PAPER >> ASIA PULP AND PAPER · Indah Kiat Pulp &
Paper Tbk · Pabrik Kertas Tjiwi Kimia Tbk · Pindo Deli Pulp and Paper Mills · Lontar Papyrus Pulp and Paper Industry · The Univenus · Ekamas Fortuna · Nippecraft Ltd (Singapore) ·
Solaris Paper Pte Ltd (Australia) · Sinar Mas Paper (China) · Gold East Trading (Hongkong) · Paper Excellence Canada Holdings Corp. PROPERTY >> SINARMAS LAND LTD · Plaza
Indonesia Realty Tbk · Puradelta Lestari Tbk · Bumi Serpong Damai Tbk · Duta Pertiwi Tbk BUND CENTER (OWNED BY ELIJAH FRANKLE DJAFAR WIDJAJA) · Bund Center Investment, Ltd ·
Shanghai Golden Bund Real Estate Co., Ltd TELCO · Smartfren Telecom Tbk · Innovate Mas Indonesia (Multimedia) · Eka Mas Republik (Multimedia)

26 | FORBES INDONESIA MARCH 2019


in 2014, then fol-
lowed by EV Growth
and Latitude Ven-
ture Partners (LVP)
Linda Suryasari Wijaya, Teguh
founded by his niece,
Linda Wijaya. “Tech
Ganda Wijaya’s daughter, started “Tech will
her own venture capital last year,
will connect these named Latitude Venture Partners
connect
new businesses with (LVP). LVP is a venture builder and these new
our brick-and-mortar venture capital that focuses on business
business. It is the early stage startup and growth- with our Eka Tjipta Widjaja
era of Industry 4.0 stage startups. The firm is reported
brick-and- 1921 - 2019
that includes major to manage up to $200 million of
innovations in the fund and will invest it in healthcare mortar
and fintech sectors on both local businesses.

E
digital technology.”
says Franky.
and global startups. It is the era ka Tjipta Widjaja, founder
of Industry of Sinar Mas group, one of
country’s largest conglom-
4.0 which erates, has passed away at the age
includes of 98. Listed as the third richest
major in- man in the country, Eka left at
least $8.6 billion of net worth to
novations his children and grandchildren.
in the digi- During his lifetime, Eka married
tal techno- twice and was blessed with 15 chil-
EV Growth is a collaboration between East Ventures, Yahoo! logy.” dren. From his first marriage with
Trini Dewi Lasuki, Eka had eight
Japan and SMDV. It aims at Southeast Asia pioneering companies,
Franky children, who mostly run the Sinar
especially Indonesia, to provide growth-stage capital injections,
Oesman Widjaja Mas Group. Meanwhile, Eka had
particularly in the series B. Started last year, the firm is aiming to
seven childrens from his second
invest $150 million fund. EV Growth portfolios, among others:
marriage with Millie Pirieh.
Eka’s success was started
when he and his family moved to
Indonesia from mainland China.
At the age of seven, Eka moved to
Makassar together with his family.
There, he started selling biscuits
BUSINESS OUTSIDE SINAR MAS and sweets by bicycle in order to
help his family. As time passed,
Eka started to do commodities
trading and went on to found
Sinar Mas. His early success in
commodities trading spurred him
to diversify into paper and pulp,
real estate, food and telco, with
holdings primarily in Indonesia,
Singapore and Malaysia.
ELIJAH FRANKLE SUKMAWATI OEI HONG
DJAFAR WIDJAJA, 61 WIDJAJA, 69 LEONG, 71 Eka’s business empire is now
run by his children and grandchil-
Owns Bund Center Investment Runs Top Global Ltd, a Under Hong Leong group, he is one of dren. Companies under the Sinar
Ltd, a property company property company with Singapore’s 50 richest with total net Mas brand include Singapore-
listed in Singapore Exchange. has portfolios in Singapore, worth of $1.5 billion. The bulk of wealth is
Some of his portfolios are Indonesia, and Japan. One of derived from property, financial services, listed Golden Agri Resources Ltd,
office tower, shopping center,
and Westin Shanghai hotel.
its portfolios is Rancamaya
Estate in Bogor.
and trading. In 2017, he invested $5
billion to build data center in Singapore.
one of the world’s biggest produc-
He also owns a prime property in ers of palm oil, and Bumi Serpong
downtown Vancouver.
Damai, Indonesia’s largest listed
property company.

MARCH 2019 FORBES INDONESIA | 27


GUEST COLUMN ALEXANDER RUSLI
ALEXANDER RUSLI IS THE CO-FOUNDER OF DIGIASIA BIOS

MOBILE PAYMENTS WILL


LEAD INDONESIA’S DIGITAL
In rural areas, it isn’t easy
to convert cold hard cash

TRANSFORMATION
to digital cash. Each point
in the payment ecosystem
network needs to be devel-
oped in such a way that it can
WHEN LOOKING purely facilitate the demand for mobile payments, otherwise
at percentages, Indonesia’s it’d just be the matter of rolling out a solution that no
smartphone penetration one really wants or needs. Even in Indonesia’s thriving
rate of over 60% may not e-commerce sector, most people prefer to pay for their
seem as impressive as the purchases via cash-on-delivery.
rates in Malaysia and Sin-
Unlocking Future Demand
gapore. However, it should
Indonesia’s government has long been promoting a cash-
be noted that Indonesia’s
less society. While the benefits of convenience are ap-
population of over 260 mil-
parent to Indonesian individuals, the movement is also
lion eclipses both countries’
aimed at keeping down the large costs of handling cash
combined populations.
and securing it by financial incumbents.
Admittedly, the mobile take-up could be better, as much
However, by going down the ladder, you will find
of the economic activity is centered around Java. But a
small merchants who help facilitate micro transactions.
growing second-hand phone market in the country means
Traditionally, the profits gained from such small transac-
that more people – especially those in lesser-developed ar-
tions are undercut by the costs of storing and distributing
eas – have better access to smartphone technologies. The
cash in its physical form.
overall distribution of this technology is improving.
By going digital, these merchants can facilitate more
All this is supporting Indonesia’s claim to become
transactions (even as low as Rp 1,000) at lower costs. This
Southeast Asia’s largest digital economy. The digital lobe is
offers them another paying tool that is not limited by the
reflected in the growing social media reliance, in addition
hard currency available, thus keeping them in business
to the rising adoption of big data and a thriving start-up
whilst providing their customers more payment variety.
economy. But what will truly lead the digital revolution
across the nation are mobile payments. Realizing a Financially-Inclusive Indonesia
Indonesia – like many other countries today – are digi-
A Burgeoning Mobile Internet Economy
talizing their IDs. This is creating opportunities to mar-
More Indonesians are using their phones to go online.
ry digital IDs with mobile payments (a plan that may
This holds tremendous potential as it can push the de-
soon take off in China).
mand up for mobile banking services up, which is sig-
While this idea may seem part of an unattainable
nificant for a country that contains 180 million unbanked
future, it is important that mobile payments players in-
people. In many parts of the country, you can forget talk-
novate the demand that was previously untapped or even
ing about digital banking; even basic forms of formal fi-
unheard of. This is because disruption – the ones that we
nancial services are lacking
have seen transform traditional industries – do not hap-
So, depending on where you are, it may be easier to
pen overnight. They happen when market segments have
own a smartphone than travelling to the closest bank. Mo-
been underserved for too long, thereby creating condi-
bile technology can therefore cut across the fragmentation
tions that make the market ripe for major upheaval.
within conventional payments systems and the country’s
In Indonesia, this could mean empowering those
archipelagic geography – two significant factors behind the
who have been traditionally left out of financial services,
suppression of Indonesia’s holistic economic growth.
either due to their geographical circumstances or that
Growth Barriers the conventional services simply do not suit them.
Mobile payments seem like an easy alternative to visiting With mobile payments, Indonesia can be more finan-
an ATM to get cash in rural spots, its use may be futile if cially inclusive. It can allow the urbanite to save a trip to
the merchants themselves do not see the need to for digi- the mall thanks to online shopping, while people in In-
talized payments – either due to the unattractive costs for donesia’s hardest-to-reach places can facilitate more mi-
implementation or because their customers do not fully cropayments and loans. With mobile technology, we can
realize the benefits. cut across the financial divides. F

28 | FORBES INDONESIA MARCH 2019


inancial Revolution

THE By Ardian Wibisono


P H OTO GRA P H BY A H M A D Z A MR O NI /H KV FO R FO R BES I ND O NES I A

UNICORN
BREEDER
Alpha JWC Ventures
is setting a
benchmark in the
VC industry
Chandra Tjan (left) and Jefrey Joe
inancial Revolution

ndonesia has a vi- BEST PERFORMING


brant startups scene COMPANIES
with already four out Multiple (from initial to 21.3
of seven unicorn in last share price)
the region. However
20

MULTIPE (TIMES)
not many saw that
potential nine years 19
ago. In 2010, Chan-
dra Tjan, 39, was 18
among the few who see the potential 17
of the digital economy in Indonesia
and the trends in the U.S. and China 16
could repeat in the country. Local 15
startups like Tokopedia also started
14.2
to emerge at the time, but finding
14
financing was still not easy. Looking 13
at the opportunity, that year Chan-
12
dra decided to quit his job, moved in
to Jakarta, and started the pioneer- 11 10.6 10.6
ing tech investor East Ventures with
10
Batara Eto, and later with Wilson Cu- 9.1
aca and Taiga Matsuyama. However 9
he was the only partner that is based
8
in Indonesia. Before setting up East
Ventures, Chandra was in the bank- 7
ing sector for nearly ten years, work- 6
ing at Credit Suisse and Citi Group
in Singapore. East Ventures raised 5
their first fund of just S$3 million and 4
invested in more than 30 companies
including Tokopedia and Traveloka 3
– he is still the director of East Ven- 2
tures Fund 1 until today. Chandra
was the first board member in the 1
two startups in the early days for a
COMPANY
0
few years. Now, that first fund net as- Funding Societies OnlinePajak Alterra Carro Style Theory
set value (NAV) has multiplied by an
amazing 20 times the initial invest- SOURCE: ALPHA JWC VENTURES

ment (20X). Until now, Chandra still


holds shares in both unicorns. MILESTONES AND ACHIEVEMENTS
Unfortunately the team split.
Chandra decided to leave East Ven-
tures after raising his fourth fund
Received Term Sheet from Sequoia Onboarded Kah
Raised $200 K loan Launched Modalku However, there was a change in MAS Meng Wong

back in 2014, only to return a year lat-


for SMEs and won in Indonesia with regulation just before they proceeded as the CEO for
Tech in Asia’s Best Iwan Kurniawan as with the funding, hence it took longer Funding Societies

er in the business with a new venture


Start Up 2015 co-founder for them to close the funding round. Malaysia
Mar Jan May Dec

capital (VC) outfit: Alpha JWC Ven- 2015 2016 2017


tures. Alpha is an independent and Feb Apr Aug Feb
Launched Funding Societies in Raised $1.2 Mn Seed funding Raised $7 Mn Series A funding led by Launched
Indonesia-focused early stage VC. Singapore by Kelvin Teo and Reynold from Alpha JWC Ventures Sequoia, participated by Alpha JWC Funding
Wijaya while the two were studying and Singapore Press Holdings Ventures and Harvard Business School Societies in
Chandra co-founded Alpha with Je- MBA at Harvard Business School In this round, the amount In this round, they broke the record as the Malaysia
In addition, they hired the first 2 key they raised broke the record largest Series A funding for SME digital
frey Joe, 35, and Will Ongkowidjaja, members in Singapore. for Seed funding in SEA. financing platform in SEA.

32 | FORBES INDONESIA MARCH 2019


40, in early 2015. While Chandra has which suit more for advanced inves-
a strong banking background, Jefrey tor. Cambridge Associates, a global
who was the COO of Groupon Indo- investment firm based in Boston,
nesia and co-founder of Alterra is a
more hands-on operation guy. Will,
“To know whether tracked the performance of venture
investment in 27,259 startups be-
on the other hand, has a balanced ex- a VC is doing a tween 1990 and 2010. Its research re-
perience in the investment banking good job is not veals that around 60% of the startups
and consulting firms – he was a di-
rector at UBS and prior an associate
by looking if they failed. Last year Alpha launched its
second fund with $100 million target
at Mckinsey & Company. have Go-Jek or and added seven new startups in its
E-commerce was booming at the Tokopedia in their inventory and it still aims to maintain
time, but Alpha decided to deploy
their $50 million first fund raised in
portfolio compa- a survival rate of over 90% for its in-
vestment.
2016 on what they think will be the nies, but whether “They’re very impressive, that’s
next big thing: fintech, software as a they have a consis- why we continue to participate (in
service (SaaS), and big data. In total,
Alpha had invested in 23 compa-
tent performance.” the second fund). I think they are on
par with China’s leading VCs,” says
nies from its first fund including in Yeo Lee Meng, Executive Director
peer-to-peer lending Funding Soci- invested in the first funds only one of Enspire Capital. Enspire is one of
eties, fintech Kredivo, mobile credit failed and burned a small investment the largest Singapore family office
recharge platform Alterra (previ- worth $40,000 or 0.1% of the fund funds that invest in VCs and direct
ously Sepulsa), taxation solutions size. In less than three years, Alpha investment in China and Silicon Val-
SaaS startup OnlinePajak, romance also managed to build up the com- ley, founded by Singapore technology
and health products e-commerce panies’ valuation to over $1.3 billion, entrepreneur K.S. Chay. Enspire has
Asmaraku, second-hand product while attracting international inves- been with Alpha since the first fund.
market Jualo, and big data company tors such as from China, Japan, U.S. “To know whether a VC is doing
Dattabot. The strategy served the as well as from Indonesia. a good job is not by looking if they
company well. Data from Pitch- “Many perceived investing in VC have Go-Jek or Tokopedia in their
book showed that the average top is like gambling, you invest in ten, and portfolio companies, but whether
performing fund in the U.S. achieved one or two might succeed and the they have a consistent performance.
the NAV of 2.6X after seven years. other failed. We want to change that But we do still aim for the home run,”
However, Alpha’s first fund has perception, we want to set a bench- Jefrey says.
reached the NAV of 2.6X in less than mark,” says Chandra. To maintain such consistency,
three years, the figure put Alpha’s VC itself is a relatively new indus- Alpha is very strict to its investment
first fund performance in the top de- try in Indonesia, which gained much philosophy and strategy. In the past
cile or at least above the top quartile traction with the growing digital in- one and a half year, Alpha received
category. From the 23 companies dustry. Data published by Google and over a thousand inbound deals –
ATKearney in 2017 showed that VC these are proposals coming from
investments in Indonesia in 2016 is sources like LinkedIn and email
merely 0.15% to the GDP, lower than introductions. All inbounds get the
Southeast Asia average of 0.28%. On same treatment, they have to fill a
the other side, this shows huge room Microsoft Excel form that basically
Raised over $260 Mn
Raised $200 Mn loan for SME collected for growth, especially if given incen- tries to find out three things: how
loan for SME by crowd funding and
tives and policy that foster the digital much fund they want to raise, who
Reached $100 Mn
loan disbursed collected by reached over $250 Mn
crowd funding loan disbursed for SME
startups industry. VC also plays an the existing investors are, and the
for SME
Mar Oct Jan

2018 2019 important role in the startup ecosys- startup track record performance
Apr tem. As an alternative investment, and traction. Outbound deals com-
Raised $25 Mn Series B funding led by
Softbank Ventures Korea VC may pay off high yield return in ing from reference, which now ac-
The round was also participated by Alpha
JWC Ventures. One more time, they broke the the long run compared to other in- count about 10% of the deal source,
record as the largest Series B funding for SME
digital financing platform in SEA. vestment, but risk is also very high – also have to give a pitch deck. First

MARCH 2019 FORBES INDONESIA | 33


inancial Revolution

step is Alpha ditch the ones that ALPHA JWC VENTURES IMPACT IN INDONESIA
seek to raise ten of thousand of U.S.
dollars and look at the ones seek-
ing few hundred to a few million
U.S. dollars investment. Historically,
Alpha invested from $1 million to $8
~3,200 Over Over Over
million in startups raising their seed
stage. By looking at the filled forms, value-adding jobs 17,000 $250 Mn 118,000
created by our portfolio SMEs digitized in loan disbursed loans received
Jefrey says it usually takes minutes companies since 2016 rural areas to SMEs by SMEs
for the co-founders to decide which
startups have the potential. Next,
Alpha takes a look at the founder. “They’re very impressive,
Founder, and co-founders, is one of that’s why we continue
the key ingredients that investors, to participate (in the sec- $8 Bn 900,000
from seed to late-stage, highly value. ond fund). I think they Indonesian tax registered corporate
“People often get it wrong. Af- are on par with China’s payment facilitated tax payers

ter watching Social Network, most leading VCs.”


would think strong founders are just – Yeo Lee Meng,
Executive Director of Enspire Capital.
like Mark Zuckerberg or those who
dropped out from Harvard Business
Over Over Over
School,” says Jefrey.
The founders of the startups 60,000 10,000 17,000
invested by Alpha have age ranging individuals received microloans SME outlets supported farmers supported
from 22 years old to 48 years old. SOURCE: ALPHA JWC VENTURES

Some founders are veteran entre-


preneurs like Edward Tirtanata actually Sequoia was also interested Alpha also saw a good prospect
of Kopi Kenangan who decided to but they hesitated to put in invest- in Charles Guinot’s OnlinePajak. The
partner with Alpha despite being ment because the founders were still startup was trying to eliminate com-
offered higher valuation from other studying. “But we were convinced. pany’s tax headache. However, at the
VC, some are experienced execu- If they could well execute the busi- beginning, no one was willing to in-
tives from well-known companies ness while studying, they could do vest that Charles had to put his own
or consultancy firms, but Alpha is more after they graduated. Later in money. In July 2017, Alpha led an in-
also willing to invest in founders like August, after the founders graduated vestment round for OnlinePajak with
Kelvin Teo and Reynold Wijaya of they raised $7 million with Sequoia, participation from Sequoia. Both
Funding Societies who at the time which we also participated,” says Funding Societies and OnlinePajak
were still studying for their MBA Chandra adding that being local fo- are among Alpha’s top performer
at Harvard Business School. Alpha cused and having deep understand- startups. Funding Societies is one of
became the first investor of Funding ing of local issues help them to see the fastest growing fintechs in the re-
Societies in April 2016 – at the time good business potential. gion, which as of January disbursed

SOURCE: ALPHA JWC VENTURES

MILESTONES AND ACHIEVEMENTS


Collected $8 Bn tax throughout the year
Onborded Gita Wirjawan, Awarded as one of 30 The tax was collected from 900 K corpo-
former trade minister and Promising Growth-Stage rate tax payers, with total transaction value
former chairman of Indonesia Startups in 2018 and of $120 Bn. Each month, the Company
Collected $200 Mn Collected more than $3 Bn investment coordinating received Innovator Award managed around 5 Mn invoices and 475 K
tax throughout the year tax throughout the year board, as commissioner 2018 from Forbes Indonesia payroll, and processed 9 K new companies.
Dec Dec Jan Oct Dec

2015 2016 2017 2018


Sept Jul Apr Sept
Officially launched Raised $3.2 Mn Series A funding Named one of Raised $25 Mn Series B funding led by
OnlinePajak: “Prepare-Pay- led by Alpha JWC Ventures World’s Technology Warburg Pincus
File” your taxes online The round was participated Pioneers 2018 by The round was participated by Alpha JWC
by Sequoia and Primedge World Economic Ventures, Sequoia, Primedge Investment,
Investment. Forum Global Innovation Fund, and Endeavor Catalyst.

