Kalla Group Partners with Local Venture Capitals to Build Saoraja Hub Incubator

Focused on startup categories related to Kalla Group business

Yenny Yusra - 29 November 2018

The lack of promising space and potential among young entrepreneurs of Eastern Indonesia, specifically Makassar, is the main reason behind the creation of Saoraja Hub. As an incubator, it'll be a platform for Eastern Indonesian entrepreneurs having ideas of creative and digital business to share together.

In ensuring the idea goes well in term of business and management, Saoraja Hub will provide seed funding for five selected startups.

"The upcoming startup can be in vary and based not only in digital. Ideally, those having similar service or business sector with Kalla Group," Solihin Jusuf Kalla, Kalla Group's President Director, said.

He continued, in supporting incubator, Saoraja Hub will partner with corporate to local venture capitals. Kalla avoids mentioning further detail about the local venture capital to partner with Saoraja Hub because it's still in discussion.

"The certain ones are two local venture capitals, and banks, and corporates, ready to partner with Saoraja Hub, to support Eastern Indonesia's startup ecosystem improvement," he added.

Previously, Saoraja Hub was also involved with DISRUPTO, an inclusive disruption movement, initiated by WIR Group. It was objectively done to reach the government, startups, and global technology and economic players. This event will be attended by some of the Indonesian Government institutions,

"Starting from a casual conversation about the low number of Makassar entrepreneurs, Saoraja Hub is finally founded," he said.

Kalla Group warehouse utilization

In addition to Saoraja Hub, Kalla Group plans to rent the current warehouse to FMCG company and e-commerce, in order to accelerate startup growth in Eastern Indonesia, Makassar in particular. Logistics of Kalla Group currently has a large capacity. It's ideal to use and for rent.

"At first, we have no intention to use the warehouse for FMCG. However, we receive demand and starting to use the warehouse to store FMCG's stuff," Kalla explained.

Thus, Kalla Group still has around 200,000 sqm land to be used for warehouse construction. Regarding Kalla Group to collaborate with e-commerce for the warehouse utilization, Kalla said its still in discussion and yet to set an agreement with any e-commerce.

"Our next focus is indeed to enter the digital business. Step by step, with the current resource and potential, Kalla Group is starting to enter the digital business," he said.

Regarding the plan to enter the fintech or financial sector, Kalla said there's no plan for it yet due to the lack of background in the sector.

"Since the very beginning, our focus has been more on automotive, transportation and logistics, construction and development, manufacturing, and energy. In fact, we have no plans to enter the financial sector," he concluded.

Original article is in Indonesian, translated by Kristin Siagian

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