Not too big to pivot: How Indonesia’s Emtek turned its pandemic fortunes around

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Hello readers,

Back in my polytechnic days, I studied for a diploma in banking and finance (anyone who knows me would probably be quite surprised at that fact). I took a module on stock trading, and we had a cohort-level assignment that involved a trading simulation that lasted for about two or three days. I started really poorly, buying the wrong things and watching my portfolio sink like a rock. However, I made some quick adjustments and ultimately finished 14th overall.

Sometimes it’s really not about the hand you’re dealt; what’s more important is how you play it. And today’s premium article looks at how Emtek Group – an Indonesian conglomerate established in 1983 – has successfully pivoted to providing digital solutions, just in time to defend itself from the worst economic effects of the pandemic.

Today, we look at:

• Emtek’s moves to become a major player in Indonesia’s tech scene
• Ryde’s graduation to full ride-hailing license status in Singapore
• Other newsy highlights such as the US$65 million fundraise of a Hong Kong blockchain gaming firm and Stripe’s latest acquisition in fintech

Premium summary

It’s not about how you start, it’s how you finish

Here’s a little sneak peek behind the scenes: One of the articles I’m working on is about how large, incumbent companies can totally innovate and create new solutions and businesses – it’s not solely the domain of startups.

So there was a sense of familiarity when I read about how Emtek Group managed to reinvent itself. Old dogs can learn new tricks; staying curious and hungry might just save your life.

• A successful shift: Emtek has been a media powerhouse in Indonesia, but unlike in previous years, this public-facing business wasn’t its primary revenue driver in 2020. Instead, the company’s main money spinners last year were its business solutions services.
• It’s about who you know: Emtek’s investments and strategic partners include local content creation startup Vidio, e-wallets Doku and Dana, and ecommerce unicorn Bukalapak, which recently made its stock market debut. Of course, its relationship with super app Grab is a notable recent development.
• Good timing: The timing of its digital transformation couldn’t be better, as the Covid-19 pandemic has hit Emtek’s traditional businesses as advertisers cut spending for TV spots. Moreover, social distancing and movement restrictions have battered the conglomerate’s event planning arm.

Read more: Visual: Emtek’s rise as a major player in Indonesian tech

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