J&T Express Bluntly Violates RI Law, This Is the Owner Tech – 16 hours ago

Jakarta, CNBC Indonesia – J&T Express is one of the big players in the Indonesian goods delivery courier services market. However, controversy recently emerged ahead of the listing of J&T Global shares on the Hong Kong stock exchange.

So when was this company founded? And who is the person behind this logistics company?

J&T Express is a technology and internet development based goods delivery company.

Founded in August 2015, the owner and founder of the J&T Express delivery service turns out to be the former CEO of Oppo Indonesia. He is Jet Lee. Together with his partner Tony Chen, Jet Lee decided to leave Oppo Indonesia and chose to build an expedition services company.

Tony Chen, who is the founder and CEO of Oppo, also invested IDR 400 billion in J&T Express at the start of its operational period.

The owner of J&T Express revealed that the origin of the name J&T itself can be interpreted as Jet & Tony.

According to Crunchbase data, J&T has received total funding of US$ 4.7 billion or the equivalent of Rp. 74 trillion in four rounds of funding.

The company is known to have a total of 7 investors, including Singaporean endowment fund manager Temasek and Chinese technology giant Tencent, which entered J&T through the latest funding round.

J&T Express investors and valuation

CB Insight reports that J&T Express now has a valuation of around US$ 20 billion (around Rp. 318 trillion), with listed investors from Hillhouse Capital Management, Boyu Capital, Sequoia Capital China.

With J&T’s current valuation, it is included in the ranks of decacorn startups in Indonesia, side by side with Gojek. For your information, decacorn is a term for startups with a valuation above US$ 10 billion.

J&T started its business in Indonesia and then slowly expanded overseas by collaborating with several e-commerce companies.

Apart from Indonesia, the company currently operates in many countries including China, Vietnam, Singapore and is starting to expand into the Middle East market, namely the United Arab Emirates and Saudi Arabia.

J&T provides logistics services to e-commerce Taobao owned by Alibaba Group, retailer Shein to TikTok owned by ByteDance.

Even though Indonesia is the first market, in the first 6 months of this year, more than half of its revenue of US$4 billion still came from China.

IPO in Hong Kong

J&T is targeting its first floor on October 27. J&T succeeded in raising US$ 500 million from the IPO in Hong Kong which made Jet Lee a new billionaire.

In the prospectus document, J&T openly admits to circumventing Indonesian law regarding restrictions on foreign investment.

In its prospectus, J&T explains the risks of their business in Indonesia. Companies owned by J&T in Indonesia are acknowledged to face the risk of violating regulations regarding the negative investment list (DNI). In the current DNI regulations, foreign entity ownership of companies operating in the courier sector is limited to 49%.

J&T Global, in the prospectus, explains how they will register PT Global Jet Express (the name of the J&T Indonesia company) as a domestic capital company (PMDN).

“We conduct our business through affiliated entities in Indonesia, parent companies in Indonesia and their subsidiaries. We have contracts with parent companies in Indonesia, shareholders in Indonesia, both corporations and individuals,” wrote J&T’s prospectus.

The agreement gives J&T Global effective control over affiliated consolidated entities in Indonesia, obtains all economic benefits from Indonesia, and has the option to purchase all shares in the company in Indonesia if Indonesian law allows.

At the Directorate General of General Legal Administration (AHU) of the Ministry of Law and Human Rights, PT Global Jet Express is registered as a company with Domestic Investment (PMDN) status.

However, in J&T’s prospectus, PT Global Jet Express is stated to be 100 percent owned by Winner Star Holding Ltd. Winner Star was then owned by Onwing GLobal Limited, which was owned by J& Global Express Limited based in the Cayman Islands. The controlling shareholder of J&T Global Express is Jet Jie Lie, founder of J&T.

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