34 | FORBES INDONESIA MARCH 2019


SPECIAL EVENT SECTION

The Bank is honoured to have Mr. Luhut


Panjaitan to kick-off the event in Jakarta.

Prominent speakers to deliver update information to help clients’ wealth management decisions.

Standard Chartered Bank Indonesia


CEO Rino Donosepoetro (right) and
Coordinating Minister of Maritime Affairs
of Indonesia Luhut Pandjaitan (left) at One of Indonesia’s diva, Ms. Bunga Citra Lestari, Partnering with Prudential Life Assurance
the Jakarta opening ceremony. ready to entertain the clients. to assist clients’ protection needs.

This year, Standard Chartered Bank Indonesia is celebrating the 15th anniversary of its annual wealth seminar
event called Wealth-on-Wealth (WOW) which took place in four cities, namely Bandung on February 7th,
Jakarta on February 11th, Surabaya on February 19th, and Medan on February 25th, attended by a total of 2,500
invited Standard Chartered Priority clients.
In this event, the Bank opted the theme of “Indonesia 2019: Unlocking Opportunities amid Global
Uncertainties” which highlighted the Bank’s optimism towards Indonesia’s economic growth amid the global
economic growth that is expected to slow down and the upcoming presidential election in Indonesia.
The seminar in Jakarta was officiated with notable keynote speech by Mr. Luhut Panjaitan, Coordinating
Minister for Maritime Affairs of the Republic of Indonesia as well as other top speakers such as Mr. Chatib Basri,
Minister of Finance of the Republic of Indonesia for the period 2013-2014, Yunarto Wijaya, Executive Director, Charta
Politika Indonesia, and Michael Tjoajadi, President Director of PT Schroders Investment Management Indonesia.
Ms. Farah Ratnadewi Indriani, Deputy of Investment Climate Development, from Investment Coordinating
Board (BKPM) also attended the event in Jakarta.
The Wealth Management division of the Bank also launched three digital-based solutions during this event
to further assist its Priority clients to navigate their investment, to perform financial planning and to insure
their travelling activities digitally from anywhere and at any time through Online Mutual Funds, SmartGoals and
Online Allianz Travel Insurance.
Collaborating with its main insurance provider’s partner, Prudential Life Assurance, the Bank greeted its valuable
clients in the event with Chinese handwriting calligraphy wish for health, prosper and luck in the year of 2019.

Ms. Alena Wu’s astonishing performance in Bandung and Medan Managing Director, Head of Wealth Management Standard Chartered
Bank Indonesia Bambang Simarno and Country Head of Corporate
Affairs Standard Chartered Bank Indonesia Diana Mudadalam at the
launch of online services
inancial Revolution

$260 million in loans. While On- public sector he was asked to help Last but not least, all of the in-
linePajak is now used by big compa- OnlinePajak as well as some of the vestment should lead to a successfull
nies like Astra International, Tokope- VC’s other portfolio companies. Gita exit. Gita says many VC firms have
dia and Traveloka, facilitating over $8 also helps Alpha to connect with blue a limited investment period and
billion in tax payment. chip investors like Sequoia and Soft- they would need to exit within 4-5
In those startups, Alpha put more bank, and in turn Alpha will connect years. In contrast, many startups are
than just capital on the table. Chan- these investors to their startups when already closing in to their maturity
dra says Alpha now has team of 20 they scale-up. stage and would require more long-
people and all based in Jakarta. The Another aspect that many of the term investors. “We have seen only
team helps the startups to find the LPs and startups like from Alpha is a handful of IPOs, some industry
talents needed by the company, grow its independency. Many VCs in Indo- M&A and consolidation. But there
business, deal with problems, and nesia are either corporate or family- are needs for a more sustainable
even media exposure. Jefrey says it is related VC. Jefrey says being inde- path, where local startups can get
important for Alpha to be founders’- pendent enables Alpha to take swift access to long-term funding while
friendly, meaning when founders and rational decision without having remaining as focused and as inde-
have problems they open up to Al- to seek approval from anchor inves- pendent as they may prefer,” he says.
pha. Jefrey adds that it is not unusual tor. The company also doesn’t have And so far, Alpha has done one
to discuss problem with founders late to deal with conflict of interest that exit from its first fund by selling
at night, one even tag along with him might risk the business. co-working space Spacemob to We-
to Singapore just to have a discussion “OnlinePajak, for example, deals work. Wework is planning a major
during the flight. with sensitive tax data. We don’t have expansion in Southeast Asia pump-
“Alpha is also especially hands- any interest to take a peek. Our sole ing in $500 million. The acquisition
on in their portfolio companies – not interest is money, but we maintain happened just nine months after
just in operations, but they are very our integrity. We don’t represent any- Alpha invested in the co-working
good in bringing other institutional thing other than Alpha,” Jefrey says. startup and generated 150% in IRR
investors to the companies’ subse- For their second fund, Alpha is and 2.5X in multiple of capital con-
quent funding rounds,” says Gita extending their focus to media and tributed (MOC), which is a multiple
Wirjawan on what he likes in Alpha advertising. Chandra says even uni- of distributions received relative
compared to other VCs. corns like Go-Jek and Tokopedia will to the capital invested. Chandra
Gita is a veteran entrepreneur still need media advertisement. So far says Alpha is currently looking at a
and investment banker. The founder the VC has invested in media startup couple of exit.
of Ancora Group and former Trade Nusantara Technology and out-of- “We believe it was the right
Minister is one of Alpha limited part- home advertising company Target decision to exit and has maximized
ners (LP) – a common term for VC’s Media Nusantara, part of China’s Fo- the return in that situation. We don’t
investor – since the company’s first cus Media Group. Alpha also invested have any specific target, but we need
fund. Besides Alpha, Gita also in- in Vietnam based SaaS startup Base. to be smart in timing the exit of the
vested in other VC and startups. Gita vn. Like Funding Societies, Chandra companies. As a fund, we need to
sits in the board of advisor of Alpha says Base.vn has the potential to grow create superior return for our
and for his experience in private and their business in the region. investors,” Chandra says. F

SOURCE: ALPHA JWC VENTURES

Awarded as The
Best Online Telco
MILESTONES AND ACHIEVEMENTS Channel for Indosat
Awarded as The Best
2017 and The
Performance Aggregator by
Best Performance Launched Alterra Academy XL Axiata 2018 and The Best
aggregator by XL The program reached more than
Awarded as The First Online Partner Performance Blibli
Axiata 2017 1 K applicants on the first batch
Telco Aggregator in Indonesia Award 2018
Dec Dec Oct Dec

2015 2016 2017 2018


Mar Oct Dec Jan Mar Nov
Founded, launched consumer Launched Bill Awarded as The Best Raised Series A funding from Alpha JWC Raised Series B funding from Alpha Shortlisted as one of
app, and raised Seed funding Payment Online Telco Channel for ventures and Captii Ventures and launched a JWC Ventures and Integrated the eight startups to
from Alpha JWC Ventures and Aggregator Indosat 2016 and The Best ground breaking project called Archipelago Asset Management (Asia) join Bangkok Bank
Beenos Plaza. Performance aggregator The project aims to digitalize traditional InnoHub Season 2
by XL Axiata 2016 outlets for phone credit.

36 | FORBES INDONESIA MARCH 2019


inancial Revolution

ity for financing higher education


(roughly $70 billion each).
“Actually there are many rea-
sons why young people don’t go to
college, one being financial issue.

Financing
They have no ability to borrow,”
says Susli Lie, Co-Founder of Dana
Cita, a fintech lender that provides

Future
student loans.
That’s why President Joko
“Jokowi” Widodo in a gathering
with bankers in April 2018, asked
the lenders to allocate loans for
Could fintech help elevate higher education in students taking bachelor’s to post-
Indonesia? graduates degrees. Responding to
Jokowi’s aspiration, state-owned
By Ulisari Eslita banks like Bank Rakyat Indonesia,
Bank Tabungan Negara and Bank
Mandiri began launching student
Over the rate is 36% and 49%, respectively. loan products last year. The credit
past five Indonesia has a growth success limit provided varies from Rp75
decades, pri- story with its GDP increasing five million to Rp200 million, with an
mary school times in size since the year 2000— average of 6% annual interest rate
enrollment from $165 billion in 2000 to $903 and up to 10 years of tenure. In re-
rate in In- billion last year. In terms of de-
donesia has mography, Indonesia has one of the
been steady world’s youngest populations, with
EDUCATION
at 100%, 60% of population being young BUDGET
which means that all school-aged people in their productive ages. 2019
children in the country go to school. However, the demography bonus
And thanks to the government’s could turn south if the quality of 20%
universal primary education target the workforce is not improved. To
set in 1988, which aims to extend maintain the economic growth, the
the country’s minimum education country needs to continue increas-
attainment even higher, Indonesia’s ing the pool of skilled workforce
secondary school enrollment rate with skills relevant to address the
has gone up to 83%. demand from industry.
Unfortunately, higher education One of the ways to have more STATE BUDGET 2019

enrollment is growing very slow. In skilled people is to send more Rp 2,461.11 T


1970, the enrollment rate was 8% young people to college. Clearly, the
and today it is only 25%. According state budget cannot cover all the
SOURCE: THE HOUSE OF REPRESENTATIVE BUDGET COMMITTEE

to the Ministry of Higher Educa- cost, since the government’s fore-


tion, as of 2018, only 7.5 millions most attention is still to maintain turn, students are required to main-
young people at the age of 19-24 the primary and secondary level tain their academic performance
years old went to universities (out of education. In many developed with minimum 3.25 of GPA.
of 25 millions of population in that countries, such as the U.S., Cana- But even before the banks
age). Compared with the neighbor- da, and Australia, the government started giving student loans, some
ing countries, Indonesia clearly lags endorses higher education. In the fintech – namely DanaDidik, Dana
behind. The Philippines’ and Thai- U.S., the federal government and Cita, KoinWorks, and Pinduit –
land’s higher education enrollment the states share the responsibil- have seen business opportunity.

38 | FORBES INDONESIA MARCH 2019


Provincial Education Budget

Rp 308.38 T U.S. federal government weigh 90%


62.62% of the total loan market (the rest are
Education Development controlled by financial institutions).
Fund (DPPN)
This federal loan has a very loose
Rp 20.99 T term of payment. For example,
4.26% students are required to start pay-
Ministry of Education ing installments six to nine months
after they graduate. Under the stan-
Rp 35.99 T dard repayment scheme, the loan is
7.31%
also amortized over 10 years. Fur-
Ministry of Religious Affair thermore, students can also opt for
more manageable repayment plans
EDUCATION BUDGET
Rp 51.9 T after they graduate, such as extend-
10.53%
Rp 492.46 T Ministry of Research, Technology
ing their payments or adjusting the
installments with income-driven
and Higher Education repayment schemes.
Rp 40.1 T Fintech players are of course
8.14% aware of the risk, and they do have
risk management system to prevent
Other Ministries
the student loans turning sour. Da-
Rp 25.63 T naDidik, for example, only provides
5.20% loans to senior students enrolling in
State Treasurer’s Office
vocational education (like health-
care, technology, or accounting) in
Rp 9.36 T reputable universities, which they
1.90% see the students will easily be ab-
sorbed by industry once they gradu-
ate. DanaDidik also transfers the
Each is targeting different segment. a certain university, students can loans directly to the university.
DanaDidik, for example, is focus- apply,” says Susli. “That’s why we can maintain
ing on healthcare and technology Student loans can offer solu- our non-performing loan ratio at
students. Started in 2015, DanaDi- tion to the financing issue, which only 1.4%,” claims Dipo.
dik has 350 students in its portfolio. might as well improve productivity, Dana Cita implements a differ-
In average, each student could get drive the economy and lift millions ent strategy to minimize risk. Dana
Rp5 million to Rp25 million loan, of people out of poverty. However, Cita applies double borrower appli-
with up to 4.5 years of tenure. “Our it could also put a more liability on cation, meaning the student’s par-
credit scoring system is emphasiz- young adults especially when they ents also sign the loan agreement.
ing on employability: how prompt cannot payback their loans, thus But unlike in the U.S., both DanaDi-
the students are in getting a job af- creating a new source of risk to the dik and Dana Cita don’t give grace
ter they graduate,” says Dipo Satria economy, just like what happened period for installment. Borrowers
Ramli, CEO of DanaDidik. in the U.S. where student debts have to start paying installment in
On the other hand, Dana Cita, reached $1.5 trillion last year. That the following month. Yet, the repay-
which is started two years ago, means a typical student borrower ment term is quite friendly since
offers loans up to Rp100 million will have $22,000 in debt by gradu- the biggest chunk of the loan will be
per student, with interest rate of ation. As of last year, almost five paid after the students graduate.
1% per month. Unlike DanaDidik million Americans, or 22% of bor- “On our early operation, we
which requires borrowers to be in rowers have defaulted on their fed- used to apply the same system like
their senior year, Dana Cita wel- eral student loans. Why? One of the in the U.S. Unfortunately, it didn’t
comes freshman to apply. “As long triggers is the terms of payment. work out. They just forgot to pay
as they are already registered at Student loans provided by the the loan,” Dipo says. F

MARCH 2019 FORBES INDONESIA | 39


inancial Revolution

n the digital era, ing technology. Presently, Jojonom- to simplify administrative task, em-
working should be ic heavily focuses on B2B practice, ployees are able to increase their fo-
made as convenient since company’s productivity can cus and passion in working.
as possible, with be tracked through numbers, like “Those miscellaneous are not
flexible schedule revenue growth. people’s main job, and they de-
and less distraction Founder and CEO of Jojonomic, crease people’s passion and ef-
on trivial matters Indrasto Budisantoso claims that ficiency in working to the fullest.
like administrative Jojonomic’s users productivity im- Jojonomic begins to solve the issue
works and making reports. This is proves from two aspects. Firstly, by starting from our expense manage-
what Jojonomic is trying to solve using Jojonomic’s application they ment applications,” says Indrasto,
in order to improve people’s pro- are able to cut the time on dealing better known as Asto.
ductivity. Launched in 2015, the with administrative work by 70% or Jojonomic is widely known for
cloud-based mobile financial ap- more - what would’ve taken three their reimbursement application
plication emphasizes on taking care days can be shortened to less than JojoExpense, which was launched
administrative-related matters us- one day. Secondly, as they are able as one of the company’s earliest

.
.
.
services as well. Among others are

Simple
Pertamina Patra Niaga; CIMB Niaga
and Bank Bukopin; e-commerce
Tokopedia and Blibli; as well as tele-
communication, logistic, palm plan-

Work
tation, and consulting companies.
Asto claims that their active
users or subscribers have reached
tens of thousands in total. This does
not include thousands of users in
Jojonomic is taking over employees’ foreign countries where Jojonomic
administrative work so they can has expanded, especially since its
focus on what matters. 2016 funding, such as Malaysia, Sin-
gapore, Thailand, and the furthest
By Marella Putri being Colombia. They come mostly
from Indonesian MNC clients’ re-
ferral. Although their main focus
products, and has since been used is JojoTimes, which uses biometric is Indonesia, Asto admits that the
by many banks in Indonesia. With face recognition that enables em- startup has been quite opportu-
this, one could just take a picture ployees to clock-in by taking a selfie, nistic. Since Jojonomic specializes
of receipts using Jojonomic app in- as well as to track colleagues’ loca- in Software-as-a-Service (SaaS), it
stead of making a long reimburse- tions and their work progress. With uses cloud system and cover pay-
ment report. The app will then it, employees can work from any- ment from any currencies.
create a report and direct it to the where at anytime, and still achieve Jojonomic makes their revenue
company’s finance team. Upon their their target. There are also applica- from subscription fees, which are
approval, the virtual account at the tions for procurement, payroll, fi- based on the number of users and
bank will reimburse accordingly to nance, and business trip, which can the services that the company ticks.
the employee’s own account. This either be accessed from each app The range goes between $2 - $10 per
feature therefore allows an easy re- individually or from one big module user. They also integrate with banks
cord for expense and work trip, cre- of JojonomicPro. and negotiate for a cheaper transfer
ating a seamless reporting process. Asto says in their early days, fee, whilst still able to take margins.
Furthermore, it is also equipped most of the users are digital compa- Prior to developing their B2B
with fraud detection system backed nies. As trend goes and encourages services, Jojonomic actually began
by artificial intelligence and ma- everyone to go digital, now state- from free-access personal finance
chine learning system. Combining owned enterprises and more tradi- management application Jojo Fi-
the increase in productivity and less tional companies have used their nance, which aims to raise finan-
potential of fraud, research by Jo- cial literacy. Upon inputting bud-
jonomic claims to enable saving of get and expense, Jojonomic helps
around $500 per employee annual- “In the future, to track one’s limit. Unfortunately,
ly, and the amount can rise accord-
ingly if the employee’s number and
we want to since it has to be done manually,
people often forget and fail to con-
working hourly-rate is higher. accommodate tinue the routine.
into their lifestyle
MOHAMAD RAKA FOR FORBES INDONESIA

“The initial capital expendi- “This is the problem that we


ture investment by companies are
also relatively minimal, since it is
and revolutionize have identified and is on our pipe-
line for the long run. Now we have
subscription-based. Therefore we flexibility and seen how daily lives are getting
can make sure that the company’s productivity.” more integrated with the financial
return of investment for using Jojo- technology environment, as well as
nomic is positive,” says Asto. how cashless payment is growing.
Another widely used application When these two aspects merge, our

MARCH 2019 FORBES INDONESIA | 41


inancial Revolution

application will not require people

Redefining
to do manual input anymore, since
everything is already integrated.
Soon enough, we are definitely

