JPM Indonesia Internet - The Battle of The Ecosystem 07.09.2021

Asia Pacific Equity Research
07 September 2021
Correction (See disclosures for details)
Indonesia Internet
The Battle of the Ecosystem
A US$200bn market by 2025E. We expect Indonesia's Internet economy Head of Indonesia Research &
to reach US$200bn (15% of GDP) in size by 2025E, representing a 35% Strategy
five-year CAGR from US$44bn in 2020 (4% of GDP). Indonesia’s Henry Wibowo AC
population of 270m (4th largest in the world), backed with surging (622-1) 5291 8526
smartphone penetration (>65%) and a growing middle class, further henry.wibowo@jpmorgan.com
Bloomberg JPMA HWIBOWO <GO>
supports this growth thesis. We believe >80% of Indonesia’s internet
PT J.P. Morgan Sekuritas Indonesia
economy is now dominated by an ecosystem of three “SuperApps” and
Ranjan Sharma, CFA AC
their partners, namely: The “GGS” (in alphabetical order: GoTo Group,
(65) 6882-1303
Grab x Emtek, and Sea Limited). In this primer report, we dive into ranjan.x.sharma@jpmorgan.com
Indonesia’s GGS verticals from Ride Hailing and Food Delivery to E- Bloomberg JPMA RSHARMA <GO>
Commerce and Fintech, as we explore the thematic of the battle of the J.P. Morgan Securities Singapore Private
Limited
ecosystem. Within our stock coverage, we believe Emtek (EMTK IJ, OW)
and Sea Ltd (SE US, OW) are currently best positioned to capture the Arnanto Januri
(622-1) 5291 8047
structural growth story of the space. arnanto.januri@jpmorgan.com
Vida M Cornelius
(62-21) 5291-8505
vida.cornelius@jpmorgan.com
Ajay Mirchandani
(65) 6882-2419
ajay.mirchandani@jpmorgan.com
J.P. Morgan Securities Singapore Private
Limited
Alex Yao
(852) 2800-8535
alex.yao@jpmorgan.com
J.P. Morgan Securities (Asia Pacific) Limited/
J.P. Morgan Broking (Hong Kong) Limited
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Henry Wibowo Asia Pacific Equity Research
(622-1) 5291 8526 07 September 2021
henry.wibowo@jpmorgan.com
Table of Contents
Executive Summary .................................................................3
The Battle of the Ecosystem: GGS .........................................7
Industry Landscape..................................................................8
GoTo Group ............................................................................11
Grab x Emtek ..........................................................................16
Sea Limited .............................................................................24
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Executive Summary
Prologue: 2014 was the first big inflection point for The Battle of the Ecosystem: The rise of “GGS”
Indonesia Internet
If the US internet space is largely dominated by the
Indonesia’s Internet economy saw its first big inflection
“FAANG” (Facebook, Apple, Amazon, Netflix, Google)
point back in September 2014, when a 5-year-old E-
and the China internet space is dominated by the “BAT”
Commerce marketplace startup called Tokopedia secured a
(Baidu, Alibaba, Tencent), we believe the Indonesia Internet
landmark US$100m funding from Softbank, marking
economy is currently dominated by “GGS” (in alphabetical
Indonesia’s largest-ever internet company fundraising at that
order: GoTo Group, Grab x Emtek, and Sea Limited).
time and officially starting the beginning of a new era. Prior
to that, a tech-startup was generally perceived as a "website
company" and did not generate serious attention from We believe a growing ecosystem is one of the most
important factors behind the success of internet companies
investors. Tokopedia's US$100m fundraising changed
expanding their market positioning. In particular, if they are
everything. Since then, Indonesia’s Internet economy has
grown more than 7x, from ~US$8bn in 2015 to currently adopting a SuperApp strategy, the ecosystem is key. We
~US$62bn in 2021E, one of the fastest growth profiles have seen both a big consolidation and a strategic alliance in
2021 between Gojek x Tokopedia and Grab x Emtek,
globally and still underpenetrated at ~5% of GDP.
followed by Sea Ltd's continued internal expansion. We
In 2015, Gojek launched its app, offering services from ride believe the “GGS” SuperApp ecosystem and its partners
hailing to food delivery. It then became Indonesia's first tech currently dominate over 80% of Indonesia's internet
unicorn (tech company with US$1bn+ valuation) in 2016 economy.
and pioneered the “SuperApp” concept in Indonesia,
together with Grab in Southeast Asia.  GoTo Group. Gojek (US$10.5bn) and Tokopedia
As at 2020, Indonesia was home to the big-4 tech unicorns, (US$7.5bn) merged in 2Q21 to form GoTo Group
namely Gojek (SuperApp/ Ride-Hailing), Tokopedia (E- (US$18bn), with plans for an IPO in early 2022 at
Commerce), Traveloka (Online Travel Agent), and US$35-40bn valuation (news). GoTo Group is now
Bukalapak (E-Commerce/O2O). These four companies were Indonesia’s leading SuperApp and is the largest
generally perceived as first-generation unicorns in technology group in Indonesia in terms of total GTV
Indonesia, backed by reputable foreign and domestic with verticals including Ride-Hailing (Gojek), E-
investors. Gojek is backed by Tencent, JD.com, Astra Commerce (Tokopedia), Food Delivery (GoFood),
International, Telkom, VISA, Facebook, and KKR, among Fintech (GoPay), and Digital Bank (Jago).
others. Tokopedia is backed by Softbank, Alibaba, Google,  Grab x Emtek. The formation of the strategic alliance
and Temasek. Traveloka counts Expedia, JD.com, GIC as between Grab (~US$40bn equity value) and Emtek
investors. Bukalapak is backed by Emtek Group, Ant Group (EMTK IJ, ~US$10bn market cap) also happened
Financial, GIC, and Microsoft. in 2Q21, with cross investment made to solidify the
2021 another milestone: Consolidation and 1st tech IPO partnership. Grab owns a 5% stake in EMTK; EMTK
owns a 6% stake in Grab Indonesia. Grab x Emtek will
2021 was another milestone year for the Indonesia Internet also have high-profile market positioning in the
economy, as we saw the very first IPO of an Indonesia SuperApp ecosystem, with verticals including Ride-
unicorn, namely Bukalapak (BUKA IJ), which raised a Hailing (Grab), E-Commerce/O2O (Bukalapak), Food
record US$1.5bn at US$6.0bn post-money valuation in Delivery (GrabFood), Fintech (OVO), OTT (Vidio), and
August 2021. The IPO was also the biggest in the history of more.
IDX to date, eclipsing ADRO's US$1.3bn IPO in 2008.
Furthermore, 2021 was also a year of consolidation, as  Sea Limited. Last, but not least, Sea Ltd (SE US,
Gojek and Tokopedia announced a landmark US$18bn ~US$190bn market cap) has been growing its own
merger to form GoTo Group. This was followed by the ecosystem internally, from Shopee E-Commerce
formation of a strategic alliance between Grab and Emtek marketplace, Shopee Pay (Fintech), Shopee Food (Food
Group (EMTK IJ). Lastly, 2021 was the year when Sea Delivery), Shopee Express (Logistics), and now Seabank
Limited (SE US), the parent company of Shopee (Indonesia Indonesia (digital bank). Sea Ltd is supported by strong
as their largest market), crossed the US$100bn market cap FCF generation from the Garena gaming business, which
mark, making it the largest company in Southeast Asia, has generated US$2bn+ EBITDA annually to subsidize
eclipsing the likes of DBS and BCA. the new digital vertical expansion.
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Indo Internet Economy: A US$200bn market by 2025E In 2020, Indonesia’s digital economy was US$44bn in size,
We expect Indonesia's digital economy to reach US$200bn of which 72% of was dominated by E-Commerce, followed
by 2025E, growing at a 35% 5-yr CAGR and more than by Transport & Food (Ride Hailing & Food Delivery
quadrupling from US$44bn in 2020. We expect the internet services by the SuperApp), Online Media, and Online
economy to reach US$62bn in 2021E, a 40% YoY growth. Travel.
Figure 1: Indonesia Internet Economy (US$bn) Figure 3: Indonesia Internet Economy Breakdown (2020)
250
10%
7%
200
200
11%
154
150
114
100
84 72%
62
E-Commerce Transport & Food Online Travel Online Media
50 44
Source: Google, Temasek, and Bain e-Conomy 2020 report.
-
2020 2021F 2022F 2023F 2024F 2025F
Below is an illustration of the company size of “GGS”:
Source: 2020 actual data is from Google, Temasek, and Bain e-Conomy 2020 report. 2021- GoTo Group, Grab x Emtek, and Sea Limited, based on
2025F is based on J.P. Morgan estimates. publicly available data. Sea Ltd (SE US), which has a
presence across Southeast Asia, Taiwan, and recently
Indonesia’s digital economy is currently ~5% of GDP in expanded into Latin America, has a ~US$190bn market cap.
2021E and we expect this to reach ~15% of GDP by 2025E. Its subsidiary Shopee’s biggest E-Commerce market is
Indonesia’s GDP is currently USD1.1 trillion, making it the Indonesia. GoTo Group aims for an IPO in 1Q22 at US$35-
largest economy in Southeast Asia, while its ~270m 40bn valuation, up from the merger value of US$18bn in
population is the 4th largest in the world after China, India, 2Q21. Grab aims for 4Q21 US listing at US$40bn equity
and the US. value, while Emtek Group (EMTK IJ) is a listed company
with current US$9bn market cap, along with 24%-owned
Figure 2: Indonesia Internet Economy as % of GDP subsidiary Bukalapak (BUKA IJ) at US$7bn market cap.
16.0%
14.9%
Figure 4: "GGS” - Company size based on market cap and news
14.0%
reports (US$bn)
12.0% 200 190
12.0%
180
10.0%
160
9.2%
140
8.0% 120
7.1%
100
6.0% 5.4% 80
60 40
4.0% 35
4.0% 40
20 9 7
2.0%
0
Sea Ltd Grab GoTo Group Emtek Bukalapak
0.0%
2020 2021F 2022F 2023F 2024F 2025F Source: Bloomberg Finance L.P. (as at 6 Sep 2021) for Sea Ltd and Emtek market caps. For
GoTo, based on Reuters news on IPO target size in 1Q22 (link). For Grab, based on Reuters
Source: 2020 Actual data is from Google, Temasek, and Bain e-Conomy 2020 report. 2021-
news on listing target size in 4Q21 (link).
2025F is based on J.P. Morgan estimates.
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Indonesia E-Commerce landscape Indonesia E-Commerce companies have outgrown their

