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Investors said he was not ‘born special’. He later became the CEO of a multibillion-dollar start-up

Today, William Tanuwijaya is a formidable force.

As CEO of e-commerce site Tokopedia, the 39-year-old is one-quarter of the leadership of the newly- merged GoTo Group — Indonesia’s most valuable technology company.

But his business may never have come to be if it weren’t for his determination in the face of critics.

“Tokopedia’s story almost ended before we even started,” Tanuwijaya told CNBC Make It.

Inspired by U.S. icons
Tanuwijaya was just in his early 20s when he set out on a mission to “democratize e-commerce” by creating a website for Indonesia’s millions of small business owners to sell their goods online.

It was then the mid-2000s and the internet was taking off in the country. But with no established tech industry or local role models to learn from, Tanuwijaya had to look to the greats.

I do not come from the Ivy League … I always consider myself a graduate from internet cafe.
William Tanuwijaya – CO-FOUNDER AND CEO, TOKOPEDIA

“We don’t have a success story like Mark Zuckerberg or Sergey Brin, Steve Jobs or Jack Ma. There was no such story of entrepreneurs from Indonesia building technology companies during that time,” he said.

Inspired by their stories, Tanuwijaya knew he — like them — would have to raise private investment to get his idea off the ground. But as a young Indonesian from a rural background and humble beginnings, he soon realized he didn’t fit the mold.

“They’d ask about my personal background … which university I studied at,” Tanuwijaya said, recalling his conversations with investors.

“I do not come from the Ivy League,” said Tanuwijaya, who studied at Binus University in Jakarta while working night shifts in an internet cafe to support his family. “I always consider myself a graduate from internet cafe.”

Then they’d ask him about the wider market opportunity.

“They’d ask me, William, can you name one person who has been successful in Indonesia because they’re building a technology company or internet business?” he said.

‘All of your role models, these Silicon Valley founders, they are born special, you are not.’
William Tanuwijaya – CO-FOUNDER AND CEO, TOKOPEDIA

Despite being home to the world’s fourth-largest population and a rapidly growing middle class, investors were unsure of Indonesia’s potential or if he was the man to realize it.

“Your idea is very simple,” he recalled them saying. “You want to build the Amazon of Indonesia or the Alibaba of Indonesia. What about when all these global giants come to the market? They have the technology, they have the capital, they have the know-how, they have the resources that you do not have. How can you compete?”

Adopting the American dream
Then came the day when he met with one private investor who changed his life forever.

“He said: William, all of your role models, these Silicon Valley founders, they are born special, you are not,” Tanuwijaya recalled. “Please stop daydreaming; find something more realistic to do.”

For Tanuwijaya, it was the catalyst he needed.

“That is the day when I found the purpose of my life because I realized the reason I wanted to build Tokopedia is to build trust among strangers to be able to start business anywhere,” he said.

Indonesia actually has an Indonesian dream concept … ‘Dream as high as the sky. If you fall, you fall amongst the stars.’
William Tanuwijaya – CO-FOUNDER AND CEO, TOKOPEDIA

Like his U.S. idols, whom he said to embody the American dream of self-determination, Tanuwijaya said he discovered a drive to be undiscouraged and help other Indonesian business owners.

“That day I remembered that Indonesia actually has an Indonesian dream concept,” said Tanuwijaya. “Our founding father, the first president of the country, once said … ‘Dream as high as the sky. If you fall, you fall amongst the stars.’”

“I find that’s beautiful and that’s the Indonesian dream,” he said. “So I decided that no matter what happens, I will try to build Tokopedia.”

After launching Tokopedia in 2009, Tanuwijaya and his co-founder Leontinus Alpha Edison soon secured seed funding from the Indonesian investment firm PT Indonusa Dwitama. It has since received buy-in from SoftBank, Sequoia Capital and Alibaba Group.

More than a decade on, under the GoTo Group, Tokopedia counts a network of more than 11 million merchants and 100 million active users, who last year contributed 1% to Indonesia’s $1.1 trillion gross domestic product.

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Indonesia June coal benchmark price up 11.8%; highest in over two years

Indonesia set its coal benchmark price higher in June at $100.33 per tonne, the country’s energy and minerals ministry said in a statement on Wednesday, driven by strong demand from China.

