2021-08-05-BUKA - JK-Nomura-Bukalapak (BUKA IJ) (Buy) - Indonesia's First Public E-Comme... - 93352410

Global Markets Research
Bukalapak BUKA.JK BUKA IJ 6 August 2021

EQUITY: INTERNET & NEW MEDIA
Indonesia’s first public e-commerce platform Rating

Starts at Buy
Bridging offline consumers with online consumption; Target price
Starts at IDR 1,620
initiate at Buy with TP of IDR1,620 IPO price
We initiate coverage on Bukalapak with a Buy rating and a TP of IDR1,620. E-commerce has 05 August 2021 IDR 850
gained wide acceptance in Indonesia, while the COVID-19 pandemic has further accelerated this
adoption. While total sales from store-based retailing declined 15% y-y from IDR2,201tn in 2019 Implied upside +90.6%
to IDR1,850tn in 2020, e-commerce sales increased 57%, from IDR296tn to IDR466tn,
Market Cap (USD mn) 6,103.9
according to Euromonitor. We note the shift away from traditional brick and mortar stores towards
ADT (USD mn) 0.0
e-commerce has been mainly driven by the increasing need for convenience and Indonesia’s
relatively young, digitally literate population. Hence, we think Bukalapak could become one of the
dominant e-commerce players in Indonesia.
Research Analysts
Digital ecosystems. Bukalapak is a comprehensive e-commerce platform, providing an ‘All-
Indonesia Research Team
Commerce’ ecosystem. This well-rounded ecosystem combines financial services (e-money,
Ahmad Maghfur Usman - NSM
money transfer, payment services), SaaS (bookkeeping, mPos), and virtual products (electricity ahmad.maghfurusman@nomura.com
bills, telecom bills, game vouchers, phone credit, voucher deals, insurance), with Bukalapak’s e- +603 2027 6892
commerce platform, which caters to the needs of its target micro retail market. In addition, the
company has been partnering with leaders in financial services (mutual funds, insurance) to
deliver a more comprehensive service. Bukalapak will implement a reverse e-commerce
aggregator platform connecting stores and e-commerce (e.g. Tiktok). We believe shareholders
Emtek (EMTK IJ, NR) and partner Grab (unlisted) will expand its ecosystem.
A major e-commerce player. Bukalapak is currently one of the top 3 e-commerce players in
Indonesia. We believe maintaining strong market shares in non-tier 1 cities is key for it to deliver
positive profit. In addition, we believe Bukalapak’s strong Mitra ecosystem (Mitra Bukalapak, a
platform for medium, small, and micro enterprises) is a fundamental pillar of its continued
success. If Bukalapak continues along its current trajectory, it should report its first profit in 2025.
With cross-holdings between Grab and Emtek, Grab too may invest in Bukalapak and reinforce
its synergies with Bukalapak, and this can be an upside catalyst. An example would be the
impending listing of GoTo (Gojek and Tokopedia merger) where the combined valuations were
more than the two entities combined on a stand-alone basis, as reported by the media .
Valuation and risks. We derive a TP of IDR1,620, based on an equal weighting target of
EV/GMV of 0.45x and EV/sales growth of 0.24x on FY23F GMV and sales, assuming a 71.1%
2021-23 CAGR. We believe BUKA is still in the expansion phase, which explains its negative
cash flow generation. We estimate current valuation of 4x FY21F P/BV, based on the IPO price.
Our earnings projections conservatively factor in net losses until 2024F. Given its start-up Onshore expert
status, key risks are execution and competition from other e-commerce firms.
Year-end 31 Dec FY20 FY21F FY22F FY23F Nicholas Santoso
(nicholas.santoso@verdhana.id),
Currency (IDR) Actual Old New Old New Old New
Revenue (bn) 1,352 1,992 3,472 5,834 Sandy Ham (sandy.ham@verdhana.id),
Reported net profit (bn) -1,341 -1,533 -1,137 -1,037 and
Normalised net profit (bn) -1,341 -1,533 -1,137 -1,037
Raymond Kosasih
FD normalised EPS -17.35 -47.57c -11.03 -10.06 (raymond.kosasih@verdhana.id) who are
FD norm. EPS growth (%) – – – – employed by PT Verdhana Sekuritas
FD normalised P/E (x) – – – – – – – Indonesia (“Verdhana”), have contributed
EV/EBITDA (x) – – – – – – – to the content of this report as the onshore
Price/book (x) 41.1 – 4.0 – 4.2 – 4.4 experts under a partnership agreement
between Nomura and Verdhana.
Dividend yield (%) – – – – – – –
Verdhana, Nicholas Santoso, Sandy Ham,
ROE (%) -97.5 -13.0 -5.3 -5.1
and Raymond Kosasih are not licensed
Net debt/equity (%) net cash net cash net cash net cash outside Indonesia.
Source: Company data, Nomura estimates Production Complete: 2021-08-05 22:44 UTC
See Appendix A-1 for analyst certification, important disclosures and the status of non-US analysts.
Nomura | Bukalapak 06 August 2021
Key Data on Bukalapak

Cashflow statement (IDRbn)
Year-end 31 Dec FY19 FY20 FY21F FY22F FY23F
Performance EBITDA -2,628 -1,603 -1,661 -1,655 -1,518
(%) 1M 3M 12M Change in working capital -360 325 -35 88 204
Absolute (IDR) M cap (USDmn) 6,103.9 Other operating cashflow -14 430 277 651 602
Absolute (USD) Free float (%) – Cashflow from operations -3,002 -848 -1,419 -915 -712
Rel to Jakarta 3-mth ADT (USDmn) 0.0 Capital expenditure -69 -6 -73 -80 -80
Stock Exchange
Composite Index Free cashflow -3,071 -854 -1,492 -995 -792
Reduction in investments 2 5 3 0 0
Net acquisitions
Income statement (IDRbn) Dec in other LT assets -394 3 0 0
Year-end 31 Dec FY19 FY20 FY21F FY22F FY23F Inc in other LT liabilities -127 -4 -1 0 0
Revenue 1,077 1,352 1,992 3,472 5,834 Adjustments
Cost of goods sold -268 -123 -98 -104 -110 CF after investing acts -3,196 -1,247 -1,487 -995 -792
Gross profit 809 1,228 1,894 3,369 5,725 Cash dividends
SG&A -2,323 -1,520 -2,138 -2,990 -4,288 Equity issue 594 619 21,900 0 0
Employee share -1,267 -1,497 -1,567 -2,167 -3,076 Debt issue
expense Convertible debt issue
Operating profit -2,781 -1,789 -1,810 -1,789 -1,639 1,436 1,228 10 12 15
Others
EBITDA -2,628 -1,603 -1,661 -1,655 -1,518 2,031 1,847 21,910 12 15
CF from financial acts
Depreciation -153 -186 -149 -134 -121 -1,165 600 20,423 -983 -778
Net cashflow
Amortisation 2,049 884 1,484 21,908 20,925
Beginning cash
EBIT -2,781 -1,789 -1,810 -1,789 -1,639 884 1,484 21,908 20,925 20,147
Ending cash
Net interest expense 46 6 165 595 571 -884 -1,484 -21,908 -20,925 -20,147
Ending net debt
Associates & JCEs
Other income -60 -49 -59 -70 -84 Balance sheet (IDRbn)
Earnings before tax -2,795 -1,832 -1,704 -1,264 -1,152 As at 31 Dec FY19 FY20 FY21F FY22F FY23F
Income tax 0 491 170 126 115 Cash & equivalents 884 1,484 21,908 20,925 20,147
Net profit after tax -2,795 -1,341 -1,533 -1,137 -1,037 Marketable securities
Minority interests 0 0 0 0 0 Accounts receivable 399 177 248 412 673
Other items Inventories 0 0 0 0 0
Preferred dividends Other current assets 160 108 108 108 108
Normalised NPAT -2,795 -1,341 -1,533 -1,137 -1,037 Total current assets 1,443 1,770 22,264 21,445 20,929
Extraordinary items LT investments 0 0 0 0 0
Reported NPAT -2,795 -1,341 -1,533 -1,137 -1,037 Fixed assets 452 272 196 142 101
Dividends Goodwill
Transfer to reserves -2,795 -1,341 -1,533 -1,137 -1,037 Other intangible assets 3 2 0 0 0
Valuations and ratios Other LT assets 156 550 547 547 547
Reported P/E (x) – – – – – Total assets 2,054 2,594 23,007 22,134 21,577
Normalised P/E (x) 0.0 -49.0 -1,786.7 -77.0 -84.5 Short-term debt 0
FD normalised P/E (x) – – – – – Accounts payable 326 373 515 842 1,364
Dividend yield (%) – – – – – Other current liabilities 505 509 403 328 271
Price/cashflow (x) – – – – – Total current liabilities 831 882 918 1,170 1,635
Price/book (x) 56.9 41.1 4.0 4.2 4.4 Long-term debt 0
EV/EBITDA (x) – – – – – Convertible debt
EV/EBIT (x) – – – – – Other LT liabilities 68 104 114 126 141
Gross margin (%) 75.1 90.9 95.1 97.0 98.1 Total liabilities 898 986 1,032 1,296 1,776
EBITDA margin (%) -244.1 -118.6 -83.4 -47.6 -26.0 Minority interest 0 11 11 11 11
EBIT margin (%) -258.3 -132.3 -90.9 -51.5 -28.1 Preferred stock
Net margin (%) -259.6 -99.2 -77.0 -32.7 -17.8 Common stock 7,422 9,132 31,032 31,032 31,032
Effective tax rate (%) – – – – – Retained earnings
Dividend payout (%) – – – – – Proposed dividends
ROE (%) – -97.5 -13.0 -5.3 -5.1 Other equity and reserves -6,267 -7,535 -9,068 -10,205 -11,242
ROA (pretax %) – -157.0 -164.0 -155.0 -124.3 Total shareholders' equity 1,155 1,597 21,964 20,827 19,790
Growth (%) Total equity & liabilities 2,054 2,594 23,007 22,134 21,577
Revenue 2.7 25.5 47.4 74.3 68.0 Liquidity (x)
EBITDA -0.1 – – – – Current ratio 1.74 2.01 24.25 18.33 12.80
Normalised EPS – – – – Interest cover – – – – –
Normalised FDEPS – – – – Leverage
Net debt/EBITDA (x) – – – – –
Source: Company data, Nomura estimates
Net debt/equity (%) net cash net cash net cash net cash net cash
Per share
Reported EPS (IDR) -358,378.21 -17.35 -47.57c -11.03 -10.06
Norm EPS (IDR) -358,378.21 -17.35 -47.57c -11.03 -10.06
FD norm EPS (IDR) -358,378.21 -17.35 -47.57c -11.03 -10.06
BVPS (IDR) 14.94 20.66 213.12 202.08 192.02
DPS (IDR) 0.00 0.00 0.00 0.00 0.00
Activity (days)
Days receivable 313.6 77.9 38.9 34.7 33.9
Days inventory 0.0 0.0 0.0 0.0 0.0
Days payable 524.0 1,037.4 1,660.1 2,383.5 3,675.5
Cash cycle -210.4 -959.5 -1,621.2 -2,348.8 -3,641.6
2
Company profile
Bukalapak was founded in 2010 by Achmad Zacky Syaifudin, Muhammad Fajrin Rasyid, and Nugroho Herucahyono, as a 3P online marketplace
that enables small and medium enterprises to go online. In 2017, Mitra Bukalapak was launched. This O2O platform connects Warungs with
consumer goods distributors and enables Warungs to offer additional online services and virtual products. Bukalapak provides both online and
offline services to users across Indonesia, as it has an ‘All-commerce’ business model. With Buka Pengadaan, Bukalapak has three highly
synergistic business pillars. The company went public in 2021. Bukalapak currently has more than 1,800 employees and 37 business divisions.
Current controlling shareholders are PT Kreatif Media Karya, which is controlled by PT Elang Mahkota Teknologi Tbk, API (Hong Kong) Investment
Limited (Ant Financial), Archipelago Investment Pte Ltd (GIC), and Achmad Zacky Syaifudin. Other notable shareholders of Bukalapak include Mirae
Asset, Microsoft, Naver, New Hope Group, Shinhan Bank, and Standard Chartered.
Valuation Methodology
We derive our TP of IDR1,620 based on a target EV/GMV of 0.45x on FY23F (pre-monetization phase) and EV/Sales growth of 0.24x, assuming
71.1% CAGR over 2021-2023 CAGR, translating into 17.1x EV/Sales FY23F (post-monetization phase), applying 50% weight for both methods. The
benchmark index for the stock is JCI Index
Risks that may impede the achievement of the target price