Based on monthly web visits data from iprice as per 2Q traditional retail counterparts in company size in the past
2021, Tokopedia and Shopee compete head-to-head as the few years. Tokopedia was valued at US$7.5bn (link) before
top two E-Commerce marketplaces in Indonesia, followed the GoTo merger, and Bukalapak is now at US$6.5bn
by Bukalapak, Lazada, and Blibli. market cap. This is significantly higher than the traditional
retailers listed on the Indonesia stock exchange, such as Ace
Figure 5: Indonesia E-Commerce: Monthly Web Visits (in millions) Hardware (US$1.7bn market cap), MAP Group (US$900m),
160 148 Erajaya (US$700m), Matahari Department Store
140 127 (US$550m), and Ramayana (US$350m) as at 6 September
120
2021.
93
100 86
Figure 7: Indonesia E-Commerce vs Traditional Retailers - Company
80
Size (USDm)
60 7,500
35 29 8,000
40 22 28 18 18 7,000 6,500
20 6,000
0 5,000
Tokopedia Shopee Bukalapak Lazada Blibli 4,000
2Q20 2Q21 3,000
1,700
2,000
Source: iprice 900 700
1,000 550 350
-
Figure 6: Indonesia E-Commerce: Est. GMV size in 2020 (USDbn) Tokopedia Bukalapak Ace MAP Group Erajaya Matahari Ramayana
(BUKA) Hardware (MAPI) (ERAA) (LPPF) (RALS)
(ACES)
Source: Bloomberg Finance L.P. (as at 6 Sep 2021) for listed companies; news report for
Tokopedia pre-merger valuation.
Indonesia Ride Hailing and Food Delivery

Indonesia’s ride hailing market is largely dominated by
Grab and Gojek. Grab generally has a more dominant
presence in 4W, especially since they took over Uber's
business in Southeast Asia in 2018. Nonetheless, Gojek has
partnered with local taxi operator Blue Bird Group to
increase the 4W ride sharing presence. Meanwhile, Gojek
was the pioneer in the 2W segment (the name “Gojek” was
Source: Company data for Tokopedia and Bukalapak, J.P. Morgan estimates for Shopee. Note derived from the word “Ojek”, which means 2W motorcycle
that this is estimated GMV size for Indonesia market only. taxi in Indonesia) but Grab has gained notable traction in
recent years and both players now lead the market.
Our channel checks and observations show that each of the
E-commerce platforms has its own niche market and unique Food delivery is one of the fastest-growing vertical
positioning. For example, Shopee was initially known for its segments now, with one of the highest take-rates (solid
marketplace for its women and mother & children revenue contribution), but the market is getting more
categories, Tokopedia for FMCG and general everything- crowded. The top 4 players are GoFood, GrabFood,
store products, Bukalapak for men’s hobby categories such ShopeeFood, and Traveloka Eats. Our channel checks
as bicycle spare parts, and Blibli in the laptop and computer suggest that the take-rate in the food delivery business can
category. be as high as 20-30%. With their existing fleets of 2W
drivers, ride-hailing companies like Gojek and Grab should
be positioned to compete in the food delivery business.
Nonetheless our observations show that ShopeeFood has
gained notable traction since its launch in 1H21 with cross
subsidy also coming from ShopeePay discounts.
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Indonesia Fintech payments Unicorns hunting for digital banks

The Indonesia fintech space over the past 5 years has been We believe payments are the first stage of the fintech
largely dominated by the payment segment, as e-wallets are economy in Indonesia. The next step is lending and
leveraging the E-Commerce or SuperApp ecosystem to monetizing the digital users. That’s where the big margins
grow users and build market share. Similar to how PayPal lie, in our view.
leveraged on Ebay’s ecosystem in the US in its early days
and how Alipay leveraged Alibaba’s ecosystem. From the 4Q20 marked an important milestone for digital banking
period of 2016-2019, the Indonesia market for the electronic development in Indonesia. Gojek bought a 22% stake in
non-banks payment space has been dominated by GoPay Bank Jago (ARTO IJ) in December 2020, with Bank Jago
(leveraging the Gojek ecosystem), OVO (leveraging Grab increasing from a US$3bn market cap at that time to
and Tokopedia ecosystem), and DANA (leveraging Emtek, currently US$14bn in September 2021. Bank Jago only
Bukalapak, Lazada ecosystem). Sea Ltd started promoting launched its app in 2Q21 and was integrated into Gojek’s
its ShopeePay wallet more aggressively from 2019 onwards app in 3Q21. We believe the significant increase in Bank
and has become a dominant player. The big 4 e-wallets in Jago’s market cap YTD reflects the market's bullish outlook
Indonesia are now: GoPay, OVO, DANA, and ShopeePay on the digital banking space (lending to both merchants and
(in order of launch date). customers) and the benefits of leveraging a SuperApp's
ecosystem.
The consolidation and strategic alliance formation
happening in 2021 is changing the dynamics of the e- Sea Ltd acquired a small bank called Bank BKE Sejahtera in
payments segment. Tokopedia is the second largest 2020 and recently rebranded it into Seabank Indonesia.
shareholder in OVO after Grab. Given Bank Indonesia's While we have not seen much in the way of product
regulation stipulating that one technology group can only integration at this stage, over time we could see more
own one e-wallet, Tokopedia may be required to shift its integration happen with its core Shopee E-Commerce
preferred payment partner from OVO currently to GoPay marketplace platform.
post its merger with Gojek (news link on potential
divestment). While Grab does not have a digital banking presence in
Indonesia, a recent media report (news link) speculates that
OVO is the preferred payment platform within Grab its new partner Emtek Group was looking to acquire a small
Indonesia's SuperApp ecosystem. Grab's recent strategic bank. In our EMTK initiation report, we argued that one of
alliance with Emtek Group in 2Q21 also means that Emtek’s the potential new verticals that Grab x EMTK partnership
ecosystem (which include Bukalapak, Vidio, and others) could launch is within financial services, including digital
could onboard OVO as well in the future. Nonetheless, note bank. Grab x Emtek's combined ecosystem is one of the
that Emtek currently owns a significant minority stake in largest domestically, ranging from Grab's ride hailing and
DANA, the payment JV with Ant Financial. We would not food delivery to EMTK's Bukalapak E-Commerce/O2O,
rule out the possibility of further M&A activity in the media, and healthcare businesses.
segment to create a bigger combined wallet, or alternatively
the Grab x Emtek ecosystem picking one wallet and
divesting another one (news link on Emtek potentially
selling its stake in DANA).
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The Battle of the Ecosystem: GGS

