This episode features Mas Yogi Rizkian Bahar, CEO of LinkAja, one of Indonesia's largest e-wallets. He discusses how LinkAja is focusing on driving profitability through partnerships with state-owned enterprises and tapping into their ecosystems. He also emphasizes the importance of customer-centric innovation and solving customer pain points to drive revenue.
This episode features Mas Yogi Rizkian Bahar, CEO of LinkAja, one of Indonesia's largest e-wallets. He discusses how LinkAja is focusing on driving profitability through partnerships with state-owned enterprises and tapping into their ecosystems. He also emphasizes the importance of customer-centric innovation and solving customer pain points to drive revenue.
The aipp RCL b2b growth podcast is a series of fireside chats with business leaders in Southeast Asia focused on growth in the region. topics discussed include business strategy, sales and marketing, enterprise technology and innovation.
YY - AIBP:Hello, and welcome to this episode of the AIBP ASEAN b2b growth podcast, where we feature individuals that are driving the growth and innovation within the southeast Asia b2b landscape. I'm very happy to have with us here Mas Yogi Rizkian, who you may know is the CEO of LinkAja. One of the largest payment ecosystems are e wallets that is being used in Indonesia itself. Without further ado, maybe I can get my Yogi to give an introduction of himself and his role at LinkAja
Unknown:Okay, thank you. So my name is Yogi Rizkian Bahar I am now the CEO of Ling Agia. And my former assignment is actually the CEO of telkomsel, which is the telecom subsidiaries in Timor Leste. And in terms of what I'm doing in there is actually I did a turn around the company actually, from negative to positive EDITDA. And I create the innovative platform in Timor Leste we have mighty Morris actually right hailing in the first ride, hailing intermodal listing. And also we have Milo j is like E commerce platform like bucola Park and Tokopedia in Indonesia, and also the pay or Telkom tell paisa you all so we have a complete ecosystem platform ecosystem in Timor Leste there and doing that it's actually doing the innovations I mean it successfully to have a positive EBITDA already and plus net income. So I come back and then now I am also to be assigned in LinkAja is the same situations now I'm driving the of course, the driving the growth of the business and hopefully we have also a positive EBITDA. So because of all the startup wagering is you know, have issues in that in particular that kind of particular right. And LinkAja is actually form in 2019 is actually a synergy of 10 Indonesian state owned enterprises. We have also been adjust Sharia because Indonesia is the most Muslim populations right in Southeast Asia. So we create also the first and the only one now, looking at your Sharia is Sharia compliant you all so, and when I own got in June 222, we are focusing on the we call it to site business models. Once of course, a b2c sites, we still see we go to the retail and now because we are focusing on driving profitability, we are focusing on the how we create the fundamental of the business now we have an up law, we call it b2c or b2b. Sorry. So we have two sides business model, b2c and b2b. So it's exact on your,
YY - AIBP:the title of our podcast,
Unknown:and we hope that in this years into 23, we believe that hopefully, we will become on the first few orders that have a positive EBITDA.
YY - AIBP:So in your perspective, that is just shot, you want to be the first e wallet with positive EBIT, da, is that how you'll be looking to differentiate link Agia from the rest of the ewallet? Place
Unknown:in Indonesia? Exactly. So we know that the evil ecosystem, it depends on their ecosystems actually. So if we're talking about Gopi, because they have good go Jek and Tokopedia, as Devi to see the ecosystems, right, so all the transactions in like, Go Jek and Tokopedia. Of course, they're using Google Pay, right? And not only that, if you see the graph, also they have ofone as the E Wallet. So the offer also is depend on their ecosystem, they have a great ecosystem. And lucky for LNG is actually great. So grab and go to is our shareholders. So if you go to Jakarta, whatever and then you want to buy something in Tokopedia or in Goa that they can use LinkAja vice versa if you use grab you can use also lean agile, so lucky we actually we have the icon as a whole shareholders why they have only The b2c ecosystems is actually right. So lean can tap in the ecosystem and for the most is actually lean agile they have also all our we have our own ecosystems. Of course, a b2c, you can buy pizza, you can buy airtime you can buy the topic is our shareholders actually tap upsell. And we are also via modeling channel via one of the dealer beat dealer intercom sales in terms of malaria in general. So we also supply those things to actually the ecosystem the adult ecosystem, but I think not only telephones and so we have other vom and other SOP other state of all enterprises that we can tap into two years ago lean agile, seems not focused on that area, because they we focus on the b2c sides. Now I interact when I pointed SSC offering, I said this is a huge problem, you know, this is a huge gem. Actually, if we can tap the Sol ecosystem and so ecosystem of course, this is the biggest ecosystem in Indonesia, because you know, that all the SOEs actually be the biggest players, right? The biggest platforms now have for like 60 years, maybe 60% of the market shares