Jakarta, 19 June 2017 - Telecommunications Company, PT Mitra Komunikasi Nusantara Tbk (MKNT), began exploring offline to online e-commerce business (O2O) to strengthen its distribution through Online Channel. In the near future the company will cooperate and invest with newcomers in the world of e-commerce known as Kioson (www.kioson.com)
Corporate Secretary, Ornella Bartin, said that the company plans to cooperate with Kioson through acquisition mechanism. Later, the existence of Kioson in the business structure of the company will support the company's business to distribute MKNT products.
"We are exploring cooperation with Kioson to develop the company's business. Kioson's digital business base will greatly support the company's business activities, "he said.
As known, continued Ornella, based on the study Mastercard Online Shopping Behavior 2017 published in page tribunews.com that 63.2% of respondents in Indonesia using internet to shop online, with 76.7% have made a purchase in the last three months. Even predicted in 2020, the volume of e-commerce business in Indonesia will reach USD 150 billion with annual growth rate reaches 50%. In line with that, the Indonesian government is also wishing that Indonesia to the largest Digital Economy Country in Southeast Asia in 2020, because as reported by kompas.com news website, online business revolution in Indonesia is expected to boost Gross Domestic Product (GDP) by 22%.
"As we know, e-commerce market is predicted to reach USD 150 billion (kominfo.go.id). This is the market that will be worked on by MKNT and Kioson cooperatively, "he added.
Ornella believes the cooperation between MKNT and Kioson will provide benefits for both. Especially MKNT, which is currently focusing on Global Brands products and extensive offline network, will be a great fit if combined with the core business of Kioson O2O digital platform (Offline to Online). Kioson will use channels or tools in the form of Android, Tablet, E-kiosk to bridge its MKNT offline stores to e-commerce.
Besides, there are some similarities in both business lines that can be synergized and profitable, those reasons are strong enough for the company to include Kioson in its business structure. One of the example is, Complete Payment Solution owned by Kioson, would be able to help offline stores owned by MKNT in Cash and Non-Cash Management. And equally important is, the similarity of Vision both companies in order to promote Micro Small Medium Enterprises (MSMEs) especially those in second and third tier cities, with the main target of Non-Bankable society.
He also said that later the distribution of Telkomsel products (prepaid voucher and sim card) can be done online so that it becomes easier, faster, and more, because so far Kioson also sells prepaid vouchers as one of its products. Twice three, this partnership will also add Stock Keeping Unit (SKU) and increase e-commerce sales in the company's sales network. More than that, the variety of MKNT products also increase as much as the products owned by Kioson such as Payment Point Online Bank (PPOB) and Financial inclusion Product.