Last week, Ken Dean Lawadinata announced his resignation from the country’s leading platform, saying he is “no longer interested” in tech startup investments
On Friday, Kaskus co-founder Ken Dean Lawadinata was reported to have left Indonesia’s legendary online discussion portal, which he had helped grow.
“As per October 12 I have already exited and released all my shares to GDP [Ventures], following a fair and reasonable negotiation,” he said as quoted by CNN Indonesia.
His role as Chairman to Kaskus’ parent company PT Darta Media Indonesia will be taken over by GDP Ventures CEO Martin Hartono and Kaskus CTO On Lee for the time being, while co-founder Andrew Darwis will stay with the platform that he considered as “his own child.”
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What would be Lawadinata’s next plan? Despite citing continuous involvement in his other startups Smartmama and Tororo, Lawadinata stated that he is no longer interested in investing in the tech industry.
“Many are asking for a high price but there is no sign of profit in the upcoming years,” he said, adding that a valuation bubble has started to happen in Indonesia.
He also opened up the possibilities to invest in other industries, such as mining and property.
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Trouble brewing at home?
Lawadinata’s contribution to Kaskus began when he successfully persuaded Darwis to return to Indonesia to further develop the online discussion forum that he had built when he was working in the US. The platform then grew from a mere discussion platform to an e-commerce and e-payment platform.
The startup is once rumoured to have been preparing for an IPO.
The co-founders’ journey in building the company had become a subject of a June 2016 biopic based on Lawadinata’s own biography.
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It is intriguing to see a figure as prominent as Lawadinata — basically a living legend among Kaskus fans and the tech startup community in general — leaving the startup he had helped develop because he had grown disinterested in the industry. The fact that startups — particularly in the e-commerce sector — continue to raise funding and burn money without any clear prospect of generating profits soon, had driven the co-founder to turn his attention and focus on another industry.
Was Lawadinata being a sell-out by putting profit first before everything? Was it too early for him to give up on the industry, or is it even right for him to give up at all?
Looking at what had happened to several Indonesian e-commerce platforms recently, such as Berrybenka and SaleStock, perhaps one can actually understand — if not justifiy — the action Lawadinata is taking.
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e-Commerce is basically a new industry in Indonesia, and startups working in the industry need to work twice as hard to push for user acquisition. Many Indonesian startups are relying on promotions and discounts to drive users into using their site, from free delivery to even up to 90 per cent discounts on special occasions. They are also investing heavily in TV commercials to encourage first-time internet users to get into the e-commerce bandwagon.
With the lack of trust, combined with limited ways to make profits and eventually sustain itself, there is no wonder that Indonesian startups have become overly dependent on funding from venture capital firms.
Perhaps a slight shift of mindset is necessary in this industry. One might ask: What is the point in trying to innovate and disrupt the market if your company will go bust by next year? How does one expect to make an impact with an empty pocket?
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Some newcomers in the industry had learned from their predecessors by thinking of monetisation from Day 1, with a more gradual focus on growth. This has drummed up growing interest in becoming a cockroach startup rather than becoming a widely praised but mythical unicorn.
The question now is whether we would start to be honest with ourselves and see things from a different perspective, like Lawadinata.
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