Jakarta. Bukalapak (BUKA), once a leading e-commerce platform in Indonesia and a market sensation after its IPO in August 2021, has announced the closure of its trading platform to focus on utility bill payments.

The e-commerce service will cease operations by March 2, 2025, following the company’s dramatic stock decline. Bukalapak’s shares have plunged by 85.46 percent from their IPO price of Rp 850 to Rp 122, highlighting the challenges faced by the platform in maintaining its competitive edge in Indonesia's booming e-commerce market.

“We fully understand that this change will affect our vendors’ businesses. We are committed to ensuring the smoothest transition possible,” Bukalapak said in a statement on its blog.

The announcement included detailed guidance for vendors and customers on refund processes and how to download transaction histories.

Shift to Utility Payments
Bukalapak’s future focus will center on providing sales and payment services for utility bills, including phone, water, and electricity payments, internet data packages, consumer credit installments, cable TV subscriptions, building taxes, health insurance premiums, and even traffic fines.

The company will retain its retailer networks for specific products, such as electronics, automotive goods, personal care items, and jewelry, signaling a partial continuation of its retail business.

Bukalapak’s decision underscores the intense competition in Indonesia’s e-commerce sector, dominated by major players such as:

• Tokopedia: Part of the GoTo Group, Tokopedia is one of Indonesia's largest e-commerce platforms, offering a wide range of products and services. Its merger with ride-hailing giant Gojek in 2021 created a powerful tech ecosystem in the country.
• Shopee: Backed by Singapore-based Sea Group, Shopee has gained significant traction in Indonesia with aggressive promotional campaigns, seamless logistics, and localized offerings.
• Lazada: Owned by Alibaba Group, Lazada leverages its strong logistical capabilities and financial backing to compete in the Indonesian market.
• Blibli: Operated by local conglomerate Djarum, Blibli focuses on premium products and services, positioning itself as a trusted platform for middle- and upper-income customers.

Despite being one of the first major Indonesian e-commerce platforms to go public, Bukalapak has struggled to keep pace with these competitors, which have invested heavily in technology, logistics, and marketing.

Other big names such as Toko Bagus, Elevania, and JD.ID already shut down businesses due to growing competition.