Kusumo Martanto from Blibli: Innovation is the Key to the Sustainability of the E-commerce Industry

This article is part of DailySocial Mastermind Series featuring innovators and leaders in the Indonesian technology industry to share stories and perspectives.

It is not easy to establish a sustainable company, a good company is built on a solid foundation and strategy. Kusumo Martanto built Blibli from scratch using a customer-centric approach. After celebrating its 10th anniversary, the company has achieved significant achievements. In addition, he also acts as COO of GDP Venture as a channel in creating investment vehicles to further develop Indonesia's digital industry.

Before entering the era of the technology industry, Kusumo, who is familiarly called Pak Kus, has been trained in overcoming challenges. Starting from education, adapting to a new culture with a limited vocabulary, and surviving as a foreign student with the demands of scholarships and part-time jobs. However, all his efforts paid off when he got the opportunity to pursue a career in the tech industry.

As Co-Founder and CEO of Blibli, one of the leading e-commerce companies in Indonesia, Kusumo aims to create a sustainable company by bringing positive value and impact to society. In the process of climbing the highest peak, challenges often arise and companies must be ready. He believes that the key to this dynamic industry is innovation, and collaboration is the right path to building sustainability.

DailySocial had the opportunity to conduct an exclusive interview with Pak Kus and further discuss his thoughts on Indonesia's e-commerce landscape and its potential in the future.

What were the early days of your journey like before entering the technology industry?

Looking back, I have been trained to overcome challenges. Since school, I have been interested in engineering, which at that time could not be separated from computers and I didn't have one at that time. After all, I'm just a boy from Central Java with big dreams. It never occurred to me that I could study abroad considering the many costs and documents that had to be prepared, but I have a strong will. Then, with all the resources available at that time, I tried to find my way to the metropolitan area. Luckily, my parents were very supportive. With much consideration and a long process, I managed to register and continue my studies at Iowa State University.

The real struggle occurs in the first two years of adapting to a new country and culture using a limited vocabulary. Meanwhile, it was the era before the internet. I had to record lectures from time to time and listen to them several times before I could really get the point. Sophomore year, I applied for a scholarship while working part time to cover living expenses, even getting 8 hours of sleep was not possible. The conditions were not easy, but I did not give up.

Kusumo Martanto / GDP Venture

You successfully graduated from the renowned engineering program at Iowa State University and went on to pursue a Master's program at the Georgia Institute of Technology. What experiences can you share regarding living conditions and studying abroad that have influenced your skills and perspective to date?

Looking back at my time, so much was different in terms of teaching and learning. In Indonesia, respect means obey. In class, we can ask questions but not question them. In America, we are forced to participate, to speak out. Not only think critically but also understand the context. That concept is ingrained and has shaped my way of thinking.

What made you decide to come home? Why not continue pursuing a career in America?

To be honest, I once thought about returning to my homeland to work before pursuing a master's degree. I applied for several jobs in Indonesia, but also prepared Plan B and submitted an application to continue my studies. When I arrived in Indonesia, I already received an offer to work for a company. However, while living in my hometown, I received an acceptance letter from America. After lengthy discussions with my parents, I decided to immediately continue my studies in the US.

My next journey will be an interesting and enjoyable part. I first pursued a career in the aerospace industry, remembering that I once dreamed of becoming a pilot. That's when I was exposed to the technology industry. Next, I moved to a software company; and it's purely about technology. Later, I joined Intel and until now have been carried deep into this industry and have enjoyed every bit of the journey.

After that, I started thinking about parents in Indonesia who are getting older. After all, feeling like I've contributed enough to my adopted country, why not try making something and work for my homeland. Indonesia itself has extraordinary potential with its internet penetration continuing to increase. This is truly changing everything from communications to more specific industries. I, then, took the opportunity.

What exactly was the initial idea for Blibli, one of Djarum's first digital products? What kind of challenges did you encounter and how did you overcome them?

Historically, Indonesia has been a center of trade for centuries, and this concept has become ingrained in its society. This country has great potential in many ways. One of the most essential is the demographic bonus. We have many young people of productive age who are ready to devote their energy to creating prosperity in this country. Moreover, most of these people have high curiosity, are also willing to adapt and adopt. Retail is growing rapidly and is becoming a big ammunition to support the economy.

At that time in 2011, Indonesia's internet penetration was only 12,3% of the total population. However, this figure is more significant than the population of one country. In terms of geography, this country is very large, which is both an advantage and a challenge for the distribution sector. E-commerce is an idea that is very likely to emerge with the facts that have been stated previously.

