Indonesia’s New Unicorn OnlinePajak plans to IPO in 2023

Unicorn OnlinePajak plans to register an initial public offering or IPO in the next two or three years. This startup is also targeting overseas markets.

“As a unicorn, we also want to be listed on the stock exchange. Hopefully, it will take two or three years,” OnlinePajak CEO Mulia Dewi Karnadi said during a virtual press conference, Friday (8/10).

However, he did not want to specify which stock exchange OnlinePajak is targeting. Meanwhile, several unicorns and other jumbo startups are planning to IPO on the United States (US) and Indonesian stock exchanges or the IDX.

Based on the CB Insights report titled ‘The Complete List of Unicorn Companies’, OnlinePajak is Indonesia’s seventh unicorn. The valuation of this tax startup is US$ 1.7 billion or around IDR 24.75 trillion.

Most recently, Ajaib Sekuritas is said to have become a unicorn. Blibli.com and Tiket.com are also claimed to have a valuation of over US$ 1 billion.

In addition to exploring IPO, OnlinePajak plans to expand into foreign markets. “OnlinePajak’s aspiration is to develop the market, not only in Indonesia. It’s time to finish ‘good at cage’,” said Mulia.

The unicorn targets to operate in other countries in the next two to three years. OnlinePajakhas also identified a number of destination countries.

Mulia said that some countries in Asia have the same problem with Indonesia regarding taxes. Therefore, OnlinePajak targets this market.

OnlinePajak Targets MSMEs in Indonesia

In addition, OnlinePajak targets Micro, Small and Medium Enterprises (MSMEs). Founder and Group CEO of OnlinePajak Charles Guinot assesses the potential of the MSME market in Indonesia.

Indonesia has 64 million MSMEs which contribute about 60% of the Gross Domestic Product (GDP). Meanwhile, the Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM) noted that 15.9 million MSMEs have been digitized. OnlinePajak has also prepared three service pillars for MSMEs, as follows:

1. Compliance: focuses on helping MSMEs to comply in paying taxes

2. Transactions: providing integrated payment services

3. Connection: providing access to validation and funding facilities.

“Through technology, we provide integrity in every transaction of SMEs,” said Charles.

This startup adopts a blockchain technology to help people to pay taxes. This application was developed by Achilles Advanced System which is the official service provider partner of the Directorate General of Taxes for e-filing and tax e-billing.

Founded in 2015, OnlinePajak integrates web-based data that can be used by taxpayers to calculate, deposit, and report taxes in one platform.

Users can also manage their taxes for free with additional premium features such as payrolland invoicing. To date, OnlinePajak has recorded two million users from corporations, MSMEs, and individuals.

The total value of taxes managed by OnlinePajak was IDR 174 trillion per year last year. Based on the CB Insights report titled ‘The Complete List of Unicorn Companies’, OnlinePajak is Indonesia’s seventh unicorn. The valuation of this tax startup is US$ 1.7 billion or around IDR 24.75 trillion.

OnlinePajak Holds MSME Digital Forum

Through the MSME Digital Forum, OnlinePajak is committed to providing support starting from the readiness of the OnlinePajak platform to assist daily business, providing access to financial support and tax/business consulting on the platform.

In addition, it also presents sustainable empowerment assistance to further improve MSMEs so that they can be ready to compete nationally and internationally.

Teten Masduki as Minister of Cooperatives and SMEs RI said that the program that was being carried out by OnlinePajak could raise awareness of local MSME players to be able to get easy access to market, capital, access and increase compliance through technology.

Mulia Dewi, OnlinePajak Indonesia’s CEO, said that OnlinePajak has also collaborated with several associations targeting MSMEs, in which case it has provided a special platform for them.