We believe that BUKA is still in the expansion phase; thus, negative cash flow generation should be understandable. Our earnings projections on
BUKA show net losses until 2024, which are more conservative than the co-profit expectation in 2023F. As start-up status, key risks are execution
and competition from other e-commerce companies.
ESG
Bukalapak is strongly committed to its ESG efforts to better the lives of Indonesian citizens, and at the same time achieve long-term sustainability
and success. Bukalapak educates its customers, employees, and sellers about safe environmental practices. It also engages employees in activities
related to the environment. In terms of social aspects, Bukalapak believes in the need to provide a fair economy to all that can bridge the social gap.
It helps communities, specifically in improving digital, financial, and economic inclusion. Furthermore, Bukalapak actively focuses on human capital,
business ethics, and social responsibility. It provides training to employees. Bukalapak also provides products and services that improve the public’s
participation and supports government efforts.
3
Background
The twilight of brick-and-mortar retailers
In 1969, retailer Sears accounted for 1% of the entire US economy GDP. Between 2007
and 2018, Sears’ position as the dominant retailer fell due to the emergence of e-
commerce players such as Amazon (AMZN US, NR). Sears’ revenue and net profit for
2007 came in at USD50.7bn and USD826mn, respectively, while Amazon’s revenue and
net profit were at USD14.8bn and USD476mn. In 2017, Sears’s revenue was down to
USD16.7bn and the company recorded a net loss of USD383mn, whereas Amazon’s
revenue and net profit jumped to USD3.9tn and USD3bn, respectively. In 2018, Sears
filed for bankruptcy, signaling the end of America’s most recognizable brick-and-mortar
retailer. While other factors such as mismanagement also played a role in its downfall, for
the most part, we attribute Sears’ decline to the company's failure to adapt and switch to
an e-commerce business model (and its failure to set up a consolidated and centralized IT
system).
Walmart (WMT US, NR) is another retailer whose dominance is being eroded by e-
commerce players. In order to adapt to the new trend, Walmart launched its website
Walmart.com in 2000, and started selling goods online in 2007. However, it did not create
its e-commerce marketplace (with third-party sellers) until 2009, nearly a decade after
Amazon. Furthermore, Walmart continues to operate using a hybrid model, with both
online and physical stores. Walmart’s e-commerce business has been growing rapidly,
with sales up 82% y-y between 2019 and 2020. On the other hand, its brick-and- mortar
business grew only 5% over the period.
Fig. 1: Net income Fig. 2: Revenues
Source: Company data Source: Company data
The shift from traditional brick-and-mortar retailers to e-commerce is global. We believe

the trend is prevalent in populous countries such as the United Sates, India, China, and
Indonesia, and that it has been accentuated during the COVID-19 pandemic. Between
2019 and 2020, store-based retail sales fell across the four above-mentioned countries.
Sales fell from USD2.6tn to USD2.5tn (-5% y-y) in the US, from CNY16.8tn to CNY15.7tn
(-5% y-y) in China, from INR45.1tn to INR43.2tn (-4% y-y) in India, and from IDR2.2tn to
IDR1.9tn (-15% y-y) in Indonesia. In contrast, across these four countries, e-commerce
sales went up between 2019 and 2020—from USD514bn to USD672bn (+30.7% y-y) in
the US, from CNY4.92tn to CNY5.92tn (+20.4% y-y) in China, from INR2.37tn to
INR3.04tn (+28% y-y) in India, and from IDR296tn to IDR466tn (+57% y-y) in Indonesia.
4
Fig. 3: US sales – stores vs e-commerce Fig. 4: China sales – stores vs e- Fig. 5: India sales – stores vs e-
(USD bn) commerce (CNY bn) commerce (INR bn)
Source: © Euromonitor International Source: © Euromonitor International
Source: © Euromonitor International
Fig. 6: Indonesia sales – stores vs e-commerce (IDR tn)
Fig. 7: Indonesia – total e-commerce sales for select companies (IDR tn)
5
Indonesia's young and tech-savvy population

Indonesia has a relatively young population—of the country's total population of 270mn,
about 65%, or 175mn people, are less than 40 years old. This young cohort is more
receptive to e-commerce. Including Gen X (those born in 1965-1980), the cohort targeted
by e-commerce would expand to ~86% of the country’s population, or ~233mn people.
We attribute the growing digital literacy among Indonesians to be key in the migration
towards digital services, as individuals become more accustomed to digital products. We
measure digital literacy through internet penetration, which has gone up significantly over
the past few years. Between 2009 and 2019, Indonesia’s Internet penetration rate
increased from 7% to 48%.
Fig. 8: Internet penetration
Source: World Bank
We have also noted that financial literacy and access for Indonesia has improved.
Between 2010 and 2020, credit card penetration in Indonesia grew significantly from 0.6%
to 1.8%. In the same manner, between 2015 and 2020, e-wallet transactions in Indonesia
increased significantly from IDR5.3tn to IDR205tn. We believe that access to
debt/payment instruments such as credit cards and e-wallets is integral for the survival of
e-commerce and other internet companies. We note that due to its intangible nature,
growth of internet companies has been interlinked with growth in digital/electronic
payments as opposed to cash.
6
Fig. 9: Credit card penetration rate
Source: Statista, World Bank
Fig. 10: Indonesia – e-wallet transactions (IDRtn)
Source: Bank Indonesia, Nomura research
The ongoing COVID-19 (C19) pandemic has accelerated digital adoption in Indonesia, in
our view. This has accelerated digital consumption in the country as first-time users are
trying new digital services. About one-third of the first-time users of e-commerce in
Indonesia—who are predominantly from non-metro areas—have come during the
pandemic. Whilst C19 has hurt many sectors, particularly tourism-related (e.g., online
travel) and/or online transportation, we note that many sectors have seen accelerated
adoption. These include e-commerce, food delivery services, as well as digital financial
services. We have also seen new digital service categories gaining accelerated adoption,
such as online health (e-health) and/or online education (e-education) services, as well as
online video and/or music. With a projected 3.2-fold increase in Indonesia’s internet
economy to USD139bn in 2025 (from USD44bn in 2020), as well as the country’s rising
GDP per capita, we see a better path to profitability for e-commerce players, as well as
7
digital financial services. Based on our industry survey, we see room for take rates for e-
commerce platforms in Indonesia to go up. This, coupled with rising GDP per capita,
indicates a visible path to profitability, in our view.
E-commerce – still nascent, with room to turn profitable

According to research by Temasek, Google, and Bain, the internet economy in South
East Asia (SEA) grew from USD32bn in 2015 to USD100bn in 2019 and USD105bn in
2020. The studies expect SEA's internet economy to further rise to USD309bn by 2025F.
Indonesia, with SEA’s largest population of over 270mn people, represents the biggest
internet economy in SEA (accounting for over 40% of SEA’s total internet economy).
Thus, assuming Indonesia’s internet economy contribution rises to 45% of SEA's total
internet economy in 2025, the country's implied internet economy could reach USD139bn
(+3.2x from 2020’s USD44bn). With an expected increase in GDP per capita from
USD3,922 in 2020 to USD5,095 in 2025, we see opportunities for rising ARPUs (average
spending for new user over the same period). And thus, combined with an expected rise
in take rates to 5-7% (from currently around 3-4% for Indonesia’s internet cost, based on
our industry survey), we see a better path to profitability for large internet companies in
the country. For example, Amazon’s (AMZN US, NR) referral fees range from 8% to 15%
for products sold on its platforms.
Case in point, over the past five years, Indonesian e-commerce sales have registered a
173% CAGR over 2015-20, outperforming the US (at a CAGR of 105% for 2015-20),
China (118%), and India (131%).
Fig. 11: Indonesia GDP per capita (USD)
Source: Nomura estimates (2019-2022F), IMF (2023F-2026F)
8
Key strategies
Promoting growth in the micro segment
Bukalapak offers e-commerce and other services, such as financial services, for
Indonesia’s medium, small, and micro enterprises (MSMEs), which is known as Mitra
(translated as partner in English), through its Mitra Bukalapak app. As of 1Q21, there
were an estimated 63mn MSMEs in Indonesia.
Fig. 12: Corporate + MSME breakdown
Corporate 0.04%
Medium 0.1% (~60,000 units)
Small 1.25% (~785,000 units)
Tapped micro
& ultra micro 50.9% (~32 million units)
Untapped
micro & ultra
micro 47.72% (~30 million units)
Source: Bank Rakyat Indonesia, Indonesia Ministry of Cooperatives and Small and Medium Enterprises
These 63mn MSMEs accounted for 57% of Indonesia’s GDP, according to the Ministry of
Finance. McKinsey estimates that MSMEs account for 97% of employment in Indonesia.
Growth for MSMEs in Indonesia is expected to remain strong, given that internet
penetration and financial literacy/inclusion has been improving for Indonesians.
Furthermore, we noted that the Indonesian government wants to provide a conducive
environment for MSMEs to flourish. These include programs to facilitate business
partnerships and access to financing for MSMEs, as well as stimulus packages to sustain
MSMEs during the COVID-19 pandemic. The government has also implemented
tightening of predatory pricing, preventing foreign products from being sold at low prices
through e-commerce platforms, which allows MSMEs to compete. Furthermore, the
Omnibus Law contains several provisions for the development of MSMEs, which include
incentives provisions, integrated management of MSMES, ease of financing, and legal
assistance and protection. We see room for likely continued growth of Indonesian
MSMEs, and believe a lot of these MSME’s can benefit from the services offered by
Bukalapak.
In synergy with the government’s initiative, Bukalapak is participating in the ‘Ayo Jualan
Online’ movement, aimed at enabling MSMEs to sell their product online. Bukalapak has
shown several key strengths in this area, including lower prices (prices on Mitra
Bukalapak are cheaper vs offline distribution channels), greater availability of products
and timely delivery (updated information on inventory and faster delivery), and micro-loan
offerings for working capital (Bukalapak connects Mitras to financial institutions that can
provide credit).
However, we see certain challenges for these MSMEs. These challenges include limited
access to finance and financial information (despite significant improvements over the p
ast decade), low quality of human capital, lack of technology (despite significant
improvements over the past decade), challenges in goods distribution channels, as well
as legal/permit issues regarding unregistered MSMEs. Bukalapak hopes to overcome the
challenges faced by MSMEs and become a facilitator of growth. In fact, Mitra Bukalapak
works closely with the offline micro retail market to facilitate growth and address
challenges in the micro segment. Bukalapak provides low pricing for its customers (new
9
players cannot compete on pricing). Additionally, services provided by Bukalapak create

stickiness (supporting mitras to expand to additional business lines without additional
working capital). Lastly, Bukalapak has the ability to move offline users online (Bukalapak
incentivizes offline users to move online through Mitra loyalty points for online purchases).
Generally, within the Mitra e-commerce business, the supply chain for micro retailers is
highly inefficient due to multiple parties acting as middlemen between the FMCG principal
and the retailer/kiosk.
Fig. 13: Bukalapak distribution
Source: Company data
Bukalapak connects distribution centers (IDCs) / wholesalers / FMCG principals directly

with Mitras, bypassing any middlemen. These independent warehouses (IDCs) perform
the sourcing for items that are later sold to mitras through Bukalapak. While IDCs deliver
the product, Bukalapak solely facilitates the connection between IDCs and Mitra.
Bukalapak facilitates this connection by partnering with 12 domestic and international
logistics companies across the archipelago. By not owning any of the logistics services or
warehouses, Bukalapak operates as an asset-light company. In order for Bukalapak to
manage the quality control of IDCs, the company assigns one supervisor for every 5-6
IDCs engaged in managing quality control. IDCs are thoroughly scrutinized by Bukalapak
from the selection process, unlike Mitras (Mitras can simply download the Mitra
Bukalapak app to become operational). In addition to the selection process, IDCs have to
be located in areas that do not overlap with other Bukalapapk IDCs, nor must they be
located too far apart in order to ensure distribution efficiency. For the logistics provider,
these IDCs can either enlist the support of a local partner individually or through the
support of Bukalapak.
Bukalapak’s value-add includes better reach and visibility of data, while providing better
prices to micro retailers. Bukalapak commands 1-2% margin on FMCG, while mitras
command 3-5% margin on average. The IDC pays Bukalapak 2-3% when goods are sold,
while the marketplace take rate stands at 1.8% (take rate is defined as the commission
Bukalapak gets from buyers at the gross profit level); the figure stands at 0.97-1% for
Mitras. In 2020, the blended take rate was 1.4%. This makes Bukalapak affordable for the
Mitra segment since the commission taken by Bukalapak is lower.
Bukalapak’s integrated technology enables next-day delivery to Mitras with many SKUs to
choose from. There are approximately 330 suppliers (IDCs), and Bukalapak makes sure
that they have the right goods/inventory to deliver to these Mitras. In other words, even
though warehouses are independent, Bukalapak will still conduct a quality control check.
Bukalapak’s delivery process is more segmented and localized (coverage is about 5-10
km radius). Buyers are connected to IDCs at their respective locations (orders from
different regions would be rerouted to warehouses in said region) to ensure the possibility
of T+1 deliveries. A T+1 delivery allows the Warung (translated as kiosk in English) to
offer more SKUs; however, it does not need to carry more inventory for higher SKUs.
10
Furthermore, this prevents the risk of Mitras facing out of stock delays. Additionally, Mitra
Bukalapak offers a wholesale buying feature (Grosir), which allows price-competitive bulk
orders for Mitras.
In addition to their e-commerce business model, which caters directly to Mitras,
Bukalapak also offers an all-inclusive ecosystem to provide additional features for
promoting Mitra growth.
An all-commerce platform for warungs

