As part of the country's effort to expand its exports, Indonesia recently confirmed that it will partner with Chinese e-commerce giant Alibaba. Many analysts said that this cooperation will expand Indonesia's export, particularly to China.
In a statement acquired by Reuters, Indonesian minister Rudiantara said that Alibaba and the country will work together in order to further develop talents focused on technology. He added that the cooperation will help not only the country but also the region. Recent developments confirmed that Alibaba chief executive officer Jack Ma and Indonesian President Joko Widodo have already discussed the matter and plans are already set.
Mr. Ma was in Jakarta for the 2018 Asian Games. Prior to recent developments between Alibaba and Indonesia, he was named as the country's e-commerce adviser in 2017.
In a report released on Aug. 30, McKinsey estimated that Indonesia's e-commerce market is expected to grow to at least $5.5 billion by 2022. The country's current e-commerce industry is estimated to be valued at around $8 billion.
Alibaba is China's biggest e-commerce platform. Aside from its core e-commerce business, the company also offers a wide range of services including digital payment platforms and cloud computing.
According to Rudiantara, the final details of the deal between Alibaba and the Indonesian government will be finalized during Ma's second visit to the country which is expected to be in October.
Aside from Indonesia, Alibaba is also finalizing the finer details of its deal with various Russian ventures. According to sources with insider knowledge of the deal, Alibaba is already in the advanced stage of negotiations in an effort to create a venture e-commerce company together with several Russian partners. This development is part of China's vision of creating a "digital silk road" that encompasses several Asian and European regions.
A handful of Russian government officials have already confirmed that Alibaba is finalizing its partnership with the Russian internet company Mail.ru and sovereign wealth fund Russian Direct Investment Fund (RDIF). Many analysts said that the involvement of the RDIF is a sign that a high level of financial backings is backing the massive venture.
Mr. Ma has already visited Russia several times. While the details of this visit remain to be private, the billionaire has reportedly met with Russian President Vladimir Putin last autumn.
