XL Axiata and SK Planet officially sold Elevenia

Eleviana has been officially taken over by Jaya Kencana Mulia Lestari and Superb Premium Pte. Ltd. XL Axiata sold all shares in XL Planet as Elevania's e-commerce operator to Jaya Kencana Mulia Lestari, on the other hand SK Planet Global Holdings Pte. Ltd. also sold all of its shares to the Superb Premium Pte. Ltd.

Tinuku XL Axiata and SK Planet officially sold Elevenia

XL Axiata CEO Dian Siswarini said the decision to get out of the e-commerce business is a strategic choice as XL Axiata will focus more on core business power as a cellular service provider in developing data services business.

Siswarini also said the sale of ownership in Elevania would reduce the impact of losses, allowing XL to allocate more capital to generate returns for shareholders and provide better service to its customers.

"This decision we took through a careful calculation of various options. We are focused as a provider of data telecommunication services, while e-Commerce business will be done through digital features in data services," said Siswarini, Thursday.

E-commerce in Indonesia has grown tremendously and the competition is very hard involving big companies and big investment. The startups are supported by big investors giving the competition a harder and draining resource.

XL Axiata and SK Planet each have 50% share in Elevenia. Their share sale agreement is expected to be completed in the second half of this year following the fulfillment of the conditions required and the approval of several relevant agencies.

SK Planet is a subsidiary of SK Telecom which also operates the 11st.com e-commerce platform and is now beginning to reduce its overseas operations including Malaysia, Thailand and Turkey. A negotiation was also reported with Lotte Group and Salim Group to discuss the sale of these shares.

Elevania was established in 2014 where each of them invested approximately US$45 million to create a joint venture called XL Planet. The performance of trade transactions in Elevania is huge, but Elevania does not make money for himself.