Indonesia Jatis Group Co-founder Shares His Two-Decade-Long Startup Journey

Izak Jenie (right) with other Nexian Selular Group Directors

At 43 years old, Izak Jenie is still talking about new business ideas and starting projects. He just can’t stop. This is a man who has started more than ten companies in Indonesia, beginning at age nineteen. Most of them failed, but those that survived are renowned companies in Indonesia today and are generating tens of millions of dollars in yearly revenue. Some very successful companies Izak started include Jatis Group, Jatis Mobile, and Metrotech Makmur Sejahtera (MMS).

Coming from an average income family, Izak was hungry for success. His first startup was a computer graphics company launched in 1989 during his university days. Computers were not widely available then and there was no internet. Izak was lucky enough to get a PC at home and he subsequently taught himself digital graphic design. Being one of the first few guys in Indonesia with this skill, he got lucrative projects from advertising firms. He was able to pay his tuition fees with some cash left over to treat friends for meals. However, competition grew and his margins thinned. He got out of the business in its fourth year.

The early web

After graduation, his friends were able to get high-paying corporate jobs quickly, but it took Izak nine months to get a job as a graphic designer because most companies hired based on academic results. He worked for one year but realized that he didn’t like the routine corporate job. While at the office, Izak would often work on other tech projects that interest him. One was called the Free World Dial-Up service, it would allow people to call overseas using the internet and save on overseas call charges. It’s basically exactly what Skype does today, but Izak was working on that concept in 1995.

That same year, he read a book titled Going Digital by Nicholas Negroponte and it made him realize the world was going to change. He quit his job and started an online bookstore. Concurrently, he also started a few other companies with different partners. These startups all failed. Poor timing and partnership disputes were the causes of their demise; for example, the online bookstore flopped because there weren’t many people online in the mid-nineties and almost no one did their shopping there.

Despite failing numerous times, Izak never gave up. Together with Jusuf Sjariffudin and Ishak Surjana, he co-founded Jatis Group, an IT consulting company in 1997.

One of his early employees there said:

Before joining Jatis, I asked Izak why this (Jatis) will be a success? Izak answered nonchalantly that he had failed in so many previous companies and in each failure, he learnt something from it. As such, he had already learnt how to fail. Jatis will not be a failure.

And indeed, Jatis became a hugely successful company. It provides IT solutions to banks, telcos, payment companies and other corporations. Its products include internet banking, mobile banking, and tax systems. At one point, more than 80 percent of Indonesia’s mutual funds traders were using Jatis’s trading platform. The company started with ten employees and eventually grew to over 500 by the end of the third year. In the same year, it also received $10 million from 3i, a well established VC firm from the UK, for it to expand regionally to Singapore, Malaysia, Thailand, and the Philippines.

Going mobile

In 2002, together with Erik Ridzal, Izak started Jatis Mobile, a subsidiary company under Jatis Group. Jatis Mobile deals with ringtones, location-based services and mobile content. As he already had good partnerships with local telcos through their work with Jatis Group, Jatis Mobile was able to make lucrative partnerships with telcos and was profitable from day one. Jatis’ group revenue had already hit $40 million.

In 2010, Izak started Metrotech Makmur Sejahtera (MMS). MMS’s core business is to build a messaging application on Nexian mobile devices, which are hugely popular in Indonesia. Izak brought in Nexian’s owner as a partner and together they launched Nexian Messaging. The platform attracted five million users in eight months, half of which were active users. Now, it is recording more than three billion messages sent per month and is still growing twenty percent month-on-month. In 2011, Singapore’s Si2i acquired a majority share of Nexian Group for $175 million.

Advice for young entrepreneurs

Izak says his failures are the cornerstone of the success of his latest three companies. Some key things he learned from those failures: