SE Asia’s largest market, Indonesia, has traditionally been driven by the commodities and consumer sectors. “With technology, you have a third engine, and consumers become the drivers of the Indonesian economy. This is the biggest value creation opportunity in Indonesia and probably Southeast Asia today,” said John Riady, CEO of IDX-listed Lippo Karawaci, during a fireside chat at the recently-concluded Asia PE-VC Summit 2021.
Riady envisions that Indonesian tech companies have the potential to touch a valuation of up to $400 billion in the next few years. “We’re going to see this space go from $60 billion today to $400 billion over the next few years.”
The Lippo Group is viewed as a proxy for the state of the Indonesian economy. Its performance across key business verticals – real estate, private healthcare, and its tech bets – place it at the centre of SE Asia’s largest economy.
In 2019, in a surprise move, John Riady, grandson of Lippo founder Mochtar Riady, became the CEO of IDX-listed Lippo Karawaci, and was tasked with restoring the property developer’s many challenges at that time. Lippo Karawaci is the majority shareholder of Indonesia’s largest private healthcare services provider Siloam International Hospitals. And, SGX-listed Lippo Malls Indonesia Retail Trust owns and operates one in every four malls in Indonesia.
Prior to taking over as CEO, Riady led the group’s digital efforts and investments in SE Asia’s technology sector. The group has made over 40 investments in Indonesia’s tech sector, which Riady believes is at an inflection point.
Edited excerpts from the fireside chat with Lippo CEO John Riady. The transcript, which has been edited for brevity and clarity, also includes the addition of context and announcements/updates following the summit:-