Lippo Earmarks Rp6.4tn for e-commerce Business
26 February 2015 13:14 WIB
TEMPO.CO, Jakarta – Attracted to the consistent growth of Indonesia's online business market, the Lippo Group finally decided to get into the e-commerce sector by launching mataharimall.com. For the project, the group of companies built by tycoon Mochtar Riady is ready to spend US$500 million or Rp6.43 trillion.
Lippo Group director John Riady said that in two years the site is targeted to achieve a turnover of US$1 billion. This project will be launched in March, collaborating with the group's department store chains Matahari and Hyper-mart.
"This model business is O2O (online to offline), and we are the first to do it in Indonesia and Southeast Asia," he said.
John estimates that the potential worth of Indonesia's online shopping industry reaches US$100 billion, with the virtual world contributed just 0.7 percent to the nation's total retail market value.
KHAIRUL ANAM | URSULA FLORENE SONIA
