Southeast Asia’s population, like that in many emerging markets, is challenged by limited access to basic goods and services. This is due to infrastructure inadequacies in crucial sectors like finance, education, and logistics, and aggravated by lacking social protections in most countries (only 34% have these benefits).
The challenges are exacerbated for those living outside of Tier 1 cities, where infrastructure gaps are most glaring. There is a clear correlation with rurality and the state of infrastructure. Generally, countries with a greater proportion of rural populations (lower Rural Access Index scores) have weaker networks of services that support social and economic activity (lower Logistics Performance Index scores). These networks range from physical infrastructure to technological products and services.
Stifling macroeconomic conditions in Southeast Asia’s emerging markets also impede poverty alleviation, worsening inaccessibility. This is due to slower economic reforms, high income inequality, and weaker infrastructure investment2. As a result, Indonesia has shown limited poverty alleviation progress, regional poverty in Philippines persists, and consumption rates have stagnated in rural Vietnam.
Furthermore, regional climate-related supply chain disruptions are expected to worsen due to geographic propensity to natural disasters and weak preparedness2, exacerbating accessibility challenges.
The compounding of limited accessibility for communities beyond Tier 1 cities with macroeconomic challenges and climate disruptions deepen economic inequalities.
Existing efforts to tackle inaccessibility lack a focus on quality outcomes. Although access to basic goods and services are necessary, the region is primed to leapfrog development challenges brought about by infrastructure inadequacies by investing in more affordable, sustainable, and distributed technology solutions. This means providing basic goods and services and at a higher quality.
We invest in companies that leverage technology to address infrastructure inadequacies, enabling mass market access to quality goods and services:
By enabling better access, our portfolio companies address the regional development needs identified through our research. In particular, they contribute to these SDG targets:
Indonesia stands at a critical juncture. While its population remains young and growing, the country faces mounting economic and demographic pressures from rising prices, widening income gaps, and low household savings. These challenges are exacerbated beyond Tier 1 cities, where access to basic goods remains a daily struggle. Poor logistical infrastructure in these areas significantly increases the cost of order fulfilment, which becomes a burden ultimately borne by the consumer. As a result, everyday goods can be up to 20% more expensive in remote regions compared to Indonesia’s urban hubs, deepening inequality and stifling opportunity for millions.
Super is the largest social commerce player in Indonesia that enables access to quality consumer goods by utilising its localised networks of warehouses and logistic providers to reach these underserved consumers. Falling purchasing power on top of increasing cost from climate-related supply chain disruptions makes Super’s efforts to lower costs of basic essentials increasingly crucial.
The platform partners sell directly to end consumers as well as partner with local Super agents that consolidate orders from small retailers and end consumers, allowing them to generate extra income while passing on the cost savings from economies of scale. In 2024, Super engaged more than 40,000 + active agents coordinating group buying and end consumers who purchased directly from the platform. By addressing the logistical hurdles and supply chain issues, Super is able to lower prices and increase accessibility of FMCG to Tier 2 to Tier 4 cities and rural areas.
We support Super in its ambition by working with the team to explore potential exit strategies and design an offline expansion plan for Tier 2 and Tier 3 regions. To do so we draw on case studies from comparable traditional players. We have also collaborated on cost-cutting initiatives and mapped out breakeven strategies to help strengthen their path to profitability.
Super continues to expand its services to more regions and build on its offerings, including the development of affordable private-label brands for consumers (2.8x growth in annual gross profit) and introduction of Agent Kiosks at the end of 2024. Moving forward, Super is finetuning offerings based on communities’ needs, ramping up the new white label products, increasing physical Agent Kiosk stores, and expanding market coverage.
Find out more about the Super story here.
Every order we fulfil brings us one step closer to a future where affordability and opportunity reach even the most remote corners of Indonesia.
Steven Wongsoredjo, Co-founder and CEO, Super