Table 1: Company Matrix: GGS (GoTo Group, Grab x Emtek, and Sea Limited)
GoTo Group Grab x Emtek Sea Ltd
 GOJEK: On-Demand Services
 GRAB: Mobility, Deliveries,
(Mobility & Logistic, Lifestyle &
Enterprise, Financial Services (OVO)  E-Commerce: Shopee
Entertainment, Food & Groceries)
 EMTK: E-Commerce/O2O  Gaming: Garena
Key business pillars  TOKOPEDIA: E-Commerce
(Bukalapak), Media/OTT (SCMA,  Financial Services: Shopee Pay,
Marketplace
Vidio.com), Healthcare (SAME), Seabank
 GOTO FINANCIAL: Fintech,
Fintech (DANA)
Payments, Digital Banks
Sea Ltd's key presence is in Southeast
Mainly Indonesia. Hyperlocal strategy. Grab has a presence in Southeast Asia,
Asia and Taiwan. Shopee’s largest E-
Geographical presence Gojek also has presence in Vietnam, with Indonesia as the largest market. EMTK
commerce market is in Indonesia and it
Thailand, Singapore, Philippines. has a presence in Indonesia.
recently expanded into Latin America.
 Grab's shareholders include:
Softbank, Didi, Uber, Toyota,
Softbank, Alibaba, Sequoia Capital,
Microsoft, MUFG, Bookings Holdings,
Google, Temasek, Astra International, Tencent, Forrest Li, Ye Gang, T Rowe
Key Shareholders Yamaha, Hyundai.
Telkom, Provident Capital, Northstar, Price
 EMTK’s shareholders include:
Tencent, JD.com
Sariaatmadja Family, Salim Group,
GIC, Grab, Naver Corp.
Gojek: Nadiem Makarim, Kevin Aluwi
 Grab: Anthony Tan, Hooi-Ling Tan
Co-Founders Tokopedia: William Tanuwijaya, Leontinus Forrest Li, Ye Gang, David Chen
 EMTK: Eddy Sariaatmadja
Alpha Edison
 Grab
CEO: Anthony Tan
CEO: Andre Soelistyo President: Ming Maa CEO: Forrest Li
CEO & President
President: Patrick Cao  EMTK COO: Ye Gang
CEO: Alvin Sariaatmadja
Chairman: Eddy Sariaatmadja
 Grab is a private company. Aims for
4Q21 listing in the US via SPAC
GoTo is a private company. merger.
Aims for 1Q22 IPO in Indonesia and might  Emtek is a listed company in
Stock ticker / IPO Plan Sea Ltd is listed in the US (SE US)
consider dual listing in the US Indonesia (EMTK IJ)
 EMTK’s 24%-owned subsidiary
Bukalapak is listed in Indonesia
(BUKA IJ)
 Grab aims for 4Q21 listing in the US
at US$30bn enterprise value and
GoTo's merger value in May 2021 was
US$40bn equity value (link)
US$18bn. Sea Ltd is listed in the US at US$190bn
Latest Valuation  EMTK is listed on IDX at US$9bn
GoTo aims for 1Q22 IPO at US$35-40bn market cap
market cap
valuation (link)
 BUKA is listed on IDX at US$6.5bn
market cap
Segment Ecosystem and Partners
E-commerce Tokopedia Bukalapak Shopee
Ride-hailing Gojek, GoCar, GoBluebird (BIRD IJ) GrabCar, GrabTaxi, GrabRide
Food delivery GoFood GrabFood ShopeeFood
E-wallet and financial services GoPay, GoTo Financial OVO, DANA ShopeePay
Digital Bank Bank Jago (ARTO IJ) SeaBank Indonesia
Logistics (delivery) SiCepat, AnterAja (ASSA IJ), GoSend GrabExpress Shopee Express
Fulfilment TokoCabang Dikelola Shopee
O2O Mitra Tokopedia Mitra Bukalapak, GrabKios Mitra Shopee
E-groceries GoMart, Hypermart (MPPA IJ) GrabMart
Video streaming GoPlay Vidio.com (SCMA IJ)
FTA/Content SCTV, Indosiar, Sinemart (SCMA IJ)
Omni Hospital (SAME IJ), KlikDokter (JV
Healthcare GoMed, Halodoc with Kalbe), Good Doctor (Grab, Ping An)
Gaming Bukalapak's itemku (game voucher) Garena
Source: Company data, J.P. Morgan (priced as of 6 September 2021).
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Industry Landscape
We expect Indonesia's digital economy to reach US$200bn by 2025E, growing at a
35% 5-yr CAGR and more than quadrupling from US$44bn in 2020. We expect the
internet economy to reach US$62bn in 2021E, a 40% YoY growth. E-Commerce is
currently the biggest segment within the digital economy at 70+%, followed by
Transport & Foods, and others (Online Media, Online Travel).
Indonesia’s digital economy is currently ~5% of GDP in 2021E and we expect this to
reach ~15% of GDP by 2025E. Indonesia’s GDP is currently USD1.1 trillion,
making it the largest economy in Southeast Asia, while its ~270m population is the
4th largest in the world after China, India, and the US.
Figure 8: Indonesia Internet Economy (US$bn) Figure 9: Indonesia Internet Economy as % of GDP
250 16.0%
14.9%
14.0%
200
200
12.0%
12.0%
154
10.0%
150 9.2%
114 8.0%
7.1%
100
84 6.0% 5.4%
62 4.0%
4.0%
50 44
2.0%
- 0.0%
2020 2021F 2022F 2023F 2024F 2025F 2020 2021F 2022F 2023F 2024F 2025F
Source: 2020 Actual data is from Google, Temasek, and Bain e-Conomy 2020 report. 2021- Source: 2020 Actual data is from Google, Temasek, and Bain e-Conomy 2020 report. 2021-
2025F is based on J.P. Morgan estimates. 2025F is based on J.P. Morgan estimates.
Figure 10: Average GMV per digital customer in Southeast Asia (US$)
$800
$671
$700
$600
22% CAGR
$500
$381
$400
$300 $238
$200 $135
$100
$-
2019 2020 2021 2026
Source: Facebook-Bain.
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Figure 11: Southeast Asia: Average number of categories purchased online

8.8
8.1 8.2 8.3
7.6 7.5 7.7
5.1 5.1 5.4 5.2

5.0 4.7 5.0
SEA ID MY PH SG TH VN
2020 2021
Source: Facebook-Bain.
Table 2: Key services offered in Indonesia by Sea Ltd, Grab, Gojek and Tokopedia
Services offered in
Indonesia Gojek Tokopedia Sea Ltd Grab Emtek
Ecommerce Tokopedia Shopee Bukalapak
Mobility GoCar GrabCar
GoRide GrabBike
GoBluebird GrabTaxi
Delivery
Express delivery GoSend Shopee Express GrabExpress
Food GoFood Shopee Food GrabFood
Online grocery GoMart GrabMart
Fintech
E-wallet GoPay OVO ShopeePay OVO DANA
PayLater (Dhanapala,
OVO PayLater
Online lending GoPayLater Indodana, Kredivo, etc.) SPayLater
Merchant loans Merchant loans Merchant loans Merchant loans
Other financial products GoSure (insurance) Insurance Investment (gold) Insurance BukaEmas
GoInvestasi Investment (gold, Bank (SeaBank Investment (through Bukalapak Investasi
(investment) mutual funds) Indonesia) OVO) Bersama (BIB)
Bank (Bank Jago)
Fulfillment TokoCabang Dikelola Shopee
Online-to-Offline (O2O) Mapan Mitra Tokopedia Mitra Shopee GrabKios Mitra Bukalapak
GoTix (movie/event
Travel Travel Travel Media (SCMA)
Others ticketing)
Tokopedia Play Ticketing (movies, Home services (Clean &
GoMed (Halodoc) OTT (Vidio.com)
(streaming) events) Fix)
GrabHealth (Good Hospital (SAME),
GoFitness BrideStory, ParentStory
Doctor) KlikDokter
GoPlay (OTT platform)
Source: Company apps. List may not be exhaustive.
Table 3: Indonesia: Key fintech players and the respective product offerings
Payments Tickets/vouchers Financial products
Indonesia Online Offline Bills Entertainment Travel Investment Loan Peer to peer transfer Insurance
OVO v v v x x v v v v
Gopay v v v v x v v v v
DANA v v v v x v x v v
LinkAja v v v v v v v v v
ShopeePay v v v v v x v v x
Source: J.P. Morgan (v represents available product; x represents unavailable product).
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Table 4: Global e-commerce valuation table

EPS
PE PS P/GMV CAGR PEG
Market Cap FY19-
Company Name Ticker (US$mn) FY21E FY22E FY21E FY22E FY21E FY22E 22E CY22
Alibaba Group BABA US Equity 462,906 16.7 17.5 4.2 3.2 0.3 0.3 23% 0.8
Coupang, Inc. CPNG US Equity 51,460 - - 2.7 2.0 1.8 1.3 -66% NA
Meituan Dianping 3690 HK Equity 195,082 - - 7.0 5.3 1.2 1.0 25% NA
JD.com, Inc. JD US Equity 124,493 50.7 35.6 0.8 0.7 0.2 0.2 20% 1.8
Sea Ltd SE US Equity 190,076 - - 17.8 13.1 3.2 2.3 NA NA
eBay EBAY US Equity 49,749 19.4 17.0 4.8 4.4 0.5 0.5 29% 0.6
MercadoLibre MELI US Equity 96,739 NA NA 13.3 10.1 3.2 2.2 NA NA
Pingduoduo PDD US Equity 128,124 333.4 150.7 7.5 5.0 0.3 0.2 NA NA
Rakuten 4755 JT Equity 15,994 - - 1.1 1.0 0.5 0.5 NA NA
Zalando ZAL GR Equity 29,540 105.6 93.2 2.4 2.0 1.9 1.5 37% 2.5
Vipshop VIPS US Equity 10,414 9.6 8.2 0.6 0.5 0.3 0.3 26% 0.3
momo.com 8454 TT Equity 10,658 87.9 71.0 3.3 2.7 NA NA 44% 1.6
PCHome 8044 TT Equity 465 40.7 33.9 0.3 0.2 NA NA 32% 1.1
Bukalapak BUKA IJ Equity 6,518 - - 44.6 27.1 0.8 0.5 NA NA
Grab* Not listed 40,000 NA NA 17.4 12.1 2.4 1.6 NA NA
GoTo** Not listed 35,000 NA NA NA NA 1.2 NA NA NA
Global ecommerce average 83.0x 53.4x 8.5x 6.0x 1.3x 1.0x 22% 1.2x
Source: Company data (*Grab company presentation; **GoTo press release), Bloomberg Finance L.P. for non-covered names momo.com, PCHome and Bukalapak, J.P. Morgan estimates for the
rest.
Table 5: Indonesia’s affiliated internet company valuation table