Banking
waiting for the right moment to
come,” visions Asto.
So far, Asto is quite proud that
Jojonomic as an Indonesian B2B
application is being used by clients
from other countries. Although
some competitors follow suit, Asto
DBS Indonesia is redefining banking
is confident that Jojonomic has the experiences in digital era.
upper hand due to all services being
By Ester Christine Natalia
integrated. New players in the busi-
ness also indicates that the space is
indeed lucrative. The huge poten-
tial of the business also attracts in-
vestors representing many regions owadays, a consumer-banking product called
to invest in Jojonomic. digitalization Digibank. The name itself is self-ex-
“We are among the few that has disrupt- plained, the product promotes a digi-
could claim of being backed by ed lots of tal access to banking services through
investors from the US, Europe, Ja- conventional smartphone application. The subsid-
pan, Singapore and local as well. businesses. iary of Singapore-based lender claims
Through them, we learn how they Companies the product, which is only available
grow the cloud and SaaS business that have in Indonesia and India, as a purely
in their respective region and how been established for over a decade paperless banking product.
to penetrate the market, then it are now competing head-to-head “We want the smartphone to
would be easier for us to go glob- against stratups-most of wich were substitute brick-and-mortar banks.
al,” says Asto in confidence. founded in the last five years. In So the smartphone becomes the
Last January, Europe-based Indonesia, the major change can be bank itself, not merely an extension
Finch Capital led an investment seen in financial industry with the for banking services in a smart-
with East Ventures and Golden boom of startups delivering innova- phone,” says DBS Indonesia Presi-
Gate Ventures in Jojonomic with tions from a combination between dent Director Paulus Irwan Sutisna,
undisclosed amount, which is to financial services and technol- 54, adding that the bank currently
be used to upgrade business solu- ogy. The new phenomenon called has 44 branches throughout Indone-
tion. Following this, Asto reveals financial technology, or popularly sia and has no plan to open more.
that this mid-year Jojonomic will known as fintech, boasts convenient With digibank, those who want
launch three new applications procedures and seamless process to open a bank account simply need
to boost efficiency and eliminate in obtaining financial services in to fill in data form on the applica-
administrative work. Along with far simpler way compared with the tion and set an appointment with
their goal in contributing to Indus- conventional finance company. As of an agent who will bring a device to
try 4.0, they want to influence the February, there are 99 fintech com- verify customer’s biometric data. The
mindset of companies. panies registered at the Financial biometric verification can also be
“In the future, we want to Services Authority (OJK). These fin- done at Biometric Station available in
accommodate into their lifestyle techs are specifically targeting un- 27 coffee shops in Jakarta, Bandung,
and revolutionize flexibility and banked people in Indonesia, which Surabaya and Yogyakarta. The bank
productivity, a solution for adminis- are 95 million people according to is cooperating with Home Ministry’s
tration hassle. So if a company World Bank Global Findex 2017. Population and Civil Registry Agency
claims to have gone digital, they To stay updated with the chang- (Dukcapil) to obtain biometric data
must be using Jojonomic.” F ing trend, DBS Indonesia launched from customers’ e-KTP, as well as a

42 | FORBES INDONESIA MARCH 2019


AGOES RUDIANTO FOR FORBES INDONESIA

MARCH 2019 FORBES INDONESIA


|
43
inancial Revolution

local startup to outsource the verifi- COSTUMER SEGMENTATION “We are trying to be embedded
cation agents in Greater Jakarta Area, Digibank by DBS Indonesia customers, as in the e-commerce world because
Bandung, Surabaya, Semarang, Yog- of February 2019: 600,000 customers people are busy shopping in that
yakarta and Medan. platform nowadays. Our dream is
It takes no minimum balance to Geographically that one day the transaction can
open an account. Once it is set up, the be done without having to switch
customer is able to transfer fund up 3% Semarang and
Yogyakarta 1% between e-commerce and banking
Medan
to Rp 200 million to other bank ac- application, so the process will be
Surabaya
count through the application with- totally seamless,” Paulus explains.
out administration fee. The bank also 8% In terms of security, he says that
enables customer to withdraw money DBS Group hires the so-called white
and check balance through any ATM hackers to try to hack their system
machine that partners with ALTO, and find loopholes to be fixed. DBS
ATM Bersama or PRIMA networks has a global reputation in security. It
free of charge for up to 100 transac- is listed in the Global Top 50 World’s
tions each month. Other features in- 73% Safest Banks from Global Finance
clude spending tracker, 24-hour vir- 14% Greater
Jakarta Area Magazine for 10 consecutive years.
Bandung
tual assistant, e-wallet top-up and bill He also claims biometric verification
payments, as well as personal loan used for digibank to be safer than sig-
Demographically
application. nature, which can be easily fabricated.
Since the launching in Au- 34% 42% According to the bank's financial
Above 35 Millennials
gust 2017, DBS Indonesia has got years old (<28 years report, as of third quarter of 2018,
old)
600,000 new customers through DBS Indonesia booked Rp 2.9 tril-
its Digibank, with a growth rate of lion net interest income, up by 31.8%
around 1,000 new accounts each year-on-year from Rp 2.2 trillion. It
day. Perior to the launch, the lender also recorded Rp 57,608 trillion in
was focused on corporate and SMEs outstanding loans, with 3.11% gross
clients with only a total of 100,000 non-performing loans.
customers. So far, 42% of digibank’s 23% To be totally in tune with digita-
customers are under 28 years old Senior Millennials lization, Paulus says DBS Indonesia
(28-35 years old)
and 73% coming from greater Jakar- SOURCE: DBS starts to utilize big data from a local
ta. The digibank customers spread telecommunication company for
matches its target market; the urban customers, balances and personal credit scoring with a newly launched
digital savvy millennials. The bank loans in Digibank will later auto- system named Algo Lending. The
aims to have at least 3.5 million cus- matically contribute to the bank system is applied for personal loans
tomers within five years operation revenue, he explains. approval. It works by using data
of digibank since they plan to make However, it is a challenge for the from the telecommunication com-
it as one of their main banking prod- bank to make sure the customers pany to analyze customer’s spending
ucts in the future. keep using Digibank instead of run- and behavior for credit scoring. The
Paulus says they have yet to set ning away after registering—since score will help DBS Indonesia decide
a revenue target from digibank be- there is no minimum balance. For whether to approve the loan applica-
cause they still focus on the amount that, Paulus says the bank will coop- tion or not. This way the bank could
of customers. He also adds that the erate with e-commerce companies manage bad loans better.
bank has no plan to charge digibank in providing seamless payment sys- “Data from a telecommunication
customers with administration fee tem, one of which will be announced company is very rich. For instance,
since the product offers efficiency sometime around this year. Cur- we can discover customer’s spend-
in attracting more customers with- rently, Digibank is partnering with ing and current residence, and verify
out opening more branches. A 450 19 merchants including Mandiri whether it is true from the data. No
sqm branch office typically cost Rp e-Money, Telkomsel, GOPAY, M-tix, need paper documents to apply for
5.5 billion. The growing number of PLN and MOGPlay. personal loans,” Paulus says. F

44 | FORBES INDONESIA MARCH 2019


WO U L D YO U R I S K FA L L I N G
F O R T H E C H A N C E T O F LY ?

MAKE THE CALL

THE MACALLAN PRESENTS A J. WALTER THOMPSON/RSA FILMS PRODUCTION A JURIAAN BOOIJ FILM
IN ASSOCIATION
WITH GLEN GRIBBON, PAUL CONDRON AND ALISON TUCK EXECUTIVEDIRECTOR
CREATIVE
LUCAS PEON DIRECTOR
CREATIVE
PAUL RIZZELLO CREATIVE
TEAM STEFAN FOSTER AND KATIA SCHUTZ

PARTICIPATION OF DAVID CLYDE, JAMES O’REARDON, ADRIAN LANGFORD AND NEIL GODBER PRODUCERS DOUG WADE, GREG NICHOLLS AND JAMES AUBIN PHOTOGRAPHER JASON PIETRA
WITH THE

RETOUCHER ALAN MURRAY PRODUCTION ABSOLUTE POST PRODUCTION CREATIVE OFFICER DAVID SMITH SUPERVISOR BEN ROBARDS OF CGI JAMES COORE COLOUR MATT TURNER PRODUCER LISA JOSEPH
POST CHIEF VFX HEAD HEAD OF

Please enjoy responsibly


www.themacallan.com
facebook.com/themacallanid
FORBES INDONESIA

LeaderBoard
MANUFACTURING & INDUSTRY
MICHAEL SORKIN, 27
30 UNDER 30 EUROPE 2019 COFOUNDER, IGO3D
GERMANY
When Sorkin was 12, his family fled Russia
and settled in Berlin. In 2010, he dropped
TECHNOLOGY out of college (“I was frustrated—I wanted to
DAVIDE DATTOLI, 28 build things”) to found iGo3D, a 3-D-printer
FOUNDER, TALENT GARDEN distributor that now does over $28 million in
ITALY revenue. The company sells printers directly
While WeWork focuses on America and major to retail chains including Staples.
European cities, Dattoli has raised $61 million to bring
co-working to places like Bucharest, Romania and
Kaunas, Lithuania. “Innovation is not growing only in
San Francisco or London,” he says. Dattoli has 3,500
members and 23 locations across eight countries.
EUROPE
2019

SOCIAL ENTREPRENEURS
CAMILLA HESSELLUND LASTEIN, 25
FOUNDER, LIX
DENMARK RETAIL & ECOMMERCE
After learning that only 2% of textbooks RAISSA DE HAAS, 28 ART & CULTURE
are digitized, Lastein founded Lix, a COFOUNDER, DOUBLE DUTCH DRINKS CONNA WALKER, 26
subscription-based digital textbook app: NETHERLANDS FOUNDER, HOUSE OF CB
“You have the convenience of having the Raissa and her identical twin, Joyce, got their start in college U.K.
book everywhere you go.” Lix has raised making tonic waters infused with strawberry, mint and pome- In high school, Walker founded wo-
$7.5 million from investors, including Danish granate. Their Double Dutch Drinks (seltzers, ginger beer and menswear brand House of CB, which
billionaire Anders Holch Povlsen. And it has more) are now available in 22 countries in 2,000 supermarkets sells figure-hugging dresses priced
convinced major publishers such as McGraw and 4,500 restaurants and luxury hotels. Joyce is chief oper- between $150 and $200, “an invest-
and Oxford to digitize their libraries. ating officer. As for Raissa? “I’m 11 minutes older, so I am CEO.” ment piece for everyday people,”
she says. The company pulled in $15
million in profit last year; Kylie Jen-
46 | FORBES INDONESIA MARCH 2019 ner and Jennifer Lopez are fans.
SPORTS & GAMES
FINANCE CARLOS RODRIGUEZ, 28
JONATHAN LEVIN, 28 FOUNDER, G2 ESPORTS
COFOUNDER, CHAINALYSIS SPAIN
U.K. ENTERTAINMENT MEDIA & MARKETING
In 2014, Rodriguez ended his
“I am not a spy,” Levin insists. JESS GLYNNE, 29 ANDY BRUCKSCHLOEGL, 29
decade-long playing career in
Perhaps not—but plenty of law- MUSICIAN COFOUNDER, RYTE
e-sports (“I consider myself a
enforcement agencies, such as U.K. GERMANY
competitor and entertainer,”
the FBI, DEA and Europol, rely “My parents always had Ryte, with $3.5 million in fund-
he says) to start his own team,
on Chainalysis’ software to track records lying about and ing, creates software that helps
G2 Esports. The 40-player club,
down the illicit side of cryptocur- introduced me to dif- websites perform better in
which primarily competes in Call
rency. The startup has $18 million ferent genres. I became search results. Bruckschloegl’s
of Duty and League of Legends
from investors like Benchmark. obsessed through other gig: hosting an entrepre-
tournaments, generates revenue
them,” Glynne says. neurship festival at Munich’s
mostly from sponsorships with
Their tutelage paid off: Oktoberfest, to which more than
companies such as Logitech. In
She has scored seven 5,000 show up to hear from the
all, the team is conservatively
No. 1 hits on Billboard’s likes of Richard Branson.
worth $105 million.
British charts, and her
2018 album, Always In
Between, debuted at the
top of that list as well.

SCIENCE & HEALTH CARE


YANN FLEUREAU, 29
COFOUNDER, CARDIOLOGS TOP ROW, FROM LEFT: Raissa De Haas Dress by Tory Burch; earrings by Noor Fares; gold bangle and ring by Carolina
FRANCE Bucci; shoes by Malone Souliers.
Davide Dattoli Shirt by Richard James; jacket by Paul Smith; jeans by Theory; shoes by Crockett & Jones.
Fleureau’s first job, at age 16, was working on a Michael Sorkin Shirt by Canali; cords by Tom Ford.
shallot farm. He would eventually follow a decid- Jonathan Levin Shirt by Filippa K; trousers by Timothy Everest; shoes by Crockett & Jones.
edly higher-tech path: With $10 million in funding, Carlos Rodriguez Shirt by P Johnson; T-shirt by Filippa K; trousers by Hackett; shoes by Crockett & Jones.
Andy Bruckschloegl Shirt by Huntsman; T-shirt by Sunspel; chinos by Canali; belt by Brooks Brothers; shoes by Bassweejun.
he has created software to help doctors who aren’t
cardiologists better analyze EKG exams. BOTTOM ROW, FROM LEFT: Camila Hessellund Lastein Robe by Georgina Harding; skirt by Rebecca
Vallance; necklace by De Beers; gold-and-diamond cuff by Ileana Makri; shoes by Manolo Blahnik.
Conna Walker Suit by Alexander McQueen; jewelry by House of CB; shoes by Gianvito Rossi. Stylist: Melissa Holdbrook-
Akposoe; assistant stylist: Chloe Vazz; makeup: Nikki Wolf; hair: Carl Campbell.
Yann Fleureau Shirt by Missoni; jeans by Autograph; boots by Jimmy Choo.
Jess Glynn Suit by Esaú Yori; vest by James Perse; jewelry by Adina’s; shoes by Malone Souliers. Makeup: Anna Payne; hair:
Lyndell Mansfield; stylist: Avigail Collins; nail tech: Kelly Shenton.
FORBES INDONESIA

TECHNOLOGY WARUNG PINTAR

I
n Indonesia, it is easy to stum-
ble upon some mom-and-pop
stores commonly known as
warung on the side of streets or
corner of residential area and busi-
ness district. These warungs often sell
daily necessities like snacks, candy,
cigarette, soap, and mobile phone
credit. Established in November 2017,
startup PT Warung Pintar Sekali (Wa-
rung Pintar) - literally translates into
‘smart kiosk’ - is trying to upgrade
these micro entrepreneurs. Painted
bright yellow and accentuated with
black, which makes it being pretty
eye-catching from afar, this warung
2.0 is equipped with technology and
features that enables them to adapt
with digitization and cater to changing
consumer needs.
“The number of warung across
Indonesia reached nearly 3 millions,
and around 70% of the people are still
onto general trade. So it’s just logical
to grab that opportunity,” says Agung
Bezharie Hadinegoro, 29, Co-founder
and CEO of Warung Pintar, referring
to a report by Nielsen.
Prior to founding Warung Pintar
with other co-founders: COO Mu-
hammad Harya Putra and CTO Sofian
Hadiwijaya, Agung himself was an as-
sociate at venture capital. He thinks
that SMEs are always very interesting
for having large numbers, yet being

Smart FROM TOP:


Agung Bezharie Hadinegoro, CEO

Kiosk
Sofyan Hadiwijaya, CTO
Muhammad Harya Putra, COO
WINSTON GOMEZ FOR FORBES INDONESIA

underserved and lacking technological products, which mo-


tivated the trio to bring solution to these micro-businesses.
In December 2018, Warung Pintar expanded from great-
er Jakarta area to Banyuwangi, East Java. Agung claims to
Warung Pintar empowers micro-
have 1,200 warungs in total per end of January. He aims to
entrepreneurs for digital inclusion. reach at least 5,000 by this end of year and focuses on up-
BY MARELLA PUTRI grading more warungs within Java first. Despite already re-
ceiving more than 10,000 partner applications every month

48 | FORBES INDONESIA MARCH 2019


from all over Indonesia, these appli- to tap into the retail community and enue streams. It takes margin from the
cants must first pass Warung Pintar’s therefore work with them as well. goods inventory sold to the warungs,
standard assessment on their loca- “What we do is basically embed- and platform fee from transactions
tion - such as their land legality and ding technology in order to generate and advertisement. In terms of rev-
clear payment record; as well as on the data, and when it is generated, every- enue, Agung hints that they are grow-
market share itself - the traffic, GDP thing is much smarter. Both warung ing much higher than 20% month-
per capita, and density in the neigh- and companies can be benefited be- on-month, and states that it is not yet
borhood. cause everything is aggregated,” ex- their objective to be profitable this
When a warung becomes a partner, plains Agung. year as they have always prioritized to
they are obligated to use the module From the generated data, compa- scale very quickly first. The warungs
and platform as prepared by Warung nies can see which of their products are however, which daily sales varies from
Pintar. Warung Pintar provides early selling well in which area and under- Rp 300,000 to Rp 5,000,000, are al-
capital for entrepreneur to open or stand the market situation. And when ready profitable, and on average they
upgrade their warung and lend equip- they want to increase their market have had 40% increase of income - per
ments such as Wifi router, mobile share in certain area, they can advertise December 2018. Majority of the prod-
charging station, LCD ucts sold are FMCG, but
TV, and CCTV. The Warung Pintar plans to ex-
startup also educates Mobile WI-FI pand sales of non-FMCG
Phone
the owner to operate Charging products this year.
Post
all the features and ser- Leveraging from tech-
vices they could offer to CCTV nology makes everything
their customer. Aside LCD TV more efficient for warung,
from common FMCG which basically distin-
products, the warung Cashless guishes their model to that
can now also offer digi- Mini Payment of convenience store. And
Refrigerator System
tal and financial prod- therefore, Warung Pintar
ucts, such as mobile doesn’t feel as much as di-
phone credits, train and Electrical rectly competing with con-
Plug
plane tickets, to mo- POS Tablet venience store.
torbike credit that can “We see from the per-
be purchased through spective of business model,
cashless payment. distribution, products sold,
Warung Pintar is and the behavior of those
planning to extend further these wa- through Warung Pintar - as tradition- who come to warung, which is more
rungs’ feature with the recent series ally warungs have always been an in- community-based,” Agung says.
B funding worth $27.5 million, which formal advertising channel. From this He also says that the inbound
they sealed in mid January 2019. ad placement on their TV and internet growth of applicants represents In-
Jumping in to the list with other pre- service, warungs will get commission donesian’s highly positive perception
vious seed investors (including SMDV, as their additional revenue. Warungs on entrepreneurship, as reported by
Vertex, Pavilion Capital, Line Ven- are also benefited in terms of procure- Global Entrepreneurship Monitor
tures, Digital Garage, Agaeti, Triputra, ment. It’s a compulsory for the wa- 2018, as well as the growth of digital
Jerry Ng, and EV Growth) is mobile rungs to buy their inventory from Wa- literacy. What Warung Pintar does is
payment system OVO, which will help rung Pintar, however the prices will be therefore simply, yet crucially, accom-
the startup to provide further finan- cheaper since Warung Pintar is able to modating this enthusiasm by provid-
cial inclusion to warungs, such as in negotiate bulk price with producer. ing them the capital needed and in-
easy access to funding, inventory, and “On our financing part, we are able creasing their capacity in the process.
payment. Ostensibly, Warung Pintar is to disperse loans quickly with lower “We want to be the golden stan-
sophisticating services between stores risks to our warung, because we have dard for micro-businesses. So when
and customers, but the fundamental already known our warungs’ transac- one thinks about quitting job and
principle lies on how Warung Pintar tions, traffic, and cash flow registered build warung, they will build warung
as a platform aggregates these wa- on our database,” explains Agung. pintar instead of the normal conven-
rungs so that big companies are able Warung Pintar has several rev- tional one.” F

MARCH 2019 FORBES INDONESIA | 49


What does a blockchain
look like? Using Google’s
BigQuery, a Danish designer
created this visualization
of the blockchain for the
XRP cryptocurrency.
Every speck is a
wallet or user. Swirls
represent payments,
and craters are
XRP whales like
exchanges
Binance,
Poloniex and
crypto debit
card startup
Wirex.