were very strong number one, in terms of all mobile operators predominate, the only one of course Hemara belly sexually brr BNI and Mandiri joined together is actually maybe sort of around 80% of the customer. So this is the ecosystem that huge then we have to tap in. So that's why the role model concept is actually the the idea will not only maintain the b2c but we are focusing on tapping the echo system or the SOP and now we are working on it. That's why our revenue now is quite good. Hopefully, in this year, we are managed to have a positive m&a is a good news for us the key of innovation is actually what is the pain point of the customers. So so it's not only you do you do like you know all we have to do this word is quite good for the media, but there is no impact for the customers and this customer will give us the revenues right? So basic innovation is actually focused on what is the how you solve your pain point customers that I refer to Telkom SAS, that's why the DD POS ecosystem, they are focusing on how we know exactly the the resellers performance, right? How they know who is their reseller who is the the one who give the revenue to telecom sales and understanding that what is the kind of the pain point of the resellers. So the POS ecosystem is also giving a lot of solutions for their resellers, for instance, that in the past, we are not only selling wholesale, we are not selling data packets or airtime. We are also selling like digital products. For instance, in Indonesia, of course, we are using like prepare token PL and electricity, we sell those kinds of things also that it gives the revenue also for the resellers. So on the sales selling the airtime, but they also give another revenue for the reseller. So this is kind of the what is the pinpoint what how we can drive the revenue to reseller and it will be go back to us right. So this is kind of the the important is and when our employees when our teams actually understand about this one, then we create something that it will be directly impact to our company, of course. So this the focus that actually in terms of we are not talking about how we can, let's say create the numbers have Amani to have a complex for that no, but still focus what kind of the solution that we can give to our customers that can solve the pain point. That's the focus, actually, because when we can focus on that it will be bring our revenue for us. That's 111 thing in terms of how we drive the innovation to create revenue due to how we solve the pain point of the customer. The second one yes, of course, we are still focusing on how we can reduce our costs. So
YY - AIBP:when we talk about the measurement of innovation success, it's not so much about putting capital for r&d, but rather going back to like the user centric innovation, right? Making them partners of the company and seeing where are the areas they can drive innovation on their own. It was a great point. Yeah.
Unknown:That's why of course, as some management that how we can give the way. This is the key and also how we can give the way how we can support our team too. Create the inefficiency, because something inefficient need to have the way or the the path to go on. Right. And a lot of company doing that. Also, in my previous company at our company, there's a lot of programs that how we create the innovations and the data. Now, we also emulated that kind of the program to our employees. But the most important one, that's Well, I think, the sense of belonging, and how you serve the customers, even when I have the complaint from our customers in I, I have Instagram where I'm trustable. And then sometimes customers complain to ask, and directly this company dispose of passive, I put in the view the meat and beauty of it, because the I talked to all the employees that a every customers matters, because our review is coming from their spending, right? So they are all my boss, they're all our boss. So giving that kind of mean the focus, so all the employees understand that every voice of the customers matters. Now, we are trying a lot of software customers complain incessantly something like that, how we can reduce a lot of the complaints. Of course, in of course, the ewallet, there is a lot of transactions, there are some things that there is an issue, then how we can reduce it, that was number one. And the second one in terms of the interface and how we can bring the convenience of the customers, they buy things they're spending they're spending in our ecosystem, without any hassle or something like that. So this is also one of the consideration, that innovation is the key how we can make our customers safe.
YY - AIBP:Take a step back, we last spoke to you at our conference in Jakarta. And one of the things that you have mentioned very strongly advocating for Financial Inclusion. When we talked about financial inclusion in Southeast Asia, another country that has a quite a complex article about goal setting is also the Philippines. And one of the things they have mentioned, when we are looking at financial inclusion there is the link between connectivity and financial inclusion. In many of the tier two tier three cities, maybe connectivity is not there. I thought you will be a great person to address this question because of your background. Right. When you first went to Timor Leste when you were trying to build up the ecosystem over there. How does that replicate in your role at link agile when we are trying to maybe a softer problem or financial inclusion in Indonesia?
Unknown:Yeah. Of course, the financial inclusive, that we are talking about, we still need the infrastructure, this the key one, while in when we have a pandemic COVID-19 people are forced to use the digital ecosystem right before they're using cast, they buy cast, right, and then after the pandemic, and then they still they have to use the application, something like that. So in terms of lack of alliteration, so about that, I think to the customers to the people to the all the stakeholders, right? And the key point is actually, yes, the infrastructures, I think the what we call it the challenge in ACN is actually we have tier two and tier three cities, right? is quite different from let's say, of course, Singapore's very small one, right? You know, Indonesia squat, 13,000 islands, so you can imagine that and then you need to cover all the all the infrastructure there. While it's not only talking about 2g, right? You have to have like 3g, 4g, 5g, something like that. So it's challenging in terms of how financial inclusive to drive in all the area of Indonesia and especially of course, in Asia, because it's we had the same we have the same cultures, we have the same infrastructures. I think now yeah. Because now I'm also be a treasurer of effect. This is an association of FinTech in Indonesia. Now, we spoke to the regulators also how we drive also the infrastructures in all area, because this is the keyword right now. And a lot of the government program to have a disbursement to all the you know the pools under that. So this is also need the infrastructure because if they don't have any infrastructure, they don't have any signal. So you can imagine how we can transfer it to the upon the ewallet account. So the key one is now is how we can manage the infrastructures and we already talked to the governor And we have also talked to the our shareholders of startups. And so a lot of area that actually is not, let's say five 4g yet, and now they have a program to cover it. So this is kind of a collaborative data infrastructure company. Right. And the second one is the collaboration, I think, ASEAN is quite good. I think it's quite well, you know, that I've seen loss loss years is actually the older bank central have their own collaborations that we can use key are cross border. So now, Indonesia can buy things to Philippine sorry, to Thailand, to Thailand using chiar. So before we need to have a, you know, you have to go to the money changes, right, you have to carry in cash, and then if you go abroad, then you have to travel there, and then you pay by cash right now. Now, I think it's open up right now. So the strength of RAM of each area, even the Asian not talking to each other and creating the ecosystem that if you have curious in your own, then you can use it to ask this is Dr. Also, the financial inclusion is not only in Indonesia, so but is all the Asia Asia region, so Asian region, so this is a good a good news for us. And now I believe that Japan also want to come in so this is quite a good it's not only Asia, so now Japan, and also Saudi Arabia, so UAE, so this kind of the good things that everyone the FDA, they have in hand handphone there for you all, in their in their handful they can go abroad, they can use it, wow. If we can do that, you can imagine that there is no caste anymore. So we go through the goes to the digital digital era already. So I think that the pen is quite good. It's quite well, I believe that maybe in three or four years, I believe Asian or can connect it there when central they're switching can connect them. And we can travel a lot can go Singapore, by some nasty lemma or and then using a PR, right. That's a good thing. I think that's that's kind of the collaboration that we are doing.
YY - AIBP:When you look at the traditional banks, who are also stakeholders within link Agia. How do you think each of the player can can work together in driving the right financial ecosystem in Indonesia?
Unknown:Yeah, I think now, the policy in bonds, the Indonesians gangster and for a while, it's open right now. So before the bend, don't have any curious. Right? And now you want to disrupt it when you're curious. But now banks actually do their innovation. So so they have their own application, they can have a curious they can buy anything. So actually, we have, like have to have, right. But again, I believe that there is a still lack of collaborations, because in Indonesia, you know, the people, the bank, the bank, the bankable people who have a bank account, is only 3030 to 35%. So this is still small numbers, right? So that's why Walmart is actually taking upon to cover the digital ecosystem. So because you don't have to bring your ID card, your lack of documents, sometimes if you go to the bank, you create an account, but only enhanced set, right, and then a handful you have a numbers, then you can you can have like, top up you can and this top is actually not going to the bank, you can top up any when we look at
YY - AIBP:partnership, amidst very strong competition, how do you craft out effective partnerships or collaboration programs that makes sure that everyone's interests are taken care of while also looking out for consumer benefits?