Bukalapak offers an offline-to-online strategy that caters to its mitra/warung network. For
instance, it has an offline loyalty program where offline customers receive rewards (such
as Bukalapak credits) after transacting at a Mitra to encourage online transactions.
Bukalapak also has a Mitra referral program where mitras receive rewards for signing up
their offline customers as Bukalapak users. According to the company, the increased
cross-sell from offline channels has driven growth. Mitra’s revenue CAGR was 267% for
2018 to 2020. Furthermore, due to this program, the customer acquisition cost for
Bukalapak has been lower than other channels. Between 2018 and 2020, customer
acquisition costs went down 64%. Bukalapak’s extensive network of Mitras and potential
Mitras (through its referral program) has made the Indonesian government select
Bukalapak as one of their preferred partners for disbursing subsidies.
Bukalapak offers a range of products in its ecosystem that caters to its MSME target
market. In its e-commerce arm, Bukalapak offers FMCG services (B2B marketplace
transactions of mitras and warehouses), electronics (household appliances, smartphones,
etc.), fashion (women and men’s apparel), motorcycle and vehicle accessories. The
company also offers the option to purchase virtual products such as game vouchers
(Google Play, Mobile Legends, PUBG, Steam, Bigo, etc.), phone credit (data plan top
ups), voucher deals (discounted vouchers for KFC, H&M, Alfamart, etc.), while also
offering settlement services for electricity, property tax, landline phone, and insurance
(BPJS). The company offers services that benefit day-to-day operations of Mitras, such as
bookkeeping (offline transaction recording), and mPOS (portable point of sale on a
smartphone or tablet that functions as a register).
The company offers financial services such as top-ups (converting offline customers’ cash
into e-money at Mitra), branchless domestic remittances (transfer money through agents,
where mitra manages the agent network), and Mitras as payment hubs (customers can
pay for C2C marketplace transactions mitras). Moreover, features such as BukaEmas
(gold investment), BukaReksa (mutual funds), and loan application & payment services
are conducted in association with Bukalapak’s partners.
Additionally, Bukalapak has access to the ecosystems of both PT Elang Mahkota
Teknologi (EMTK IJ, NR) and Grab, which we expect to create synergies that may benefit
Mitras and customers alike. EMTEK is one of the most reputable groups in Indonesia. It
is an integrated group of companies with three business divisions: media, e-commerce,
and hospitals.
• The media division consists of Surya Citra Media (SCMA IJ, Buy) – (SCTV and
Indosiar), Omni Intivision (O Channel), all of which are Indonesia’s leading channels.
They also provide streaming services such as Vidio.
• The e-commerce division facilitates marketplaces, as well as ecosystems (such as
payment services) for mitras/warungs and individual consumers alike. The e-
commerce division includes Bukalapak.
• The hospital division includes Omni Hospitals (SAME IJ, NR). Omni Hospitals
specializes in providing various centers of excellence (high-intensity cases) in all its
hospitals.
Grab (unlisted) is one of Southeast Asia’s leading superapps. It offers essential everyday
services to over 670mn people across Singapore, Indonesia, Malaysia, Thailand,
Philippines, Vietnam, Cambodia, and Myanmar. These essential services consist of
deliveries (food, groceries, packages), ride-hailing/mobility (4-wheel, 3-wheel, 2-wheel),
financial services (lending, insurance, cashless payments and wealth management),
enterprise and others.
Its various features make Bukalapak’s ecosystem a very attractive and sticky platform for
mitras and customers alike. Partnership collaborations with both internet and traditional
platforms should further accelerate customer acquisitions for Bukalapak. This would be
one of the key factors to differentiate Bukalapak from other e-commerce players in
11
Indonesia. EMTEK, as one of the largest shareholders in the company, should further
embolden its ecosystem partnerships, in our view. Moreover, Grab’s investment in the
company will likely further project Bukalapak’s strength in the e-commerce landscape in
Indonesia, we believe.
Overall, Bukalapak enhances its value proposition by offering a range of products and
ecosystems for Mitras to connect to. By cutting off the middlemen and by offering a range
of suppliers, Bukalapak offers competitive prices for Mitras. In addition, the company
offers business improvements for Mitras through its inventory management system,
through its application and through the T+1 delivery feature. These features can be fully
utilized by Mitras through the training offered by the company, thereby making Bukalapak
a strong platform for Mitra growth in non-tier 1 cities in Indonesia.
Future strategies
Moving forward, management has stressed six key strategies that should pave the road to
profitability for Bukalapak. The first strategy is for Bukalapak to increase its product
offerings of both physical and digital goods. This is to ensure that Mitras can have further
synergies and cross-sell, thereby driving Mitra growth. The second strategy is to broaden
partnerships with product providers. Using the data Bukalapak has collected, the
company can provide additional value-added services for FMCGs, and negotiate better
prices for Mitras. Furthermore, the company can partner to provide better financial
services and distribution channels, ultimately improving value and monetization for the
company and its Mitras. The third strategy is to improve profitability by increasing the
take-rate of products while at the same time maintaining its low-cost customer acquisition
strategy; Bukalapak aims to increase the take rate by further diversifying its offline and
online product mix. The fourth strategy is to expand the company’s network beyond mom-
and pop stores. Bukalapak can tap into other verticals of the offline business, such as
apparel, electronic, and automotive stores in order to further its growth. The final key
strategy is to implement a reverse e-commerce aggregator platform, where
Bukalapak builds up from its Mitra Bukalapak fundamentals to connect stores to
various e-commerce platforms (e.g. TIkTok, Shopee, Tokopedia), similar to Shopify
(SHOP US, NR).
12
The path to profitability (based on forecast

assumptions)
Financial performance so far
Bukalapak has been recording TPV (Total Payment Value) growth over the past three
years. In 2018, the company recorded its TPV at IDR28tn, which rose to IDR57tn in 2019
and IDR85tn in 2020. Average transaction value (ATV) fluctuated over these three years.
In 2018, ATV came in at IDR154,470, and dropped to IDR79,106 in 2019 before
increasing to IDR162,573 in 2020. The same trend is visible in Bukalapak’s marketplace
ATV, where it was at IDR203,233 in 2018, IDR80,351 in 2019, and IDR199,045 in 2020.
Note that the ATV for marketplace has declined from its high in 2018. However, the
overall ATV has increased, mainly due to the gradual improvement in Mitra Bukalapak
ATV. In 2018, Mitra Bukalapak had recorded an ATV of IDR77,020; this fell to IDR73,917
in 2019, before peaking at IDR108,521.
The number of annual transacting Mitras (126% 2018-2020 CAGR) has also increased at
a much faster rate than overall annual transacting users (34% 2018-2020 CAGR),
signifying more robust growth in the Mitra segment (Fig 16 -17 ), which is also in line with
our view. We believe that the increase in Mitra contribution is in line with our thesis that
Bukalapak’s future growth lies in its Mitra business. According to our discussions with the
company, Mitra Bukalapak has 1.5mn monthly transaction users with an average
transaction value of IDR3.7mn, whereas the Bukalapak marketplace has 3.5mn monthly
transaction users with an average transaction value of IDR3.2mn per month.
Fig. 14: Annual Transacting Mitras Fig. 15: Annual Transacting Users
Including Mitras

Revenue drivers: Bukalapak marketplace still makes the bulk of its total revenue.
However, based on our analysis, given Bukalapak’s strong mitra ecosystem, we believe
Mitra Bukalapak will likely become the company’s key revenue driver in the future.
Indeed, Mitra Bukalapak's revenue has registered a 115% CAGR for 2018-20.
13
Fig. 16: BUKA revenue by segment
Marketplace revenue is primarily derived from commissions generated through sales by

both merchants of physical products and virtual product partners on Bukalapak’s e-
commerce platform. Marketplace revenue also includes marketing spending by
merchants, who can purchase advertising, with the advertisement targeted directly at the
user, based on the product’s priority placement. Finally, logistics revenue is derived from
fulfillment services offered to merchants and is driven by number of transactions as
logistics fees are typically flat.
Mitra revenue is primarily driven by commissions generated from sales by merchants and
FMCG principals of physical products to Mitras of the Mitra Bukalapak platform. Sales of
virtual products by Mitras to customers also contribute to Mitra revenue. Lastly, revenue is
also derived from logistics providers who provide logistics services to Mitras.
BukaPegengadaan (BPI) revenue is derived from sales Bukalapak facilitates of its own or
partners’ products, and is tied to the physical and virtual products of the same. BPI
revenue consists of cost of goods and the margin on physical goods from sellers on the
marketplace and virtual products from its partners.
In terms of expenses, Bukalapak’s operating costs have fallen despite increases in
revenues. We believe this can make room for the company’s profitability in the future.
Fig. 17: Net revenue (IDRbn) Fig. 18: Gross profit (IDRbn)
Source: Company data, Nomura estimates Source: Company data, Nomura estimates
The largest expense component for Bukalapak, as of end-2020, was selling and
marketing expenses. This consists mainly of online/offline advertising (content creation
activities), vouchers, seller / Mitra acquisition cost and support services, coordination and
payment channel expenses. We expect this cost component to increase in the
foreseeable future with the company’s growth, but decline as a percentage of revenues as
its economies of scale likely grow. The company’s selling and marketing expenses were
14
cut to IDR1.5tn in 2020, from IDR2.3tn in 2019. We believe that Bukalapak has been able
to lower its selling and marketing expense as the company has been utilizing its existing
Mitra for marketing (cross-sell from offline channels), and has reduced its customer
acquisition cost by 64% from 2018 to 2020.
Fig. 19: Selling & Marketing Expenses (IDRbn) vs TPV
The second expense component is general and administrative expense. This consists
primarily of salaries, depreciation and amortization, wages and employee benefits,
internet, hosting, data storage and maintenance expenses, utilities, stock-based
compensation expense, recruitment and office expenses, as well as accounting,
insurance, and investor relations. We expect this to increase in absolute amounts in the
near term due to the anticipated growth of the business.
Fig. 20: General & Administrative Expenses (IDRbn)
According to the company’s statement of cash flows, its net operational cash flows have
been improving. In 2018, its net cash flow used in operating activities stood at -IDR1.8tn,
and worsened to -IDR3.1tn in 2019 before improving to -IDR1.2tn in 2020. Improvement
in net cash flow used in operating activities has been driven by increased monetization
and improvements in operational efficiency.
Similar cash flow improvements can be seen in the company’s net cash flow used in
investing activities. In 2018 the company booked –IDR547bn in net cash flow used in
investing activities, and the number improved to -IDR83bn in 2019 and -IDR1bn in 2020.
This improvement resulted from a shift towards cloud-based servers and IT outsourcing,
leading to lower capex requirements.
15
Net cash flow from financing activities declined from IDR4.2tn in 2018 to IDR2.0tn in 2019
and IDR1.75tn in 2020. In 2021, we forecast a jump in financing cash flow due to the
company’s IPO.
Fig. 21: Cash flows (IDR bn)
The company plans to raise around IDR21tn from the proposed IPO. Most of the
proceeds will be used for working capital. A cash-rich balance sheet, we believe, will
enable BUKA to boost its transaction value as well as to defend its market share going
forward. Fig. 22 Proposed use of IPO proceeds outlines the proposed use of the IPO
proceeds for BUKA.
Fig. 22: Proposed use of IPO proceeds
The use of IPO proceeds Portion (%)

Working capital 66
Allocation to PT. Buka Mitra Indonesia 15
Allocation to PT. Buka Usaha Indonesia 15
Allocation to PT. Buka Investasi Bersama 1
Allocation to PT. Buka Pengadaan Indonesia 1
Allocation to Bukalapak Pte. Ltd. 1
Allocation to PT. Five Jack 1
Total 100
Moving forward
We forecast net revenue growth to maintain its current trajectory. The company expects
to improve its bottom line significantly by 2025F, where we predict that the company will
make its first yearly profit. We believe that the company will likely gain market share for its
Mitra business through its more diverse virtual product offerings, as well as from its higher
commission provision to mitras and the lower cost Bukalapak assigns to its merchants.
Therefore, we expect increases in the company’s opex in the long run, given marketing
16
and selling expenses should be ramped up over time. We believe that as it gains market
share, the company will likely strive to improve its take rate by lowering commissions; this
should open the door to profitability for the company, in our view.
Fig. 23: Operating expense (IDR bn) Fig. 24: EBITDA (IDR bn)
Source: Company data, Nomura estimates Source: Company data, Nomura estimates
Fig. 25: Net profit (loss) (IDR bn)
17
Valuation – Reckoning the fair value

