Category: Think Pieces

Loneliness, Third Spaces, and Why Pets Are Quietly Taking Over the Economy

Last weekend at a pet shop, we stumbled upon a towering display of prams—not for babies, but for dogs. Yes, dogs. Each stroller more stylish and padded than the next.

And it made us wonder: the next time you see someone pushing a stroller down the street, will you coo at a baby—or be met with the panting snout of a Pomeranian named Mochi?

Not a shocker, really. In a world where third spaces are increasingly rare and the cost of raising a child has skyrocketed, many are turning to pets for connection, purpose, and companionship.

Welcome to the Micro-Connection Era. And no, we’re not surprised.

The Loneliest Generation? We’ve Seen This Coming

We’ve never been more connected. And never felt more alone.

According to a 2023 Harris Poll, nearly 80% of Americans would choose a completely in-person social life over a digital-only one. Globally, governments are responding with white papers, ministers of loneliness, and social strategies. Investors might want to respond too.

Because loneliness? That’s a market signal.

Sociologist Ray Oldenburg once coined the term “third places”—places outside of home and work where people gather. Coffee shops, gyms, parks, padel courts.

Now, we’re seeing the evolution: “fourth places.” Book clubs. Pottery meetups. Padel groups. According to Eventbrite’s 2023 survey, 73% of 18–35 year olds plan to attend in-person events soon. Even better? 85% of those who already did said they made a close friend.

It’s clear. Gen Z and Millennials don’t just want community. They’re building it. But when they can’t find it?

They adopt it. Fur, paws, and all.

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Previously on Heyokha…

Remember our deep dive into the Microjoy Economy—where small, emotionally potent purchases like Labubu toys reflected a shift from macro-consumption to micro-splurges? Consider this the sequel. And yes, we still believe in the power of joy per Rupiah.

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Pets: The New Social Infrastructure

When you can’t find a third space, a third species will do.

According to a 2023 OnePoll survey for Synchrony:

• 41% of Gen Z would rather spend $100 on their pet than their partner.
• 36% of Gen Z say they get more joy from seeing their pet happy than their partner.
• 42% would skip vacations to save for surprise pet costs.
• 45% would give up eating out for a year in exchange for free pet care.
• Nearly half of millennials would sleep outside in the snow if it meant their pet could live one more year.

We are not joking. But we are impressed.

And let’s talk money. Synchrony estimates that the total cost of raising a dog over a lifetime can range between $20,000 and $55,000. For cats, it’s $15,000–$46,000. In an era where human babies feel financially impossible, pets are stepping into the emotional—and budgetary—void.

Babies? Maybe Not. But Definitely a Beagle.

According to Pew Research, 47% of young U.S. adults now say they’re unlikely to have children. Why? Top reasons include:

• It’s too expensive.
• The world feels unstable.
• Honestly, they just don’t want to.

So what do they want instead?

• Something cuddly.
• Something emotionally validating.
• Something you can name after your favorite drinks or dessert without much judgement.

Hence: the fur baby boom.

In fact, Gen Z spends an average of $178/month on their pets, according to Lemonade the insurance company (2024). That’s nearly $90/month more than Boomers. Over a pet’s lifetime, that translates into luxury-brand-level spending.

And all this love for pets? It’s also changing the labor market. According to Indeed’s 2025 Best Jobs list, veterinarian is now the #1 job in America. Job postings for vets rose 124% between 2021 and 2024.

Even our career aspirations are going to the dogs. Literally.

Indonesia Is Right On Cue

In Indonesia, malls have gone from “no pets allowed” to rolling out red carpets for fur babies. Major shopping centers now provide pet-access zones, dedicated parks, hydration corners, and yes—boutique grooming services inside the mall.

 

And if you’re still wondering whether pets have made it into the mainstream, just ask Bobby.

Yes, President Prabowo’s cat Bobby is arguably the most influential feline in the country. With over 1 million Instagram followers, Bobby doesn’t just sit pretty—he rolls up to events in a customized Rp6.5 million stroller (equivalent to $400 USD), flanked by a full security detail. And when Bobby made a public appearance, even Bill Gates showed up to meet him.

1 million fans for the feline. We weren’t kidding about Bill Gates. He even gifted Bobby a whale plush toy.

Bobby rolling into Jakarta’s Pet Fest as an honorary guest, decked out in his custom stroller equipped with an iPad. Bobby is so popular he has a Wikipedia.

The message is clear: in Indonesia, fur babies aren’t just welcome. They’re VIPs.

Indonesia’s digitally native, pet-loving population makes it fertile ground for this shift. Pets, once confined to the home, are now part of the daily fabric of urban leisure—and even statecraft, apparently.