We started Blibli with the aim of being the first e-commerce that provides experiences customer-centric best for buyers and sellers. In the process of climbing the highest peak, we faced many challenges. In contrast to the US and China with large land areas, Indonesia has large seas in terms of distribution. This is one of the biggest challenges to providing cost-effective logistics. Furthermore, payments have become another stumbling block in the industry. At that time, banking efficiency was not what it is now.

All these challenges force us to be more creative and innovative in developing the platform. I also believe that to make an ecosystem work, we need to work as one. Therefore, we also collaborate with very trusted partners to serve the community better. Innovation is the key to a dynamic industry and collaboration is the right path to building sustainability.

What innovations has or will Blibli develop in the near future?

We have launched many innovations since we started operating. In fact, Blibli is often the first to offer new innovations. For example, free shipping and 0% installments while others still charge additional fees for credit card payments. In addition, we guarantee the authenticity of the products offered on the platform. To ensure this, we only work with trusted partners. Another innovation is when we introduce features pre-order, in collaboration with Telkomsel.

Nevertheless, we believe that online will never 100% replace the ecosystem offline, but to complement each other. Therefore, last year we launched an omnichannel initiative to win the market offline. There are several features including Blibli in-store, Click & Collect, and BlibliMart for wholesalers to strengthen this strategy.

During this pandemic, we also realize that many people are struggling with unstable incomes. Therefore, we launched the PayLater service in order to meet the basic needs of users. Apart from that, MSMEs are one of the sectors most affected by this pandemic. We found one pain points they are in the product storage area. We tried to solve this problem by introducing fulfillment by Blibli.

The latest, cross-industry collaboration with BCA Digital, making Blibli the first e-commerce platform to be fully integrated with a digital bank in Indonesia. I believe that the development of the digital ecosystem in Indonesia can reach its full potential through collaboration. Therefore, we will continue to innovate and adapt to the ever-changing market by responding to challenges with experience.

Inauguration of the Blibli Cakung warehouse

Do you think “unicorn” status is important? What essential values ​​must a company have for a sustainable business?

It is natural for a startup company to want to achieve a certain status or achievement. Although we have not announced any status publicly, the size of our business has exceeded billions of dollars. That said, can I say that we have achieved unicorn status? Yes. However, as a digital company, what we really want is creating a sustainable company by bringing value and positive impact to society.

In terms of value, I think all great results require hard work and perseverance. I try to instill this kind of mindset in all our members at Blibli. That we are not only a company, but also part of society. Therefore, always do your best to create a positive impact through technology and innovation. In addition, when a business has grown big, it is difficult not to become complacent, but we still need to maintain it agility to stay strong. Always be alert and prepared for the unexpected.

As COO of GDP Venture, what is your role in this organization, do you also make personal investments?

When building Blibli, our shareholders considered creating an investment vehicle to further develop Indonesia's digital industry. Everything we have discussed will only work when the entire country achieves prosperity. Therefore, I helped Martin Hartono set up an investment company and proposed the idea for the name GDP Venture. I have also invested as angel, and most importantly, I contribute with my experience, including as an advisor.

GDP Venture investment steps in 2017

After managing Blibli for so long from zero to this stage, have you ever thought about creating something new? Or exploring other industries?

The thing about creation is that you can do it in so many different ways. A person can be a founder, investor, or part of a team member. I have a lot of ideas, which are now channeled more into investment activities or mentoring. I started in the e-commerce industry, and this is just the beginning, the future potential is still very long.

As for interests, I prefer “old school” industries like healthcare. In Indonesia, even first-tier countries still have difficulty getting access to adequate health facilities. However, because I want to make something in a different industry, I want it to be part of Blibli and the group. When brainstorming for this plan, I was introduced to startup founders who wanted to start a similar business. Instead of competing, we decided to invest in the startups we are currently familiar with Halodoc. I then became a corporate advisor.

In other respects, I think industry EdTech quite interesting. Above all, all types of industries are good. I am personally interested in fields that can have a direct impact on society, such as health and education. As long as there are living creatures, this industry will always be needed.

As an experienced leader, what can you say to the tech enthusiasts out there who want to start building a legacy?

Everyone has their own talents and calling in life. Not everyone has to be an entrepreneur, I'm still learning myself. To become an entrepreneur or anything else, we cannot just rely on skills or knowledge. People need to have solid character to build something sustainable. And again, there is no such thing as instant success, success is realized.

-Original article in English, translated by Kristin Siagian