We are of the view that BUKA is still in the expansion phase, which explains its negative
cash flow generation. We estimate BUKA to likely record net losses until 2024F, which is
more conservative than the company’s first profit expectation in 2023F. In our view,
the company’s plan to gradually raise its take rate is feasible; however, given the
competition, we expect the pace to be moderate. Note that losing market share is a major
risk for the market-place segment as clawing back later would require incurring large
costs. This also applies to the Mitra (Offline-to-Online O2O) business. We do not see a
significant first-mover advantage factor in the O2O business model, given the lack of
loyalties for these Mitras. However, admittedly, we see sizeable potential market
opportunities for BUKA, not to mention any potential synergies and business
opportunities from Grab and EMTK ecosystems.
Having said that, we conclude that more traditional multiples like EV/EBITDA and PE are
not applicable to capture BUKA’s potential growth. Also, we believe the discounted cash
flow (DCF) method may not be suitable to justify the business model as well, given the
long-term outlook remains unpredictable. Consequently, we use weighted EV/GMV and
EV/Sales growth multiples to value the company. EV/GMV represents the pre-
monetization phase, while EV/Sales growth reflects its post monetization phase; we think
this is a reasonable method to capture BUKA’s faster growth trajectory.
We understand there is no apple-to-apple comparison in terms of the business model.
Our EV/GMV multiple assessment is based on an 78.6% discount to the peer average,
given the size and monetization stage. We use EV/GMV FY23F of 0.45x (pre-
monetization phase) and EV/Sales growth of 0.24x, assuming a 71.1% 2021-23
CAGR, translating into 17.1x EV/Sales FY23F (post-monetization phase). We apply
50% weight for both the methods. We arrive at BUKA’s target price of
IDR1,620/share, implying 90.6% upside from the current price.
18
Fig. 26: Bukalapak - target price calculation

Our valuation assumptions: Pre-monetization using EV/GMV method (our multiple is based on 78.6%
discount to average EV/GMV of peers [2.1x] as per Bloomberg historical FY20 numbers). Post -
monetization uses EV/Sales growth method, pegged at similar multiples to its closest ASEAN listed peer,
SEA Ltd at 0.24x.
FY23 forecast
Pre-monetization Valuation
Fair Value Using EV/GMV
GMV - 2023F (IDRbn) 429,860.1
EV/GMV Target (x) 0.45
Enterprise Value (IDRbn) 193,437.1
Net Cash - 2022F (IDRbn) 20,925.1
Minority - 2022F (IDRbn) 10.6
Equity Value (IDRbn) 214,351.6
Number of Shares (bn) 103.1
Target price (IDR/share) 2,079.9
Post-monetization Valuation
Fair Value using EV/Sales Growth
Sales - 2023F (IDRbn) 5,834.1
Sales CAGR 2021-23 (%) 71.1
EV/Sales Growth (x) 0.24
EV/Sales - 2023F (x) 17.1
Enterprise Value (IDRbn) 99,553.0
Net Cash - 2022F (IDRbn) 20,925.1
Minority - 2022F (IDRbn) 10.6
Equity Value (IDRbn) 120,467.5
Number of Shares (bn) 103.1
Target price (IDR/share) 1,168.9
Weighted valuation Weight Value

Fair Value Using EV/GMV (IDR/share) 50% 1,039.9
Fair Value Using EV/Sales Growth (IDR/share) 50% 584.5
Adjusted Target Price (IDR/share) 1,620.0
Upside (%) 91%
Fig. 27: Peer comparisons

As of 4 Aug 2021
Nomura TP Market FY20 Sales EV / sales to

EV/ sales (x)
Nomura (Local cap GMV EV/GMV CAGR sales growth
Name Ticker Rating Currency) (USDbn) (USDbn) FY20 FY21F-23F FY21F FY22F FY23F FY21-FY23F (x)
Bukalapak BUKA IJ Buy 1,620 6.1 8.4 0.71 71% 33.0 19.2 11.6 0.16
SEA SE US - - 153.9 35.4 4.24 38% 17.3 11.8 9.0 0.24
Alibaba BABA US Buy 251 545.6 1,199.3 0.45 19% 4.1 3.8 3.7 0.19
Pinduoduo PDD US Buy 160 111.9 241.9 0.43 38% 6.1 4.9 4.4 0.11
Amazon AMZN US - - 1,699.0 490.0 3.57 18% 3.7 3.2 2.8 0.16
JD.com JD US Buy 94 111.3 379.0 0.27 22% 0.9 0.8 0.8 0.04
MercadoLibre MELI US - - 78.0 20.9 3.61 35% 11.7 8.4 6.3 0.18
Average ex Bukalapak 2.10 28% 7.3 5.5 4.5 0.15
Source: Nomura estimates for rated stocks, Bloomberg consensus for others. Note: Bukalapak is based on the IPO price
19
Fig. 28: GMV

IDRbn
Fig. 29: Total payment value

IDRbn
20
Fig. 30: Revenue breakdown

IDRbn
Fig. 31: BUKA’s MCAP weight analysis vs other constituents of the JCI
Price in IDR; as of 4 Aug 2021
No Ticker Shares (mn) Price Market cap (IDR tn) Weight

1 BBCA 24,408 30,075 734 10.2%
2 BBRI 122,112 3,870 473 6.6%
3 TLKM 99,062 3,010 298 4.2%
4 BMRI 46,200 5,900 273 3.8%
5 ASII 40,484 4,880 198 2.8%
6 ARTO 13,718 14,000 192 2.7%
7 UNVR 38,150 4,860 185 2.6%
8 TPIA 17,834 9,800 175 2.4%
9 EMTK 61,198 2,800 171 2.4%
10 DCII 2,384 59,000 141 2.0%
11 HMSP 116,318 1,145 133 1.9%
12 CPIN 16,398 6,400 105 1.5%
13 BRIS 40,717 2,430 99 1.4%
14 ICBP 11,662 8,475 99 1.4%
15 BBNI 18,462 4,760 88 1.2%
16 BRPT 93,747 875 82 1.1%
17 GGRM 1,924 40,575 78 1.1%
18 BUKA 100,062 850 85 1.2%
19 UNTR 3,730 20,050 75 1.0%
20 TBIG 22,657 3,300 75 1.0%
Source: Company data, Nomura research. Note: Bukalapak is based on the IPO price
21
Fig. 32: BUKA's free float MCAP weight analysis vs other constituents of the JCI
Price in IDR; as of 4 Aug 2021
Ffmcap (IDR FF mcap
No Ticker Shares (mn) Price Market cap (IDR tn) Free Float %
tn) weight
1 BBCA 24,408 30,075 734 45% 331 9.0%
2 BBRI 122,112 3,870 473 43% 204 9.0%
3 TLKM 99,062 3,010 298 48% 143 6.8%
4 BMRI 46,200 5,900 273 40% 109 5.2%
5 ASII 40,484 4,880 198 50% 99 4.7%
6 ARTO 13,718 14,000 192 28% 54 2.5%
7 CPIN 16,398 6,400 105 44% 47 2.2%
8 BUKA 100,062 850 85 54% 46 2.16%
9 MDKA 22,905 3,050 70 55% 38 1.8%
10 EMTK 61,198 2,800 171 22% 37 1.8%
11 BBNI 18,462 4,760 88 40% 35 1.7%
12 DCII 2,384 59,000 141 24% 34 1.6%
13 TOWR 51,015 1,330 68 46% 31 1.5%
14 UNTR 3,730 20,050 75 41% 30 1.4%
15 TBIG 22,657 3,300 75 39% 29 1.4%
16 INDF 8,780 6,425 56 50% 28 1.3%
17 UNVR 38,150 4,860 185 15% 28 1.3%
18 KLBF 46,875 1,325 62 43% 27 1.3%
19 AMRT 41,525 1,335 55 47% 26 1.2%
20 SMGR 5,932 8,850 52 49% 26 1.2%
Source: Company data, Nomura research. Note: Bukalapak is based on the IPO price
22
Differentiating features
Mitra Bukalapak
Overall, the Mitra Bukalapak application is user-friendly and easy to navigate.
Bukalapak’s focus on making this application user-friendly is strategic, in our view, given
lots of its potential Mitras are unlikely to be tech-savvy. The process of registering as a
Mitra is simple and requires very little information (phone number or e-mail address, and
name, and maybe KTP if the Mitra wants to do virtual transactions such as Kirim Uang
[money transfer]). This application is available only on Google Play (Android), fitting the
target market of Bukalapak, as a majority of Warung owners are unlikely to have an
iPhone, in our view.
The transaction and loan bookkeeping system has enough, not-so-complex features that
Mitras would need for daily transactions. The system takes notes on income, COGS,
note, and date of transaction. The formatting, such as red and green font colors for
income and cost, makes it easier for the Mitras to see their money inflow and outflow,
including profit and loss. Additionally, the Hutang Piutang system allows Mitras to keep
track of customers’ debts. This bookkeeping feature would help traditional Mitras who
used to have no bookkeeping system in place, or who used paper to keep track of the
records, which is inefficient.
As for the Grosir (wholesale), the products are extensive, and we get to see whether it is
located in a distributor agent or Bukalapak’s warehouse. Bukalapak claims that they are
price-competitive. However, Bukalapak is not price-competitive for each one of its
products. Furthermore, once per day, the Mitras get to have a free one-day delivery.
However, when testing the service, the products are not delivered during that day or a day
later. Additionally, there is a minimum purchase amount, which varies across products
and distributors. The minimum amount ranges from around IDR100,000 to IDR1,500,000.
The transaction status is visible, making it easy for Mitras to keep track of the whole
process. If the order is not successfully delivered, the money paid is returned in full.
Mitras benefit from virtual products as they get an additional revenue stream; this enables
Mitras to tap into a new virtual product market that was previously unavailable to them.
With the Top Up Digital or Kirim Uang features, Mitras serve as offline touchpoints, which
we think can help promote financial inclusion in underserved and under-banked
populations.
In the application, Mitras will use their Saldo Mitra (Mitra balance) for transactions. The
payment methods available include Indomaret, Alfamart, Pos Indonesia, Transfer Virtual
Account, Transfer Manual, BRILink. The various choices available increase convenience
for Mitras. The transfer nominal is in increments of IDR50,000. Mitras can transfer money
from Saldo Mitra to DANA, but can only use DANA to pay for phone data purchases.
Also, the Bukalapak Marketplace application is linked in this Mitra Bukalapak application.
This is a way to help promote the synergies between the Bukalapak ecosystem and to
direct offline traffic to online traffic. Another way to promote synergies is for Bukalapak
mitras to receive points that can be used in Bukalapak Marketplace.
Furthermore, the Buka Bantuan (Buka help) feature in the application is operational 24/7.
It is a customer service in which Mitras can send a question, critique, or even suggestion
to Bukalapak.
Comparison of Mitra e-commerce platforms

Mitra Bukalapak and Mitra Tokopedia are significantly alike, in terms of the application
format, as well as product and service offerings. Both applications are user-friendly and
easy to navigate. However, Tokopedia requires a KTP (Indonesian national identification
card) verification process before any transactions can be made, which is not required in
Bukalapak. Mitras can make basic transactions, and a verification process is necessary
only for some virtual products, such as the Kirim Uang feature.
When transacting, Mitra Tokopedia does not show the product distributor or warehouse,
and has a transaction minimum purchase of IDR50,000. This amount is relatively lower
than Bukalapak’s and can reach up to IDR1,500,000. For delivery, Mitra Tokopedia offers
a same-day delivery fee of IDR9,000; free delivery 99x per day after the minimum
purchase amount is reached (the minimum amount differs in each area/location).
Bukalapak also provides free one-day delivery per day. In terms of payment, for Mitra
23
Tokopedia, Mitras can use either Saldo Mitra or OVO, whilst for Mitra Bukalapak, Mitras
can only use Saldo Mitra.
Fig. 33: Price comparisons between Mitra Bukalapak, Mitra Tokopedia and Bukalapak marketplace
Price Comparisons *price diff with Bukalapak mitra
Product Mitra Bukalapak (IDR) Mitra Tokopedia (IDR) % diff Bukalapak Marketplace (IDR) % diff
Indomie Goreng Spesial 85g per dus isi 40 97,950 98,350 0.4% 98,000-125,000 0.1%
Aqua Air Mineral 600ml per dus isi 24 44,900 44,900 0.0% 45,000 -53,000-58,000 0.2%
Sampoerna A mild Merah 12's per pack 16,500 16,100 -2.4% 17,100-18,000 3.6%
Fortune minyak goreng pouch 2L 28,000 not available 0.0% 28,000-33,250 0.0%
Frisian Flag susu kental manis 370g 10,000 10,000 0.0% 11,000 10.0%
Rose brand minyk 1L 13,900 15,300 10.1% 20,000-33,250 43.9%
Rinso Anti Noda Classic 44g 4,950 4,750 -4.0% 5,400-6,500 9.1%
Bango kecap manis 550ml 22,400 21,975 -1.9% 24,300-24,900 8.5%
Dove Shampo 9 ml 9,500 9,050 -4.7% 10,900-13,000 14.7%
Roma Malkist Abon Sachet 8,900 8,600 -3.4% 8,500-9,500 -4.5%
Kapal Api special mix sachet 10,300 10,300 0.0% 10,000-10,5000 -2.9%
Average -0.5% 7.5%
As Fig. 33 shows, price differences are on 10 items for Mitra Bukalapak, compared with
Mitra Tokopedia and Bukalapak marketplace. Mitra Shopee does not have its own Mitra
e-commerce platform; rather, its Mitra platform focuses only on virtual product offerings.
The difference in prices between Mitra Bukalapak and Bukalapak marketplace is quite
significant. For the 10 items that we surveyed, prices are about +7.5% higher for
Bukalapak Marketplace. We believe that this makes a huge difference for warungs that
may need to place a bulk order and purchase many of the same goods.
Prices between Mitra Bukalapak and Mitra Tokopedia are fairly similar (-0.5% cheaper for
Mitra Tokopedia). However, to open a Mitra Tokopedia account, the KYC is stricter and it
has less virtual offerings compared to Mitra Bukalapak. We believe that the ease for
consumers in accessing Mitra Bukalapak (from its more relaxed KYC), as well as its
added virtual product offerings, gives a competitive edge to Bukalapak’s mitra business.
Regulatory risk is very minimal because it is not a financial institution. Hence, relating to
KYC, it is more an internal risk control/monitoring by Bukalapak to ensure Mitra
performance meets the company standard.
Virtual product comparison – Mitra Bukalapak, Mitra Tokpedia,

and Mitra Shopee
We note that among the virtual products offered by the three platforms, Mitra Bukalapak
has the most offerings. Mitra Bukalapak offers 27 varieties of virtual products compared to
Mitra Tokopedia’s 14 and Mitra Shopee’s 9. In fact, Mitra Bukalapak can offer all the
products that Mitra Shoppee offers, in addition to a Mitra e-commerce platform that Mitra
Shopee does not have. Key offerings exclusive to Mitra Bukalapak include e-money.
24
Fig. 34: Mitra virtual product comparison
Virtual Products Mitra Bukalapak Mitra Tokopedia Mitra Shopee