PS PB P/GMV
Market Cap
Company Name Ticker (US$mn) FY21E FY22E FY21E FY22E FY21E FY22E
Sea Ltd SE US Equity 190,076 17.8 13.1 91.9 119.1 3.2 2.3
Bukalapak BUKA IJ Equity 6,518 44.6 27.1 4.2 2.0 0.8 0.5
Bank Jago ARTO IJ Equity 14,056 392.2 159.4 24.3 22.8 NA NA
Elang Mahkota Teknologi EMTK IJ Equity 8,988 9.6 9.0 5.7 3.1 NA NA
Source: Bloomberg Finance L.P. for non-covered names Bukalapak and Bank Jago, J.P. Morgan estimates for others.
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GoTo Group
Indonesia’s two largest tech unicorns Gojek and Tokopedia officially merged on 17
May 2021 and launched a new SuperApp called "GoTo", which will have three
business pillars: 1) On-Demand (Gojek), 2) E-Commerce (Tokopedia), and 3)
Financial Services (GoTo Financial). Andre Soelistyo from Gojek will lead as CEO
of GoTo and Patrick Cao from Tokopedia will serve as President. The US$18bn
merger comprises US$10.5bn from Gojek's valuation and US$7.5bn from Tokopedia,
based on latest funding rounds in the past two years (link); with the aim for IPO in
1Q22 at reportedly US$35-40bn valuation.
Figure 12: The GoTo Ecosystem for daily life
Source: Company data.
Figure 13: GoTo's 3 main business pillars
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Gojek
Gojek is one of Southeast Asia’s leading on-demand platforms and a pioneer of the
multi-service ecosystem model, offering more than 20 products serving millions of
customers across Transport and Logistics, Food and Shopping, Payments, News and
Entertainment, Business, and Daily needs services. Gojek was founded in 2010 in
Indonesia and initially started its operations in its home country; it now operates in
Singapore and Vietnam as well (recently exited Thailand by selling its business to
AirAsia in Jul-21). As at end 2Q21, Gojek’s app has more than 190mn downloads, 2
million driver partners across Southeast Asia, and ~900k merchant partners across
Southeast Asia.
Company history
Gojek was established in 2010 by Nadiem Makarim (now Indonesia’s Minister of
Education, Culture, and Research). It initially started with 20 ojek (two-wheeler
drivers) and 1 call center. In 2015, Gojek developed its integrated application and
expanded into other cities outside of Jakarta; daily orders increased to 10,000 and
Gojek received its Series A funding. By 2016, Gojek was labeled as the first unicorn
in Indonesia and daily orders exceeded 300,000 (vs. 10k in 2015). In 2018, Gojek
expanded into Vietnam and Thailand, which further increased daily orders to 100
million per day by end of 2018. Gojek completed its Series F fundraising in 2019 led
by Google, Tencent, JD.com and Mitsubishi. At this point, Gojek had 2 million
partner drivers and offered more than 20 products.
In 2019, Gojek contributed Rp105tn (US$7bn) in added value to the Indonesian

economy, equivalent to ~1% of Indonesia’s GDP in 2019. Aside from its economic
contribution, Gojek also created an impact for its driver partners and merchant
partners, which are largely MSMEs. According to the company, 40% of MSMEs
joined GoFood at the beginning of the pandemic, emphasizing the online adoption
because of Covid. Additionally, 43% of Gojek’s merchant partners are first-time
business owners and ~50% of them claim that they would not be able to survive if
they were not part of the Gojek ecosystem.
GoFood
GoFood has 900k culinary merchant partners, of which 96% are categorized as
MSMEs. It has >50mn average transactions per month, >20mn menu items, and is
operating in >70 regions across Southeast Asia (Ho Chi Minh, Hanoi, and 69 cities in
Indonesia). GoFood initially started its operations in 2015 with 10,000 merchant
partners and served up to 15 million orders by 2016. As per company data, GoFood
processes US$2bn in annualized gross transaction value (GTV).
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Table 6: Gojek App product offering

Services Description
Transport & Logistics
GoRide Two-wheeler taxi, or also known as ojek
GoCar Four-wheeler ride hailing
GoSend Send or get packages delivered within hours
GoBox Transport heavy/large scale goods
GoBluebird Online taxi exclusive partnership with Bluebird, the biggest taxi operator in Indonesia
GoTransit Public transportation assistant offering Gojek transport services to nearest public transport stations
Food & Shopping
GoFood Online food delivery
GoShop Online shopping from nearby shops
GoMart Online groceries from nearby stores
GoMed Online medicine shopping from licensed pharmacies (meds, vitamins)
Payments
GoPay e-wallet service, digital payment
GoBills Digital bill payment gateway (electricity, social security, phone, water, gas, internet)
PayLater Buy now, pay later (BNPL) service
GoPulsa Top-up phone credit and data
GoSure Insurance product (travel insurance, product insurance, health and life insurance)
GoGive Online donation platform
GoInvestasi Online investment via Pluang (gold, mutual funds, and crypto)
Daily Needs
GoFitness Online and offline workout classes
GoService Services for daily needs (e.g. home disinfectant service, AC cleaning service, vehicle tax "STNK" renewal)
Business
GoBiz Integrated merchant application connected to Gojek's SuperApp's ecosystem
News & Entertainment
GoTix Online booking for tickets (concerts, events, expo, local attraction, workshop)
GoPlay Online streaming site for movies and series
GoNews News aggregator and curated news to own preference
Source: Company website.
MidTrans
MidTrans is a payment solution gateway owned by Gojek (now a part of GoTo
financial). MidTrans offers 3 products: (1) online payment; (2) in-store payment; and
(3) payout.
Table 7: MidTrans product offering

Service Description
Online payment
Bank transfer Fee of Rp4000 per transaction for online payment
E-wallets 2% fee per transaction via Gopay, 1.5% fee for ShopeePay, and 0.7% for QRIS (national QR barcode)
Credit card Fee of 2.9% + Rp2000 per transaction
Over-the-
counter Fee of Rp5000; available via Alfamart, Indomaret
Direct debit Fee of Rp5000 per transaction
Cardless credit Transaction via Akulaku, fee of 1.7% per transaction
In-store payment
GoBiz Integrated merchant application connected to Gojek's SuperApp's ecosystem
GoBiz PLUS Integrated payment device that accepts card payment, QR code (for payment via e-wallet)
Moka Point-of-sale (POS) system that enables customers to sell online and offline, used by over 40,000 merchants in Indonesia
Payout
Bank transfer Seamless bank transfer to >100 banks in Indonesia
Tokopedia
Tokopedia was founded in 2009 with the main goal of bringing economic equality
through digital adoption. Tokopedia is currently one of the leading C2C/E-commerce
platforms in Indonesia with over 100mn monthly active users and more than 11mn
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sellers. Tokopedia offers 4 main business lines: (1) Marketplace; (2) Financial; (3)
New Retail (Mitra Tokopedia); and (4) Logistics and fulfillment.
Table 8: Available delivery services in Tokopedia

Courier Services available
Conventional delivery: Seller drops off package at nearest drop-off location
JNE OKE (Ongkos Kirim Ekonomis), Reguler (1-7 business days), YES (next day delivery), JTR (JNE Trucking/Cargo)
TIKI Regular, Over Night service (ONS)
Pos Indonesia Pos Kilat Khusus (2-7 days across Indonesia)
Wahana Economy service (1-7 business days)
SiCepat Regular service (max. 3 days), Next-day service (1 day), Cargo service (SiCepat Gokil), Economy service (SiCepat Halu)
SiCepat SiUntung Max. 15 hours delivery service within Jabodetabek and Bandung region
J&T Express Regular service (2-3 days)
Pick-up delivery: Courier picks up package from seller
GoSend Gojek driver will instantly pick-up and deliver goods
GrabExpress Grab driver will instantly pick-up and deliver goods
Ninja Express Regular service (2-3 days), same-day service, instant (<3 hours)
AnterAja Regular service, next-day service, same-day service, economy service, cargo service
SiCepat Regular service (max. 3 days), Next-day service (1 day), Cargo service (SiCepat Gokil), Economy service (SiCepat Halu)
Rex Kiriman Express Express service
Lion Parcel Regular service
Paxel Same-day delivery, max 5kg package
Tokopedia Marketplace
Tokopedia Marketplace has more than 11 million merchants (as sellers), offering
more than 550 million products. On an aggregate amount, Tokopedia Marketplace
contributes >1% of Indonesia’s GDP.
Tokopedia Keuangan (financial)

Tokopedia Keuangan offers financial services for both merchants and users,
including access to financing, investment products, and digital payments.
 Online lending. Tokopedia offers online lending via its partnerships with BFI
Finance, DBS, Julo, Koinworks, Adira Finance, and Tunaiku. Tokopedia
Keuangan offers more than 20 lending programs, has more than 300k customers,
and has disbursed a total of Rp500bn of lending.
 Mutual fund investment. Tokopedia users can invest into mutual funds through
the Tokopedia app. Currently, Tokopedia offers 2 mutual fund products
(Syailendra Pasar Uang and Mandiri Syariah).
 Gold investment. Tokopedia Emas is a platform to buy/sell gold for investment.
Customers can buy gold starting from as low as Rp5000 (US$0.4). Customers can
convert a gold asset into a physical asset at Pegadaian (national pawn shop).
 Credit card. Users can apply for credit cards through the Tokopedia app, with
currently 3 banks to select: (1) Citibank; (2) UOB; and (3) Standard Chartered.
 Insurance. Tokopedia partners with several insurance providers, such as
PasarPolis, PT Asuransi Sinarmas Insurtech, Zurich Insurance, Etiqa Insurance,
MSIG, and Tokiomarine Insurance. Products offered are: travel insurance,
vehicle insurance, loan insurance, and health insurance.
 Dhanapala. Dhanapala is a MSME lending and P2P lending platform owned by
Tokopedia.
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Mitra Tokopedia
Mitra Tokopedia is an O2O business that brings online/digital adoption to traditional
small mom-and-pop shops, also known as warungs. Mitras can replenish inventory
via Mitra Tokopedia’s app (free delivery) and sell a wider array of products, such as
phone top-ups, electricity bills, gaming vouchers, etc. As of Jul-19, Mitra Tokopedia
had more than 200,000 Mitras (link; vs. Mitra Bukalapak at 3.4mn Mitras as of Dec-
19).
TokoCabang (Logistics and Fulfillment)

