Indonesian telco giant Indosat Ooredoo is on the verge of changing the direction of its digital business arm

Indonesian telco giant Indosat Ooredoo is set to shut down its e-commerce arm Cipika.

The online marketplace will cease operations on June 1, with the last transactions on May 22.

“We will use the remaining time in May to ensure that all purchases are being delivered and all merchants are receiving their payments, for all the transactions on Cipika Store platform. We would like to extend our deepest gratitude to our merchant partners for their collaboration, as well as to our amazing customers,” Cipika stated in the formal announcement of the shut down.

Following the shut down, some Cipika employees are being laid off while some are being transferred to other business units belonging to Indosat Ooredoo.

However, the telco’s online marketplace for games Cipika Play will continue to operate as per usual.

Indosat Ooredoo’s cashless payment service Dompetku has also been rebranded as PayPro. The telco giant has transferred the e-payment license belonging to the entity, and it has now become separated from Indosat Ooredoo.

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According to a DailySocial report, Indosat Ooredoo plans to give more focus on network development and digital business development through partnership.

In the case of Dompetku or PayPro, the separation of its operations from Indosat Ooredoo allows the company to “move faster” and not be slowed down by bureaucracy in big corporations.

Cipika head Charles Karo-karo and Dompetku head Randy Pangalila will continue to work with the telco operator.

Indosat Ooredoo is known as the partner of Kejora Ventures in hosting accelerator programme Ideabox, which recently expanded into venture capital investment with the launch of Ideabox Ventures.

Other examples of telco-backed online marketplaces in Indonesia is Telkom’s Blanja (which recently announced the revamping of its brand identity) and XL Axiata’s Elevenia (which raised US$50 million investment last year).

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Image Credit: weedezign / 123RF Stock Photo

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