Investor Implications: It’s a Fur-Midable Market

Some might brush this off as fluff. But don’t let the tiny sweaters and diamond-studded scratching posts fool you.

This is a market.

And it’s a sticky one. Pets don’t get cheaper as they age. They get more expensive. And pet owners? They’re loyal. More loyal than… well, most customers in any other vertical.

The winners in this space will be:

• Platforms that combine quality with personalization
• Brands that offer emotional ROI, not just calories
• Services that integrate grooming, vet care, and wellness under one app, one brand, one leash

And as traditional third spaces evolve—or vanish—brands that can become proxy communities will capture not just wallets, but hearts.

In a time when people are skipping weddings, deferring mortgages, and swiping right less often than they’re checking their dog’s calorie tracker, one thing is clear:

This isn’t just a lifestyle shift. It’s a portfolio opportunity.

So the next time you pass a stroller on the street, don’t assume it’s a baby in that stroller.
It could be your next growth driver—covered in fur, drool, and a Gucci harness.

 

Tara Mulia

Admin heyokha

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Salon in a high premium mall in Central Jakarta. 1pm on Saturday. I should be seeing the last chair being fought over at this point

The salon was empty. On a weekend.

So empty, in fact, that they started offering happy hour promos on a Saturday—a time usually reserved for weddings, reunions, and revenge glow-ups.

When I asked the staff what was going on, she shared: “It’s only busy now during weekday lunch… and it’s mostly just shampoo and blow-dry. No more exclusive packages.”

Doth my eyes deceive me? Monday TO Sunday??

If the best indicator of consumer confidence could be measure by our hair, then it seems the mood has shifted from “treat yourself” to “just trim the split ends”.

On the ground, we’ve also seen another curious signal: a cigarette ad promising: “40% longer lasting.” It’s a strange pitch, but a telling one. The message isn’t about taste or image. It’s about duration.

In other words: We know you’re saving. Let us help you savor

These are not just quirky moments. They are hints of how people are recalibrating their spending.

Some data points:

• Eid holiday travel dropped 24%.
• Ramadan’s usual consumption boost never materialized.
• Sales growth for food, beverage, and tobacco? Just 1.3%—down from 7.5% last year.
• Fuel consumption dipped 1.1% during Eid.
• Debit card transactions declined 4%, while credit card growth slowed notably.

But this isn’t a tale of retreat. It’s one of reinvention.

This is Global

Look beyond Indonesia and you’ll see the same trend lines forming.

In the U.S., credit card delinquencies are creeping toward pandemic-era highs. Klarna—the “Buy Now, Pay Later” poster child—saw its losses double. Nearly half of its users paid late last year; a quarter used it for groceries.

Source: The New York Times

Consumption persists, yes—but often at the cost of savings and future spending. The mood isn’t “fear,” it’s focus. On essentials, on efficiency, and yes—on small, meaningful indulgences.

The Labubu Logic: Why Small Splurges are Big Business

We’re not seeing the end of spending—we’re seeing the evolution of how people choose to spend.

From flashy, high-ticket purchases to lower-cost, higher-yield experiences. From conspicuous consumption to curated comfort.

Because when the future feels hazy, people hold tight to the small things they can control: a quick treat, a satisfying purchase, a moment of delight.

Somewhere between coping and collecting, Labubu Version 3 dropped. With its ombré sparkle and limited availability, it sold out instantly. For many, it wasn’t just a toy—it was a moment of joy, a small win in a time when big wins feel delayed.

Labubu is more than a figurine. It’s the mascot of the Microjoy Economy.

Labubu fans flying to Singapore to get the “Merbubu” exclusive collection. In the UK, some stores had to pause selling because the crowds got too intense

If you squint past the glitter, you’ll see something quietly profound: even when wallets tighten, the need for joy doesn’t disappear. It just finds smaller vessels.

This isn’t irrational. It’s adaptive. A concept economists once called the Lipstick Index—resilient demand for small luxuries during downturns—now has a Gen Z upgrade. Call it Lipstick 2.0 or the Microjoy Index:

• Boba tea over Birkin bags
• a cold whisked matcha over Gucci
• Labubu over long-term planning

These aren’t just trends. They’re emotional hedges. Consumers are engineering their own sense of resilience through affordable indulgence, building a decentralized joy system from the bottom up.

Because when control over the macro feels distant, taking command over a tiny purchase—or ripping open a mystery box—feels like reclaiming something. You can say it’s hedonic risk management with a splash of TikTok sparkle.