TokoCabang is Tokopedia’s newest product, offering fulfillment services for its
merchants. Instead of having own storage/warehouses, sellers/merchants can deliver
their goods to TokoCabang. TokoCabang will store goods from merchants, package
and deliver goods to customers upon order. There are two fees for this service: (1)
fulfilment fee (admin, inbound, and outbound); and (2) storage fee (>60 days storage
fee). According to company data, >400 merchants have joined TokoCabang.
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Grab x Emtek
While Gojek and Tokopedia recently merged into GoTo, Grab and Emtek have
formed a new partnership to expand their digital ecosystem. This includes cross-
investments between parties, whereby Grab took a ~5% stake in EMTK, and EMTK
took a ~6% stake in PT Grab Teknologi Indonesia, the Indonesian subsidiary of Grab
Holdings. We expect the new partnership will leverage its SuperApp ecosystem from
Grab’s Ride Hailing and Food Delivery to Emtek's E-Commerce, Warung (Street
Stalls), Media, and Hospital network.
Grab
Grab was founded in 2012 and now operates across the deliveries, mobility, and
digital financial services sectors in over 400 cities in 8 countries in the Southeast
Asia region (Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore,
Thailand, and Vietnam). Grab has more than 5 million registered driver-partners and
more than 2 million registered merchant-partners across 8 countries, and over 2
million registered GrabKios agents (O2O Mitra business) in Indonesia as of Dec-20.
Grab offers 3 main services: (1) Deliveries; (2) Mobility; and (3) Financial services.
In Indonesia, Grab offers GrabKios. GrabKios agents act as an offline channel to sell
digital goods, including phone credits, bill payment services, and e-commerce
purchasing services.
Deliveries
Grab’s deliveries platform connects drivers and merchant-partners with consumers to
create a local logistics platform, facilitating on-demand and scheduled delivery of
products, such as food, groceries, and point-to-point package delivery.
 GrabFood. Food ordering and delivery booking service, which enable merchant-
partners to accept bookings for prepared meals from consumers and driver-
partners to accept bookings for delivery services.
 GrabKitchen. Centralized food preparation facilities in Indonesia, Malaysia,
Myanmar, Singapore, Thailand, the Philippines, and Vietnam that enable
merchant-partners to scale to multiple locations. Consumers may combine from
two or more restaurants housed within GrabKitchen in one order and delivery via
GrabFood.
 GrabMart. Through GrabMart, consumers can order everyday items ranging
from groceries and household goods, to electronics for delivery on-demand. In
some countries such as Singapore and Malaysia, GrabMart offers localized
offerings that enable delivery of fresh produce and a wide range of product from
Grab's dark stores (retail space only to fulfill online orders).
 GrabExpress. Package delivery booking service, enabling driver-partners to
accept bookings for package delivery services. Consumers can arrange for instant
or same-day deliveries.
Mobility
Grab connects driver-partners with consumers seeking rides across several mobility
options including private cars (GrabCar), taxis (GrabTaxi), and motorcycles
(GrabBike; only in certain countries). Grab also has GrabRentals, the largest private-
hire car rental in Singapore, which facilitates vehicle rental for Grab’s driver partners
with limited vehicle access.
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 GrabCar. Enabling a private hire driver-partner to register and accept bookings

through Grab application.
 GrabTaxi. Enabling licensed taxi driver-partners in all markets (except
Cambodia) to register and accept bookings through the Grab driver-partner
application.
 GrabBike. Motorcycle ride-hailing offering, most popular in Indonesia,
Thailand, and Vietnam as it is affordable and efficient in congested cities.
Financial services
Grab’s financial services offerings include digital payments, lending, receivables
factoring, insurance distribution, and wealth management in selected markets. Grab
has also been awarded a digital full bank license in Singapore, of which the Grab-
Singtel consortium is also in the process of developing business operations and
infrastructure.
 GrabPay. Digital payment solutions available in Indonesia (through OVO),

Malaysia, the Philippines, Singapore, Thailand, and Vietnam (by Moca). It allows
consumers to make online and offline electronic payments using mobile wallet.
 GrabRewards. Loyalty platform providing consumers with a large catalog of
point redemption options (OVO Points in Indonesia).
 GrabFinance. Offers digital and offline lending, PayLater services, white goods
financing, receivable factoring, and working capital loans for driver- and
merchant-partners and consumers.
 GrabInsure. Connecting affordable insurance products to consumers and driver-
partners, and is available in Singapore, Indonesia, Malaysia, the Philippines, and
Vietnam. Products offered include protections for rides and package deliveries,
personal accident insurance, income protection insurance, health insurance,
vehicle insurance, and travel insurance.
 GrabInvest. Enabling financial services partners to offer investment products
through Grab’s platform.
 GrabLink. In-house payment service gateway, which is aimed at reducing
dependency on third-party providers, and reducing cost of funds across Grab
transactions.
 JV with Singtel. JV with Singapore’s leading telecommunications player, which
has been granted in-principle approval for a digital full bank license in Singapore.
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Figure 14: Grab ecosystem in daily activities
Table 9: Grab fundraising rounds

Date Fundraising round and size Lead investors
Apr-14 Series A; US$5mn Vertex Ventures, Founders
May-14 Series B; US$16mn Vertex Ventures, GGV Capital
Oct-14 Series C; US$54mn Tiger Global Management, Vertex Ventures
Dec-14 Series D; US$250mn SoftBank Vision Fund
May-15 Series D-1; US$20mn DiDi
Aug-16 Series E; US$335mn COATUE, China Investment Corporation
Sep-16 Series F; US$790mn SoftBank Vision Fund
Jul-17 Series G; >US$2bn DiDi, Softbank Vision Fund
Mar-18 Uber acquisition
Series H; US$6.2bn SoftBank Vision Fund, Toyota, Oppenheimer Funds, Microsoft, Pingan Capital, Hyundai, MUFG, Booking Holdings, Yamaha
Table 10: Grab ecosystem in Southeast Asia

Services SG MY PH TH VN ID
Payments & rewards
E-wallet v v v v v v
Rewards program v v v v v v
GrabPay Mastercard v - v - - -
Lending
PayLater v v v - - v
Smartphone financing v v v v v -
Driver cash loan/incentive advance - v v v v -
Merchant working capital loan v v v v In progress v
Merchant invoice financing v v In progress v - v
Insurance
Driver insurance v v In progress In progress v v
Consumer insurance v v v v v v
Wealth
Cash management v - - - - v
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Figure 15: Grab blended GMV (US$bn)

14 12.5
12.2
12
10
8
5.7
6
0
2018 2019 2020
Figure 16: Grab adjusted net revenue (US$bn) and take-rates

2 13% 14%
12%
1.6
8% 1.6 10%
1.2 7%
8%
0.8 1 6%
4%
0.4
2%
0.4
0 0%
2018 2019 2020
Adj. net revenue (US$bn) Take rate (%)
Figure 17: Grab GMV breakdown (US$mn)

14,000 12,251 12,492
Enterprise and new Enterprise and new
12,000
initiatives, 9 initiatives, 44
3,579 3,748
10,000
8,000
3,232
6,000 5,715
4,000
5,468
2,000
2,947
-
2019 2020
Deliveries Mobility Financial services Enterprise and new initiatives
Source: Company filing.
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Figure 18: Grab Gross billings breakdown (US$mn)

1,800 1,706
1,506 Enterprise and new Enterprise and new
1,600 72 initiatives, 38
initiatives, 9
1,400
Financial services, 688
1,200 29
1,000
1,146
800
600
400 908
200 322
-
2019 2020
Deliveries Mobility Financial services Enterprise and new initiatives
Source: Company filing.
Figure 19: Grab x EMTK combined ecosystem
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Emtek Group
Bukalapak
Bukalapak has two main business pillars: (1) Marketplace (e-commerce) and (2)
O2O Mitra Bukalapak. Bukalapak is the largest O2O (Online-to-Offline, Offline-to-
Online) integrator of Warung (Street Stalls) via Mitra Bukalapak business with now
over 8m partners nationwide.
What is Mitra Bukalapak?

The direct translation of Mitra Bukalapak is Bukalapak Partner, which represents an
offline retail network, also known as warung (mom-and-pop shops). By becoming a
Mitra or a partner of Bukalapak, it enables warungs to purchase wholesale products
via Mitra Bukalapak’s online platform, which offers quicker and more visible
delivery time, better inventory management, and wider array of products (virtual
products such as mobile top-ups, electricity bills, bus tickets, etc.). Virtual and
financial products allow Mitras to generate additional revenue stream to customers
who do not have access to digital payment gateway as Mitras earn commission for
every transaction.
Table 11: Mitra Bukalapak products and services

Product/Service category Description
Physical FMCG (B2B marketplace transaction for Mitra), Fashion, Electronics, Motorcycle and vehicle accessories
Virtual Products Electricity bills, phone credit, voucher deals, Telkom bills, game voucher, BPJS (social security fee settlement)
SaaS Bookkeeping, mPOS (portable point of sale)
Financial Inclusion Top up and withdraw, cash transfer, Pay at Mitra (C2C transaction)
Source: Company website, J.P. Morgan.
Figure 20: Bukalapak TPV breakdown (US$mn)

7,000 5,950
6,000
5,000 1,600
4,013 3,966
4,000
725
3,000 1,678
1,982
2,000 4,350
382 3,288
1,000 2,288
1,600
-
2018 2019 2020 1H21
Marketplace Mitra
Source: Company data, J.P. Morgan (USDIDR = Rp14300/US$).
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Figure 21: Bukalapak revenue breakdown (US$mn) and implied take-rates

100 1.4% 1.4% 1.4% 1.6%
90 8
1.4%
80 14
70 1.0% 1.2%
19
60 3 1.0%
50 5
20 0.8%
40
72
30 0.6%
51
20 01 37 0.4%
10 19
- 0.2%
2018 2019 2020 1H21
Marketplace Mitra BPI Blended take rate (RHS)
Source: Company data, J.P. Morgan (USDIDR = Rp14300/US$).
Fintech Payment: DANA

