Indonesian telecom operators involved in the field of electricity, internet penetration rate is growing rapidly

With the impact of the Internet, the Indonesian mobile phone operators of the voice and SMS business revenue gradually shrinking, in order to reverse the downturn, Indonesian telecom operators have been involved in e-commerce areas to strengthen the non-communications sector revenue.

Hugo Nets from Indonesia's Jakarta Post March 24 reported that Indosat, Indonesia's third-largest mobile communications operator Tauseef Riaz, the head of digital services, said many telecoms companies are shrinking the core business, so they have to move to seek new areas of investment.

The Indosat company has established a "digital world" entity, acting as a technology incubator and catalytic converter. The "Digital World", founded late last year, will strengthen Indosat's formerly separate mobile payments and mobile advertising business.

Tauseef Riaz said: "We will launch a new E-commerce business, is expected to formally launch the first electrical products within two months." At present, we are considering three types of electrical business model, the upcoming launch of the electricity business will be based on retail-oriented, mainly engaged in several categories of goods. ”

In addition to the Indosat company, the Indonesian state-run telecommunications company PT Telekomunikasi Indonesia (TELKOM) has also cooperated with the U.S. ebay company to set up PT Metraplasa, and has created an e-commerce platform plasa.com. However, the website information company Alexa revealed that in Indonesia's many strict e-commerce sites, the number of visitors among the top 25 only tokobagus.com and berniaga.com two sites.

At the same time, the PT XL Axiata and South Korea telecom operator SK EADS launched the electric business platform Elevenia. The two sides will invest a lot of money on the platform. Although Elevenia officially on line for only two weeks, but has attracted 7,000 sellers to the platform to sell things, a total of 65,000 items exhibited. The number of visits per day is about 30000, and about 1000 new visitors are added every day.

It is expected that in late November this year, the sellers of Elevenia platform will reach 50,000, the number of goods on display will reach 1.5 million. Elevenia's team has repeatedly encouraged those who already operate physical stores in large retail centers to "shock" them.

At the same time, XL Axiata also launched the mobile payment business and mobile advertising business. It is understood that XL Axiata in 2013 revenue amounted to 7.6 trillion rupees, of which 57.2% from mobile data and value-added services business.

Industry insiders believe that telecoms companies involved in the business will eventually promote mobile payment and mobile advertising business development.

Hugo Net understands that the Indonesian market has great potential and the Internet penetration rate is growing rapidly.

As an open electric business platform, Elevenia will provide a 24-hour all-weather service to maximize customer convenience. There will be 550,000 products on sale in Elevenia, including fashion, cosmetics, baby supplies, electrical appliances, furniture supplies, music products and books and so on.

In South-East Asia, it is not just local multinationals or start-ups that are involved in mobile-electric business. In addition to rocket the Internet, international e-commerce companies such as Japan's Rakuten (RaKuTen) and China's Taobao are also developing Southeast Asian markets. While their current focus is on running online stores, they can quickly start putting more effort into mobile apps.