Googling I
t’s a balmy 80 degrees on a mid-December day
in Singapore, and something is puzzling Allen
Day, a 41-year-old data scientist. Using the tools

Blockchain
he has developed at Google, he can see a myste-
rious concerted usage of artificial intelligence on the
blockchain for Ethereum. Ether is the world’s third-
largest cryptocurrency (after bitcoin and XRP), and
it still sports a market cap of some $11 billion despite
In the late 1990s, Google transformed the Web losing 83% of its value in 2018. Peering into its block-
by creating a fast, accurate and easy-to-use chain—the distributed database of transactions un-
derpinning the cryptocurrency—Day detects a “whole
COURTESY THOMAS SILKJAER

search engine. Now it could do the same for


bunch” of “autonomous agents” moving funds around
the blockchain, the technology underlying
“in an automated fashion.” While he doesn’t yet know
cryptocurrencies like bitcoin and ethereum. who has created the AI, he suspects they could be the
BY MICHAEL DEL CASTILLO agents of cryptocurrency exchanges trading among
themselves in order to artificially inflate ether’s price.

50 | FORBES INDONESIA MARCH 2019


FORBES INDONESIA

TECHNOLOGY GOOGLE’S CLOUD

“It’s not really just single agents do- a suite of tools for building and man- Hired in 2016 to work in the
ing things on their own,” Day says from aging distributed ledgers. Microsoft health and bioinformatics areas of
Google’s Asia-Pacific headquarters. got into the space in 2015, when it Google, Day segued to blockchains,
“They’re forming with other agents to released tools for Ethereum’s block- the hottest distributed-computing
have some larger group effect.” chain. It now hosts a range of services effort on the planet. But the tal-
Day’s official title is senior devel- as part of its Azure Blockchain Work- ents he had honed—sequencing ge-
oper advocate for Google Cloud, but bench. But while Amazon and Micro- nomes for infectious diseases in real
he describes his role as “customer soft are focusing on making it easier time and using AI to increase rice
zero” for the company’s cloud com- to build blockchain apps, Day is fo- yields—were not easily applied to
puting efforts. As such it’s his job to cusing on exposing how blockchains decoding blockchain.
anticipate demand before a product are actually being used, and by whom. Before Day and Medvedev re-
even exists, and he thinks making “In the future, moving more eco- leased their tools, just searching a
the blockchain more accessible is the nomic activity on chain won’t just re- blockchain required specialized soft-
next big thing. Just as Google enabled quire a consensus level of trust,” says ware called “block explorers,” which
(and ultimately profited) from mak- Day, referring to the core validating let users hunt only for specific trans-
ing the internet more usable 20 years mechanism of blockchain technology. actions, each labeled with a unique
ago, its next billions may come from “It will require having some trust in tangle of 26-plus alphanumeric char-
shining a bright light on blockchains. knowing about who it is you’re actu- acters. Google’s Blockchain ETL, by
If Day is successful, the world will ally interacting with.” In other words, contrast, lets users make more gen-
know whether blockchain’s real us- if blockchain is to go mainstream, eralized searches of entire ecosys-
age is living up to its hype. some of its beloved anonymity fea- tems of transactions.
Last year Day and a small team tures will have to be abandoned. To demonstrate how custom-
of open-source developers quietly A native of Placer County, Califor- ers could use Blockchain ETL to
began loading data for the entire Bit- nia, Day got his first computer at the make improvements to the crypto
coin and Ethereum blockchains into age of 5 and a few years later started economy, Day has used his tools to
Google’s big-data analytics platform, writing simple programs. A fascina- examine the so-called hard fork, or
BigQuery. Then, with the help of tion with volcanoes and dinosaurs an irrevocable split in a blockchain
outside developer Evgeny Medvedev, turned his interest to life sciences, database, that created a new crypto-
he created a suite of sophisticated and he ultimately graduated from currency—bitcoin cash—from bitcoin
software to search the data. the University of Oregon with a dual in the summer of 2017.
In spite of a total lack of public- degree in biology and Mandarin in This particular split was the re-
ity, word of the project spread quickly 2000. From there he headed to UCLA sult of a Hatfield and McCoy “war”
among crypto-minded coders. In the to pursue a doctorate in human ge- within the bitcoin community be-
past year, more than 500 projects netics and helped build a computer tween a group who wanted to leave
were created using the new tools, program to browse the genome. bitcoin as it was and another who
trying to do everything from predict- It was at UCLA where Day began wanted to develop a currency that,
ing the price of bitcoin to analyzing relying on distributed computing, a like cash, was cheaper and faster
wealth disparity among ether holders. concept that is core to blockchains, to use for small payments. Using
When it comes to cloud com- which store their data on a large Google’s BigQuery, Day discovered
puting, Google is far behind Ama- network of individual computers. that bitcoin cash, rather than in-
zon and Microsoft. Last year Google In the early 2000s Day needed to creasing so-called micro-transac-
pocketed an estimated $3 billion in analyze the massive amounts of data tions, as the defecting developers
revenue from cloud services. Ama- that make up the human genome. To claimed, was actually being hoarded
zon and Microsoft, meanwhile, gen- solve this problem he hooked many among big holders of bitcoin cash.
erated about $27 billion and $10 bil- small computers together, vastly in- “I’m very interested to quantify
lion, respectively. creasing their power. what’s happening so that we can see
Day is hoping that his project, “Distributed-systems technol- where the legitimate use cases are
known as Blockchain ETL (extract, ogy has been in my tool kit for a for blockchain,” Day says. “Then we
transform, load), will help even the while,” Day says. “I could see there can move to the next use case and
playing field. But even here Google is were interesting characteristics of develop out what these technologies
trying to catch up. Amazon entered blockchains that could run a global are really appropriate for.”
blockchain in a big way in 2018 with supercomputer.” Day’s work is inspiring others.

MARCH 2019 FORBES INDONESIA | 51


FORBES INDONESIA

TECHNOLOGY GOOGLE’S CLOUD

Tomasz Kolinko is a Warsaw-based


programmer and the creator of a
service that analyzes smart con-
tracts, a feature of certain block-
chains that is designed to transpar-
ently enforce contractual obligations
like collateralized loans but with
less reliance on third parties, like
lawyers. Kolinko was frustrated
with his blockchain queries.
In December, Kolinko met Day
at a hackathon in Singapore. Within
a month of the meeting, Kolinko
was using Google’s tools to search
for a smart contract feature called
a “selfdestruct,” designed to lim-
it a contract’s life span. Using his
own software in conjunction with
Day’s, Kolinko took 23 seconds to
search 1.2 million smart contracts—
something that would have taken
hours before. The result: Almost
700 of them had left open a selfde-
struct feature that would let any-
one instantly kill the smart contract,
whether that person was authorized
or not. “In the past you couldn’t just
easily check all the contracts that
were using it,” Kolinko says. “This
tool is both the most scary and most
inspiring I’ve ever built.”
Day is now expanding beyond
bitcoin and ethereum. Litecoin,
Before joining
zcash, dash, bitcoin cash, ethereum Google’s cloud
classic and dogecoin are being add- team in Singapore
ed to BigQuery. Independent devel- and becoming its
de facto blockchain
opers are loading their own crypto evangelist, genetics
data sets on Google. Last August, Ph.D. Allen Day
attended the
a Dutch developer named Wietse Academy of Magical
Wind uploaded the entire 400 giga- Arts in Los Angeles.
bytes of transaction data from Rip-
ple’s XRP blockchain, another pop-
ular cryptocurrency, into BigQuery. neck deep in XRP transactions. operating blockchains to increase
Wind’s data, which he updates ev- “Google has been a bit of a security, a big deal in a world where
ery 15 minutes, prompted a Danish sleeping giant in blockchain,” says untold millions of crypto have been
designer named Thomas Silkjaer to BlockApps CEO Kieren James-Lu- stolen by hackers. The company is
create a heat map of crypto flows. bin, who is partnering with Google also pushing its developers to build
MUNSHI AHMED FOR FORBES

The resulting colorful orb reveals at to sell enterprise blockchain apps. apps on the Ethereum blockchain,
a glance more than a million crypto In addition to Day’s work, Google and Google’s venture arm, GV, has
wallets, including big exchanges has filed numerous patents related made a number of significant in-
like Binance and London’s crypto to the blockchain, including one vestments in crypto startups.
debit card startup Wirex, which are in 2018 to use a “lattice” of inter- The giant, it seems, is waking up. F

52 | FORBES INDONESIA MARCH 2019


F I N T E C H

WITH
FRIENDS
LIKE
THESE…
Ryan Williams is one of the most
successful 30 Under 30 honorees ever,
a tech founder reinventing real estate
investing via Cadre—and building a
$160 million personal fortune in the
process. The only hitch: His most
critical backer, Jared Kushner, is one of
America’s biggest lightning rods—and
won’t divest his big chunk. The inside
story of how a startup functions amid
the Trump soap opera.
BY N AT H A N VA R D I
JAMEL TOPPIN FOR FORBES

54 | FORBES INDONESIA MARCH 2019


Opportunity zone: Ryan Williams at the
New York office of his startup, Cadre. He has
surrounded himself with a team that combines
Wall Street and real estate veterans with
young tech wizards from the likes of Square.

MARCH 2019 FORBES INDONESIA | 55


F I N T E C H

A lot has been written about the self-enrichment


going on with the Trump administration. Ryan Williams,
however, suffers from the opposite problem. He’s the
UST BEFORE CHRISTMAS, American Dream personified. (Mark Cuban, a Cadre in-
the Associated Press pub- vestor who emails with Williams weekly, describes him
lished an article on the ways thus: “Smart. Focused. Learns and reiterates continu-
Ivanka Trump and her husband, ously.”) He has a product that promotes transparency,
Jared Kushner, might personal- liquidity and lower costs: With the click of a mouse, in-
ly profit from the generous new vestors can buy stakes in properties without the ridicu-
“opportunity zone” tax breaks lous double fees charged by traditional property invest-
they had championed as advisors ment firms and also exit via a new secondary market. Yet
to their father/father-in-law, Williams pushes his startup forward, dragging along his
who happens to be the president relationship with the White House like a two-ton anchor.
of the United States. The very Last April, Williams flew alone to Tokyo to meet Ma-
first path cited in the widely read sayoshi Son, the Softbank billionaire who has flooded
story: Kushner’s investment in the real the startup market with the conglomerate’s tankers full
estate startup Cadre, a stake worth up to $50 million, ac- of Saudi government petrodollars. Williams has raised
cording to his most recent federal financial disclosures. $133 million to date for Cadre, at a valuation, most re-
The collective groan emanating from Cadre’s head- cently, of $800 million. Over dinner at Son’s palatial To-
quarters in Manhattan could probably be heard all the kyo home, with its indoor golf range, Son demonstrated
way to the White House. “I would be lying if I said the his knowledge of Cadre’s model and threw out a $500
political angle wasn’t frustrating or concerning,” Ryan million investment—a figure, a source familiar with the
Williams, the CEO and founder of Cadre, says in as talks says, that would double Cadre’s current valuation.
matter-of-fact a manner as possible. “There are people “After we had dinner, he was like, ‘I want to show
who won’t work with us [because of the Kushner con-
nection], and we get that. But we have over 80 investors
in the company. Jared is a passive investor who has no
operational control.” DONALD TRUMP SON-IN-
Driving home the point, he gestures toward the doz- LAW JARED KUSHNER
ens of employees toiling industriously at their desks in
Cadre’s wide-open office space, maintaining a website
COFOUNDED CADRE WHILE
where qualified investors can view detailed information RUNNING HIS FAMILY’S REAL
on apartment and office properties, with video walk-
throughs, maps, lists of tenants and long memos packed
ESTATE BUSINESS. HE KEPT
with data points. “It’s a normal day, and everybody is ex- A STAKE WHEN HE WENT
ecuting,” Williams insists. “It doesn’t distract us.” TO THE WHITE HOUSE,
Yet the issue surrounds him. Literally. The office he
points across, in the historic Puck Building in Man-
CREATING HEADACHES FOR
hattan’s trendy Nolita district, is owned by the Kush- RYAN WILLIAMS.
ner Cos., run by Jared until he decamped to the White
House. Williams developed and incubated the Cadre
concept with Jared and his brother, Josh. In today’s you around, give you the tour,’ ” Williams recalls. “Basi-
startup world, where the term “cofounder” can signi- cally, as we were walking around, he said, ‘Do we have a
fy little more than buying coffee for everybody during deal at these pricing levels?’ ”
stealth mode, either of the Kushners could have tak- “I am honored and really appreciate the opportuni-
en that title with full justification; Williams has even ty,” Williams responded, “and would love to figure out a
referred to them as such. Many of the big real estate way to partner with you.”
players who adopted the Cadre funding platform came Williams left Tokyo with concerns about the amount
through Jared’s introductions; Josh’s venture fund, of control Softbank’s Vision Fund wanted—but optimis-
Thrive Capital, made the key early investment. Josh sits tic they could work something out. Cadre was about to
on Cadre’s board—and works two floors above. In other hit the big time, and Williams, already worth some $160
JAMEL TOPPIN

words, it’s extremely hard to detach the Cadre brand million (Forbes pegs his stake in Cadre at about 20%),
from the Kushner one. was poised to become extremely wealthy. But within a

56 | FORBES INDONESIA MARCH 2019


month, Bloomberg News ran an article emphasizing the
potential link between Jared Kushner, Cadre, Softbank
and Saudi money. Discussions fell apart soon after.
“It has been a challenge because of the association,”
THE FORBES
says Michael Fascitelli, the head of Cadre’s investment
committee and the former CEO of real estate giant Vor-
nado Realty—introduced to Williams, yes, by the Kush-
FINTECH50
ners. “Jared is not involved, but there is a perception he
is, and that is mostly a negative because people want to While crypto prices and ICOs collapsed, overall
stay clear of that.” investment in fintech surged in 2018, hitting $55
Williams has accumulated a dizzying array of back- billion worldwide, double the year before, Accenture
ers with ties to the current Trump era. Besides Cuban, reports. Big fintechs are getting bigger—19 of the 2019
the president’s biggest business-world heckler, there’s Fintech 50 are valued at $1 billion or more. But there
Peter Thiel, his biggest Silicon Valley water carrier, and are also 20 startups making their first appearance
George Soros, the poster boy for right-wing conspiracy on our fourth edition of this list. All our picks are
theorists. But as a policymaker and presidential whis- private companies and have operations, customers
perer, it’s Jared Kushner who creates Williams’ head- or impact in the U.S., even if they’re not based here.
aches, refusing to divest, despite sitting in on all sorts of See more details on each at FORBES.COM/FINTECH50.
decisions that could affect Cadre. “Ryan has dealt with EDITED BY JANET NOVACK AND MATT SCHIFRIN
it by being transparent and honest,” Fascitelli says, “and REPORTED BY JEFF KAUFLIN, TOM ANDERSON, MICHAEL DEL CASTILLO, ANTOINE
spending more time than he should explaining it to in- GARA, SARAH HANSEN, JONATHAN PONCIANO AND KRISTIN STOLLER

vestors, sponsors and institutions.”


This article marks the first time Williams has delved Acorns Affirm
deep into the specifics of this unprecedented balancing IRVINE, CA SAN FRANCISCO
act. (Jared Kushner declined to comment. Josh Kush-
ner emailed an anodyne statement about Williams and
A micro-investing app that rounds Makes instant 3-to-
Cadre.) Over the past two years, Trump has busted a lot up debit and credit card purchases 24-month point-
of norms, many derived from emoluments issues and a to the nearest dollar, directing extra of-sale loans to
pennies into diversified portfolios of finance purchases from 1,500
family which continues to own wide-ranging business ETFs. Now offers checking account online merchants at APRs between
interests while leading the federal government. As Ryan and debit card, too, for $3 a month. 10% and 30%, with some sellers
subsidizing 0% APR rates.
Williams strives for scale, with an otherwise feel-good FUNDING: $257 million; latest valua-
tion of $860 million
entrepreneurial story, the 30-year-old also races to en- FUNDING: $450 million; latest valua-
tion of $1.8 billion1
BONA FIDES: In past year, has almost
sure that he’s not one of the many brought down be- doubled user base to 4.5 million BONA FIDES: Issued $2 billion-plus in
cause of their proximity to Trump. CEO: Noah Kerner, 41 loans in 2018, double 2017 volume
COFOUNDER & CEO: Max Levchin, 43, a
cofounder of PayPal
LIKE MANY YOUNG ENTREPRENEURS on the hunt Addepar
for capital, Williams knows how to market himself. His MOUNTAIN VIEW, CA
Axoni
personal elevator pitch: a kid from Baton Rouge who NEW YORK CITY
went from cutting up worms and selling them as bait to Its cloud-based software allows fi-
a teen whose wildly successful embroidered wrist- and nancial advisors, family offices and
Uses blockchain-based smart con-
private banks to track and analyze
headband business won him top awards from the Gold- a client’s holdings and more easily tracts to overhaul the back offices
of derivatives markets. A distribut-
man Sachs Foundation, the NAACP and the National bring new clients on board.
ed ledger will allow counterparties
Foundation for Teaching Entrepreneurship. Then came FUNDING: $240 million; latest valua- to see payments, calculations and
tion of $500 million-plus other trade information in real time.
Harvard, Goldman and Blackstone, and then the Forbes
ILLUSTRATIONS BY DAVID WILSON FOR FORBES

BONA FIDES: $1.3 trillion in assets on


30 Under 30, on the back of Cadre. platform; used by Morgan Stanley, FUNDING: $59 million
AB Bernstein, Oppenheimer & Co.
Yet there are aspects of his background that Williams and Jefferies
BONA FIDES: Working with trade
repository DTCC and a committee of
isn’t as keen to discuss. His father, a paralegal, and his COFOUNDER & EXECUTIVE CHAIRMAN: large banks
Joe Lonsdale, 36, also a cofounder of
mother, a social worker, separated when he was about Palantir Technologies
COFOUNDERS: CEO Greg Schvey, 32;
CTO Jeff Schvey, 33, brothers who
6. Williams and his family lived in rental homes in the CEO: Eric Poirier, 36 also cofounded TradeBlock
northern part of the city, which has long struggled with 1
SOURCE: PITCHBOOK.

segregation, crime and persistent poverty.