Dana is one of Indonesia’s leading fintech wallet companies, and is a joint venture
between Ant Financial from China and EMTK. We believe Dana is currently one of
the big 4 fintech wallet in Indonesia in terms of Gross Transaction Value (GTV),
competing directly with GoPay, OVO, and ShopeePay. Dana generates the bulk of its
payment traffic from EMTK’s Bukalapak and Alibaba's Lazada.
FTA TV (SCMA)
SCMA owns 2 national FTA TV Stations, namely SCTV (focusing on drama genre)
and Indosiar (Variety shows). This is the main source of FCF for SCMA and EMTK
group overall, generating over US$100m of FCF annually. SCMA controls over 30%
TV audience shares via the 2 channels. While the valuation multiple of the TV
broadcasting company has seen significant derating in the past 5-6 years, its ability to
generate stable cash flow and earnings remains robust. SCMA’s strong FCF
generation could be used as a source to fund new digital business expansion for
future growth drivers, which include OTT platform Vidio.com within SCMA and
also E-Commerce and Fintech ventures like Bukalapak and DANA under EMTK.
Content (SCMA)
Aside from being a leading TV broadcaster group in Indonesia, SCMA is actually
also among the largest content producers in the country. We believe the content side
of the business is underappreciated by the investor community. It is important to
highlight that Netflix's first original movie in Indonesia (and the most watched) was
produced by SCMA’s Screenplay Films under IEG (“The Night has Come For Us”,
starring Iko Uwais) back in 2019.
The ability to diversify the content revenue stream of both companies to third-party
platforms, i.e. supplying outside their own group TV stations (e.g. to cinemas,
YouTube, Netflix, iFlix, Hooq, etc.), are key potential catalysts to unlock further
value going forward. SCMA's content arm is currently under IEG, with two famous
production houses, namely Sinemart (strong in TV soap opera dramas) and
Screenplay (strong in big screen cinema movies).
OTT: Vidio.com
Vidio is Indonesia’s second-largest online video streaming platform after YouTube.
Vidio runs a hybrid advertisement video on demand (AVOD) + subscription video
on demand (SVOD) model with key content differentiation. The SVOD model is
under Vidio Premier, where it focuses on offering original local content drama series
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and also offering sports content, such as the local soccer league Liga, La Liga,
Champions League and NBA.Vidio.com currently has around 70m active users with
over 1.5m paid subscribers. SCMA owns a 100% stake in Vidio.
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Sea Limited
Garena games in Indonesia
Garena, SE’s gaming business, currently has a number of games in Indonesia. Free
Fire, a self-developed game, is among the most popular games in Indonesia.
According to Apptopia data, Free Fire has been downloaded ~80m times since Jan-
19. Other popular games from Garena are Call of Duty Mobile (developed by
Activision Blizzard and Tencent) and Arena of Valor (developed by Tencent).
Table 12: Garena's gaming presence in Indonesia

Garena games in Indonesia AppAnnie grossing rank
iOS Android
Free Fire 32 2
Call of Duty Mobile 29 22
Arena of Valor 171 152
Contra 192 201
FairyTail 44 216
Speed Drifter 821 517
Source: AppAnnie. As of 30 Aug 2021.
Figure 22: Free Fire has been downloaded ~80mn times in Indonesia since Jan-19
50.0
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
FY19 FY20 YTD Aug-21
Source: Apptopia.
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Ecommerce (Shopee)
Shopee is Indonesia's leading E-Commerce marketplace. Shopee was founded in
2015 and is currently the leading E-Commerce marketplace in Southeast Asia and
Taiwan. Shopee’s largest E-Commerce market is in Indonesia with estimated US$12-
13bn GMV in 2020. Shopee recently expanded into the Latin America market.
Figure 23: Shopee is one of the leading ecommerce players in Indonesia

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Tokopedia Bukalapak Shopee Lazada Blibli JD ID
Source: iPrice. Please check Map of Ecommerce of Indonesia.
Shopee B2C store listings continue to grow and monetization continues to

improve. Shopee B2C listings are ahead of peers in Indonesia, except Tokopedia,
with more than 5k brand partners. Increasing B2C store listings across ASEAN allow
for better monetization going forward. Shopee has also been charging the C2C sellers
more meaningfully since late 2020 and recently increased the commission to 0.75%-
2.5%. Shopee’s continuous increase in market share and rising ecommerce adoption
may support faster-than-expected growth in ecommerce.
Figure 24: Indonesia: ShopeeMall is ahead of peers, except Tokopedia in B2C store counts
8,000 7,508
6,698
7,000
6,000 5,224
4,925
5,000 4,494
4,000 3,584
3,000
2,000
1,008 1,020
1,000
0
LazMall BlibliMall ShopeeMall Tokopedia
Jan-21 May-21
Source: Company websites.
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Table 13: Shopee has gradually enhanced monetization in Indonesia

Effective date Shopee Marketplace Shopee Mall
Type of sellers Commission fee Category Commission fee
Prior to Jun-19 Across categories Up to 1%
n/a Star sellers 1%
19-Aug-19 Electronic 1% - 5%
Non electronic 1% - 5%
Sep-20 Star/Star+ sellers 1.50% Electronic 1% - 5%
Non-star sellers 0.50% Non electronic 1% - 5%
30-Mar-21 Star/Star+ sellers 2.50% Electronic 1% - 5%
Non-star sellers 0.50% Non electronic 1% - 5%
Jun-21 Star/Star+ sellers 1.25% - 2.5% Electronic 1% - 5%
Non-star sellers 0.75% - 1.6% Non electronic 1% - 5%
Online groceries present major growth opportunity for online platforms.

Grocery retail has ~US$100bn TAM by GMV in Indonesia. Shopee has launched its
own online store for groceries, supported by in-house fulfilment service. Tokopedia
has launched TokoMart. Changes in consumer behavior with COVID-19 and major
expansion of online platforms into groceries could significantly grow GMV for the
online platforms, in our view.
Figure 25: Grocery retail sales amounted to ~$200bn in ASEAN5 in 2020 (US$mn)
120,000
96,878
100,000
80,000
55,954
60,000
40,000
21,171
16,847
20,000
6,247
0
Indonesia Thailand Philippines Malaysia Singapore
Source: Euromonitor.
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Fintech (ShopeePay)
Related research: Online payments are lucrative for issuers at gross profit
ASEAN Digital Financial level
Services: Deep-dive into the
FinTech landscape  Our analysis of acquirers/payment processors indicates MDRs for online
payments using e-wallets are between 1.5% and 3.3% – at a premium to offline
Economics of the fintech
industry MDRs, bank transfers, and even debit cards.
ASEAN TMT: Takeaways of  Our discussions with regional acquirers indicate issuers like e-wallets typically
ASEAN TMT & Fintech forum keep at least 50% of the MDRs.
 Offline MDRs tend to be lower than online MDRs and could be 0.7-2% in
countries like Indonesia and Vietnam.
 Cost of funds for e-wallets can be as low as $0.10/transaction.
 The rich MDRs and low cost of funds implies online payments through e-wallets
are profitable at gross profit level.
 However, elevated S&M expense weighs on industry profitability. Regulation
presents downside risks to online MDRs though regulators have so far focused
mainly on offline MDRs.
 As of Dec-20, Indonesia makes up 43% of ShopeePay total user base.
 We estimate SE’s TPV to grow to $18bn in FY21 and $46bn in FY23. Indonesia
will be a key contributor to the growth in TPV.
Figure 26: Indonesia: E-money reached 4.7% of non-cash payment in 2020
16.0 4.7% 5.0%
14.0
4.0%
12.0 3.1%
10.0 3.0%
8.0
14.1
6.0 2.0%
1.1% 10.0
4.0
0.3% 1.0%
2.0 0.2%
0.5 0.9 3.3
0.0 0.0%
2016 2017 2018 2019 2020
E-money (USD bn, LHS) E-money as % of non-cash payment
Source: Bank Indonesia, J.P. Morgan. Non-cash transactions include purchases by e-money, debit/credit card and retail transfers.
Table 14: ShopeePay: 43% of ShopeePay total users is from Indonesia

ShopeePay Indonesia FY20A
Total monthly paying user (mn) 23.2
Indonesia monthly paying user (mn) 10
Indonesia as % of total 43%
27
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Table 15: Fees charged by acquirer/processors in Indonesia

MidTrans Xendit Adyen
Bank Transfer 4,000 4,500 IDR8,500 + $0.12
OTC 5,000 5,000 IDR8,500 + $0.12
Credit Card 2.9% + IDR2,000 2.9% + IDR2,000 Interchange++ +$0.12
Direct Debit Rp5,000 1.9% N/A
Wallet
ShopeePay 1.5% 1.5% N/A
GoPay 2.0% N/A N/A
Dana N/A 1.50% 3% + $0.12
OVO N/A 1.50% N/A
LinkAja! N/A 1.50% N/A
Table 16: MDR charged by banks in ASEAN

Country MDR charged for following transactions
Indonesia Debit card: 0.15% (on-us); 1% - 2% (off-us)
Visa/Mastercard/JCB/UnionPay and Amex: 2% - 3.25%
QRIS (one QR code): 0% - 0.7%
Table 17: MDR charged to ShopeePay merchants (offline payments)

