TEMPO.CO, Jakarta - Millenium Danatama Sekuritas analyst Probo Sujono said that Bakrie Group's endeavor to invest in Path, a social media application, approximately of Rp304 billion was certainly a high risk. "In business category, it is high risk high return, although the profit is huge, so it's the risks," he said, when contacted by Tempo on Saturday, January 11.
According to him, they should not merely use the number of Path users that was considered high in Indonesia as their deliberation, it still required further analysis. "Path users are currently waiting whether Bakrie's arrival could bring in innovation," he said. Furthermore, the business competition in social media is fairly tight. The prevalence of free social media will make its users to switch to another social media if they did not consider it innovative.
In regard to the investment, he viewed that the amount was not too high. "A number of social media, such as Facebook, have a much higher market capitalization," he said. However, if viewed in Rupiah, Rp304 billion is definitely a huge amount.