“He grew up in a community where the likelihood
BLOCKCHAIN INVESTING PERSONAL WALL STREET PAYMENTS LENDING REAL
was that one in three African-American men would be in & BITCOIN FINANCE & ENTERPRISE ESTATE

MARCH 2019 FORBES INDONESIA | 57


F I N T E C H

the criminal justice system,” says Darren Walker, pres-


THE FORBES FINTECH50 ident of the Ford Foundation, which invested in Cadre,
and a native of Louisiana. “Both of us had relatives who
Ayasdi FUNDING: Over $150 million; latest were in the prison system.”
MENLO PARK, CA valuation of $1 billion-plus
BONA FIDES: $500 million in reve-
“It was rough” is all Williams will say.
nue in 2018 His big break came right before high school, when
COFOUNDER & CEO: Valery Vavilov, 39,
Big banks use its machine learning
a Latvian-trained computer scientist
his mother moved the family to the more results-orient-
technology to analyze their market
and operational risks and detect ed New York City suburb of Ossining. Williams threw
potential money laundering.
Blend himself into school and his entrepreneurial ventures. He
FUNDING: $106 million SAN FRANCISCO ignored a guidance counselor who told him not to both-
BONA FIDES: Citigroup, Credit Suisse, er applying to Harvard, and he hooked up with a New
Department of Homeland Security
and Lockheed Martin are customers York program that mentors poor kids with potential. At
The cloud-based software provider
COFOUNDERS: CEO Gurjeet Singh, 37; allows mortgage applicants to se- Harvard, Williams studied economics.
president Gunnar Carlsson, 66; VP,
research, Harlan Sexton, 64—all Stan-
curely share financial data with lend- His true major? Networking. “He is fearless in his
ers to cut approval time. Moving into
ford mathematics Ph.D.s
the homeowners’ insurance business. outreach and pursuit of relationships,” says Raymond
McGuire, a vice-chairman of Citigroup and one of the
Behavox FUNDING: $160 million; latest valua-
tion of $500 million most prominent African-Americans on Wall Street. Wil-
NEW YORK CITY BONA FIDES: Its software is used to liams recruited McGuire to speak at an early meeting of
process more than $1 billion in mort-
gage applications a day Veritas Financial Group, a group he organized to con-
Fast becoming Wall Street’s one-stop COFOUNDERS: CEO Nima Ghamsari, nect undergrads with Harvard Business School profs. “I
AI shop, with algorithms that handle 33; CTO Eugene Marinelli, 31
surveillance of email, voice and text
always thought,” Williams says, “ ‘What was the worst
thing that can happen? People say no.’ ” They usually
data and accompanying data lakes.
Bolt said yes, though: It now ranks among Harvard’s biggest
FUNDING: $15 million; latest valuation SAN FRANCISCO
of about $300 million student groups.
BONA FIDES: Nearly 30 customers, in-
cluding Balyasny Asset Management,
“You can let being an outsider overwhelm you,”
Arrowgrass, Marshall Wace, TP ICAP, Its mobile-ready checkout software Williams says, “or you can figure it out and reset
Citigroup and Anglo American for ecommerce sites incorporates
both sales analysis and fraud pre- people’s expectations.”
COFOUNDER & CEO: Erkin Adylov, 35,
a Kyrgyzstan-born former Goldman vention, cutting both checkout time It was also at Harvard that Williams met Josh Kush-
analyst and hedge fund manager and fraud.
ner, two years his senior. The pair became close after
FUNDING: $20 million Williams’ junior year, when he snagged a summer in-
Betterment BONA FIDES: Launched in early 2018,
it already has hundreds of customers ternship and worked on an NBA team sale at Goldman
NEW YORK CITY
and is processing some $500 million Sachs, where Josh had already taken his first job. During
in sales a year. Users include fraud
targets such as jewelry merchants. senior year, Josh’s dad, Charlie Kushner, was trying to
The robo-advice pioneer manages COFOUNDER AND CEO: Ryan Breslow, buy the Philadelphia 76ers and brought on Williams to
ETF portfolios tailored to an inves- 24, who dropped out of Stanford in
tor’s goals and risk tolerance, held 2014 to start Bolt help on the bid. The Kushners lost the team, but were
in taxable accounts and/or IRAs for won over by Williams.
0.25% of assets a year. Offers cus-
tomers with at least $100,000 newer Brex “I would check in regularly with Charlie and Josh
hybrid service with access to human SAN FRANCISCO after that,” Williams says.
financial planners, too, for 0.40% of
assets a year. Around this time, Williams took his first crack at real
Issues a corpo-
estate. He visited Atlanta in 2009, at the height of the fi-
FUNDING: $275 million; latest valua-
tion of $800 million rate credit card nancial crisis, and saw single-family homes marketed at
designed for
BONA FIDES: Largest independent
startups, with
$240,000 selling at auction for as little as $60,000. So he
robo, managing $15 billion in assets
for 400,000 customers credit limits based largely on how partnered with a classmate who had grown up in Atlanta
much cash a company has, rath-
COFOUNDER & CEO: Jon Stein, 39, for-
er than an entrepreneur’s personal
and bought distressed properties with cash raised from
mer banking consultant who started
Betterment when he was just 28 credit history. Points heavily reward other Harvard students and their parents, including Char-
spending on software subscriptions,
travel expenses and rideshares.
lie Kushner, who became one of the biggest investors.
Bitfury FUNDING: $215 million; latest valua-
Upon graduation in 2010, Williams joined Gold-
AMSTERDAM
tion of $1.1 billion man as an analyst in its technology investment bank-
BONA FIDES: Broke above unicorn $1 ing group. Two years in, he jumped to Blackstone, the
billion valuation in just 22 months
The full-service blockchain firm
world’s biggest real estate investment firm, to work
COFOUNDERS: CEO Henrique Dubu-
has expanded from bitcoin-mining gras, 23 (above); COO Pedro Fran- on hotel and apartment deals. Through it all, Williams
hardware to launch its own block-
chain, plus software to investigate
ceschi, 22, Brazilian-born computer
engineers who sold their last startup
cultivated contacts and kept his ear to the ground. One
illicit activity using bitcoin. for tens of millions thing he heard: Blackstone investors grumbling about

58 | FORBES INDONESIA MARCH 2019


how they couldn’t choose Cadre Coinbase
BILLIONAIRE which individual real es-
NEW YORK CITY SAN FRANCISCO

VENTURE tate deals to buy into and


couldn’t sell their holdings
CAPITALIST
Online platform enables investors Expanding beyond its roots as a bit-
to buy and sell stakes in commercial coin wallet and retail exchange, it
if they needed cash. And and multifamily real estate at lower now offers cryptocurrency custo-
VINOD KHOSLA he couldn’t help but no- fees. See story, p. 52. dy and professional and institutional
trading platforms.
PUBLICLY OPPOSED tice the high fees endemic
to real estate investing.
FUNDING: $133 million; latest valuation
of $800 million FUNDING: $525 million; latest valua-
DONALD TRUMP’S Meanwhile, in 2012, BONA FIDES: Has raised $500 million
in equity to fund purchase of more
tion of $8 billion
BONA FIDES: Has opened 25 million
PRESIDENTIAL RUN. Congress had passed the
Jobs Act, which, among
than $2 billion in real estate
FOUNDER & CEO: Ryan Williams, 30
wallets
COFOUNDER & CEO: Brian Armstrong,
HE WAS AN EARLY other things, allowed on-
36; his holdings in Coinbase make
him a billionaire
INVESTOR IN CADRE line portals to crowdfund Carta
AND ADVISES ITS real estate. “I had a feeling
SAN FRANCISCO
Credit Karma
there was a massive oppor- SAN FRANCISCO

BOARD. tunity in the convergence Helps startups (including dozens of


of real estate and tech,” unicorns) manage funding rounds
Offers a grow-
and track their ownership, acting as
Williams says. “I made a list transfer agent on equity. Plans to ing suite of free
services, includ-
of eight or nine people who expand to private equity and real
ing credit scores,
estate.
I was interested in speaking tax-prep software
FUNDING: $148 million; latest valua- and help fixing credit report errors.
with, and the top of the list tion of $800 million Earns referral fees when users bite
was the Kushners.” BONA FIDES: Tracking $500 billion- on personalized offers for credit
plus in company equity, including for cards and loans.
Jared was already toy- Robinhood, Slack and Coinbase
ing with the idea of raising COFOUNDER & CEO: Henry Ward, 42, FUNDING: $869 million; latest valua-
who launched it as eShares in 2012 tion of $4 billion
money online for Kushner BONA FIDES: 85 million “members”
Cos. deals. But Williams
had a broader ambition: Chime COFOUNDERS: CEO Kenneth Lin, 43
(above); chief revenue officer Nich-
SAN FRANCISCO ole Mustard, 45; CTO Ryan Gracia-
to create a digital syndi- no, 37
cation system that could
be tapped by numerous Mobile-first bank offers checking
accounts, debit cards and service
Cross River
real estate operators. “He that rounds up purchases, deposit- FORT LEE, NJ

believed there could be a better way to do things,” Josh ing extra pennies in savings. Mem-
bers can tap into direct-deposited
Kushner said in an email. “A better way to enable access. pay two days early with no fee. Born from a small New Jersey com-
A better way to provide transparency and liquidity.” munity bank, it handles payments
FUNDING: $105 million; latest valua- and deposits for Stripe and Transfer-
A partnership emerged. Williams would run Cadre as tion of about $500 million Wise and creates notes behind loans
CEO and get it licensed as a broker-dealer. The Kushner BONA FIDES: More than 2.6 million issued through Affirm and Quicken’s
accounts, with 350,000 being added RocketLoans.
Cos., run by Jared, would list the initial deals on the Cadre a month
platform. Josh Kushner’s Thrive Capital would help Wil- COFOUNDERS: CEO Chris Britt, 45; FUNDING: $128 million; latest valua-
CTO Ryan King, 42 tion of $1 billion
liams recruit tech talent and make VC introductions. And BONA FIDES: Has originated $20 bil-
both brothers would put up money and introduce Wil-
liams to rich investors and other real estate operators.
Circle lion in loans through partners
FOUNDER & CEO: Gilles Gade, 52
BOSTON
Leaving Blackstone “was a hard decision, because I
had never made that kind of money in my life—staying at Digital Reasoning
Offers cryptocurrency trading, in-
Blackstone was the most straightforward way to becom- vesting and payment services. Last
FRANKLIN, TN

ing a millionaire,” Williams says. “I could just come to October partnered with Coinbase
to launch USDC stablecoin, a crypto
work every day and work hard, but instead I took a leap asset using the Ethereum blockchain Its machine-learning software
on something.” In the Kushners, though, he had a net. and backed by U.S. dollars. extracts meaning from ordinary
communications and is used by
Cadre’s first desk was at the Kushner Cos.’ Manhat- FUNDING: $246 million; latest valua- financial firms to screen employees’
KIM KULISH/GETTY IMAGES

tan headquarters, and its first two deals were for proper- tion of $3 billion email and instant messages for
BONA FIDES: 8 million customers from misconduct.
ties the Kushners would operate: four Queens apartment over 100 countries; USDC has a re-
buildings purchased for $55 million, and a multifamily cent market value of $335 million FUNDING: $110 million
BONA FIDES: Users include Goldman
property in Chatham, New Jersey, with a $100 million COFOUNDER & CEO: Jeremy Allaire, 47,
also founded publicly traded Bright- Sachs, UBS and Point72
price tag. That allowed Williams to prove real estate cove online video platform FOUNDER & PRESIDENT: Tim Estes, 39
1
SOURCE: PITCHBOOK.

MARCH 2019 FORBES INDONESIA | 59


F I N T E C H

could be funded on the Web, and it allowed him to


THE FORBES FINTECH50 raise $18.5 million in a first venture round in March
2015, with blue-chip investors such as Thiel’s Founders
Earnin Forter Fund, Boston’s General Catalyst, Vinod Khosla’s Khosla
PALO ALTO, CA NEW YORK CITY
Ventures—and Josh’s Thrive Capital.
“Jared’s contributions early on were critical,” Wil-
A mobile app that Its machine-learning software consid- liams says. “We would not have accelerated to where
allows workers to ers such factors as location, browsing
tap up to $500 of already earned history and the device a would-be
we are without that help and support. I didn’t have any
pay before payday. Charges no inter- buyer is using to judge if an online [other] operators who believed in this model.”
est or set fees, instead asking cus- credit card purchase is fraudulent.
Slowly, more players came around. Cadre has already
tomers to “tip” what they want.
FUNDING: $100 million worked with 17 real estate operators, who have tapped a
FUNDING: $190 million; latest valua-
tion of $800 million1
BONA FIDES: Customer base of 100- new pool of investors drawn in by the easy interface and
plus retailers, including Nordstrom
BONA FIDES: Users from 50,000 com- COFOUNDERS: CEO Michael Reitblat, attractive fee structure. Cadre charges 1% up front, plus
panies, including Starbucks
COFOUNDER & CEO: Ram Palaniappan,
36; president Liron Damri, 36; and 1.5% annually on the equity value it oversees and also
chief analyst Alon Shemesh, 41
45, former president of RushCard claims a small portion of the 15% cut of profits kept by
the real estate operating partners. But unlike many tra-
Enigma Fundrise ditional real estate investment managers, it doesn’t grab
WASHINGTON, D.C.
NEW YORK CITY an additional 20% of profits as a “performance” fee.
In 2015, Williams also struck a key alliance with Soros
A crowdfunding platform that allows
Integrates 100,000-plus real-world investment of as little as $500 in a vari-
Fund Management, the investment operation of George
data sets. See story, p. 62. ety of diversified real estate portfolios. Soros (thus making the far-right’s favorite bogeyman part-
FUNDING: $130 million; estimated val- FUNDING: $59 million; latest valuation ners with the family of the left wing’s favorite bogeyman).
uation of $750 million of $800 million Soros took an equity stake in Cadre and provided a $250
BONA FIDES: Clients include MetLife BONA FIDES: Manages $2.5 billion of
and BlackRock property with $500 million in equity
million financing backstop: If a real estate operator agrees
COFOUNDERS: CEO Hicham Oudghiri,
COFOUNDER & CEO: Ben Miller, 42 to do a project with Cadre and Williams can’t raise enough
34; chairman Marc DaCosta, 34
equity online to fund it, Soros will step in.
Even Gemini So far Williams hasn’t had to tap the backstop, likely
OAKLAND
NEW YORK CITY in part because of the lower fees but also because Cad-
re’s veteran investing team bless each transaction. “Far
Founded by 37-year-old twin broth- from being ignorant of the investment-management is-
A budgeting and savings mobile app
that links to users’ bank accounts, asks
ers Tyler and Cameron Winklevoss. sues, Williams showed he actually thought about them
Its cryptocurrency exchange is li-
about upcoming bills and estimates censed as a New York trust company
how much they have left to spend. and approved to do business in 49
Employees can pay $8 a month to states. Leading the fight for an SEC-
get access to money they’ve already
earned ahead of payday.
approved bitcoin ETF. VENTURE CAPITALIST
FUNDING: $51 million; latest valuation
FUNDING: Financed by the brothers
Employs 200 people
BONA FIDES:
AND LIBERTARIAN
of $102 million1
BONA FIDES: More than 400,000 COFOUNDER & CEO: Tyler Winklevoss PETER THIEL IS
DONALD TRUMP’S
users from big-name companies,
including Walmart and Kronos
Guideline
MOST PROMINENT
COFOUNDERS: CEO Jon Schlossberg,
31; COO Quinten Farmer, 28 SAN MATEO, CA

Flywire SILICON VALLEY


BOSTON
Partners with advisors and em-
ployers to offer 401(k)s for an ini- BACKER. HIS FOUNDERS
tial setup fee of $500, plus $8 per
month per worker. Portfolios have FUND WAS AN EARLY
INVESTOR IN CADRE.
Helps colleges, hospitals and busi- fees averaging 0.06%. Employees
nesses speed up receipt of tuition can set their own allocation or follow
and other payments made in foreign personalized recommendations.
DAVID PAUL MORRIS/BLOOMBERG

currencies at a fee of 2% to 3%—


about half what banks charge. FUNDING: $59 million; latest valuation
of $170 million1
FUNDING: $142 million; latest valua- BONA FIDES: Has signed up 6,000 and came up with solutions,” says Matthew Botein, an
tion of $700 million1 small business plans; partner with
benefits administrator Gusto
alum of BlackRock and Blackstone who has personally
BONA FIDES: Processed $4 billion in
2018; has 900 higher-education cus- COFOUNDERS: CEO Kevin Busque, 40, invested in Cadre.
tomers, including seven of the eight
Ivy League colleges
a former TaskRabbit exec; CTO Mike
Nelson, 31; chief designer Jeremy
In short order, Williams had Cadre positioned for start-
CEO: Mike Massaro, 40 Caballero, 36 up greatness. This, however, was all before November 2016.