Phone credit   
Data plan   
PLN electricity   
BPJS   
PDAM   
Fixed Broadband
  
(Telkom/ Indihome)
Cable TV   
Credit Installment   
e-money  - -
e-wallet (OVO,
  
DANA)
Vouchers (game,
  -
discount)
Wholesale (clothes,
 - -
phone accessories)
Fee settlement
  -
(Samsat, PBB)
Bayar Bukalapak/
  -
Tagihan Tokopedia
Penerimaan Negara
(Government related  - -
product / settlement)
Bus, train, plane ticket  - -
Gold savings  - -
DropShip  - -
Logistics agent  - -
Juwara Community  - -
VA payment  - -
PGN Gas -  -
Donation   -
Considering how similar the applications are, Bukalapak seems to have little competitive
advantage. Gaining portions of the market share seems to be rather significantly affected
by brand recognition and awareness. The more well-known the platform, the higher the
number of users it is likely to have.
Marketplace comparisons: Bukalapak vs Tokopedia vs Shopee

Overall, Bukalapak, Tokopedia and Shopee marketplace platforms are very similar, with
slight differentiating features. The general layout and features such as Live Streaming are
alike. When searching for a product in the search bar, all three platforms showcase the
25
different products available with the name of the product, price, star rating (out of 5), # of
products sold, and place (city). At the top part, there are filters, including newest,
bestseller, and more. All three platforms offer membership rewards or points as a way to
entice users to purchase more, and make more transactions in the respective platforms.
ShopeeLive, Tokopedia Play, and BukaLive are the three platforms’ live streaming
features. It mainly consists of sellers promoting their products. In addition, Bukalapak has
BukaMall, Shopee has ShopeeMall and Tokopedia has an Official Store. These
malls/stores consist of official, exclusive sellers with products that are of high quality,
more expensive, and well-known both locally and globally. In general, quality is more
credible. For BukaMall, some brands include Unilever, Canon, Puma, and many more.
Putting the similarities aside, there are slight differences between the three platforms.
Tokopedia seems to have the most delivery options, with various price and time ranges,
followed by Shopee, and lastly Bukalapak. Both Shopee and Tokopedia have the ‘Feed’
feature, which is basically like Instagram, including the Explore page. It allows users to
like, comment, or share posts. This is a way for sellers to promote their products.
The only feature that Bukalapak has, that others do not, is the ‘Favorit’ page, where users
get to like their desired products. Bukalapak also has some competitive advantages in the
virtual products or services offerings, as it offers an extensive list of products and
services.
For payment methods, Bukalapak and Tokopedia have more options than Shopee.
26
Fig. 35: Payment methods
Method Bukalapak Tokopedia Shopee

DANA v - -
Saldo v - -
COD v - v
Transfer Bank Otomatis v v v
Transfer Bank Manual v v -
Gerai retail
v v v
(Alfamart/Alfamidi/etc)
Internet Banking v v -
Cicilan Tanpa Kartu

v - -
Kredit
Kartu Kredit/Debit v v v
OneKlik BCA v v v
OVO - v -
Debit Instan lainnya

(Direct Debit - v -
Mandiri/BRI/CIMB)
Pay Later & Cicilan - v v
27
Fig. 36: Marketplace virtual products/services
Virtual Products Bukalapak Tokopedia Shopee

Phone credit   
Data plan   
PLN electricity   
BPJS   
PDAM   
Fixed Broadband
  
(Telkom/ Indihome)
Cable TV   
Credit Installment   
Vouchers (game,
  
discount)
e-money   
Fee Settlement (Tilang,
 - -
PPH, KUA, Bea)
Penerimaan Negara
(Government related   -
product / settlement)
Bus, train, plane ticket   
Gold savings   
PGN Gas -  
Event and entertainment
  
tickets
Credit Card application   -
Insurance   -
Bank Account -  -
Credits (home,
  -
multifunction)
Mutual funds   -
Business capital loan   -
Education fund -  -
Credit card bill   -
E-invoicing -  -
Payment services
-  -
(wedding)
Hotel -  -
Streaming (live games,
  -
etc.)
House sales/ Mortgage  - -
Car/Motor sales  - -
BMoney
BMoney is an investment application launched by PT Buka Investasi Bersama (a
subsidiary of Bukalapak – Not Listed) as a result of the collaboration between Bukalapak
and PT Ashmore Asset Management Indonesia Tbk (AMOR - NR). This application is a
way for Bukalapak to achieve its mission of ‘Fair Economy for All’. Users can start
investing from IDR1,000, and there is no transaction fee. This platform offers a variety of
products. Each product is explained in detail, including a prospectus document and fact
sheet. Additionally, there is a transaction and portfolio page, where users can keep track
of the total asset value, profits, and returns.
28
Fig. 37: List of BMoney products
Money Market Fixed Income Mixed Equity

Manulife Obligasi
Sucorinvest Money Sucorinvest Equity
Negara Indonesia II
Market Fund Fund
Kelas A
Principal Total Manulife Dana
Syailendra Dana Kas
Return Bond Fund Saham
Principal BukaReksa Pasar BNP Paribas
BNP Paribas Omega
Uang Pesona Syariah
Ashmore Dana
Sucorinvest Sharia Money BNP Paribas
Obligasi unggulan
Market Fund Infrastruktur Plus
Nusantara
Syailendra Fixed BNP Paribas
Income Fund Ekuitas
Sucorinvest Maxi
Fund
Sucorinvest Sharia
Equity Fund
29
Company profile
Bukalapak was founded in 2010 by Achmad Zacky Syaifudin, Muhammad Fajrin Rasyid,
and Nugroho Herucahyono, as a 3P online marketplace that enabled small and medium
enterprises to go online. In 2017, Mitra Bukalapak was launched. This O2O platform
connects Warungs to consumer goods distributors and enables Warungs to offer
additional online services and virtual products. Bukalapak provides both online and offline
services to users across the nation, as it adopts the “All-commerce” business model. With
Buka Pengadaan, Bukalapak has three highly synergistic business pillars. The company
went public on 6 August 2021 in IDX. Bukalapak currently has more than 1,800
employees and 37 business divisions.
The company’s current controlling shareholders are PT Kreatif Media Karya (unlisted)
which is controlled by PT Elang Mahkota Teknologi Tbk (ETMK IJ, NR), API (Hong Kong)
Investment Limited (unlisted), (Ant Financial [unlisted]), Archipelago Investment Pte Ltd
(unlisted), (GIC [unlisted]), and Achmad Zacky Syaifudin. Other notable shareholders of
Bukalapak include Mirae Asset (006800 KS, NR) , Microsoft (MFST US, NR), Naver
(035720 KS, Neutral), New Hope Group (unlisted), Shinhan Bank (unlisted), and Standard
Chartered (STAN UK, NR).
Shareholding structure
• PT Kreatif Media Karya (31.9%)
• API (Hong Kong) Investment Limited (17.4%)
• Archipelago Investment Pte Ltd (12.6%)
• Achmad Zacky Syaifudin (3.76%)
• Others (32.34%)
Board of directors
Muhammad Rachmat Kaimuddin – Chief Executive
Mr Kaimuddin has worked in various industries, including engineering and financial
management. He earned his Bachelor of Science degree from Massachusetts Institute of
Technology and Master of Business Administration degree from Stanford University. He
started his career as a senior associate in the Boston Consulting Group in 2003. Prior to
Bukalapak, he worked in PT Bank Bukopin Tbk as commissioner (2014-18) and director
of finance and planning (2018-20).
Teddy Nuryanto Oetomo – President
Mr Oetomo manages the finance, management, investment, and legal aspects of
Bukalapak. He earned a Ph.D. in Economics from the University of Sydney in 2005. Prior
to Bukalapak, Mr Oetomo was the head of equity research for Credit Suisse Indonesia
from 2006 to 2014. After that, he was the head of intermediary business at PT Schroders
Investment Indonesia for three years.
Willix Halim – Chief Operating Officer
Willix oversees Bukalapak’s operations and product management. He graduated from the
University of Melbourne in 2009, majoring in Computer Science and mechatronics. Prior
to Bukalapak, Willix was the senior vice president of growth at Freelancer.com, one of the
biggest startups in Australia, from 2011 to 2016.
Natalia Firmansyah – Chief Financial Officer
Natalia is in charge of Bukalapak’s finances and e-procurement. After graduating from
Trisakti University, she led the finance team in several multinational companies for 17
years. Prior to being the chief financial officer, she was the country chief financial officer.
She is also an active promoter of ‘womenpreneurship’ – women entrepreneurship.
Currently, she leads the Kartini Bukalapak initiative.
Board of commissioners
Bambang Permadi Soemantri Brodjonegoro – President Commissioner and
Independent Commissioner
Bambang, an Indonesian citizen, has been Bukalapak’s president commissioner and
independent commissioner since 2021. Prior to Bukalapak, he was Indonesia’s Minister of
Research and Technology (2019-21), Minister of National Development Planning (2016-
19), Steering board of Economic and Financial Syariah national committee (2014-16), and
30
many more.
Adi Wardhana Sariaatmadja – Commissioner
Adi Wardhana became Bukalapak’s commissioner since 2021. He is currently the
president director of PT Kreatif Media Karya since 2012 and has been serving as the vice
chairman of PT Elang Andalan Nusantara since 2017. He earned his Bachelor of
Commerce from the University of Sydney in 2005. Previously, he was a director at Plan B
Media Pte. Ltd from 2015 to 2017.
Lau Eng Boon – Commissioner
Lau Eng Boon, a Singaporean citizen, has been serving as Bukalapak’s commissioner
since 2019. Currently, he is the Head, Portfolio & Head, TMT & Business Services Global
Investments, Strategy & Risk Private Equity in GIC Limited. Previously, he was the chief
executive officer and president of TELUS International from 2004-09.
Lu Zhang – Commissioner
Lu Zhang, a Chinese citizen, became a commissioner of the company in 2020. He has
been serving as the investment director of the Ant Group since 2014. Previously, he was
a senior manager at Ernst and Young, from 2004 to 2014.
Dra Zannuba Arifah (Yenny Wahid) – Independent Commissioner
Dra Zannuba Arifah became Bukalapak’s independent commissioner in 2021. Currently,
she is also an advisor at Government Counter Violent Extremism, director at The Wahid
Foundation, and an independent commissioner at Garuda Indonesia, and also holds
some leadership positions in other committees and organizations. Previously, she was a
Member of Global Council on Faith at the World Economic Forum in 2009.
Subsidiaries
PT Buka Mitra Indonesia (unlisted): B2B platform for various products, aiming to digitize
the Indonesian conventional markets.
PT Buka Investasi Bersama (unlisted): a technology financial company founded in June
2019.
PT Buka Pengadaan Indonesia (Not Listed): serves as a digital procurement partner.
31
Appendix
Appendix A: Merchant fees
Fig. 38: Bukalapak – merchant fees
Bukalapak
Pelapak Biasa Super Seller
Service Fee None 0.50%
Fig. 39: Tokopedia – merchant fees
Tokopedia
Power
Regular Power Official
Merchant
Merchant Merchant Store
Pro
Service Fee 0.50% 1.25% 1.50%
Depends
on
Service Fee (with Free Shipping) 3.00% 2.25% 1.50%
agreement
Fees for Tokopedia Official Store

Commission
Category
Min Max
Automotive 2% 5%
Beauty & Care 7.50% 12%
Electronic 2% 5%
Fashion 10% 15%
Food & Health 5% 8%
Handphone 2% 5%
Hobbies 7.50% 12%
Home & Living 5% 8%
Mom & Baby 5% 8%
32
Fig. 40: Shopee – merchant fees
Shopee
Non Star Star/Star+

Category Product Type Administration Administration
Service Fee Service Fee
Fee Fee
Mom & Baby Block toys
Home supplies Gallon pump, stove & gas, chair, portable sealer, regulator.
Automotive Car audio and video

0.75% 3% 1.25% 2.50%
Handphone &
BT Speaker, Headset, Earphones, BT Headset
Accessories
Phone: cable, convertor audio and video; motor: speaker,
Audio
microphone, headphone, earphone, headset
Non Star Star/Star+

Category Product Type Administration Administration
Service Fee Service Fee
Fee Fee
Men clothing
Men shoes
Muslim Fashion
Baggage & travelling
bags
Women bags
Women clothing
Women shoes
Watch
All types of products
Beauty & Care
Baby & Kids fashion
Sport and outdoor
Books & stationary
Car 1.60% 4% 2% 3.60%
Motorcycle
Ticket, voucher &
services
Books & magazine
Camera and drone Lens, lens accessories, camera accessories, camera drone, etc.
Health Contact lens, eyes health, etc.