Unknown:I always thought over talking about a partnership is talking about, hey, you know, one plus one is talking about partnership is true, you know, one plus one is not two. So one plus one is three, meaning that everyone gets their benefits that is extra to go around, is if you partnering with others, you can do one plus one is two, because the one plus one is 201 plus one is one, maybe on the three, finish, right? And so even luck of partnership concept is one plus one is two, but they don't have any way to solve that actually, as we collaborate but not so we see the product the partnership that bring us bring us more values. That's the key word so far. So as I mentioned the CTO that, hey, we have the ecosystem of the boss. So what kind of the partnership that we have in bank? We give the lending, right? We give the product if loan, Hey, first, you got the closed loop ecosystem. This is the key word RAO of the lending, lending. If you have an open loop ecosystem, there is a lot of abuse issues right now. Right? You know, online, Papa lending this BNP, a lot of the BF Pn is performing, it's going up, right, a lot of because they don't have any closed loop ecosystem because they opened up their lending something and that they don't want to give give back right, they go away. This is a lot of problem. But in our ecosystem, we have a close look why? Because the omnibox is still using the idea. So we can force them to bid for it. So if we were to buy posts out, they want to buy and they have a pic, they have to put the demand on the link. And we can have the debit, right? We have a credit also every month that if you do have a lending for that. So this is kind of the one plus one is three, right? So first, they get revenue from the lending, aha, they get the of course the security of make use that there is no abusing. There is no fraudsters, something like that in terms of lending.
YY - AIBP:When we look at Indonesia, what are some of the perspectives that you feel you're very excited about for Indonesia?
Unknown:Yeah, Indonesia is quite huge population, of course, here 270 million. So this is a big, huge market, actually. And we know that there is a lot of unbanked populations. So we have a lot of potential growth there. Actually, if we again, focus on the customer needs that the key point right now. So by doing so we believe we can have to promote economic of growth and development by enabling people to save invest, access credit, something like that, right? Of course FinTech players, such as selling, I can have direct access to those who may not have access to the traditional financial services. For whatever reasons, of course, for simple of course, wallet is simple, secure, convenient, and can be accessed by only having a smartphone data and images you before and internet connections. Right? So now going to go going, I think this is the focus now how we can penetrate the digital inclusive, of course, the financier, why are we driving the rate, the literacy rate of the smartphone, in Ethernet, and in ASEAN is quite huge. So that's why I believe in Indonesia, there is a strong potential growth. Right. And then I think we have a lot of collaboration that already mentioned to before, we cannot do by our own No, we will die, you know, we will die we are doing by our own collaboration. Partnership. Synergy is the key one, the basic line is one plus one is three. So everyone get their benefit. Everyone get their values, think that's a good story, right? Yeah,
YY - AIBP:I like that one plus one equals to tree simple, effective messaging. If you could do a shout out to partners who may want to work with Link Arja. What is something that didn't take note off when looking at partnership with you? Any kind of partners you're looking at? I was opening
Unknown:any partnership? It's open? Because I believe now yeah, of course, the word is distracting, right? There's a lot of disruptions, models, right. And there is a lot of product that maybe they will be our future track. So we are opening if you let's say I have a product that very good. And it will be a one of the product that Indonesia market is quite significant values. And you need like a payment system, a simple one. And you can if you go to the lean, agile ecosystem, then you can go to the SOA ecosystem. That's your key word right now, right? If you want to go to simple right, sometimes you have to go to the SOA ecosystem, then you can use Lean either to go to the ecosystem in in the share of state owned enterprises, right. So I'm open to have any collaborations, any potential partners. So because we are done shutting down our doors, no, we are open for any possibilities. The key message is that your management organization, one plus one is three
YY - AIBP:plus one equals two, three. So to all our listeners out there, you've heard it directly from the CEO of Link Agia. If you're interested to access the State Owned Enterprise ecosystem in Indonesia, Sure, and you feel like you could offer a value proposition that is a one plus one equals to three, please feel free to reach out to mass Yogi from link Agia. Thank you very much bass Yogi for your insights today.
Unknown:Yeah, thank you. You're welcome.
Voice Over:We hope you've enjoyed the episode. For more information about business growth in the ASEAN region, please visit our website www dot IoT business hyphen platform.com.