60 | FORBES INDONESIA MARCH 2019


JOSH KUSHNER, WHO SAYS he did not vote for iCapital Network LendingHome
NEW YORK CITY SAN FRANCISCO
Trump, has previously told Forbes about how he experi-
enced election night 2016—midair, on a flight to Califor-
nia, realizing that he had a lot of work to do to calm his An online platform that allows high- An automated lending platform that
net-worth individuals to invest in pri- provides bridge loans, funded by
employees. The next week he met with 100 of them to as- vate equity and hedge funds with as accredited investors and institutions,
sure them that Jared Kushner in the White House would little as $100,000 per fund. A pend- to house flippers in 26 states.
ing acquisition of Bank of America’s
not sink the ship. alternative investment feeder fund FUNDING: $166 million; latest valua-
Williams, who diplomatically declines to say whom he business will add $20 billion in client tion of $1 billion
assets to its current $6 billion. BONA FIDES: More than $3.5 billion in
voted for, followed the same game plan as his board mem- loans funded
ber after watching the results in Cadre’s office, calling an FUNDING: $80 million COFOUNDER & CEO: Matt Humphrey, 31
BONA FIDES: Nearly 70,000 investor
all-hands meeting the following morning. “My message accounts, after B of A acquisition
was we have core values irrespective of what is happen- COFOUNDER & CEO: Lawrence Calcano, Marqeta
56, a Goldman Sachs veteran
ing in Washington, and I will be transparent about Jared’s OAKLAND

plans and role,” Williams says. He then canceled all his


meetings for the next day and a half to conduct some 25
IEX A credit card processor that makes
NEW YORK CITY
one-on-ones with employees, many of whom he had per- it easier for businesses that issue
workers cards to manage which
sonally recruited from Goldman and other secure jobs. transactions are authorized.
“You don’t think as CEO you will have to be a chief psy- A stock exchange
built after the FUNDING: $116 million; latest valua-
chologist officer,” Williams says. 2010 “flash crash” tion of $545 million1
Still, he felt blindsided. “I realized things were going to that uses a “speed bump” to give BONA FIDES: Customers include
Square, Kabbage, Affirm and Brex
long-term investors a level playing
change,’’ he says. But “I did not expect the level of scrutiny field against high-frequency traders. COFOUNDER & CEO: Jason Gardner, 49
that would come.”
FUNDING: $100 million
As it became clear that Jared Kushner was heading to BONA FIDES: Has a 2.5% market share Nova Credit
the White House, Williams came to an arrangement with of U.S. equity trading SAN FRANCISCO
COFOUNDERS: CEO Brad Katsuyama,
him: Jared would step down from Cadre’s board of direc- 40 (above); president Ronan Ryan,
44; COO John Schwall, 46; CTO Rob
tors and relinquish a substantial portion of his equity—a Park, 40—heroes of Flash Boys Standardizes in-
recognition, Williams explains, that Kushner would no formation from
credit reporting
longer be able to advise Cadre as anticipated. But Jared Kabbage bureaus in India,
still kept between 3% and 6% of Cadre, his most recent ATLANTA Mexico, the U.K.,
federal asset-disclosure form suggests. Canada and other countries so U.S.
lenders and landlords can serve im-
Jared Kushner’s decision to retain a stake in Cadre migrants without a U.S. credit re-
Provides automated online approval cord.
would have been problematic regardless. But his failure— of lines of credit for small business-
inadvertent, he says—to disclose his stake on his initial es, often in minutes, based on exten- FUNDING: $20 million
sive alternative data as well as bank
federal financial forms put the startup under a micro- records. Also licenses its technology
BONA FIDES: Used by Yardi, a major
property management platform, to
scope. Williams found himself repeatedly having to ex- to big banks such as ING. help screen housing applicants
COFOUNDERS: CEO Misha Esipov, 30
plain the relationship in crucial meetings—for example, FUNDING: $489 million; latest valua- (above); COO Nicky Goulimis, 30;
when he went out in 2017 to raise a new $68 million ven- tion of $1.2 billion1 CTO Loek Janssen, 29, conceived
BONA FIDES: Has processed $6 billion Nova as graduate class project at
ture round led by Andreessen Horowitz. in loans to 150,000-plus businesses Stanford
Yet the stumbles keep occurring. Last year the Associ- COFOUNDERS: CEO Rob Frohwein, 50;

ated Press reported that Kushner Cos. had filed paper- president Kathryn Petralia, 48
Opendoor
work with New York City falsely stating there had been SAN FRANCISCO

no rent-regulated tenants living in the Queens apart- Lemonade


NEW YORK CITY
ments listed on Cadre when applying for construction Uses data and algorithms to value
permits in 2015. Bloomberg News followed up with a and buy homes (sight unseen) in
20 local markets, delivering cash to
suggestion that the resale of the improved apartments The mobile and online platform pro-
sellers in days, minus an average 7%
vides renters’ insurance from $5 a
in 2017—the only exit so far on Cadre’s platform—might month and homeowners’ from $25 a service charge. Makes any needed
repairs and then resells the homes.
have been less profitable had there been proper disclo- month. Discourages dishonest claims
by donating excess (over claims, ex-
sure. Cadre said it didn’t know about the issue and that penses and a fixed fee) to charity.
FUNDING: $1 billion; latest valuation
of $2 billion-plus
administrative filings were the responsibility of its oper- BONA FIDES: SoftBank Vision Fund
FUNDING: $180 million
ating partners, in this case Kushner Cos., which said its BONA FIDES: Has more than 300,000
recently invested $400 million
COFOUNDERS: Executive chairman
filings were prepared by third parties. customers; recently partnered with Keith Rabois, 49, a senior partner at
WeWork to insure WeLive residents
Williams has tacked away from the Kushner Cos., COFOUNDERS: CEO Daniel Schreiber,
Khosla Ventures who came up with
the idea; CEO Eric Wu, 36; CTO Ian
claiming he’s now bearish on the New York market. Cad- 47; COO Shai Wininger, 45 Wong, 32; JD Ross, 28
1
SOURCE: PITCHBOOK.

MARCH 2019 FORBES INDONESIA | 61


F I N T E C H

re hasn’t bought assets with Kushner Cos. since those


THE FORBES FINTECH50 two initial proof-of-concept transactions in 2015.
New deals or not, there are limits to what Williams
Personal Capital FUNDING: $175 million; latest valuation
of $480 million1 can do to quiet the noise so long as Jared Kushner retains
REDWOOD CITY, CA BONA FIDES: Processing more than his stake. For instance, Cadre recently launched an in-
$6 billion in transfers annually
COFOUNDER & CEO: Matt Oppen-
vestment program to take advantage of the opportunity-
An online wealth management plat- heimer, 36, who came up with idea zone tax breaks, which the White House put in motion.
while working for Barclays in Kenya
form that offers free dashboard to And the headaches are just getting bigger: On January 4,
track all your bank and investing
the group Citizens for Responsibility & Ethics in Wash-
accounts plus free planning tools.
Paying customers get money man- Ripple ington formally asked the Justice Department to inves-
agement, tax loss harvesting and SAN FRANCISCO
human financial advisors for tiered tigate Ivanka Trump’s involvement with the implemen-
fees—0.89% of assets a year up to tation of opportunity zones as a possible violation of the
$1 million, down to 0.49% for assets
over $10 million.
Its blockchain-based global set- federal conflict-of-interest laws. In her financial state-
tlements network aims to replace
SWIFT, the interbank messaging ments, it noted, Trump had promised to recuse herself
FUNDING: $130 million; latest valua-
tion of $660 million platform. Also has service that lets from issues that “would have a direct and predictable ef-
companies make cross-border pay-
BONA FIDES: Manages $8 billion in
ments in XRP, the cryptocurrency fect on Cadre” because of her husband’s ownership posi-
assets for 19,000 paying customers
CEO: Jay Shah, 49, who joined Per-
created by Ripple’s founders. tion. One more headline—and an email from Williams to
sonal Capital from E-Loan in 2009 FUNDING: $94 million; latest valuation his staff reminding them not to be distracted.
of $5 billion (including XRP)
Plaid BONA FIDES: 200 RippleNet custom-
ers, including Bank of America and CADRE NONETHELESS KEEPS moving forward. So
SAN FRANCISCO American Express far, Williams’ platform has raised more than $500 mil-
COFOUNDERS: Jed McCaleb, 44; Chris
Larsen, 58; and Arthur Britto lion in equity to finance the acquisition of $2 billion
Connects payment CEO: Brad Garlinghouse, 48, former worth of property from New York to San Diego in 22
apps like Venmo AOL president
and robos like Bet-
separate deals. A drop in the $14 trillion U.S. commer-
terment to users’ bank accounts to cial real estate bucket but enough to confirm the idea of
transfer and track funds and speed Robinhood syndicating quality commercial real estate online. New
authentication. Now integrates with MENLO PARK, CA
10,000 banks. deals are now selling out in weeks. Cadre is shooting for
FUNDING: $310 million; latest valua-
annual returns in the low to mid-teens; its only realized
tion of $2.65 billion Offers commission-free trading of deal netted a 16% internal rate of return.
stocks, ETFs, options and cryptocur-
BONA FIDES: A fourth of Americans
have accounts linked through Plaid rencies through a mobile app and In October, it launched a managed portfolio product
COFOUNDER & CEO: Zach Perret, 31
online. Gold service, starting at $6 that lets clients commit as little as $25,000 per deal, across
per month, gives investors access to
extended trading hours and margin ten projects. In other words, they can get a diversified
Poynt trading. commercial real estate portfolio with just a quarter-mil-
PALO ALTO, CA FUNDING: $539 million; latest valua- lion dollars and no heavy lifting when it comes to screen-
tion of $5.6 billion ing assets. Goldman Sachs has committed $250 million
BONA FIDES: 6 million-plus customers
Its point-of-sale software and hard- COFOUNDERS & CO-CEOS: Baiju Bhatt,
from its private wealth clients to the managed portfolios.
ware turn dumb credit card readers 34; Vlad Tenev, 32 At the same time, Williams’ secondary market finally
into smart devices that allow third-
party developers to build applica-
launched, allowing Cadre clients to sell their stakes in
tions on top, e.g., loyalty rewards Roofstock real estate assets with the click of a button—an attempt
programs that don’t require shop-
pers to flash a card.
OAKLAND to end the buy-it-and-you’re-stuck downside of indi-
vidual real estate transactions. So far there have been 40
FUNDING: $132 million; latest valuation
of $450 million1 Platform provides secondary trades at an average 3% premium to the last
BONA FIDES: 100,000 devices in field investor tools valuation. Buyers and sellers each pay Cadre a 1.5% com-
for evaluating,
COFOUNDER & CEO: Osama Bedier, 43,
buying and sell- mission. Right now, only Cadre stakes can be resold, but
the founder of Google Wallet
ing single-family Williams aspires to turn Cadre into the StubHub for all
rental homes in 41 markets.
property stakes. “That’s how we move from digital man-
Remitly Guarantees up to 12 months
of rent on a vacant property ager to curated marketplace,” Williams says. For now,
SEATTLE purchased through the platform.
though, his biggest practical challenge is getting enough
FUNDING: $75 million; latest valuation good inventory, since top real estate developers don’t
Enables people living in rich nations of $292 million1
such as the U.S. and U.K. to make BONA FIDES: More than $1 billion in
need websites to raise money. Has the Kushner connec-
low-cost money transfers to relatives transactions completed on platform tion perhaps scared some away? “Where this noise has
in Mexico, India and other develop- COFOUNDERS: CEO Gary Beasley, 53
ing countries even if the recipients (above); chairman Gregor Watson,
the greatest impact is probably in areas I don’t know,’’
don’t have bank accounts. 38; Rich Ford, 49 Williams responds.

62 | FORBES INDONESIA MARCH 2019


It raises the largest question surrounding Cadre. Root Insurance Tala
COLUMBUS, OH SANTA MONICA, CA
Why hasn’t Jared Kushner simply divested and spared
his protégé (and his brother) such an incredible hassle?
Especially when provisions of tax law facilitate just such Sells app-centric car insurance in 22 Makes microloans
states with pricing heavily based on of $10 to $500 to
transactions, allowing Kushner to sell and defer taxes on how an individual drives during test borrowers in de-
his gain in Cadre’s stock. period, monitored by app. veloping countries by crunching data
from their smartphones (including
Perhaps it’s because he has lousy role models. By not FUNDING: $171 million; latest valuation merchant transactions, app usage,
shedding his assets to take the biggest job in the world, of $1 billion texts and calls) to judge if they’re
BONA FIDES: Claims average driver creditworthy. More than 85% of ap-
the billionaire president flouts all sorts of clear conflict- saves $1,187 per year proved customers receive credit in
of-interest and emoluments norms, down to ticky-tack COFOUNDERS: CEO Alex Timm, 30; less than 10 minutes.
CTO Dan Manges, 33
spending by lobbyists and potentates at Trump’s hotel in FUNDING: $105 million, plus recent
D.C. and his Mar-a-Lago club in Florida. The near-bil- PayPal investment (undisclosed size)

lionaire secretary of commerce Wilbur Ross has lied and Stash BONA FIDES Has originated $680 mil-
lion in loans to 2.5 million-plus cus-
NEW YORK CITY tomers, with 90% repayment rate
bumbled his way into insider trading accusations and a
FOUNDER & CEO: Shivani Siroya, 36,
reprimand from the federal government’s top ethics of- former Citigroup and UBS analyst
ficer. Tycoon Carl Icahn took a role as special advisor to A mobile investing app that offers
commission-free and fractional pur-
the president while remaining in charge of his massive chases of stocks and ETFs, themed Toast
investment firm. And so on. investment portfolios and IRAs. BOSTON
Users with less than $5,000 pay
$1 a month; others pay 0.25% of as-
sets a year.
Started in 2011 by three MIT grads, it

THE FORMER CHIEF FUNDING: $117 million; recent valua-


tion of $350 million1
makes point-of-sale devices for res-
taurants and can handle such tasks

OFREAL ESTATE BONA FIDES 3 million customers


COFOUNDERS: CEO Brandon Krieg,
as managing food inventory.

GIANT VORNADO,
FUNDING: $248 million; latest valua-
44; president Ed Robinson, 35 tion of $1.4 billion

MIKE FASCITELLI IS
BONA FIDES: Tens of thousands of
Stripe customers, including Jamba Juice

A LONGTIME PAL OF
COFOUNDERS: Co-presidents Aman
SAN FRANCISCO
Narang, 36, and Steve Fredette, 35;
CTO Jonathan Grimm, 33
DONALD TRUMP. HE
NOW HEADS CADRE’S
Originally a
service to help Tradeshift
small online sellers process pay- SAN FRANCISCO
INVESTMENT ments, now serves Microsoft and
Amazon, too. Adding new products,
COMMITTEE. including credit card issuing tech-
nology and point-of-sale software. Processes payments for supply-
chain transactions, handling every-
FUNDING: $685 million; latest valua- thing from “know your customer”
tion of $20 billion regulatory checks to advice on how
quickly to pay a supplier.
Or perhaps it’s ego. Kushner surely helped Cadre get BONA FIDES: Most highly valued
private fintech company in the U.S.
on its way. Maybe it’s too hard to see Cadre become a COFOUNDERS: CEO Patrick Collison,
FUNDING: $400 million; latest valua-
tion of $1.2 billion
unicorn and not be part of it. He wouldn’t be the first co- 30 (above); president John Collison, BONA FIDES: Processes $500 billion in
28, Irish-born brothers payments a year for 500 customers
founder who’d rather see his creation founder with him
COFOUNDERS: CEO Christian Lanng,
than flourish without him. Or maybe, in the White House
bubble, he can’t fully see the problems that occur when a
Symphony 40; SVP Mikkel Brun, 50; SVP Gert
Sylvest, 47
PALO ALTO, CA
person who helps set national policy will benefit from the
governmental decisions he makes. TransferWise
An encrypted platform that allows LONDON
Or maybe it’s just the money. Regardless, while Wil- competing firms to communicate
liams won’t address the question directly, his hands are without compromising their data
or breaching compliance rules.
tied: “We don’t have any real mechanisms unless it’s crimi- Customers have developed more
Makes money transfers cheaper
by matching unrelated customers’
nal or gross negligence. I can’t force anybody, really, to sell than 500 automation bots using orders, so less currency crosses bor-
Symphony.
their equity.” ders. Fees average 0.5%, compared
STEPHEN YANG/BLOOMBERG

with roughly 5% for banks.


As for the political noise, “I try not to take it personally,” FUNDING: More than $300 million; lat-
est valuation of $1 billion-plus
Williams says. “But I am a human being, and I think the BONA FIDES: Used by 390 firms with
FUNDING: $397 million; latest
valuation of $1.6 billion
team would tell you they sometimes feel bad.” The media more than 400,000 users BONA FIDES: $4 billion processed
monthly for 4 million-plus customers
and the rest of the country may be obsessed with Trump FOUNDER & CEO: David Gurlé, 52, a
veteran of Thomson Reuters, Skype COFOUNDERS: CEO Kristo Käärmann,
and his family, he adds, “but I live, eat, breathe Cadre.” F and Microsoft 38; chairman Taavet Hinrikus, 36
1
SOURCE: PITCHBOOK.

MARCH 2019 FORBES INDONESIA | 63


F I N T E C H

DATA’S
CARTOGRAPHERS
Two philosophers are using machine learning and artificial intelligence
to create a real-time map of the global economy, and the world’s largest
financial firms are lining up at its door.

BY A N TO I N E G A R A

In the early days,


Enigma’s Marc DaCosta
and Hicham Oudghiri
funded their startup
by hawking goods
on eBay and building
websites for companies
like Siggi’s yogurt.

64 | FORBES INDONESIA MARCH 2019


OW MUCH DID THE FED-
ERAL government shutdown
cost? After 35 days of deadlock,
$6,354,845,148 in wages had gone
unpaid to 747,573 federal employ-
ees. Every second that ticked by
added $2,118 to the figure. Some
staffers were furloughed; many more worked with-
out pay. At the Department of Homeland Security, for
example, some 245,405 employees were unpaid and
32,706 furloughed. At Treasury, 36,309 workers were
furloughed and 82,336 worked unpaid. At the Environ-
mental Protection Agency, 52% of its staffers worked
without compensation.
Getting a handle on the magnitude of this disrup-
tion—as well as its granular details—was no small feat.
A little-known New York City fintech company named
Enigma tabulated the rising costs in real time on a web-
site it threw up called Government Shutdown 2018–2019.
In order to do so, Enigma searched the Office of
Management & Budget’s contingency plans for 109 fed-
eral departments. It also tapped FederalPay.org for aver-
age salaries and worker counts for 46 agencies. In all, it
combed through 2,000 pages and 2 million spreadsheet
rows of federal data to create the tracker. From idea to
launch, the effort took three Enigma number crunchers
a total of 36 hours.
The shutdown data is available free, but Enigma’s
ability to rapidly make sense of multiple disconnected
data sources, public and private, and create a customiz-
able view of the global economy has attracted some of
the world’s leading companies, from BlackRock to Pay-
Pal and Celgene, with many clients paying more than $1
million a year for fingertip access to its insights.
Enigma is the brainchild of Hicham Oudghiri and
Marc DaCosta, best friends since they met 16 years ago
as undergraduates at Columbia University, where they
studied philosophy. Their startup organizes informa-
tion from thousands of sources around the world into a
single, fully linked interface.
“People know how the internet works and how to
log users and serve them cookies to suggest products on
Amazon. That problem is solved. What we’re doing is
building a model of the real world,” says Oudghiri, 34,
speaking from Enigma’s Humboldt boardroom, named
after the Enlightenment-era Prussian philosopher. His
cofounder, DaCosta, 34, adds, “This isn’t just about a
JAMEL TOPPIN FOR FORBES

faster microprocessor or better statistics. Enigma is a


knowledge graph of what’s going on in the economy.”
Oudghiri and DaCosta’s journey into the field of data
mining began after the financial crisis of 2008. DaCosta
was doing graduate work in the cultural anthropology