ShopeePay MDR MDR fee
Indonesia 0.70%
Malaysia 1.00%
Singapore 1.00%
Online lending is proliferating along with product

innovation
 Shopee offers consumer loans through SPayLater and cash loans. SPayLater can
be used for purchases on Shopee platform. Consumer loan limit is determined by
the respective provider.
 SPayLater (Shopee) monetizes through monthly interest, handling fees and late
fees. On an annualized basis, SPayLater loans would charge c.29% p.a. this is
well above the average lending rate charged but conventional banks at 8.25-
10.25%.
 Shopee offers two types of financial products for their merchants: 1) SPinjam for
Sellers and 2) Dana Cepat (Fast Escrow). SPinjam is a revolving credit loan that
can be used by sellers as working capital, while Dana Cepat (Fast Escrow) is a
feature that allows sellers to receive cash before the goods they sell have been
received by customers.
 Shopee monetizes SPinjam by charging monthly interest fee of 1.2-1.5%
depending on the duration of the loan (3 or 6 months). On top of the monthly
interest fee, Shopee also charges handling fee and late fee for SPinjam. Shopee's
annualized interest rate on SPinjam would be 14-18%, which is well above
banks’ lending rate of 8.25-10.25% p.a.
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Table 18: Consumer lending products offered by online players

Type of online lending Fees Duration Remarks
Indonesia
OVO PayLater Handling fee: max 5% n/a Fees paid by customers
Late fee: 0.1% per day It is unclear whether interest is charged to
merchants as MDRs
GoPay PayLater PayLater fee depends on credit limit, fee ranges Fees paid by customers
Paid at end of 1st
from Rp7.5k-Rp49k/month It is unclear whether interest is charged to
month
Late fee: Rp2k/day merchants as MDRs
ShopeePay PayLater Monthly interest: 2.45% Fees paid by customers
1,2,3, and 6
Handling fee: 3%
months
Late fee: 5%
Cash loan Monthly interest: lowest fee @2.45% n/a Fees paid by customers
Handling fee: max 3%
Late fee: 5%
Source: Company websites. *List may not be exhaustive.
Table 19: Merchant lending products offered by Shopee in Indonesia

Fintech Conventional banks
Type Monthly interest rates Other fees Other remarks Lending rate Remarks
Indonesia
Shopee SPinjam for Sellers 1.2-1.5% Handling fee: 2%
Late fee: 3%
Prime retail lending rates for
Dana Cepat (Fast - Handling fee: 0.05%
8.25-10.25% big banks range from 8.25%-
Escrow) per day
10.25%
until goods is
received by buyers
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Food Delivery
Related research: SE is expanding into Food Delivery in Indonesia. After Vietnam, SE is entering
Sea Ltd - Food Delivery ready-to-eat food delivery in Indonesia. SE has been recruiting Shopee Food drivers
expansion could signify regional since Nov-20 (news). ShopeeFood has now expanded to Bandung, Jogja and
Super-App aspirations Surabaya after growing its geographical reach to the Greater Jakarta area from the
initial launch in Jakarta. However, ShopeeFood’s coverage is still likely to be
ShopeeFood offering significant
discounts to scale business relatively limited vs the incumbents. In our view, the geographical area is likely to
grow as SE expands the business.
ShopeeFood remains disruptive
while GoFood increases
discounts
ShopeeFood remains disruptive while adoption is rising; GoFood has increased
discounts. According to Apptopia, the ShopeeFood Driver app has seen ~1.4mn
downloads since launch (~600k at end of May-21) in Indonesia. This compares to
2.6m downloads for GoPartner since Aug-20 (when the app was launched). Our
earlier analysis indicated that ShopeeFood continued to offer significant discounts to
scale the business. Revisiting our analysis of food delivery from McDonald’s and
Geprek Bensu, we calculated total discounts (food + delivery) on ShopeeFood of
42% and 49% vs the listed costs, respectively. Notably, Gojek seems to have
responded as we now find total discounts of ~40% compared to ~10% at time of
previous analysis in Apr-21. For the two restaurants, we calculate the discounted
costs on Shopee to be lower than GrabFood and GoFood by up to 45% and 20%,
respectively (see: “ShopeeFood remains disruptive while GoFood increases
discounts”).
Figure 27: Online food delivery market size and penetration in Indonesia
12.0 25%
20%
10.0 18% 20%
17%
15%
8.0 14%
13% 15%
6.0 11.3
9.4 10%
4.0 7.8
6.5
5.0 5%
2.0 3.6
0.0 0%
2020E 2021E 2022E 2023E 2024E 2025E
Online food delivery market estimate (US$bn) Online food delivery penetration
Source: J.P. Morgan estimates.
Figure 28: Cumulative downloads of food delivery driver apps in Indonesia: ShopeeFood driver app has been downloaded ~1.4mn times since
launch
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21
ShopeeFood Driver GoPartner GrabDriver
Source: Apptopia. Note: Calculating the cumulative downloads from Aug-20 when GoPartner was launched.
30
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Logistics
Related research: Shopee Express appears to be a complementary service. Shopee Express, the in-
Taking a closer look at Shopee's house logistics platform of SE, is available across metro areas in ASEAN. We find
in-house logistics and fulfilment Shopee Express offers similar delivery times as comparable service from other 3PLs
services and the delivery fee is similar or at a slight discount to other 3PLs. As delivery fees
have been under pressure across ASEAN, last mile delivery is unlikely to generate
much profits for Shopee, in our view. Hence, Shopee Express could be a
complementary service to strengthen Shopee’s logistics due to 1) volume demand
growth outpacing investments by 3PLs, 2) meeting peak demand seamlessly around
shopping festivals, and 3) enabling growth in new and growing categories like
grocery.
Growing fulfilment capabilities could enable incremental revenues for Shopee.

Shopee’s in-house fulfilment infrastructure has likely been strengthened in the metro
areas across ASEAN though fulfilment of orders on Shopee is still largely handled
by merchants and third parties, in our view. We find that Fulfilled by Shopee is being
used for numerous product categories, including long-tail categories. Hence, Fulfilled
by Shopee could be used for 3P business rather than just 1P. Growing market share
of Shopee and investments in fulfillment infrastructure could enable growth in
fulfilment-related revenues for Shopee. We have already seen Shopee deepening
fulfilment monetization in Indonesia in 3Q20 (see: fulfilment fees increased).
Table 20: Delivery time for Shopee Express

Shopee Express Instant (3hr) Same day (6-8hr) Regular
Intracity Intercity
Indonesia Yes Yes 2-4 days 2-7 days
Table 21: Indonesia: Shopee Express delivery fee is on par with 3PL partners (Jakarta to Jakarta)
Delivery mode Delivery time Logistic partner Delivery fee (IDR) Delivery fee (USD)
Instant 3hr Shopee Express IDR 18,000 USD 1.24
3hr GoSend IDR 18,000 USD 1.24
3hr GrabExpress IDR 18,000 USD 1.24
Same-day 6-8hr Shopee Express IDR 12,000 USD 0.83
6-8hr GoSend IDR 12,000 USD 0.83
6-8hr GrabExpress IDR 12,000 USD 0.83
Regular 2-4 days Shopee Express IDR 9,000 USD 0.62
2-4 days J&T Express IDR 9,000 USD 0.62
2-4 days AnterAja IDR 9,000 USD 0.62
2-4 days ID Express IDR 9,000 USD 0.62
2-4 days Si Cepat IDR 9,000 USD 0.62
2-4 days Ninja Express IDR 9,000 USD 0.62
2-4 days JNE IDR 9,000 USD 0.62
2-4 days Pos Indonesia IDR 9,000 USD 0.62
Cargo 2-11 days JTR IDR 15,000 USD 1.03
Source: Company websites, apps.
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Table 22: Shopee: Categories where Fulfilled by Shopee (FBS) is available

Indonesia
Beauty
Food & Beverage
Mom & Baby
Body care
Home & Living
Home Electronics
Women's Fashion
Men's Fashion
Headphone & Accessories
Table 23: Indonesia: Fees charged to sellers for Fulfilled by Shopee

Duration Fees (IDR) Fees (USD) Promo fee
Storage fee (per product per month) 60 - 90 days IDR 1,000 USD 0.07
90 - 120 days IDR 2,000 USD 0.14
>120 days IDR 4,000 USD 0.28
Packaging fee (per product) IDR 1,000 - 7,000 USD 0.07 - 0.48
Human resource fee (per product) IDR 1,000 USD 0.07 Free
Store and chat management fee (per product) IDR 1,000 USD 0.07 Free
Special promotion Discount is applicable to total fee
1000 product sold - 10% discount
Source: Company websites.*Fees as of Mar-21.
Table 24: Known 3PLs partners for Fulfilled by Shopee (FBS) service across ASEAN
Indonesia
Shopee Express
J&T Express
SiCepat
JNE
Indomaret (self pickup)
Kargo
Table 25: Shopee Indonesia 3PLs partners

