Fajrin Rasyid: Going from a Social Mission to a Sustainable Business

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

Fajrin Rasyid is a well-known name in the startup industry. He is the President of the leading e-commerce platform in Indonesia. In addition, he is also a technology graduate from a leading local university, the Bandung Institute of Technology. One day, he decides to help two of his friends from the same alma mater create something impactful for people using their technological abilities.

Prior to working with Bukalapak, Fajrin had experience working at BCG (Boston Consulting Group), a prestigious consulting firm, before he left and focused on business. He has always had a passion for contributing more to others, especially SMEs across the country, and he brought that passion to Bukalapak to create more impact in society.

Previously, he led the company's finance team, then moved up to the chair Chairman in 2018. During his tenure, Bukalapak has grown from a social impact initiative product into a more sustainable business that empowers more than 5 million online merchants with 70 million users across Indonesia. Bukalapak is one of 6 Indonesian unicorns with a valuation of $2,5 billion as written in Startup Report DailySocial 2019.

List of Unicorn startups in Indonesia / DailySocial

For a more in-depth story from the unicorn leader, let's take a look at an excerpt from an interview with the DailySocial team below

Entering your second decade in the digital industry, how would you describe your career journey so far?

I'm just a student from a not too big city and a simple family in Pekalongan. However, I have big enough dreams to be successful in the technology industry. I worked at a consulting company called Boston Group Consulting (BCG), but decided to retire early to help two of my other friends, Zaky [Sragen], and Nugroho [Karanganyar] to develop their business from scratch.

Indonesia has always been a country that is highly dependent on the SME industry. About 60% of the economy comes from SMEs. In 2010, we started Bukalapak with a vision to help people, especially those who own small-medium businesses throughout Indonesia.

When we started Bukalapak as a product, we also opened a project-based IT consulting service called Suitmedia. At that time Bukalapak was running very well, therefore, we focused on developing this platform. Over time, the company received some positive feedback and we started setting numbers as targets. Social impact initiatives become a promising business when we talk about huge market potential.

Have you ever dreamed of being the President of a Unicorn? From CFO (Chief Financial Officer) to President of Bukalapak, have you found it difficult to adapt?

I once worked for a consulting company. My job basically focuses on financial requirements and helping companies with business strategies. In the process of building Bukalapak, I feel I have worked on all aspects of the company from finance, marketing to legal aspects. In terms of roles, I think it's quite common to have multiple roles or change as requested when at a maturing company.

As one of the founders, and after being appointed President of Bukalapak, I needed to look at a wider range of businesses. There are many plans for collaboration, as well as meetings with government representatives. It is more like an end to end job, I have to consider all aspects of the company's business.

Currently, we are struggling with the Covid-19 outbreak, what is your view of the business landscape amidst the pandemic situation in Indonesia?

This is not an ideal situation for everyone. There are many parties who have been hit by the presence of this pandemic. This applies to all businesses of various sizes, but most of those affected are SMEs. Some product categories increased in sales, but many others saw significant declines in business. Online food and health products are among the categories that have seen positive results from this national disaster.

Bukalapak Team

Bukalapak, on the other hand, wants to contribute more so that businesses that have gained traction from the Covid-19 outbreak can maintain positive results. Apart from that, it also helps those who are affected and less fortunate to survive in the midst of the pandemic by looking for collaboration opportunities. We are in discussions with the government to create programs to help the most affected industries, such as SMEs.

How long do you think this pandemic will last? What do you think about the future of the industry when the pandemic is over?

To be honest, I'm not a medical expert, however, from the many projections I've read, this pandemic will probably last for a few more months. This goes back to our behavior towards the pandemic. It takes commitment from everyone to stop this pandemic from spreading faster and wider.

There are some people who say the situation will soon return to the way it was before the pandemic. However, this is what some people say it will be a new normal or the new normal. Every thing that society does to survive the pandemic, everything that has been sacrificed inevitably creates new habits, which can lead to a new normal.

In this case, Bukaplapak felt a very minimal impact. People are moving from offline to online. However, once again, this pandemic brings more losses than benefits and it will affect the overall economic situation. Without a certain source of income, people's purchasing power will soon decrease and that will affect the e-commerce sector, especially Bukalapak.

In fact, there are several startups that have been significantly impacted by this pandemic and have had no choice but to wind down operational businesses or terminate some working relationships. What do you think about this issue?

Once again, everyone is affected by this pandemic, both positive and negative. It depends on how we react to this situation. However, there is always wisdom, lessons learned, opportunities available. People must be able to see a way out of this complicated situation and generate ideas for further development.

For your information, many successful startups today were founded during the 2008/2009 crisis. This can provide momentum, how a crisis can encourage people to create something impactful. Hopefully when the situation gradually recovers, great opportunities will await. Sometimes, problems create opportunities for solutions.

More than ten years in this industry, working on all aspects of building a startup to becoming President of a unicorn. What is the most memorable lesson you learned?

This startup industry will have a huge impact [especially when you succeed]. Bukalapak now manages more than 5 million online merchants with more than 70 million users. This is an achievement. Some people say that startups are a fast track to success, however, these businesses also come with a big chance of failure. To minimize the chances of failure, it requires a strong will and great effort to stay in the game.

During your business journey, there will definitely be at least one or many challenges in building a business. Would you like to share your story during difficult times?

Every phase of business has its own challenges. I previously mentioned how I worked on all aspects of the business as the company began to mature. We used to have no legal representation and I had the rare opportunity to be a witness in court. In addition, when the company experiences cash flow problems, therefore, we [founders] have to set aside our income to pay employee salaries. I think most startups build-from-scratch I have also experienced difficulties like this.

There was a moment where I almost lost faith at one point, and felt really tired. Each phase has different obstacles. Last year, we had the #UninstallBukalapak issue. Until now, where Bukalapak is at a growth stage, the slightest PR mistake can light a fire and create a big fuss.

What is your biggest ambition right now?

I have always had a vision to create an impact on society and the country. This seed is also what I planted in Bukalapak, to work further as a platform to support as many people as possible and bridge them with the technology industry. Starting from the e-commerce sector, then expanding to offline through Bukalapak partners. It won't stop here. We are very optimistic about expanding widely to be able to support all levels of society.

How do you feel while doing business with friends and have you ever experienced emotional conflicts between each other?

I have known Zaky since middle school and our relationship deepened during college. Actually, it's not much different from doing business in general. How we react to difficulties, trying to unite them and solve them. Furthermore, without realizing it, our environment has influenced our judgment. We finally created something that we believed could solve the problem at hand.

Some people only see the emotional side, they may ignore the fact that this is a professional business. Then they ignore competency assessments, so when abilities do not meet expectations, conflict arises. Thus, the right team is considered to be an important part of the business. Character and competence are the keys to a successful partnership.

Currently, there are many platforms that offer support to all technology enthusiasts and startups in building their own companies. Do you think this method is effective?

On the one hand, it can be a very effective vehicle for a long journey through the startup industry. However, this is not the only way to generate ideas. Ideas can be found anywhere, and so can teams and partners. We can meet the right partners in a competition, as well as elsewhere. One thing to remember, don't be careless in identifying our network. That is why most startups are formed based on good relationships and long-standing relationships.

When the previous CEO, Achmad Zaky, retired from Bukalapak to create his own foundation center, did you see yourself "graduating" from Bukalapak and taking on a new business?

Talking about the long term future, it is very possible. However, at this time, Bukalapak is still a place for me to channel all my social ambitions and contribute to society. If in the future there is an opportunity for me to make an impact in another company or new business. I might do that in the future.

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