Fashion accessories All products, except precious metal.
Handphone & All products, except tablet, handphone, walkie talkie, casting tool,
Accessories USB, hangphone light, modem
Mom & Baby All products, except block toys, slime, squishy, puzzle
Home appliances All products, except light, essential oil, garden chair, chair, sealer
Hobbies & collection Souvenir

Electronic
Audio
Food and Drinks
Pet All products
Gaming and console
Computer and
accessories
Health All products, except contact lens, eyes healthcare 0.75% 3% 1.25% 2.50%
Fashion accessories Precious metal
Handphone & Tablet, handphone, walkie talkie, casting tool, USB, handphone light,
Accessories modem
Mom & Baby Block toys, slime, squishy
Camera and drone Camera, security camera, drone, drone accessories
Home appliances Light, essential oil, garden chair, chair, sealer
Hobbies & Collection All products, except souvenirs
33
Fig. 41: Shopee – merchant fees (cont'd)
Shopee Mall Seller Non Star

Administration
Category Produce Type
Fee
Embroidery, metal, buttons, bros & pins, necklace, bracelet, ring, bangle, earrings, set accessories 1%
Fashion accessories
Hair accessories, tattoo, sunglasses, mask, gloves, hat, tie, scarf 5%
Baking supplies, tofu, egg, instant food, groceries, dry goods, noodles, pasta, rice, veggies 1%
Foods & Drinks Alcoholic drinks, snacks, bread, biscuits, breakfast foods, butter and margarine, cheese, cream, ice cream, condensed milk, milk, yoghurt,
5%
canned goods, frozen goods, frozen meat and seafood, hampers and gifts
Sports & outdoors Sports accessories, sports fashion, recreation tools, sports footwear 5%
CD, DVD & bluray, collection, music tools and accessories, sewing supplies, photo album, games, plates 3%
Hobbies & Collection
Souvenir 5%
Gaming and console Gaming console, console accessories, video game 1%
Books, cover book, bookmark, binder, memo, sticky notes, print and photocopy paper, stationaries, pencil case, white board, e-book 1%
Books & stationary Calcualtor, calendar, paper clips, pins, folders, organizer, glue, paper hole puncher, name tag, labels, stample, scissor, staples, tape 3%
Drawing tools, art paper, art board, magazines and newspaper 5%
Tops, pants, leggings, shorts, dress, skirt, wedding dress, jumpsuits, playsuits, overalls, jacket, crdigan, lingerie, maternity clothing, traditional
Women fashion 5%
clothing, socks, hoodie, sweatshirt
Sealer, gas regulator, stove, air filter, dispenser 1%
House appliances Garden chair, chair, seats 3%

Bathroom, bedroom, decoration, eating supplies, sofa, cabinets, chair, table, compress, diffuser, humidifier, oil burner, home organizer, cling
5%
wrap, kitchen tools, cooking tools, coffee, tea, etc
Desktop, laptop, office suppliers, printer, scanner, flashdisk, hard disk, NAS, SSD 1%
Sound card, keyboard, mouse, component network, mouse pad 3%
Computer & Accessories
CD, cooling pad, laptop battery, charger, adaptor, laptop stand and table, USB hub, card reader, webcam, keyboard and trackpad, video
5%
conference tools, softward
Diaper 1%
Baby Baby health, parfume, shampoo, soap, baby detergent, formula and food, slime, squishy, games 3%
Baby security, travelling tools, baby eating tools, pregnant mom needs, dolls, educating games, robotic gams, outdoor and sports games 5%
Baby and kids fashion Accessories, clothing, shoes 5%
Costumes, Hoodies & Sweatshirts, Underwear, Jackets, Coats & Vests, Jeans, Work Wear, Trousers, Other Menswear, Menswear Sets, Shorts,
Mens clothing 5%
Sleepwear, Socks, Formal Suits, Sweaters & Cardigans, Tops, Traditional Wear
Kitchen Appliances, Large Electrical Appliances, Projectors & Accessories, Remote Controls, Irons & Steamers, Sewing Machines &
1%
Accessories, Purifiers & Humidifiers, Telephones, Vacuum Cleaners & Floor Care Equipment, TVs & Accessories
Electronics
Battery, Vaporizer, Electric Flosser 3%
Electricity, Foot Bath & Spa 5%
Car Car 1%
Car Exterior Accessories, Car Interior Accessories, Auto Parts, Vehicle Maintenance, Vehicle Key Holders & Covers, Vehicle Oils & Lubricants,
5%
Vehicle Tools & Accessories
Motorcycles, Chains, Transmissions & Clutches 1%
Motorcycle Motorcycle Accessories, Ignition & Engine Parts, Fuel Systems, Braking Systems, Shocks, Struts & Motorcycle Suspensions, Batteries &
Accessories, Horns & Accessories, Cables & Hoses, Motorcycle Body & Frames, Motorcycle Mufflers, Wheels, Rims & Accessories, Motorcycle 5%
Tires & Accessories, Motorcycle Lights, Other Motorcycle Parts, Motorcycle Helmets & Accessories,
Dietary Supplements, Medical Devices, Mosquito Repellent, Massage & Therapy Devices 1%
Health Health Other, Adult Diapers, Eye Care, Ear Care, Feminine, Oral Care, Condoms, Lubricants, Performance Support 3%
Hand Sanitizer, Feminine 5%
Mobile, Starter Card, Tablet, Smartwatch & Fitness Tracker, Wearable Accessories, USB Fan, Memory Card, Casting Tool 1%
Walkie Talkie, USB & Mobile Light, Stylus, Powerbank & Battery, Modem 3%
Handphone & Accessories
VR Devices, GPS Trackers, Selfie Accessories, Phone Screen Protectors, Phone Straps & Hangers, Phone Holders, Cellphones & Other
5%
Accessories, Phone Pouches, Phone Lenses, Phone Selfie Flashes & Lights, Cases & Skins, Cables, Chargers & Converters
Amplifier & Mixer, Earphones, Headphones & Headsets, Audio Devices & Speakers, Media Players, Microphones & Accessories 3%
Audio
Audio & Video Cables & Converters 5%
Cameras, Security Cameras, Camera maintenance, Lens Accessories, Lenses 1%
Camera & Drone
Camera Accessories, Drones, Drone Accessories 5%
Dress, Top, Hijab, Bottom, Accessories, Muslim Swimsuit, Mukena, Cap, Prayer Mat, Prayer Equipment Set, Men's Abayas, Trousers, Sarong,
Muslim Fashion Girls Muslim Clothing, Boys Muslim Clothing, Cardigans, Coats, Jackets, Vest, Muslim Sportswear, Other Muslim Fashion, Travel Mukena, Malay 5%
Clothing
Travel & Tourism, Stickers & Coloring Books, Science & Math, Romance, Religion & Philosophy, Cookbooks & Cooking, Psychology &
Relationships, Politics, Law & Social Sciences, Parenting & Family, Other Books & Magazines, Music, Medicine, Dictionary , Hobbies, History &
Culture, Health, Fitness & Diet, Fantasy, Education, Computers & Technology, Comics, Classics Literature, Children's Books, Personal & Career 1%
Books and Magazine Development, Business & Investment, Biography & Memoirs, Baby Books, Audiobooks , Art, Design & Photography, Agriculture, Forestry &
Fisheries, Action, Crime & Thrillers, E-Books
Magazines and newspaper 5%
Ticket, voucher, services Travel & Tour, Event Ticket, Shopee, Shopping, Service, Telco, Food & Beverage, Electricity, Gas & Water, Streaming, Gaming 3%
Body Care, Hand, Foot & Nail Care, Hair Care, Men's Care, Perfumes & Fragrances, Cosmetics, Beauty Tools, Facial Treatments, Beauty
Beauty & Care 5%
Packages & Sets
Watches Women's Watches, Men's Watches, Couple's Watches, Watch Accessories, 5%
Women shoes Boots, Sneakers, Flats, Heels, Wedges, Flip Flops & Other Sandals, Shoe Accessories & Care, Women's Shoes More 5%
Men shoes Boots, Sneakers, Slip-Ons & Mules, Loafers, Oxfords, Sandals Accessories & Shoe Care 5%
Women's Backpacks, Laptop Bags, Clutches, Women's Waist Bags, Tote Bags, Top Handle Bags, Women's Sling & Shoulder Bags, Women's
Women Bag 5%
Wallets, Bag Accessories
Men Bag Men's Backpacks, Laptop Bags, Tote Bags, Briefcases, Clutches, Men's Waist Bags, Men's Sling & Shoulder Bags, Wallets 5%
Baggage and travel bags Luggage, Travel Bags, Travel Accessories, Luggage & Other Travel Bags 5%
34
Fig. 42: Lazada – merchant fees
Lazada
LazMall
Commission 0% 0.9%-4.5%
Payment fee 1.80%
Fig. 43: Blibli – merchant fees
Blibli
Direct shipment Fulfilment by Blibli
Comission 8% 10%
35
Appendix B: Mitra benefits
Fig. 44: Mitra benefits

Tokopedia, Shopee, and Bukalapak
Mitra Tokopedia
Product Benefits
All Goods IDR1,000 mitra balance per succesful transaction
Mitra Shopee
Product Benefits
Phone Credit Best Price
Data Plan
Electicity Token Shopee partners will get a discount
Gaming Voucher most competitive direct price.
Electricity bill IDR2,500 cashback

BPJS (social security) IDR2,200 cashback
PDAM (water) IDR1,500 cashback
Credit Installment IDR2,500 cashback
TELKOM (landline) IDR2,200 cashback
Postpaid phone IDR1,500 cashback
Cabel TV IDR3,000 cashback
Mitra Bukalapak
Product Benefits
Wholesale Economical price, can COD, widest coverage area
Phone credit Direct Discounts
Data Plan Direct Discounts
Electricity Token Direct Discounts
Digital Top Up Direct Discounts
Gaming Voucher Complete product selection, low prices, fast processing
Electronic Money Easy balance top-up, direct cashback
Remittances (cash transfer) IDR10.000 cashback
Cash Deposit Easy to savings to Bank Mandiri, fee of only IDR1,200
QRIS Free admin fees, can be from various digital wallets
Postpaid Electricity Bill Cashback up to IDR2,500
BPJS Kesehatan (Health Social Security) Cashback up to IDR1,000
PDAM (Water) Cashback up to IDR1,000
Telkom/Indihome Cashback up to IDR700
Credit Installment Cashback up to IDR7,500
e-Samsat Cashback up to IDR1,000
Penerimaan Negara Only available at Mitra Bukalapak
Gold Savings Cashback up to IDR5,000
Shipping Agent Cashback up to 3%
Millionaire (spending amount) Free shipping up to IDR30,000
Bus Ticket Cashback up to 3%
Train Ticket Cashback up to IDR4,500
36
Appendix A-1
Analyst Certification
I, Ahmad Maghfur Usman, hereby certify (1) that the views expressed in this Research report accurately reflect my personal views
about any or all of the subject securities or issuers referred to in this Research report, (2) no part of my compensation was, is or will
be directly or indirectly related to the specific recommendations or views expressed in this Research report and (3) no part of my
compensation is tied to any specific investment banking transactions performed by Nomura Securities International, Inc., Nomura
International plc or any other Nomura Group company.
Issuer Specific Regulatory Disclosures

The terms "Nomura" and "Nomura Group" used herein refers to Nomura Holdings, Inc. and its affiliates and subsidiaries, including Nomura
Securities International, Inc. ('NSI') and Instinet, LLC('ILLC'), U. S. registered broker dealers and members of SIPC.
Materially mentioned issuers