MARCH 2019 FORBES INDONESIA | 65


F I N T E C H

of data at the University of California, Irvine, while porter and port of call. From the National Fire Inci-
Oudghiri was managing renewable-energy projects for dent Reporting System, Enigma retrieves the cause and
BCME Bank in Casablanca, Morocco. Both were curious location of every fire in the U.S. To cover energy, Enigma
about explaining the world in light of the global disrup- leans on oil-well data from the Railroad Commission of
tions going on. So they reunited and began to organize Texas, founded in 1891 to establish tariffs.
sets of publicly available data, starting with Federal Avi- The firm’s breakthrough year was 2014, when
ation Administration flight logs. They soon discovered Enigma raised $4.5 million from Comcast, American
a trove of valuable information hiding in plain sight— Express and the New York Times Co. and entered the
buried in government logs, university research publica- Fintech Innovation Lab, created by Accenture and the
tions, arcane business filings and shipping manifests. If Partnership Fund for New York City. There, embed-
they could collect, scrub, organize and analyze it, they ded with banks and Wall Street giants, Oudghiri and
thought, it might produce a near real-time rendering of DaCosta discovered that their data had immense utility
the macro economy. in financial services. Its information could be connect-
In 2011, Oudghiri and DaCosta formed Enigma and ed with customer data in banks’ systems, helping them
went to work amalgamating public data, mostly from more quickly recognize fraud or businesses and individ-
government sources like the Census Bureau, the FCC, uals to underwrite. “We walked out with a battle plan,”
the Federal Election Commission and the IRS, as well as DaCosta says of the accelerator. They quickly built a
import records from the U.S. Customs & Border Protec- software package, complete with colorful knowledge
tion agency and building permits, and putting it together graphs, and put specialized tools into a compliance in-
as a single source. They also became experts in uncov- terface they called Dossier.
ering complex, hard-to-find information. For instance, To date, Enigma has synthesized 100,000 data sets
using Freedom of Information Act requests, Enigma taps in more than 100 countries, organized intelligence
the CBP’s Automated Manifest System to track every on 30 million small businesses and accumulated 140
container ship that arrives in the U.S., including the im- billion points of data on the U.S. population. It has

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mapped every molecule used by the U.S. pharmaceuti- Investor John Fogelsong of Glynn Capital thinks
cal industry, as well as all trials, patent filings and ad- the startup could present a threat to legacy closed-
verse events. system “big box” technology vendors like Oracle, IBM,
Braininess permeates Enigma’s headquarters in New SAS and SAP: “Each new data set Enigma ingests com-
York’s Flatiron District: Conference rooms are named pounds the company’s ability to improve a customer’s
after philosophers like Michel de Montaigne and Au- business processes.”
gustine. Bookshelves are filled with scholarly tomes, BlackRock’s recent experience is illustrative. When
from coding manuals like Machine Learning for Hack- Frank Cooper, its newly minted chief marketing offi-
ers and Data Quality and Record Linkage Techniques to cer, was asked to shake up how the $6-trillion-in-assets
classics like the Dialogues of Plato, Ulysses and Rous- firm prospects for clients, Enigma made a surprising
seau’s Confessions. Covering the walls are maps and ex- discovery: Contrary to the traditional approach based
perimental artwork exploring “the intersection of data on regional and demographic targeting, there was little
and experience.” correlation between a client’s location and his or her
But Enigma’s nerdy academic culture hasn’t stopped preparedness for retirement, but political engagement
it from attracting corporate clients and funding from ranked high. “If someone is politically active and even
Silicon Valley and Wall Street. BlackRock, PayPal, if they are a renter, they’re much more likely to plan for
American Express, MetLife, BB&T, Celgene, Merck and retirement,” Cooper says. “It was shocking for us.”
EMD Millipore have signed up. Some $130 million in Not all of Enigma’s machine-learning algorithms
capital has flowed into the firm in the past seven years are trained on the hot pursuit of profits. The firm has
from venture investors like NEA, Crosslink Capital and volunteered its data efforts toward studying the gender
Glynn Capital and hedge funds like Two Sigma Ventures gap across 558 occupations and has already identified
and Third Point Ventures. that some of the most egregious disparities occur in ac-
Forbes estimates Enigma’s valuation is $750 million, counting, retail and sales.
with revenues pushing $30 million annually, the com- After a November 2014 fire killed five people in a
pany having doubled its customer base in 2018. smoke-detector-less home in New Orleans, Enigma
If a hedge fund wants to know which restaurant worked with the city’s fire department and Office of
chains are growing the fastest, Enigma can check FCC Performance & Accountability to identify areas where
logs for radio licenses, which are required to open fire safety is weakest.
drive-through windows. Insurers use Enigma for risk On Enigma’s public website, it offers national fire-
assessment, and pharma companies query its data- incident data free for city planners to use, and 50 years
crunching machines to improve drug safety. of weather anomalies in the U.S., plus nationwide data
Want to quickly and precisely identify the best can- sets on everything from cancer statistics to so-called ad-
didates for small business loans? Instead of cold-calling verse events, as defined by the FDA. In New York City,
storefronts or schmoozing local Chamber of Commerce for example, an Enigma FOIA allowed it to synthesize
officials, Enigma will synthesize property-tax filing in- years of rail incident and injury data reported to the
formation with state business filings and Uniform Com- Metropolitan Transportation Authority. The firm is also
mercial Code liens to come up with automated credit working with a nonprofit called Polaris to combat and
identities. Need to avoid underwriting in risky fire prevent slavery and human trafficking. The idea is that
zones? Why not sew together data sets on emergency- data can not only lead to better underwriting but also
call logs and building permits? improve government. Oudghiri and DaCosta call it “data
At MetLife, chief digital officer Greg Baxter is start- for social good.”
ing to use Enigma data pulled from public health sys- Is Enigma vulnerable to the kind of data-usage scan-
tems and universities by connecting it to its own sys- dals that have plagued Facebook?
tems to detect pockets of illness or risk and to improve “I think the behavior from the internet companies
underwriting. And in MetLife’s $588 billion investment has been suspicious if not malicious, creating a pic-
management arm, Baxter is using Enigma data to quan- ture of your behavior that is probably above and beyond
tify how the quality of restaurants, parks and commu- what you would consent to,” Oudghiri says, arguing that
nity event spaces affects real estate prices. “They dis- Enigma’s work with financial services firms strikes a
cover data sources, they organize the data and then they more mutually beneficial covenant.
find ways through machine learning of connecting the “Your data is a means to understand if you are a legiti-
data,” Baxter says. “When you combine that external mate person,” he says. “From a privacy standpoint, you
data with our internal domain data, then you start to get enter those relationships knowingly and explicitly. The
phenomenally predictive and insightful trends.” need for sharing data arises from a pretty good place.” F

MARCH 2019 FORBES INDONESIA | 67


F I N T E C H

COMMON
SENSE
PROPHET
Growing up in a two-bedroom Bronx apartment
shared by 12 family members, Wendy De La Rosa
learned to make every dollar count. Now the Wharton
and Goldman Sachs alum is helping fintech startups
understand how real people relate to money.

BY K R I S T I N S TO L L E R

ENDY DE LA ROSA, the 29-year-old cofounder of


Common Cents Lab, proudly recounts an experi-
ment she ran a few years back with Digit, an app that
tracks users’ spending and moves free cash from their
checking account into savings. One group of users was
sent a text message in February before they got their
federal tax refund, asking if they wanted to save part of
it. Another got a similar text right after the refund hit their checking account.
Those responding to the early message saved an average of 27%, versus 17% for
those who were texted later. When you consider the average refund is $2,900,
that’s an impressive chunk of extra savings. “Every dollar that leaves our check-
ing account, we feel that loss over and above the economic loss of that dollar. It
physically hurts us to lose money,” De La Rosa explains. In other words, it’s easi-
er to save money that you never saw in your checking account.
The 5-foot-1, ponytailed De La Rosa is a guru of one of the hottest trends in fin-
tech: Startups are increasingly designing (or tweaking) savings, investing, insur-
ance and employee-benefit products based on the insights of behavioral science. For
example, Lemonade, which sells renters’ and homeowners’ insurance, attempts to
discourage phony claims by donating excess profits (over its agreed-upon share) to
charity. Chime, an online bank with 2.6 million accounts, allows members to auto-
matically transfer 10% of every paycheck directly into their savings accounts. Why
10%? People “think in round numbers” when asked how much they want to save,
says De La Rosa, a member of the 2018 Forbes 30 Under 30 list for finance.
TIMOTHY ARCHIBALD FOR FORBES

In 2015, De La Rosa cofounded the Common Cents Lab, a nonprofit applied-re- As a child living in her grandmother’s
crowded Bronx apartment, Wendy De
search shop that aims to help low-to-moderate-income households increase their La Rosa says she would “put on my
financial wellbeing. Last year 93 companies and nonprofits applied to have their adult voice” to talk on the phone to bill
collectors and the landlord. She got the
services and customers used as guinea pigs in Lab experiments. Fourteen made job because she spoke the best English in
the cut. So far, De La Rosa has worked with 20 fintech startups, including 4 on the the immigrant household.
Forbes 2019 Fintech 50 list: Plaid, Chime, Credit Karma and Even. “It’s a mutu-

68 | FORBES INDONESIA MARCH 2019


MARCH 2019 FORBES INDONESIA | 69
F I N T E C H

ally beneficial relationship, where the researcher gets to funds. But there are lots of twists to applying those in-
research what would otherwise be impossible and we get to sights in a useful fashion. Chime’s 10% automatic savings
learn something [for free]. It’s like, why would we not?” says deduction is taken from every paycheck. By contrast, banks’
Even CEO Jon Schlossberg, who has raised $51 million for traditional savings programs transfer money on a set day
his startup, which offers budgeting apps and paycheck ad- each month—typically the 25th. Yet 70% of Americans get
vance services through employers, most notably Walmart. paid on a weekly or biweekly basis, and a single date-linked
Common Cents operates under the umbrella of the Cen- withdrawal can lead to bounced checks and overdrafts, says
ter for Advanced Hindsight at Duke University, run by the De La Rosa. Not an inducement for saving.
well-known behavioral scientist Dan Ariely, a Lab cofounder Chime’s Bank Fee Finder is based on Common Cents’
and also the chief behavioral officer of Lemonade. But De La research showing people dramatically underestimate how
Rosa works out of Palo Alto, where she’s completing a Stan- much they pay in bank fees. Users go to Chime’s website,
ford Ph.D. in consumer behavior. It’s not just the lure of free link their current bank account and get a precise accounting
research that has would-be partners competing for her atten- of how much they paid during the past year. The average—
tions. De La Rosa says she’s seen a few startups (no, she won’t around $300—is powerful marketing for no-fee Chime.
name them) fail because they focused on slick technology and One of De La Rosa’s key lessons for partners: Humans
artificial intelligence while ignoring basic human psychology. don’t like barriers and red tape, so make it easy for them to
change their behavior. In one recent experiment, a sample
A SELF-DESCRIBED HUSTLER, De La Rosa says her life of Credit Karma members were sent an email that said they
has always been centered around money—or the lack there- could raise their credit scores by reducing their credit card
of. At age 9, she immigrated to the U.S. from the Dominican utilization rate, suggesting they pay off a specific credit card
Republic with her mother, settling into her grandmother’s and providing a click-through button to allow them to do so.
small two-bedroom apartment in the Bronx along with While results aren’t yet public, De La Rosa says email recipi-
ten other relatives. De La Rosa picked up English quickly ents had a significant increase in credit scores compared with
(through school and the Cartoon Network) but had to re- other members who must log in, call up their credit scores
treat to the apartment’s one bathroom for needed quiet to and then follow Credit Karma’s “credit coaching” advice.
finish her homework. And finish she did. She was valedic- In September, Common Cents got some competition.
torian of her public elementary and middle schools and of Acorns, a member of the Fintech 50, launched a “Money
Cardinal Spellman High School in the Bronx—the alma ma- Lab” with Shlomo Benartzi, a professor of behavioral finance
ter of Supreme Court Justice Sonia Sotomayor. at UCLA. They invited academics to submit proposals for
Meanwhile, De La Rosa’s mom, a psychologist in her home behavioral tests on the 4.5 million users of its microinvesting
country, took what work she could find—as a hotel maid. “It and savings apps. The results produced by this not-for-profit
was very hard to see your educated mom clean rooms. She venture will be publicly available, even to Acorns’ competi-
sacrificed a lot because of me,” De La Rosa says. “I think that’s tors. (Acorns has also been working with Richard Thaler of
where I started to fall in love with financial decision-making, the University of Chicago, who won a 2017 Nobel Prize for
because when you are living in a certain circumstance where his pioneering work in behavioral economics.)
every dollar really matters, it becomes a topic of conversation.” Ariely says there’s a good reason startups are leading
So De La Rosa headed off to Wharton, where she stud- the way in behavioral-driven innovation. At traditional
ied finance and management, graduating summa cum laude banks, he argues, “the incentives are to get people to over-
and Phi Beta Kappa in 2011. Her well-earned reward: a job spend and overborrow. That doesn’t create an incentive to
at Goldman Sachs. Having grown up poor, she wanted to innovate and make better decisions.” Not that the fintechs,
be able to help her family. “Working on Wall Street seemed who must justify the hundreds of millions Silicon Valley
like the easiest, fastest way to get there,’’ she says. Fast, yes, has poured into them, are all so pure. De La Rosa points
but not so satisfying for De La Rosa, who in 2014 went to out a problem with free fintech services. “If you have a free
work with Ariely on a new behavioral economics unit at product, your only business model becomes advertising,”
Google. The next year, Ariely, De La Rosa and two other col- she says. “So you get into the world of trying to sell people
leagues came up with the idea for the independent Common things that they don’t necessarily need.”
Cents Lab and snagged millions in annual support from the Maybe not such a politic thing to say, given that Credit
MetLife Foundation to make it happen. Karma, a free service that rakes in hundreds of millions in
Much of De La Rosa’s work involves what might seem referral fees from credit cards, is one of her many research
like obvious observations about human behavior. After all, partners. No matter. For De La Rosa, this is personal: “I
the save-it-before-you-see-it mind trick is a reason 401(k) think I just see my family in every single experiment that I
s have been so successful and why employers are now con- run. I lived through that. I know exactly what it means to
sidering offering automatic payroll deposits to rainy-day be living paycheck to paycheck.” F

70 | FORBES INDONESIA MARCH 2019


REALITY CHECK JAMES S. KALLMAN
A 30-YEAR VETERAN OF EMERGING MARKETS, JAMES S. KALLMAN IS THE SENIOR PARTNER OF GLOBAL ACCOUNTING AND CONSULTING FIRM, MOORES ROWLAND
(A MEMBER FIRM OF PRAXITY). JAMES IS REGULARLY QUOTED IN LOCAL AND INTERNATIONAL MEDIA.

EXCESS FAT IS BAD FOR YOU


WHILE some creatures Besides the fleet of private jets lined up at the air-
are highly adaptable in port, the discrepancy between rich and poor was
surviving changing condi- perhaps best illustrated by the sign “A day in the life
tions, the likes of the polar of a refugee” exhibition being directly above “pri-
bear on the other hand, vate car pick-up”.
are starving to death as the The subject was raised, for it’s an open secret that
warming climate deprives the world’s richest individuals and corporate entities
them of sea ice access to are not making the contribution to the global welfare
their regular diet of seals. that they should. As with climate change, however,
Count the poorest half talk in such an arena is unlikely to bring the urgent
of the world’s population as another group suffering action required to effect a drastic redistribution of
from a dwindling ‘fat’ supply, their net worth declin- wealth. Only one thing can change that, a serious re-
ing by 11% last year while the wealth of world’s 2,754 think on the global taxation system.
billionaires increased by $ 2.5 billion Suggestions have been made by the
per day. Some 3.5 billion people live Some 3.5 billion likes of US Representative Alexandria
on less than $5.50 per day, yet just 28 Ocasio-Cortez of a return to a progres-
of their richest cousins own the same people live on sive tax system that would see the richest
amount of money as the world’s poor- less than $5.50 Americans pay rates of 70% or more on
est half. sums in excess of $10 million. This is not
Compiled from data produced by
per day, yet without merits if such a system was in-
Credit Suisse, Oxfam’s Public Good or just 28 of their troduced on a global level, although the
Private Wealth? Report was released richest cousins threshold at which the highest rates kick
just prior to the annual get-together in in would have to be carefully considered.
Davos, Switzerland where the invited
own the same Companies offer other avenues to ex-
rich and influential fly in to address amount of plore such as carbon taxes, while execu-
the annual World Economic Forum. money as the tive salaries could be tied to a maximum

world’s poorest percentage of those of workers.


Not surprisingly, howls of protest
half. erupted, as thanks to friends in high
places we have seen the rise of a new
group of oligarchs in not just the US but a number
of other countries, who are quite prepared to pay
their way to maintain the status quo. Interestingly, it
was to avoid the re-emergence of any such powerful
group that high tax rates were introduced in Japan
following the Second World War.
With poverty the basic root cause of the vast major-
ity of current world conflict, the signs are already there
for any student of history – from the French to the Rus-
sian revolutions, things rarely go well when the people
rise against the oligarch, either singular or plural.
As life expectancy diminishes in both the US and UK,
ADOBE STOCK

particularly in poorer communities, the latest oligarchs


may yet learn that excess ‘fat’ really is bad for you. F

72 | FORBES INDONESIA MARCH 2019


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FORBES INDONESIA

PHILANTHROPY RESA BOENARD

T
he Bantar Gebang Inte-

The Princess
grated Waste Disposal Site
(Bantar Gebang) located
in Bekasi, West Java, is the
final disposal site for municipal solid

of the Dump
waste generated in Jakarta. Every day
around 1.300 trucks deliver more than
7.000 tonnes of waste from the city.
Excavators and bulldozers balance pre-
cariously on the towering mountains
Resa Boenard has
dedicated her life
empowering children
growing up on the largest
landfill in Southeast Asia.
BY MADDIE MANWARING

of garbage, some of which are up to


40 meters tall, as a row of trucks line
up waiting to dump another load of
waste on the pile. Covering 110 hect-
ares and with a capacity of 49 million
tonnes, Bantar Gebang is the largest
landfill in Southeast Asia and is evi-
dence of large-scale plastic pollution
and poor waste management. Cur-
rently the site is estimated to be at 39
million tonnes, and the Jakarta Envi-
ronment Agency predicts the landfill
will reach capacity by 2021.
Scattered amongst the mountains
are rows of houses, belonging to the
more than 3.000 families who live and
work on the landfill. Known as scaven-
gers or waste-pickers, these workers
have the never-ending job of sorting
the waste. They sell plastic, paper,
metals and glass for small amounts of
money. Life on the landfill is difficult
and workers, including children, suf-
fer from countless illnesses, injuries
and sometimes even death caused by
AGOES RUDIANTO FOR FORBES INDONESIA

harmful or contaminated waste, a lack


of protective gear, and workplace ac-
cidents. The hardships faced by those
making their living on the landfill have
contributed to severe mental health
issues that are left untreated and have
led to suicides. It is a life Resa Boenard
knows all too well.