Shopee
Shopee Express
GoSend
GrabExpress
YES
J&T Express
AnterAja
ID Express
Si Cepat
Ninja Express
JNE
Pos Indonesia
Indo Paket
Indah Logistics
Source: Company websites. * List may not be exhaustive.
32
(622-1) 5291 8526 07 September 2021
Correction: We removed or corrected some factual errors in the last paragraphs of pp 5 and 12, and corrected Figure 6 on p5.
Companies Discussed in This Report (all prices in this report as of market close on 06 September 2021, unless otherwise
indicated)
Elang Mahkota Teknologi(EMTK.JK/Rp2,090/OW), Sea Ltd(SE/$353.36[03 September 2021]/OW)
Analyst Certification: The Research Analyst(s) denoted by an “AC” on the cover of this report certifies (or, where multiple Research
Analysts are primarily responsible for this report, the Research Analyst denoted by an “AC” on the cover or within the document
individually certifies, with respect to each security or issuer that the Research Analyst covers in this research) that: (1) all of the views
expressed in this report accurately reflect the Research Analyst’s personal views about any and all of the subject securities or issuers; and
(2) no part of any of the Research Analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations
or views expressed by the Research Analyst(s) in this report. For all Korea-based Research Analysts listed on the front cover, if
applicable, they also certify, as per KOFIA requirements, that the Research Analyst’s analysis was made in good faith and that the views
reflect the Research Analyst’s own opinion, without undue influence or intervention.
All authors named within this report are Research Analysts unless otherwise specified. In Europe, Sector Specialists (Sales and Trading)
may be shown on this report as contacts but are not authors of the report or part of the Research Department.
Important Disclosures
 Market Maker/ Liquidity Provider: J.P. Morgan is a market maker and/or liquidity provider in the financial instruments of/related to
Sea Ltd, Elang Mahkota Teknologi, Bukalapak, GoTo Group, Grab.
 Manager or Co-manager: J.P. Morgan acted as manager or co-manager in a public offering of securities or financial instruments (as
such term is defined in Directive 2014/65/EU) of/for Sea Ltd within the past 12 months.
 Analyst Position: An analyst on the Equity or Credit coverage team, non-fundamental analyst who may produce trade
recommendations, or a member of their respective household(s) has a financial interest in the debt or equity securities of Sea Ltd.
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banking clients: Sea Ltd, Grab.
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entity(ies) as clients, and the services provided were non-investment-banking, securities-related: Sea Ltd, GoTo Group.
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 Potential Investment Banking Compensation: J.P. Morgan expects to receive, or intends to seek, compensation for investment
banking services in the next three months from Sea Ltd.
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services other than investment banking from Sea Ltd, GoTo Group.
 Debt Position: J.P. Morgan may hold a position in the debt securities of Sea Ltd, Elang Mahkota Teknologi, Bukalapak, GoTo Group,
Grab, if any.
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your request.
33
(622-1) 5291 8526 07 September 2021
Date Rating Price ($) Price Target

Sea Ltd (SE, SE US) Price Chart ($)
13-Jun-19 OW 31.22 36
03-Jul-19 OW 35.14 38
OW $41 OW $56 OW $79 OW $181 OW $248
535
29-Jul-19 OW 37.39 41
13-Nov-19 OW 36.76 45
OW $38 OW $50 OW $70
OW $138 OW $215 OW $305 OW $345
11-Feb-20 OW 45.16 50
428
22-Feb-20 OW 51.85 56
OW $36 OW $45 OW $60 OW $127
OW $184 OW $283 OW $333
04-Mar-20 OW 48.95 60
Price($) 321 13-May-20 OW 62.70 70
19-May-20 OW 69.49 79
214 26-Jun-20 OW 104.32 127
13-Jul-20 OW 121.00 138
107 19-Aug-20 OW 145.98 181
03-Sep-20 OW 157.22 184
18-Nov-20 OW 170.62 215
0
12-Jan-21 OW 209.06 248
Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep
18 18 19 19 19 19 20 20 20 20 21 21 21 24-Feb-21 OW 251.81 283
03-Mar-21 OW 250.00 305
Source: Bloomberg Finance L.P. and J.P. Morgan; price data adjusted for stock splits and dividends.
Initiated coverage Jun 12, 2019. All share prices are as of market close on the previous business day. 08-Jul-21 OW 267.86 333
18-Aug-21 OW 308.27 345
Elang Mahkota Teknologi (EMTK.JK, EMTK IJ) Price Chart Date Rating Price (Rp) Price Target
(Rp)
13-Jul-21 OW 2640 3,400
4,572
3,810
3,048 OW Rp3,400
Price(Rp)
2,286
1,524
762
0
Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep
18 18 19 19 19 19 20 20 20 20 21 21 21
Source: Bloomberg Finance L.P. and J.P. Morgan; price data adjusted for stock splits and dividends.
Initiated coverage Jul 12, 2021. All share prices are as of market close on the previous business day.
The chart(s) show J.P. Morgan's continuing coverage of the stocks; the current analysts may or may not have covered it over the entire
period.
J.P. Morgan ratings or designations: OW = Overweight, N= Neutral, UW = Underweight, NR = Not Rated
Explanation of Equity Research Ratings, Designations and Analyst(s) Coverage Universe:
J.P. Morgan uses the following rating system: Overweight [Over the next six to twelve months, we expect this stock will outperform the
average total return of the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Neutral [Over the next six to twelve
months, we expect this stock will perform in line with the average total return of the stocks in the analyst’s (or the analyst’s team’s)
coverage universe.] Underweight [Over the next six to twelve months, we expect this stock will underperform the average total return of
the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Not Rated (NR): J.P. Morgan has removed the rating and, if
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34
(622-1) 5291 8526 07 September 2021
Coverage Universe: Wibowo, Henry: Bumi Serpong Damai (BSDE.JK), Ciputra Development (CTRA.JK), Elang Mahkota Teknologi
(EMTK.JK), Indocement Tunggal Prakarsa (INTP.JK), Jasa Marga (JSMR.JK), Media Nusantara Citra (MNCN.JK), Mitra Keluarga
Karyasehat (MIKA.JK), PT Pembangunan Perumahan (PTPP.JK), Pakuwon Jati (PWON.JK), Semen Indonesia (SMGR.JK),
Summarecon Agung (SMRA.JK), Surya Citra Media (SCMA.JK), United Tractors (UNTR.JK), Waskita Karya (WSKT.JK), Wijaya
Karya (WIKA.JK)
Sharma, Ranjan: AXIATA Group Berhad (AXIA.KL), Advanced Info Services (ADVANC.BK), Digi (DSOM.KL), Globe Telecom
(GLO.PS), Inari Amertron Berhad (INAR.KL), Maxis Berhad (MXSC.KL), PLDT Inc (TEL.PS), PT Sarana Menara Nusantara Tbk
(TOWR.JK), PT Telekomunikasi Indonesia Tbk (TLKM.JK), PT Tower Bersama Infrastructure Tbk (TBIG.JK), PT XL Axiata Tbk
(EXCL.JK), Sea Ltd (SE), Singapore Telecom (STEL.SI), StarHub (STAR.SI), Telekom Malaysia (TLMM.KL), Total Access
Communication (DTAC.BK), Venture Corporation Ltd (VENM.SI)
J.P. Morgan Equity Research Ratings Distribution, as of July 03, 2021

Overweight Neutral Underweight
(buy) (hold) (sell)
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IB clients** 54% 48% 39%
JPMS Equity Research Coverage* 49% 39% 13%
IB clients** 77% 69% 55%
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Completed 07 Sep 2021 04:55 AM HKT Disseminated 07 Sep 2021 05:04 AM HKT

JPM Indonesia Internet - The Battle of The Ecosystem 07.09.2021

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Correction (See disclosures for details)

J.P. MORGAN DOES NOT

Source: Google, Temasek, and Bain e-Conomy 2020 report.

Indonesia E-Commerce landscape Indonesia E-Commerce companies have outgrown their

Indonesia Ride Hailing and Food Delivery

Indonesia Fintech payments Unicorns hunting for digital banks

The Battle of the Ecosystem: GGS

Figure 11: Southeast Asia: Average number of categories purchased online

5.1 5.1 5.4 5.2

Table 4: Global e-commerce valuation table

Table 5: Indonesia’s affiliated internet company valuation table

Figure 12: The GoTo Ecosystem for daily life

Source: Company data.

Figure 13: GoTo's 3 main business pillars

Source: Company data.

In 2019, Gojek contributed Rp105tn (US$7bn) in added value to the Indonesian

Table 6: Gojek App product offering

Table 7: MidTrans product offering

Table 8: Available delivery services in Tokopedia

Tokopedia Keuangan (financial)

TokoCabang (Logistics and Fulfillment)

 GrabCar. Enabling a private hire driver-partner to register and accept bookings

 GrabPay. Digital payment solutions available in Indonesia (through OVO),

Figure 14: Grab ecosystem in daily activities

Source: Company data.

Table 9: Grab fundraising rounds

Table 10: Grab ecosystem in Southeast Asia

Figure 15: Grab blended GMV (US$bn)

Figure 16: Grab adjusted net revenue (US$bn) and take-rates

Source: Company data.

Figure 17: Grab GMV breakdown (US$mn)

Source: Company filing.

Figure 18: Grab Gross billings breakdown (US$mn)

Source: Company filing.

Figure 19: Grab x EMTK combined ecosystem

Source: Company data.

What is Mitra Bukalapak?

Table 11: Mitra Bukalapak products and services

Figure 20: Bukalapak TPV breakdown (US$mn)

Source: Company data, J.P. Morgan (USDIDR = Rp14300/US$).

Figure 21: Bukalapak revenue breakdown (US$mn) and implied take-rates

Source: Company data, J.P. Morgan (USDIDR = Rp14300/US$).

Fintech Payment: DANA

Table 12: Garena's gaming presence in Indonesia

Figure 23: Shopee is one of the leading ecommerce players in Indonesia

Source: iPrice. Please check Map of Ecommerce of Indonesia.

Shopee B2C store listings continue to grow and monetization continues to

Table 13: Shopee has gradually enhanced monetization in Indonesia

Online groceries present major growth opportunity for online platforms.

Table 14: ShopeePay: 43% of ShopeePay total users is from Indonesia

Table 15: Fees charged by acquirer/processors in Indonesia

Table 16: MDR charged by banks in ASEAN

Table 17: MDR charged to ShopeePay merchants (offline payments)

Online lending is proliferating along with product

Table 18: Consumer lending products offered by online players

Table 19: Merchant lending products offered by Shopee in Indonesia

Growing fulfilment capabilities could enable incremental revenues for Shopee.

Table 20: Delivery time for Shopee Express

Table 22: Shopee: Categories where Fulfilled by Shopee (FBS) is available

Table 23: Indonesia: Fees charged to sellers for Fulfilled by Shopee

Table 25: Shopee Indonesia 3PLs partners

Date Rating Price ($) Price Target