Why Blibli’s shares are outperforming GoTo, Bukalapak stocks

Among all the major ecommerce platforms in Indonesia, Blibli has the lowest market share, according to Momentum Works.

For the nine months ending in September 2023, the company underperformed its listed peers, namely Bukalapak and GoTo’s ecommerce unit, Tokopedia.

Yet, in 2023, Blibli’s shares on the Indonesia Stock Exchange increased by around 2.6%. While not significant, it still performed better than GoTo and Bukalapak, which declined by 8% and 18%, respectively.

Investor sentiment toward the company may seem surprisingly positive, but there are good reasons for this, and not all of them may be related to the substance of its business.

Not your usual tech company

The value of Blibli’s stock has remained relatively stable since its initial public offering at 450 rupiah (US$0.028) per share. In contrast, the stock prices of GoTo and Bukalapak have seen greater fluctuations.

Unlike its competitors, Blibli focuses on its niche in the electronics category and also provides customers with both an online and offline experience.

Andre Benas, head of research at BCA Sekuritas, explains that there is a distinct contrast between Blibli and the other two companies, as Blibli’s stocks are primarily owned by its parent company Djarum Group.

Indeed, a majority of Blibli’s shares – 83% – are held by the conglomerate through PT Global Investama Andalan, according to its latest financial statements. In comparison, GoTo and Bukalapak only have 29% and 49% insider ownership, respectively.

Analyst Devi Harjoto from KB Valbury Sekuritas adds that the Djarum association gives Blibli a stable reputation among the public. This is particularly since the conglomerates’ owners, the Hartono brothers, are the wealthiest individuals in Indonesia, with an estimated US$48 billion fortune.

He also notes that Blibli’s expansion last year was mostly oriented toward monetization, not just “for the sake of growth.” Throughout 2023, the company was more focused on allocating spending for expanding offline stores and its logistics capacity.

Blibli’s delivery fleet / Photo credit: Blibli

At the end of 2023, Blibli had a total of 166 physical stores, including consumer electronics shops scattered across malls throughout Indonesia as well as branches of the supermarket chain Ranch Market, which it acquired in 2021.

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