74 | FORBES INDONESIA MARCH 2019


Originally from West Sumatera, a successful person. It can happen,” Resa says they ‘upcycle’ reclaimed
Resa’s family moved to Bantar Gebang Resa says. materials from the landfill and create
when she was only eight. She remem- Resa, now 32, says she is proof that home wares and furniture to sell, one
bers her home was surrounded by people from Bantar Gebang can make of the most popular items are wooden
beautiful rice fields, which have since better lives for themselves, if they are signs, which sell for Rp 400,000 ($29)
been swamped by millions of tons of motivated to continue their education. each. The team also sell T-shirts, and
Jakarta’s waste. Due to the negative This is why she and her friend John using natural products they have cre-
stigma associated with living in Ban- Devlin co-founded the Kingdom of ated a multi-purpose body balm, that
tar Gebang, Resa was bullied at school BGBJ. BGBJ translates to ‘The Seeds of they sell for Rp 40,000 - Rp 100,000
and underestimated by teachers who Bantar Gebang’ and Resa believes that ($3-$7). Currently they are running a
like seeds that need to be crowd sourcing campaign to fund in-
“I want to make something looked after to grow into frastructural improvements, includ-
bigger. I want to make this trees, the children need to ing to the classroom, building much-
be nurtured and supported needed toilets for the children’s area,
community stronger, I want to to grow into strong adults. improving their workshop, creating
have a computer lab, I want to “I said ‘I want to make a garden and fixing the roof at the
provide the kids with a garden!” something bigger. I want Kingdom.
to make this community Resa’s efforts to provide education
thought she wasn’t capable of being stronger, I want to have a computer for every child on the landfill are also
anything more than a waste-picker. She lab, I want to provide the kids with a challenged from within the Bantar Ge-
recalls being told not to chase her goals garden!” bang community. Some families only
and accept life as it was: “Don’t dream BGBJ hosts ‘Sunday Fundays’ - a send children to BGBJ for the meals
too hard, Resa, it will hurt you.” day of classes and activities run by Resa they provide. Local Imams urge par-
“I used this message to make me and a range of volunteers. Up to 100 ents not to send their children to BGBJ
even stronger, as motivation to get my children come along each week for les- as Resa is not teaching Islamic values
education.” She remembers thinking, sons in Indonesian, English, healthy - she doesn’t include religion in the
“No matter what, I will graduate from living and sustainability, and to join in BGBJ curriculum because she wants
university one day.” activities such as basketball, yoga, box- children of any faith to feel welcomed.
And with hard work, dedication ing, and art. BGBJ also provides a free And of course, many parents want to
and the help of a sponsor family from lunch program for the children. Resa their children to work on the landfill
the United Kingdom, Resa attended encourages each child that attends to and supplement the family’s income.
Gunadarma University and gradu- continue their education outside of Despite these setbacks, she has big
ated with a Bachelor in Information BGBJ, and has personally enrolled sev- plans for the children of BGBJ, and says
Technology. Unfortunately, the bully- eral students in local schools and sup- every child can turn their life around as
ing and taunts from school followed ported them throughout their studies. education provides them with the tools
Resa to university where she became In running the programs, Resa receives and knowledge they need to go to uni-
known as ‘The Princess of the Dump’, no government funding and relies on versity, pursue a career, and break the
a nickname she has since embraced private donations, investors, ecotour- cycle of poverty.
and is actually proud of. ism, and volunteers. Through social media posts, re-
Due to low income and lack of Ecotourism has become one of cent news coverage and by speaking
skills and education, opportunities their main sources of income. Tours of at conferences across the country,
are limited for the families and chil- Bantar Gebang cost Rp 200,000 ($14), Resa is raising awareness of the dif-
dren living in Bantar Gebang now. and for just Rp 350,000 ($25) a night ficulties facing the children of Bantar
Just like Resa, those who do go to including meals, visitors can stay at Gebang, in the hopes to create inves-
school are underestimated and face the BGBJ Hostel and experience the tors, donations, sponsors, and volun-
daily bullying. Many children are realities of life on a landfill, take part teers for BGBJ.
pressured by their parents to stay in Sunday Fundays, or volunteer in the “We are ready to collaborate,” she
home, look after younger siblings, and workshop. Since opening the BGBJ says. “What can I do for these children?
are told it’s better for them to work hostel in 2015, they have had more I don’t have much money but I can find
on the landfill than to go to school. than 150 guests from around the world people who want to support me.”
“I said to the children that’s not – from tourists and backpackers, to “I say to the children ‘never lose
true. Maybe one day you’ll become journalists and students. hope and just keep going’.” F

MARCH 2019 FORBES INDONESIA | 75


FORBES INDONESIA

THE EYE BY YESSAR ROSENDAR

S
wiss luxury watchmaker als such as King Gold (an exclusive
is well known for its fi- Hublot gold containing 5% plati-
nesse in combining various num), Hublonium (a brand new al-
materials into fine watch loy of aluminum and magnesium),
making, founded in 1980 the brand sapphire, gold crystal, colored
is the first luxury watch brand to ceramic, carbon fiber, tungsten,
combine gold and natural rubber. titanium, gold, platinum,
By pioneering the combination of rubber, precious stones, lin-
natural materials, which were never en, embroidery, leather and
previously found together, Hublot texalium, among others.
known to become a modern-day Continuing its passion
alchemist marrying the past and for cutting-edge research
the future, tradition and innova- into the latest high-tech
tion. A creative concept that dubbed materials, in 2012 Hublot
as the "Art of Fusion" by the brand built its own foundry to
started in 2004, when Jean-Claude support its ongoing R&D
Biver took over the control of the operations. The foundry
brand and launched the Big Bang included a team dedi-
Gold Ceramic, the first model in the cated to fusion – the Metal-
Big Bang collection. The watch has lurgy and Materials Depart-

Horology BIG BANG


Unico
Titanium

Alchemist
recognizable lines featuring sharp of 2011. That same year,
angles, six screws arranged around the company also bought
the case, and bezel lugs on each the Swiss firm Profusion,
side, that symbolize the concept of which specializes in the
fusion. Ten years later it became the manufacturing of car-
brand's signature timepiece and a bon fiber components.
veritable watch-making icon. In addition, an in-house
Since then, Hublot has launched electroplating depart-
six collections – Big Bang, Classic ment continually tests
Fusion, Spirit of Big Bang, Manu- new metal treatments. In
facture Piece, Techframe and King 2016, paying tribute to its
Power – housing movements rang- All Black concept, it un-
ing from the most pared-back to the ment. This enabled the brand to veiled the Big Bang Unico Sapphire
most complicated (chronograph, commence in-house production All Black, with a case made entirely
tourbillon, cathedral minute repeat- of Magic Gold, a scratch-resistant from smoked sapphire crystal.
er, GMT, etc.). These collections 18-carat gold developed in asso- Hublot is also a brand that has a
have enabled Hublot to continue its ciation with EPFL (Swiss Federal close relationship with football, as in
philosophy of combining materi- Institute of Technology) at the end 2006, the brand was appointed Of-

76 | FORBES INDONESIA MARCH 2019


ficial Licensed Partner of the Swiss brand paid tribute to the eight-foot- zel on the Big Bang Ferrari.
Football Team. Two years later, it balling nations by creating a unique In 2017, to mark Ferrari's 70-year
also became the Official Timekeep- series of interchangeable bracelets in anniversary, Hublot designed the
er for UEFA EURO 2008. In 2010, the colors of the competing coun- Techframe Ferrari Tourbillon Chro-
Hublot was chosen as the first Of- tries for its iconic Big Bang Unico nograph, employing an identical ap-
ficial Watch and Official Timekeeper proach to that
in the history of FIFA, and for sub- used by the Fer-
sequent World Cup finals including rari Centro Stile to
Brazil 2014 and Russia 2018. Some of create a car. The
the watches that influenced by foot- aim of this new
ball are the Official Watch of UEFA line in the Hublot
EURO 2016 where the Unico manu- collections was to
facture calibre was equipped with a produce a watch
patented self-winding bi-retrograde with a visceral
module, allowing the duration of bond to the Ferrari
a football match to be measured. DNA, combining
The next year in 2017, Hublot was strength, perfor-
appointed Official Timekeeper of mance, beauty and
the FIFA Confederations Cup. The lightness, created
and developed by
CLASSIC FUSION
Aerofusion Chronograph the Hublot Manufacture.
Orlinski Red Ceramic One of the latest innovations
from the brand is the Classic Fusion
Aerofusion Chronograph Orlinski
that has been paired with Hublot's
Chronograph Retro- patented red ceramic. Introduced
grade model. in Baselworld 2018, the watch is
Hublot is also the first ceramic to be created in
heavily invest- a vibrant color. The watch itself
ed in the world amplifies the brand’s partnership
of motoring. In with Richard Orlinski, the world's
2010, the brand bestselling contemporary artist that
was chosen as the has been adding his angular style to
Official Watch of Hublot watches since 2017. Works
Formula 1. The fol- of art for the wrist, these feature
lowing year, it signed his signature facets, nuanced with
a partnership with angles and edges. Like his sculp-
Ferrari as the Official tures, the Classic Fusion Aerofusion
Timekeeper for Ferrari Chronograph Orlinski Red Magic
and the Ferrari Challenge, boasts the sharp three-dimensional
and Official Watch of the Scuderia sculpted lines and polished finish
Ferrari, as well as being a partner to which are the artist's trademark.
Ferrari's special events. This partner- The watch took four years to de-
ship between two of the big names in velop and the ceramic created is
watch-making and motor sport re- harder than previously seen. The
sulted in no fewer than 25 revolution- watch features a 45 mm case and
ary timepieces. Some of the fusion of its sapphire case back reveals the
the materials from the partnership is HUB1155 self-winding skeleton
with the use from 2013 of carbon, the chronograph movement. The Clas-
ultra-lightweight material ubiquitous sic Fusion Aerofusion Chronograph
in motor racing, mixed with titanium Orlinski Redi Magic is released in a
in 2016 and used to decorate the be- limited edition of 200 pieces. F

MARCH 2019 FORBES INDONESIA | 77


FORBES INDONESIA

THE EYE BY YESSAR ROSENDAR

Sportier trim features BMW M steering wheel and seats, BMW Individual headliner
in Anthracite, and exclusive interior trim strips in Aluminum. It also got a
bigger panoramic glass roof with a two-section glass surface with an overall

Enhancement length of 924 mm and a width of 890 mm. The car also offers a sportier
driving experience than the similarly sized BMW X3, with its wider track and
sportier steering setting. The car is priced at Rp 1.45 billion (off the road).

BMW Group Indonesia recently launched the


new BMW X4, the mid-sized SUV with coupe like
design has been further refined compared to the
previous generation. Now the car is longer by
81mm and wider by 37 mm, while lower by 3 mm
that will gives the car a sportier stance. The vari-
ant that available for the market will be the BMW
X4 xDrive30i M Sport X. The car uses a 2,000 cc
four-cylinder engine that can generate a peak
power of 252 horsepower and a peak torque of
350 Nm, the powerplant mated to an eight-speed
transmission and all-wheel drive system. Outside
and inside, the car is equipped with the latest in-
terior trim package, the M Sport X trim. The new-
ly designed trim emits an air of off-road-focused
sportiness, thanks to styling accents in Frozen
Grey (a color with rally racing connotations), as
well as the individually designed air intakes, side
skirts and rear under guard element. Inside the

Expedient Stay tels networks throughout the world. CIMB Niaga Le Club
AccorHotels cards are launched in two types, which are
Platinum for emerging consumers and World for fre-
quent travellers. This credit card will enable customers
PT Bank CIMB Niaga Tbk (CIMB Niaga) together with AccorHotels and to pay at over 4,600 AccorHotels properties in over 100
Mastercard recently launched its very first co-branded credit card in Indo- countries globally. Every transaction using this credit
nesia "CIMB Niaga Le Club AccorHotels Card". The new credit card aimed card will earn reward points that can be exchanged for
to support the lifestyle of people who travel for both leisure and business, free stays in AccorHotels properties worldwide. With a
by providing a variety of benefits and transaction convenience in AccorHo- more aspirational appeal, the CIMB Niaga Platinum Le
Club AccorHotels card comes with welcome bonuses,
exclusive offers, as well as access to AccorHotels events
and travel privileges. The same advantages and other
additional benefits will also be given to CIMB Niaga
World Le Club AccorHotels cardholders. CIMB Niaga
World Le Club AccorHotels cardholders will be able to
fast-track to Silver status membership with Accor Plus,
the Group’s hotel, dining and lifestyle program, which
includes a free night at selected AccorHotels’ proper-
ties in Asia Pacific (APAC) and 50% discount privileges
in over 1100 restaurants. In addition to these benefits,
CIMB Niaga Le Club AccorHotels credit card holders can
enjoy various benefits for their travel convenience. These
include free access to the Airport Lounge; insurance
protection for purchases, accidents and travel inconve-
niences; fixed-installment facilities with a light interest of
36 months; and competitive currency values.

78 | FORBES INDONESIA MARCH 2019


Attainable
undergoes a protocol involving 16 days of
testing, in five different positions at three
different temperatures. The Besançon

Complexity Observatory, operating on behalf of the


International Bureau of Weights and Mea-
sures, is the only independent, public or-
ganization able to inspect chronometers.
TAG Heuer recently introduced its latest Chronograph More than simply proof of quality and
Tourbillon Chronometer collection, a compelling high accuracy, this stamp certifies the watch
complication timepiece from the brand as it is one as a whole, not just the movement. The
of the most attainable watches with tourbillon on watch movement featuring two of tradi-
the market with a price below Rp 300 million. tional watch-making's most famous com-
One of the notable models on the collection is plications: a tourbillon and a chronograph.
the TAG Heuer Carrera "Tête de Vipère" Chro- The movement is housed in a dark blue
nograph Tourbillon Chronometer. It is the first ceramic case, complemented by a ceramic
chronograph watch from the brand to bear the bezel and lugs. Accents of blue can also be
prestigious "Tête de Vipère" stamp of excellence, seen on the weight and movement barrel.
awarded by the Besançon Observatory. Since With its polished, brushed and bead-
2006, only 500 watches have received this highly blasted finishes, and the "Tête de Vipère"
exclusive certification. The "Tête de Vipère" stamp stamp has been applied to the bridge,
was applied to a chronometer for the first time by visible through the sapphire crystal of the
the Besançon Observatory in 1897. This high-quality case back. The piece is complemented by
metrological guarantee is a mark of the high precision a black alligator strap, sewn onto rubber
and excellence of a watch, it was abandoned in the with blue stitching, and the model is a
1970s and then relaunched in 2006. To obtain this limited edition of 155 pieces released to
certificate of excellence, each fully assembled watch celebrate 55 years since the Heuer Carrera.

Cold Sip
Recently, Johnie Walker in collaboration with Game of Thrones introduced the White Walker
by Johnnie Walker. This limited edition Scotch whisky is inspired by the most enigmatic and
feared characters on the hit show - the White Walkers. This limited edition Scotch whisky
brings you right to the Frozen North as the liquid features Single Malts from Cardhu and
Clynelish – one of Scotland’s most Northern distilleries. Thanks to whisky specialist George
Harper, alongside the small team of expert blenders at Johnnie Walker, the liquid reflects
notes of caramelized sugar and vanilla, fresh red berries with a touch of orchard fruit. Best
served cold, the freezing effect creates a playful mouth feel. The cold softens the initial
notes, with smooth and cool flavors inviting consumers to investigate the deeper layers of
warmer, spice-forward notes. The
bottle's icy white and blue design
along with the iconic Johnnie
Walker Striding Man, now fash-
ioned in armor to fit in among
the ranks of the Night King’s icy
army of the undead. The limited
edition Scotch whisky is best
served cold and directly from the sensitive ink technology, fans will be
freezer. When chill-filtered to 1.5oC reminded that “Winter is Here” as the
degrees, the liquid develops in bottle reveals an unexpected graphic-icy
complexity as it warms to room reveal once frozen, echoing the chilling
temperature. Using temperature- presence of the White Walkers.

MARCH 2019 FORBES INDONESIA | 79


THOUGHTS ON

Patience
“Trying to “At present you need
understand is to live the question.
like straining Perhaps you will
through muddy
water. Have gradually, without
the patience to even noticing
wait! Be still and it, find yourself
allow the mud experiencing the
to settle.” answer, some
—LAO TZU distant day.”
—RAINIER MARIA RILKE

“I’M EXTRAORDINARILY
PATIENT, PROVIDED I GET “The drop of
MY OWN WAY IN THE END.” rain maketh a
—MARGARET THATCHER
hole in the
stone—not
by violence,
“THOUGH PATIENCE BE but by oft
falling.”

CLOCKWISE FROM TOP LEFT: ALEXIS DUCLOS/GETTY IMAGES; HISTORICA GRAPHICA COLLECTION/GETTY IMAGES; HERITAGE IMAGE PARTNERSHIP/ALAMY;
A TIRED MARE, YET SHE

HISTORICAL PICTURE ARCHIVE/GETTY IMAGES; ALTO VINTAGE IMAGES/ALAMY; FINE ART IMAGES/GETTY IMAGES; KIM KULISH/GETTY IMAGES; CULTURE
WILL PLOD.” —BISHOP
HUGH LATIMER
—WILLIAM SHAKESPEARE

“Rivers know “Hope begins “TREES THAT “Patience: a minor


this: There is in the dark—the ARE SLOW TO form of despair,
no hurry. We stubborn hope GROW BEAR disguised as
that if you just THE BEST
shall get there show up and try FRUIT.” a virtue.”
someday.” to do the right —MOLIÈRE
—AMBROSE BIERCE

—A.A. MILNE thing, the dawn


will come.” “TOLERATION IS THE
GREATEST GIFT OF

CLUB/GETTY IMAGES; LEBRECHT MUSIC & ARTS/ALAMY; HULTON ARCHIVE/GETTY IMAGES


—ANNE LAMOTT THE MIND.”
—HELEN KELLER

“Be worthy love, and


love will come.”
—LOUISA MAY ALCOTT

“PATIENCE AND FINAL


TIME DO MORE
THAN FORCE THOUGHT
“ALL HUMAN ERRORS “History cannot
AND RAGE.” be hurried.
STEM FROM IMPATIENCE: —JEAN DE LA FONTAINE
A PREMATURE BREAKING- Generations of
OFF OF METHODICAL “PREACH THE WORD, BE PREPARED IN SEASON reformers have
PROCEDURE, AN APPARENT AND OUT OF SEASON; CORRECT, REBUKE AND learned this to
FENCING-IN OF WHAT IS ENCOURAGE—WITH GREAT PATIENCE AND their cost.”
—MALCOLM FORBES
APPARENTLY AT ISSUE.” CAREFUL INSTRUCTION.” —2 TIMOTHY 4:2
—FRANZ KAFKA SOURCES: THE CYNIC’S WORD BOOK, BY AMBROSE BIERCE; FABLES, BY JEAN DE LA FONTAINE;
HENRY V, BY WILLIAM SHAKESPEARE; WINNIE-THE-POOH, BY A.A. MILNE; LETTERS TO A YOUNG
POET, BY RAINIER MARIA RILKE; LITTLE WOMEN, BY LOUISA MAY ALCOTT; BIRD BY BIRD, BY
80 | FORBES INDONESIA MARCH 2019 ANNE LAMOTT; TAO TE CHING, BY LAO TZU; THE ZÜRAU APHORISMS, BY FRANZ KAFKA.
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