JD.com set to pull out from Indonesia and Thailand

Chinese ecommerce major JD.com is looking to pull out from its joint ventures in Indonesia and Thailand, South China Morning Post reported, citing sources familiar with the matter.

Photo credit: Sergei Elagin / Shutterstock

In Indonesia, JD.com partnered with Provident Capital to form JD.id. Meanwhile, the firm tapped Thailand-based conglomerate Central Group to establish JD Central in the country.

JD.com has been reportedly looking for potential investors to buy out its shares in Indonesia and Thailand. The company is looking to shift focus to its home country as it has recorded piling losses in both Southeast Asian markets.

In a statement to Tech in Asia, JD.ID’s representative said that there were never been talk regarding JD.com’s exit from the joint venture. “For us, everything is still on track. So, there’s no reason to confirm those rumors,” the representative said.

See also: Can JD.com make a splash in SEA?

In Indonesia, JD.id has been unable to pass the one million mark in active users for the past year, according to Data.ai. It was left behind by other competitors such as Shopee (31 million), Tokopedia (17 million), and Alibaba-backed Lazada (8 million).

The firm has tried to grow its online-to-offline model by setting up physical stores, including an unmanned outlet called JD.id X.

In Thailand, JD Central faced similar issues in exceeding the one million mark in terms of active users. It has taken a backseat in the country’s ecommerce battle between Shopee and Lazada.