Pandu Sjahrir Reveals His Big Dream for the Nusantara Startup Industry

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

In recent years, Pandu Sjahrir has been in the spotlight in the technology industry. From the Chairman of SEA Group Indonesia, Board Member Gojek, and most recently appointed as the youngest IDX Commissioner.

Starting as a productive hobby, investing has now become his main business as a professional as well as one of the leading investors in Southeast Asia for early stage and emerging companies. Pandu also serves as Managing Partner of Indies Capital which manages Indies Special Opportunities Fund, the region's leading alternative asset manager, as well as Indies Pelago, secondary funds technology in Southeast Asia. And which was recently introduced, is a new entity called AC Ventures.

With an economic mindset that runs in his genes, Pandu Sjahrir managed to survive financial struggles and admits that he is not afraid of failure. As long as he still has an extraordinary supportive family and a solid team by his side. He has big dreams for the Indonesian technology industry, and this is his scenario.

As an investor who focuses on developing companies, how do you see the landscape of the investment industry in Indonesia during the COVID-19 pandemic?

The world before the COVID pandemic was a different world than it is today, technology has grown much bigger than just business. Every half, its development is increasingly rapid due to the large number of adoptions. In terms of shopping, playing games, even now working and studying online. People are adapting to this new world using technology platforms to connect with each other.

This has also changed the way we view investment. Starting from businesses that can benefit from new ways of interacting and communicating. However, life continues and people still have to fulfill their daily needs, but the way to fulfill these things has changed. We must be open-minded in facing the new world after the COVID-19 pandemic, how this new phase will proceed.

Another thing that is also worth discussing is the role of deglobalization. What happens in US companies does not necessarily happen in Indonesia. The same applies to Chinese companies. We have seen more local solutions to everyday problems, less about global solutions. The good things that have happened in the last 30 years of this "globalization" are the increase in human assets and country castes, developing countries are increasingly moving into more developed countries.

In your opinion, what is Indonesia's position in this deglobalization scheme?

Indonesia will remain Indonesia. As globalization shapes economic development in other major countries, with billion-dollar companies now in our economic portfolios, we must ultimately find local solutions.

If this really becomes a thesis, of course, it will take time. In terms of logistics alone, we cannot be separated from the global supply chain because we still depend on other countries to develop a product. Imagine if in fact there were many countries implementing deglobalization. Therefore, there is one more reason to go deeper into risk assessment.

One interesting thing, in the past there was a large trust deficit in new companies in Indonesia. Our previous generation may not have been able to think digitally, but the current generation has really adopted it and is able to provide trust. Not only for large companies more than 20 years old that are run by the government or state-owned institutions, but also for new companies started in the last 10 years.

Imagine what all the technology companies have been able to do in the last decade and also the behavior of the younger generation who are willing to try. Right now, everything is clearly very impactful. Trust is built not in a short time.

You were first known as the leader of Toba Bara Sejahtera, and also headed related associations. However, in recent years, you have been active in the domestic technology industry. What prompted you to enter the digital industry?

When I finally returned to Jakarta to continue the family business in the energy sector, my family did not yet have a digital mindset. Therefore, at first I was alone. As the first employee in Toba, I gave it the name Toba Bara and took it with me public insurance in 2012.

To be honest, I started investing in technology in 2013-2014, without the spotlight. At that time, no one knew the name of our company, it started from Garena then became SEA, but then Shopee was born as the company they started. I have been investing for the last 7 years, but no one knew until the last few years due to the increasing popularity of the company.

During that time, I met many investor friends, and also learned various things along the way. All the funds came out of my own pocket until around 2017, I joined Indies Capital, a leading alternative asset manager that focuses on industries in Southeast Asia, especially Indonesia. And not long ago, there was also a new entity in AC Ventures. In fact, it started as a productive hobby that developed into a main business. Now, people know me as an early stage investor as well as a few other things.

You have just been appointed as one of the BEI commissioners, that's fine share a little about future plans to encourage Indonesia's technology industry to be better?

The goal is to go further in the next 10-12 years. In fact, America's top ten companies are technology companies. In Indonesia, this list is still dominated by banking and telecommunications companies - exactly as it was 10 years ago. It's our job to capture the economic value of all these tech companies to get there. I called it outlier, an extraordinary company that is growing very fast, can see Indonesia, get listed, and make us their main destination.

Furthermore, to take the capital market seriously and provide a safe and reliable investment place towards a better future. There are always one or two problems with this, essentially related to current institutions. We must be proactive when it comes to managing any problems. We must be able to say, "We are open to every investor, including minority investors, and we can get large companies registered in Indonesia." Following the main goal of being among the top five economies in the world by 2025, our capital markets industry must also be there.

Being in your current position, are there any obstacles in keeping up with the fast-moving industry? Are there any difficult stories or experiences while working in the industry?

There was a dark period, where I experienced the loss of family members as well as financial decline. Then I invested a lot, but experienced several failures. Along the way, I learned how to better manage risk and learned more in this regard. However, I am relieved to know the fact that it couldn't have been worse than that dark time. As long as it doesn't cripple me, financially, everything will be fine. I learned a lot about human character this way. Ultimately, I invest in principles, character, and business models.

Failure is inevitable, but how you stand up again is what matters. This is a classic saying, but proven. I am very happy to have a wonderful family, a very supportive wife who is also active in building her business, and a beautiful daughter. In terms of work, we have formed a solid team.

Honestly, the Covid-19 situation should have been a reason for me to be disappointed, instead, I feel healthy and personally grateful. However, all this uncertainty is creating a financial effect that I and most people cannot deny. I always tell myself that this is like another crisis that you have to get through before you can start to adapt.

What or who has contributed to your success and various achievements? Is there anyone who is an inspiration or... support system behind all this hard work?

When it comes to role models, my father is number one. He is an idealist, with his way of thinking which has a special effect on me. Apart from that, my mother is also a figure who has strong opinions, just like my uncle who now serves as one of Indonesia's ministers. Belian was the one who encouraged me to return to Indonesia and helped me understand this country better through his perspective.

There is an interesting story, when my parents said, "We don't have anything to inherit for you other than education and work ethic." Instantly, the fear of living without having anything hit me and pushed me to start working early. If I am not going to inherit material wealth, I must be able to earn it myself. This became the start of my investment hobby. Besides, family will always be support system my number one.

From an educational perspective, do you think a background in studying abroad is an advantage? Privilege in building mindset?

Having both parents who only care about education creates mixed feelings. They were really concerned about the way I studied so they sent me abroad to give me the best education. At that time, it was in America. I studied economics in Chicago, then went to Stanford for business school. I met many technology-based companies as well as many friends.

Luckily, living abroad shaped my sense of discipline, with its high costs and problems. Returning to Jakarta, it was a difficult time for those who had it mindset The New Yorker like me. For the first two to three years, Indonesia was very difficult. However, from trying to be a good listener and communicate fluently, I learned progressively to make better decisions. I learned my lesson by living abroad, but returning to Indonesia is another blessing.

Have you ever imagined being a Founder? Seeing that many VCs in Indonesia are formed by ex-Founders or those who work in technology companies.

I haven't thought that far ahead. I never put myself out there or thought it would be like that. In fact, I already feel grateful for the opportunity to have a conversation like this. I don't think it's worth mentioning yet expert in marketing. My mindset has always been about investing first. I still have a lot to learn.

-This article was written in English, translated by Kristin Siagian