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Written by

David Chow, CFA

Azure Capital

Visiting ‘tech babies’ in Jakarta

Feb 7, 2019

A study from Hootsuite shows that Indonesia has 88 million people online with 79 million of them active social media users. In a report by McKinsey & Company titled “Unlocking Indonesia’s digital opportunity”, it was revealed that if Indonesia fully embraces digitalisation, it can gain an estimated US$250 billion in economic growth by 2025.Currently some of the better known names are Go-Jek , traveloka and tokopedia but aside from these established startups, the startup scene in Indonesia is thriving and dynamic. We met up with representatives from PT Kresna Graha Investama Tbk , which is an integrated financial service and digital technology company. Among the “tech babies” of Kresna, we met up with PT NFC Indonesi (NFCX), which is a digital hub company that houses 3 tech disruptors: 1) NFCXC – Phone credit top-up exchange; 2) OONATV – Free-to-stream media platform; and 3) DMS – Digital cloud advertising. For its latest 3Q18 results, revenue and net income grew 15x and 10x y-y. looking at its operating data thus far in terms of active monthly users and transaction value per user, we see an increasing adoption albeit a low base and this should bode well for earnings growth going forward.