Issuer Ticker Price Price date Stock rating Sector rating Disclosures
Bukalapak BUKA IJ IDR 850 05-Aug-2021 Buy N/A
Bukalapak (BUKA IJ) IDR 850 (05-Aug-2021) Buy (Sector rating: N/A)
Chart Not Available
Valuation Methodology We derive our TP of IDR1,620 based on a target EV/GMV of 0.45x on FY23F (pre-monetization phase)
and EV/Sales growth of 0.24x, assuming 71.1% CAGR over 2021-2023 CAGR, translating into 17.1x EV/Sales FY23F (post-
monetization phase), applying 50% weight for both methods. The benchmark index for the stock is JCI Index
Risks that may impede the achievement of the target price We believe that BUKA is still in the expansion phase; thus, negative
cash flow generation should be understandable. Our earnings projections on BUKA show net losses until 2024, which are more
conservative than the co-profit expectation in 2023F. As start-up status, key risks are execution and competition from other e-
commerce companies.
Important Disclosures
Online availability of research and conflict-of-interest disclosures
Nomura Group research is available on www.nomuranow.com/research, Bloomberg, Capital IQ, Factset, Reuters and ThomsonOne.
Important disclosures may be read at http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx or requested
from Nomura Securities International, Inc. If you have any difficulties with the website, please email grpsupport@nomura.com for help.
The analysts responsible for preparing this report have received compensation based upon various factors including the firm's total revenues, a
portion of which is generated by Investment Banking activities. Unless otherwise noted, the non-US analysts listed at the front of this report are not
registered/qualified as research analysts under FINRA rules, may not be associated persons of NSI, and may not be subject to FINRA Rule 2241
restrictions on communications with covered companies, public appearances, and trading securities held by a research analyst account.
Nomura Global Financial Products Inc. (NGFP) Nomura Derivative Products Inc. (NDP) and Nomura International plc. (NIplc) are registered with the
Commodities Futures Trading Commission and the National Futures Association (NFA) as swap dealers. NGFP, NDPI, and NIplc are generally
engaged in the trading of swaps and other derivative products, any of which may be the subject of this report.
Distribution of ratings (Nomura Group)

The distribution of all ratings published by Nomura Group Global Equity Research is as follows:
57% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; 39% of companies with this
rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the EEA) with
this rating were supplied material services** by the Nomura Group.
39% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; 62% of companies with this
this rating were supplied material services by the Nomura Group
4% have been assigned a Reduce rating which, for purposes of mandatory disclosures, are classified as a Sell rating; 18% of companies with this
this rating were supplied material services by the Nomura Group.
As at 30 June 2021.
*The Nomura Group as defined in the Disclaimer section at the end of this report.
** As defined by the EU Market Abuse Regulation
Definition of Nomura Group's equity research rating system and sectors

The rating system is a relative system, indicating expected performance against a specific benchmark identified for each individual stock, subject to
limited management discretion. An analyst’s target price is an assessment of the current intrinsic fair value of the stock based on an appropriate
valuation methodology determined by the analyst. Valuation methodologies include, but are not limited to, discounted cash flow analysis, expected
return on equity and multiple analysis. Analysts may also indicate expected absolute upside/downside relative to the stated target price, defined as
(target price - current price)/current price.
STOCKS
A rating of 'Buy', indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. A rating of 'Neutral', indicates
that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. A rating of 'Reduce', indicates that the analyst
expects the stock to underperform the Benchmark over the next 12 months. A rating of 'Suspended', indicates that the rating, target price and
estimates have been suspended temporarily to comply with applicable regulations and/or firm policies. Securities and/or companies that are labelled
as 'Not rated' or shown as 'No rating' are not in regular research coverage. Investors should not expect continuing or additional information from
Nomura relating to such securities and/or companies. Benchmarks are as follows: United States/Europe/Asia ex-Japan: please see valuation
methodologies for explanations of relevant benchmarks for stocks, which can be accessed at:
http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx ; Global Emerging Markets (ex-Asia): MSCI
Emerging Markets ex-Asia, unless otherwise stated in the valuation methodology; Japan: Russell/Nomura Large Cap.
37
SECTORS
A 'Bullish' stance, indicates that the analyst expects the sector to outperform the Benchmark during the next 12 months. A 'Neutral' stance,
indicates that the analyst expects the sector to perform in line with the Benchmark during the next 12 months. A 'Bearish' stance, indicates that the
analyst expects the sector to underperform the Benchmark during the next 12 months. Sectors that are labelled as 'Not rated' or shown as 'N/A' are
not assigned ratings. Benchmarks are as follows: United States: S&P 500; Europe: Dow Jones STOXX 600; Global Emerging Markets (ex-Asia):
MSCI Emerging Markets ex-Asia. Japan/Asia ex-Japan: Sector ratings are not assigned.
Target Price
A Target Price, if discussed, indicates the analyst’s forecast for the share price with a 12-month time horizon, reflecting in part the analyst's
estimates for the company's earnings. The achievement of any target price may be impeded by general market and macroeconomic trends, and by
other risks related to the company or the market, and may not occur if the company's earnings differ from estimates.
Disclaimers
This publication contains material that has been prepared by the Nomura Group entity identified on page 1 and, if applicable, with the contributions
of one or more Nomura Group entities whose employees and their respective affiliations are specified on page 1 or identified elsewhere in this
publication. The term "Nomura Group" used herein refers to Nomura Holdings, Inc. and its affiliates and subsidiaries including: (a) Nomura
Securities Co., Ltd. ('NSC') Tokyo, Japan, (b) Nomura Financial Products Europe GmbH (‘NFPE’), Germany, (c) Nomura International plc ('NIplc'),
UK, (d) Nomura Securities International, Inc. ('NSI'), New York, US, (e) Nomura International (Hong Kong) Ltd. (‘NIHK’), Hong Kong, (f) Nomura
Financial Investment (Korea) Co., Ltd. (‘NFIK’), Korea (Information on Nomura analysts registered with the Korea Financial Investment Association
('KOFIA') can be found on the KOFIA Intranet at http://dis.kofia.or.kr, (g) Nomura Singapore Ltd. (‘NSL’), Singapore (Registration number
197201440E, regulated by the Monetary Authority of Singapore) (h) Nomura Australia Ltd. (‘NAL’), Australia (ABN 48 003 032 513), regulated by the
Australian Securities and Investment Commission ('ASIC') and holder of an Australian financial services licence number 246412, (i) Nomura
Securities Malaysia Sdn. Bhd. (‘NSM’), Malaysia, (j) NIHK, Taipei Branch (‘NITB’), Taiwan, (k) Nomura Financial Advisory and Securities (India)
Private Limited (‘NFASL’), Mumbai, India (Registered Address: Ceejay House, Level 11, Plot F, Shivsagar Estate, Dr. Annie Besant Road, Worli,
Mumbai- 400 018, India; Tel: 91 22 4037 4037, Fax: 91 22 4037 4111; CIN No: U74140MH2007PTC169116, SEBI Registration No. for Stock
Broking activities : INZ000255633; SEBI Registration No. for Merchant Banking : INM000011419; SEBI Registration No. for Research:
INH000001014. ‘CNS Thailand’ next to an analyst’s name on the front page of a research report indicates that the analyst is employed by Capital
Nomura Securities Public Company Limited (‘CNS’) to provide research assistance services to NSL under an agreement between CNS and NSL.
‘NSFSPL’ next to an employee’s name on the front page of a research report indicates that the individual is employed by Nomura Structured
Finance Services Private Limited to provide assistance to certain Nomura entities under inter-company agreements. 'Verdhana' next to an
individual's name on the front page of a research report indicates that the individual is employed by PT Verdhana Sekuritas Indonesia ('Verdhana')
to provide research assistance to NIHK under a research partnership agreement and neither Verdhana nor such individual is licensed outside of
Indonesia. For the avoidance of doubt and for the purpose of disclosure, Nomura Orient International Securities Co., Ltd (“NOI”), a joint venture
amongst Nomura Group, Orient International (Holding) Co., Ltd and Shanghai Huangpu Investment Holding (Group) Co., Ltd is excluded from the
definition of Nomura Group. An individual name printed next to NOI on the front page of a research report indicates that individual is employed by
NOI to provide research assistance to NIHK under a research partnership agreement and neither NOI or such individual is licensed outside of
Mainland China, PRC.
THIS MATERIAL IS: (I) FOR YOUR PRIVATE INFORMATION, AND WE ARE NOT SOLICITING ANY ACTION BASED UPON IT; (II) NOT TO BE
CONSTRUED AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN ANY JURISDICTION WHERE SUCH
OFFER OR SOLICITATION WOULD BE ILLEGAL; AND (III) OTHER THAN DISCLOSURES RELATING TO THE NOMURA GROUP, BASED
UPON INFORMATION FROM SOURCES THAT WE CONSIDER RELIABLE, BUT HAS NOT BEEN INDEPENDENTLY VERIFIED BY NOMURA
GROUP.
Other than disclosures relating to the Nomura Group, the Nomura Group does not warrant, represent or undertake, express or implied, that the
document is fair, accurate, complete, correct, reliable or fit for any particular purpose or merchantable, and to the maximum extent permissible by
law and/or regulation, does not accept liability (in negligence or otherwise, and in whole or in part) for any act (or decision not to act) resulting from
use of this document and related data. To the maximum extent permissible by law and/or regulation, all warranties and other assurances by the
Nomura Group are hereby excluded and the Nomura Group shall have no liability (in negligence or otherwise, and in whole or in part) for any loss
howsoever arising from the use, misuse, or distribution of this material or the information contained in this material or otherwise arising in connection
therewith.
Opinions or estimates expressed are current opinions as of the original publication date appearing on this material and the information, including the
opinions and estimates contained herein, are subject to change without notice. The Nomura Group, however, expressly disclaims any obligation,
and therefore is under no duty, to update or revise this document. Any comments or statements made herein are those of the author(s) and may
differ from views held by other parties within Nomura Group. Clients should consider whether any advice or recommendation in this report is suitable
for their particular circumstances and, if appropriate, seek professional advice, including tax advice. The Nomura Group does not provide tax advice.
The Nomura Group, and/or its officers, directors, employees and affiliates, may, to the extent permitted by applicable law and/or regulation, deal as
principal, agent, or otherwise, or have long or short positions in, or buy or sell, the securities, commodities or instruments, or options or other
derivative instruments based thereon, of issuers or securities mentioned herein. The Nomura Group companies may also act as market maker or
liquidity provider (within the meaning of applicable regulations in the UK) in the financial instruments of the issuer. Where the activity of market
maker is carried out in accordance with the definition given to it by specific laws and regulations of the US or other jurisdictions, this will be
separately disclosed within the specific issuer disclosures.
This document may contain information obtained from third parties, including, but not limited to, ratings from credit ratings agencies such as
Standard & Poor’s. The Nomura Group hereby expressly disclaims all representations, warranties or undertakings of originality, fairness, accuracy,
completeness, correctness, merchantability or fitness for a particular purpose with respect to any of the information obtained from third parties
contained in this material or otherwise arising in connection therewith, and shall not be liable (in negligence or otherwise, and in whole or in part) for
any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses
(including lost income or profits and opportunity costs) in connection with any use or misuse of any of the information obtained from third parties
contained in this material or otherwise arising in connection therewith. Reproduction and distribution of third-party content in any form is prohibited
except with the prior written permission of the related third-party. Third-party content providers do not, express or implied, guarantee the fairness,
accuracy, completeness, correctness, timeliness or availability of any information, including ratings, and are not in any way responsible for any
errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use or misuse of such content. Third-party
content providers give no express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular
purpose or use. Third-party content providers shall not be liable (in negligence or otherwise, and in whole or in part) for any direct, indirect,
incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or
profits and opportunity costs) in connection with any use or misuse of their content, including ratings. Credit ratings are statements of opinions and
are not statements of fact or recommendations to purchase hold or sell securities. They do not address the suitability of securities or the suitability of
securities for investment purposes, and should not be relied on as investment advice.
Any MSCI sourced information in this document is the exclusive property of MSCI Inc. (‘MSCI’). Without prior written permission of MSCI, this
information and any other MSCI intellectual property may not be duplicated, reproduced, re-disseminated, redistributed or used, in whole or in part,
for any purpose whatsoever, including creating any financial products and any indices. This information is provided on an "as is" basis. The user
assumes the entire risk of any use made of this information. MSCI, its affiliates and any third party involved in, or related to, computing or compiling
the information hereby expressly disclaim all representations, warranties or undertakings of originality, fairness, accuracy, completeness,
correctness, merchantability or fitness for a particular purpose with respect to any of this material or the information contained in this material or
otherwise arising in connection therewith. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved
in, or related to, computing or compiling the information have any liability (in negligence or otherwise, and in whole or in part) for any damages of
any kind. MSCI and the MSCI indexes are services marks of MSCI and its affiliates.
The intellectual property rights and any other rights, in Russell/Nomura Japan Equity Index belong to Nomura Securities Co., Ltd. ("Nomura") and
Frank Russell Company ("Russell"). Nomura and Russell do not guarantee fairness, accuracy, completeness, correctness, reliability, usefulness,
marketability, merchantability or fitness of the Index, and do not account for business activities or services that any index user and/or its affiliates
undertakes with the use of the Index.
Investors should consider this document as only a single factor in making their investment decision and, as such, the report should not be viewed as
38
identifying or suggesting all risks, direct or indirect, that may be associated with any investment decision. Nomura Group produces a number of
different types of research product including, among others, fundamental analysis and quantitative analysis; recommendations contained in one type
of research product may differ from recommendations contained in other types of research product, whether as a result of differing time horizons,
methodologies or otherwise. The Nomura Group publishes research product in a number of different ways including the posting of product on the
Nomura Group portals and/or distribution directly to clients. Different groups of clients may receive different products and services from the research
department depending on their individual requirements.
Figures presented herein may refer to past performance or simulations based on past performance which are not reliable indicators of future or likely
performance. Where the information contains an expectation, projection or indication of future performance and business prospects, such forecasts
may not be a reliable indicator of future or likely performance. Moreover, simulations are based on models and simplifying assumptions which may
oversimplify and not reflect the future distribution of returns. Any figure, strategy or index created and published for illustrative purposes within this
document is not intended for “use” as a “benchmark” as defined by the European Benchmark Regulation.
Certain securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of, or income derived from,
the investment.
With respect to Fixed Income Research: Recommendations fall into two categories: tactical, which typically last up to three months; or strategic,
which typically last from 6-12 months. However, trade recommendations may be reviewed at any time as circumstances change. ‘Stop loss’ levels
for trades are also provided; which, if hit, closes the trade recommendation automatically. Prices and yields shown in recommendations are taken at
the time of submission for publication and are based on either indicative Bloomberg, Reuters or Nomura prices and yields at that time. The prices
and yields shown are not necessarily those at which the trade recommendation can be implemented.
The securities described herein may not have been registered under the US Securities Act of 1933 (the ‘1933 Act’), and, in such case, may not be
offered or sold in the US or to US persons unless they have been registered under the 1933 Act, or except in compliance with an exemption from
the registration requirements of the 1933 Act. Unless governing law permits otherwise, any transaction should be executed via a Nomura entity in
your home jurisdiction.
This document has been approved for distribution in the UK as investment research by NIplc. NIplc is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. NIplc is a member of the London Stock
Exchange. This document does not constitute a personal recommendation within the meaning of applicable regulations in the UK, or take into
account the particular investment objectives, financial situations, or needs of individual investors. This document is intended only for investors who
are 'eligible counterparties' or 'professional clients' for the purposes of applicable regulations in the UK, and may not, therefore, be redistributed to
persons who are 'retail clients' for such purposes.
This document has been approved for distribution in the European Economic Area as investment research by Nomura Financial Products Europe
GmbH (“NFPE”). NFPE is a company organized as a limited liability company under German law registered in the Commercial Register of the Court
of Frankfurt/Main under HRB 110223. NFPE is authorized and regulated by the German Federal Financial Supervisory Authority (BaFin).
This document has been approved by NIHK, which is regulated by the Hong Kong Securities and Futures Commission, for distribution in Hong Kong
by NIHK. This document is intended only for investors who are 'professional investors' for the purposes of applicable regulations in Hong Kong and
may not, therefore, be redistributed to persons who are not 'professional investors' for such purposes.
This document has been approved for distribution in Australia by NAL, which is authorized and regulated in Australia by the ASIC.
This document has also been approved for distribution in Malaysia by NSM.
In Singapore, this document has been distributed by NSL, an exempt financial adviser as defined under the Financial Advisers Act (Chapter 110),
among other things, and regulated by the Monetary Authority of Singapore. NSL may distribute this document produced by its foreign affiliates
pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the recipient of this document is not an accredited,
expert or institutional investor as defined by the Securities and Futures Act (Chapter 289), NSL accepts legal responsibility for the contents of this
document in respect of such recipient only to the extent required by law. Recipients of this document in Singapore should contact NSL in respect of
matters arising from, or in connection with, this document. THIS DOCUMENT IS INTENDED FOR GENERAL CIRCULATION. IT DOES NOT TAKE
INTO ACCOUNT THE SPECIFIC INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR PARTICULAR NEEDS OF ANY PARTICULAR
PERSON. RECIPIENTS SHOULD TAKE INTO ACCOUNT THEIR SPECIFIC INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR
PARTICULAR NEEDS BEFORE MAKING A COMMITMENT TO PURCHASE ANY SECURITIES, INCLUDING SEEKING ADVICE FROM AN
INDEPENDENT FINANCIAL ADVISER REGARDING THE SUITABILITY OF THE INVESTMENT, UNDER A SEPARATE ENGAGEMENT, AS THE
RECIPIENT DEEMS FIT.
Unless prohibited by the provisions of Regulation S of the 1933 Act, this material is distributed in the US, by NSI, a US-registered broker-dealer,
which accepts responsibility for its contents in accordance with the provisions of Rule 15a-6, under the US Securities Exchange Act of 1934. The
entity that prepared this document permits its separately operated affiliates within the Nomura Group to make copies of such documents available to
their clients.
This document has not been approved for distribution to persons other than ‘Authorised Persons’, ‘Exempt Persons’ or ‘Institutions’ (as defined by
the Capital Markets Authority) in the Kingdom of Saudi Arabia (‘Saudi Arabia’) or a ’Market Counterparty’ or a 'Professional Client' (as defined by the
Dubai Financial Services Authority) in the United Arab Emirates (‘UAE’) or a ‘Market Counterparty’ or a ‘Business Customer’ (as defined by the
Qatar Financial Centre Regulatory Authority) in the State of Qatar (‘Qatar’) by Nomura Saudi Arabia, NIplc or any other member of the Nomura
Group, as the case may be. Neither this document nor any copy thereof may be taken or transmitted or distributed, directly or indirectly, by any
person other than those authorised to do so into Saudi Arabia or in the UAE or in Qatar or to any person other than ‘Authorised Persons’, ‘Exempt
Persons’ or ‘Institutions’ located in Saudi Arabia or a ’Market Counterparty’ or a 'Professional Client' in the UAE or a ‘Market Counterparty’ or a
‘Business Customer’ in Qatar. Any failure to comply with these restrictions may constitute a violation of the laws of the UAE or Saudi Arabia or
Qatar.
For report with reference of TAIWAN public companies or authored by Taiwan based research analyst:
THIS DOCUMENT IS SOLELY FOR REFERENCE ONLY. You should independently evaluate the investment risks and are solely responsible for
your investment decisions. NO PORTION OF THE REPORT MAY BE REPRODUCED OR QUOTED BY THE PRESS OR ANY OTHER PERSON
WITHOUT WRITTEN AUTHORIZATION FROM NOMURA GROUP. Pursuant to Operational Regulations Governing Securities Firms
Recommending Trades in Securities to Customers and/or other applicable laws or regulations in Taiwan, you are prohibited to provide the reports to
others (including but not limited to related parties, affiliated companies and any other third parties) or engage in any activities in connection with the
reports which may involve conflicts of interests. INFORMATION ON SECURITIES / INSTRUMENTS NOT EXECUTABLE BY NOMURA
INTERNATIONAL (HONG KONG) LTD., TAIPEI BRANCH IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT BE CONSTRUED AS A
RECOMMENDATION OR A SOLICITATION TO TRADE IN SUCH SECURITIES / INSTRUMENTS.
This material may not be distributed in Indonesia or passed on within the territory of the Republic of Indonesia or to persons who are Indonesian
citizens (wherever they are domiciled or located) or entities of or residents in Indonesia in a manner which constitutes a public offering under the
laws of the Republic of Indonesia. The securities mentioned in this document may not be offered or sold in Indonesia or to persons who are citizens
of Indonesia (wherever they are domiciled or located) or entities of or residents in Indonesia in a manner which constitutes a public offering under
the laws of the Republic of Indonesia.
This document is prepared by Nomura Group or its subsidiary or affiliate (collectively, “Offshore Issuers”) that is not licensed in the People’s
Republic of China (“PRC”, excluding Hong Kong, Macau and Taiwan, for the purpose of this document) to provide securities research and this
research report is not approved or intended to be circulated in the PRC. The A-share related analysis (if any) is not produced for any persons
located or incorporated in the PRC. The recipients should not rely on any information contained in the research report in making investment
decisions and Offshore Issuers take no responsibility in this regard.
NO PART OF THIS MATERIAL MAY BE (I) COPIED, PHOTOCOPIED, REPRODUCED OR DUPLICATED IN ANY FORM, BY ANY MEANS; OR
(II) REDISSEMINATED, REPUBLISHED OR REDISTRIBUTED WITHOUT THE PRIOR WRITTEN CONSENT OF A MEMBER OF THE NOMURA
GROUP. If this document has been distributed by electronic transmission, such as e-mail, then such transmission cannot be guaranteed to be
secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The sender
therefore does not accept liability (in negligence or otherwise, and in whole or in part) for any errors or omissions in the contents of this document,
which may arise as a result of electronic transmission. If verification is required, please request a hard-copy version.
The Nomura Group manages conflicts with respect to the production of research through its compliance policies and procedures (including, but not
limited to, Conflicts of Interest, Chinese Wall and Confidentiality policies) as well as through the maintenance of Chinese Walls and employee
training.
Additional information regarding the methodologies or models used in the production of any investment recommendations contained
within this document is available upon request by contacting the Research Analysts of Nomura listed on the front page. Disclosures
information is available upon request and disclosure information is available at the Nomura Disclosure web page:
http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx
39
Copyright © 2021 Nomura International (Hong Kong) Ltd. All rights reserved.
40