This is $10.59, or 11.8%, more than May’s benchmark price for coal and the highest since October 2018, when it stood at $100.89, Refinitiv data showed .

“The increase in (China’s) demand for its power plants is exceeding its domestic coal supply,” Indonesia’s energy and mineral resources ministry spokesman, Agung Pribadi said in the statement.

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Eco-friendly Bitcoin rival drop on debut

New cryptocurrency Chia has plummeted in fee in view that its debut

The much-anticipated Chia cryptocurrency (XCH), billed as an eco-friendly choice to Bitcoin, has suffered a total failure in cost for the reason that launch on Monday.

As per CoinMarketCap data, XCH debuted at $1,600 per unit and climbed temporarily to a height above $1,800, however rapidly shed extra than 1/2 of its price in the hours that followed.

At the time of writing, the new forex is hovering at a fee of $690 per coin, down 61% on its most price, suggesting “farmers” smelled an probability to money in on altcoin frenzy.

Chia cryptocurrency
The Chia community used to be designed by means of Bram Cohen, founder of BitTorrent, as an antidote to the growing centralization of the cryptocurrency mining industry, in which people have been squeezed out through giant mining syndicates.

The foreign money is additionally designed to tackle one of the primary criticisms of Bitcoin, which has to do with the environmental toll of mining. What units Chia aside from different important cryptocurrencies in this regard is the mechanism used to invulnerable the community and incentivize participation.

Bitcoin, for example, makes use of a proof-of-work (PoW) consensus mechanism, which pits miners in opposition to one any other and is extraordinarily energy-intensive. A find out from the University of Cambridge suggests Bitcoin makes use of up greater power on an annual groundwork than u . s . of Sweden.

The architects of the Chia community opted for a distinctive gadget entirely, known as proof of space, which depends on storage capability alternatively of computing power. Here, so-called farmers (note the deliberate distinction in terminology) set apart storage house to keep cryptographic numbers, referred to as plots.

“When the blockchain declares a venture for the subsequent block, farmers can scan their plots to see if they have the hash that is closest to the challenge. A farmer’s chance of prevailing a block is the share of the whole area that a farmer has in contrast to the whole network,” the internet site explains.

While this machine does away with the want for energy-intensive mining, different problems have emerged. In the runup to launch, for example, Chia hype led to shortages of high-capacity storage in a range of regions, pushing fees thru the roof. This similarly aggravated current aspect shortages, delivered about by way of the world chip scarcity and compounded by means of an extend in enthusiasm for typical mining.

However, if Chia is unable to get better from its early slide, the storage scarcity is possibly not likely to ultimate for long.

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Indonesia’s digital market could grow to $300 billion in the next 3 years, says prominent businessman

Indonesia’s technology market is at an inflection point and could grow exponentially to reach between $200 billion and $300 billion in the next two to three years, said John Riady, director of Lippo Group — one of the country’s largest conglomerates.

“Indonesia is the most exciting digital and technology market in Asia and arguably the world,” Riady told CNBC’s “Street Signs Asia” on Thursday.

“When our group first invested in technology in 2012, the size of the entire technology market in Indonesia was approximately $100 million. That same asset class today is about $40 billion,” he added.

Lippo Group is founded by Riady’s grandfather. The conglomerate has businesses in a wide array of sectors including real estate, retail, health care and telecommunications. Riady has been spearheading the group’s venture into tech and is also the CEO of the real estate developer arm, Lippo Karawaci.

Riady told CNBC the group has made more than 30 investments in Indonesia’s tech space, including OVO, a Jakarta-based digital payments platform. He said Indonesia is close to an inflection point of technology similar to that which China saw in the early 2000s, when tech adoption rose rapidly.

Indonesia is the second-largest economy in Southeast Asia and the world’s fourth-most populous country with more than 275 million people. The country is home to several so-called unicorn start-ups — or private companies valued at $1 billion and above — including e-commerce firm Bukalapak and OVO, according to CB Insights.

Investors have said the country’s growing internet users and expanding middle class are conditions ripe for a digital boom. But Indonesia is a tricky market to navigate, partly because the population is spread across more than 10,000 islands — many with its own culture and language.

Still, the growth potential of Indonesia’s tech scene has paved the way for internet start-ups that have captured the attention of international investors.

