Rakuten Launches in Indonesia

E-commerce is hot in Indonesia with Multiply, Tokobagus (which just launched its Blackberry App), Merah Putih’s BliBli, and Tokopedia leading the market front.

Now, we have a new player with Rakuten, a renown e-commerce platform in Japan, having formed a joint-venture with media giant MNC Group to launch an Internet shopping mall called “Rakuten Belanja Online” (RBO) in Indonesia.

Outline of the Joint Venture

• Name of the Service: Rakuten Belanja Online
• Description of Business: engaged in internet shopping mall in Indonesia
• Amount of Planned Investment: Rp60 billion (approximately $558 million; converted at 100 rupiahs=.93)
• Investment Ratio: Rakuten has 51% and MNC Group has 49%
• Representative: President Director & CEO Ryota Inaba

Since the signing of the joint venture agreement (PDF) in May 2010, Rakuten and MNC Group has been diligently preparing for today’s official launch of RBO. For a start, RBO will offer local products to Indonesian consumers as an effort to replicate Japan’s Rakuten Ichiba B2B2C Internet shopping mall model.

RBO offers a wide range of merchandise from Indonesia’s top retailers, including Electronic Solution, Kinokuniya, and Top Golf. RBO also house local brands like Mustika Ratu, Martha Tilaar, Alun-Alun, and Sarinah.

In a statement, it was revealed that the joint venture plans to link up with Rakuten Group’s e-commerce sites in other countries including Japan’s Rakuten Ichiba in the near future.

“Rakuten Belanja Online is the realization of a joint venture between Rakuten and MNC Group with the hope of enriching the lives of Indonesian people by providing a fun, safe and a convenient place to shop for goods and services. RBO will contribute to the growth of e-commerce in Indonesia by empowering merchants and consumers through the power of the internet,” said Rakuten Chairman and CEO, Hiroshi Mikitani.

MNC Group’s President Director and CEO, Hary Tanoesoedibjo added, “Rakuten and MNC Group aims to closely cooperate together to develop and expand RBO to be Indonesia’s number one Internet shopping mall by capitalizing on Rakuten’s e-commerce expertise as the largest online shopping mall in Japan with MNC Group’s significant presence in the media industry with its leading positions across many different media platforms for the effective and efficient placements of advertisements and promotions.

Indonesia boasts the fourth largest population (240 million) in the world and the largest number of internet users as compared to other countries in Southeast Asia with tremendous growth potential in e-commerce and social commerce. RBO will employ an escrow service to ensure a safe and secure transaction between consumers and merchants, a common method of online transaction in Indonesia.

RBO has also partnered with well-known banks in Indonesia such as BCA and Bank Mandiri for direct payment through the Internet. Other banks will be joining the partnership as well.