2021-08-05-BUKA - JK-Nomura-Bukalapak (BUKA IJ) (Buy) - Indonesia's First Public E-Comme... - 93352410

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2021-08-05-BUKA - JK-Nomura-Bukalapak (BUKA IJ) (Buy) - Indonesia's First Public E-Comme... - 93352410

Uploaded by

Copyright:

Available Formats

Global Markets Research

Bukalapak BUKA.JK BUKA IJ 6 August 2021

Indonesia’s first public e-commerce platform Rating

Key Data on Bukalapak

Risks that may impede the achievement of the target price

Fig. 1: Net income Fig. 2: Revenues

Source: Company data Source: Company data

The shift from traditional brick-and-mortar retailers to e-commerce is global. We believe

Source: © Euromonitor International Source: © Euromonitor International

Source: © Euromonitor International

Fig. 6: Indonesia sales – stores vs e-commerce (IDR tn)

Source: © Euromonitor International

Source: © Euromonitor International

Indonesia's young and tech-savvy population

Fig. 8: Internet penetration

Source: World Bank

Fig. 9: Credit card penetration rate

Source: Statista, World Bank

Fig. 10: Indonesia – e-wallet transactions (IDRtn)

Source: Bank Indonesia, Nomura research

E-commerce – still nascent, with room to turn profitable

Fig. 11: Indonesia GDP per capita (USD)

Source: Nomura estimates (2019-2022F), IMF (2023F-2026F)

Fig. 12: Corporate + MSME breakdown

players cannot compete on pricing). Additionally, services provided by Bukalapak create

Fig. 13: Bukalapak distribution

Source: Company data

Bukalapak connects distribution centers (IDCs) / wholesalers / FMCG principals directly

An all-commerce platform for warungs

The path to profitability (based on forecast

Source: Company data

Fig. 16: BUKA revenue by segment

Source: Company data

Marketplace revenue is primarily derived from commissions generated through sales by

Fig. 19: Selling & Marketing Expenses (IDRbn) vs TPV

Source: Company data, Nomura estimates

Fig. 20: General & Administrative Expenses (IDRbn)

Source: Company data, Nomura estimates

Fig. 21: Cash flows (IDR bn)

Source: Company data, Nomura estimates

Fig. 22: Proposed use of IPO proceeds

The use of IPO proceeds Portion (%)

Fig. 25: Net profit (loss) (IDR bn)

Source: Company data, Nomura estimates

Valuation – Reckoning the fair value

Fig. 26: Bukalapak - target price calculation

Weighted valuation Weight Value

Source: Company data, Nomura estimates

Fig. 27: Peer comparisons

Nomura TP Market FY20 Sales EV / sales to

Fig. 28: GMV

Source: Company data, Nomura estimates

Fig. 29: Total payment value

Source: Company data, Nomura estimates

Fig. 30: Revenue breakdown

Source: Company data, Nomura estimates

No Ticker Shares (mn) Price Market cap (IDR tn) Weight

Comparison of Mitra e-commerce platforms

Price Comparisons *price diff with Bukalapak mitra

Source: Company data

Virtual product comparison – Mitra Bukalapak, Mitra Tokpedia,

Fig. 34: Mitra virtual product comparison

Virtual Products Mitra Bukalapak Mitra Tokopedia Mitra Shopee