Last week, two of the country’s leading tech companies, ride-hailing and payments firm Gojek and e-commerce firm Tokopedia, announced a merger to form an entity called GoTo Group.

The GoTo Group has prominent backers who previously invested in Gojek or Tokopedia. They include Chinese tech giants Alibaba and Tencent, as well as Sequoia Capital India and Singapore state investor Temasek.

 

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Indonesia: Suspend, Revise New Internet Regulation

(Jakarta) – The Indonesian government should suspend and substantially revise a regulation on online content to meet international human rights standards, Human Rights Watch said in a May 17, 2021 letter to Indonesia’s minister of communication and information technology.

Ministerial Regulation 5 (MR5), which came into force in November 2020 with little consultation, requires all private digital services and platforms to register with the Ministry of Communication and Information Technology and agree to provide access to their systems and data as specified in the regulation. Those that fail to register by May 24 will be blocked in Indonesia. The minister should suspend the regulation before this deadline.

“Ministerial Regulation 5 is a tool for censorship that imposes unrealistic burdens on the many digital services and platforms that are used in Indonesia,” said Linda Lakhdhir, Asia legal advisor at Human Rights Watch. “It poses serious risks to the privacy, freedom of speech, and access to information of Indonesian internet users.”

MR5 governs all private “electronic systems operators” that are accessible in Indonesia, broadly defined to include social media and other content-sharing platforms, digital marketplaces, search engines, financial services, data processing services, and communications services providing messaging or video calls and games. The new regulation will affect national and regional digital services and platforms, as well as multinational companies like Google, Facebook, Twitter, and TikTok.

These companies are required to “ensure” that their platform does not contain or facilitate the distribution of “prohibited content,” which implies that they have an obligation to monitor content. Failure to do so can lead to blocking of the entire platform. The regulation’s requirement the companies proactively monitor or filter content is both inconsistent with the right to privacy and likely to amount to prepublication censorship, Human Rights Watch said.

The regulation’s definition of prohibited content is extremely broad, including not only content in violation of Indonesia’s already overly broad laws restricting speech, but also any material “causing public unrest or public disorder” or information on how to provide access to, or actually providing access to, prohibited material. The latter includes Virtual Private Networks, which allow a user access to blocked content but are also routinely used by businesses and individuals to ensure privacy for legal activities.

For “urgent” requests, the regulation requires the company to take down content within four hours. For all other prohibited content, they must do so within 24 hours of being notified by the ministry. If they fail to do so, regulators can block the service or, in the case of service providers that facilitate user-generated content, impose substantial fines.

The time allocated for response is unrealistically short, particularly for companies that work in multiple time zones, and will impose onerous burdens on smaller companies with limited staff. Unreasonably short time frames for removing content would most likely lead service providers to pre-emptively take down content to ensure compliance and could force the shutdown of smaller providers that do not have adequate staff available to respond to such requests, Human Rights Watch said.

The regulation appears to provide no mechanism for either the company or the person who posted the content to challenge the ministry’s order, either before or after the content is taken down. The lack of procedural safeguards and channels to appeal decisions only exacerbates the risk that regulators will abuse the provisions for taking down content.
Under the regulation, companies must also provide access to both their “systems” and their “data” for “supervision” purposes whenever requested to do so by the authorities. Companies must also allow law enforcement authorities to access electronic data for criminal investigations into any offense carrying a penalty of at least two years in prison. Requirements that authorities be given direct access to systems or massive amounts of information collected and stored by private companies are of serious concern. Such requirements are particularly prone to abuse, tend to circumvent key procedural safeguards, and can easily exceed the limits of what can be considered necessary and proportionate, Human Rights Watch said.

To facilitate access requests, the regulation requires each company to appoint a local contact person to receive and act on those requests. A company that fails to provide access for regulators and law enforcement faces penalties ranging from a written warning to revocation of their registration. The requirement to appoint a local contact person in Indonesia will make companies much more susceptible to pressure to comply with overbroad requests to remove content, and will inevitably lead to an increase in unnecessary censorship and compromise people’s privacy and their right of access to information.

“MR5 is a human rights disaster that will devastate freedom of expression in Indonesia, and should not be used in its current form,” Lakhdhir said. “The Indonesian government should immediately suspend the regulation, and start a consultation process with stakeholders and civil society groups based on the premise that any new or revised regulation must comply with international standards for privacy and free expression.”