Rachmat Kaimuddin Resigns from Bukalapak Amid Business Diversification and Expansion Agenda
The new CEO is yet to be announced; Rachmat is said to continue working for the government
Randi Eka - 29 December 2021
President Director of PT Bukalapak.com Tbk., Rachmat Kaimuddin, officially resigned from the company as per December 28, 2021. It is also stated in the company's disclosure published today (29/12). The resignation is submitted with due observance of the company's provision of articles of association and the current laws and regulations.
It was also mentioned that Rachmat is to accept state assignments and work for the government, although there is no further details on this placement.
Rachmat officially became the Bukalapak's director effective on January 6, 2020 replacing Achmad Zaky. In his leadership, the company has achieved a number of achievements, including the successful IPO on the Indonesia Stock Exchange. Previously, in early 2021 Bukalapak also secured the series G funding round for the IPO with a total value of 5.7 trillion Rupiah.
Rachmat's one strategy is to encourage companies to achieve profitability and reduce the money-burning method. Since the end of 2020, the current business model has been "on-track" towards profit. At that time, Rachmat said that Bukalapak's 50% market share came from transactions outside tier-1 cities driven by the partnership program.
The new CEO is yet to be announced
The company has not announced a new captain to take the wheel. Besides Rachmat, the company operates with 4 directors including Teddy Oetomo (President, CSO), Willix Halim (COO), and Natalia Firmansyah (CFO).
On December 23rd, Bukalapak just held an Extraordinary General Meeting of Shareholders which resulted in a number of agreements. First, the approval of Lau Eng Boon resignation as he has entered the retirement age. Second, the shifting focus on the IPO proceeds -- 33% will be used as working capital, 34% to develop the 6 owned subsidiaries, the rest will be used for other purposes, including the possibility of adding a new subsidiary.
In terms of performance, as of Q3 2021, Bukalapak reported a total revenue of IDR 1.34 trillion triggered by the significant growth of Bukalapak's partners' revenue, an increase of 42% compared to the same period last year. In order to maintain growth, the company still experiencing operational losses of Rp. 1.2 trillion, down from the same period last year which was Rp. 1.4 trillion.
Expansion to the Philippines
According to the latest e-Conomy SEA report, Indonesia has generated $53 billion GMV in 2021 from e-commerce businesses and is projected to increase to $104 billion by 2025. It is indeed a huge potential foor Bukalapak with a core business in this field.
In the midst of fierce e-commerce business competition, Bukalapak is diversifying its business. It includes strengthening the Partner program, BIB investment services, B2B e-commerce services through BukaPengadaan, and game asset marketplaces through Five Jack.
The company is also seeking regional expansion. One of them is indicated by the job vacancies for the Country Manager position in the Philippines. We have asked the company for information regarding this matter, but the company refuse to comment as it is still focused on the succession to come.
–Original article is in Indonesian, translated by Kristin Siagian