Indonesia is Built for This Moment: The Story of Ci Mehong

Indonesia’s consumption culture and demographics make it a prime landscape for this trend:

• Young, mobile-first population
• Familiarity with digital scarcity (e.g. flash sales, hype drops)
• Cultural lean-in to collecting, limited editions, and bite-sized luxury

Rather than pulling back, many consumers are simply changing course with GJP (Gross Joy Product) is rising towards purchases that feel more personal, rewarding, and shareable.

Take Ci Mehong, the viral entrepreneur behind PIK Baking House.

She started with holding baking classes. Then she pivoted—fast. Now she sells premium snacks (think bika ambon and lapis legit), imported fruit, even exclusive cemetery land. All infused with her trademark spunky attitude.

Her secret? Presence. Daily videos, viral challenges, and a direct connection to 700K+ loyal followers. She built not just a product line, but a culture of inclusiveness. A space where high prices feel less intimidating when delivered with flair.

And it works. Not in spite of the times, but because of them. Her success story exemplifies how innovation and adaptability can thrive, even in challenging economic times.

Her secret recipe? Videos of her doing various viral challenges like toppling buckets of butter, daily home cooking and dress shopping achieving that “casual relatable feel” whilst keeping her sassy attitude

Final Thought: Small is the New Smart

We began this story in a salon—eerily quiet on a Saturday.

We passed a cigarette ad selling longevity over luxury.

We ended up with a glittering goblin-like toy named Labubu, a reminder that joy doesn’t have to be expensive—it just needs to be engineered right.

The consumer hasn’t disappeared. They’ve just reallocated.

From splurging on big-ticket aspirations… to investing in small, high-yield feelings.

For investors, this is a map—pointing toward the companies that understand the moment:
✅ Those that package presence, not just product.
✅ Those that master scarcity and storytelling, not just shelf space.
✅ Those that live natively in mobile culture, where virality converts faster than footfall.

This isn’t a downturn. It’s a design brief.

The next wave of winners won’t be those who wait for a rebound in old spending habits—
But those who ride the microjoy wave with precision, playfulness, and presence.

 

Tara Mulia

Admin heyokha

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In 2011, Marc Andreessen, co-founder of Silicon Valley VC firm Andreessen Horowitz, declared: “Software is eating the world.” And for the next decade, it did — with the appetite of a teenager left home alone with a freezer full of pizza pockets. SaaS replaced shelves. Apps replaced advisors. CRM dashboards became the new temples of capitalism.

But now, software’s no longer the one doing the eating.

Because in 2017, Jensen Huang, CEO of Nvidia — the man whose chips power much of today’s AI revolution — flipped the script. During an interview with MIT Technology Review, he said:

“Software is eating the world, but AI is going to eat software.”

Back then, it sounded like fluff. Today, it sounds prophetic.

So, What Does “AI Eats Software” Actually Mean?

Imagine a world where you don’t click through 12 drop-down menus to run a report, or learn how to use a CRM just to check who missed a follow-up. That’s the old model of software: structured, manual, built for interfaces designed by engineers for other engineers.

Now imagine you just say:

“Show me all clients who haven’t responded in 30 days but opened our latest email.”

And something just… does it. That’s the new paradigm.

AI eats software by bypassing the software interface entirely. It doesn’t click where you would click — it skips the UI altogether. The new interface is natural language, gesture, or intent — what we already use to interact with people.

Why learn =VLOOKUP() when you can ask, “What’s our top-selling product by region in Q1?”
Why wrestle with Salesforce dashboards when you can say, “Remind me who I pitched to last week who liked the blockchain bit”?

You’re no longer operating software. You’re collaborating with cognition.

Microsoft Excel’s first commercial in 1990. Same cells. Same one guy doing all the work

The Software We Might Not Need Anymore

Let’s use a grounded example: Salesforce.

• It’s expensive.
• It’s clunky.
• It’s useful… but mostly because it’s the only thing connecting your emails, contacts, and pipeline.

But what is Salesforce, really? A glorified database — designed to help you remember things and show them nicely.

If an AI can access the same backend and answer your questions directly, what exactly are you paying for? The UI? The clickability? The consulting hours?

Once the value shifts from how you find the data to how well it understands your request, UI-heavy software becomes an endangered species.

A New Definition of Work: Intent → Fulfillment

In today’s workflow, there’s a lot of “middle”:

• Intent: I want to know something.
• Learning the interface: Where do I click? What formula do I use?
• Manual translation: Convert your question into clicks and keystrokes.
• Fulfillment: Finally, the software spits out something (hopefully relevant).

AI collapses this.

With natural language, intent goes straight to fulfillment.

No need to learn how to use a tool that just does what you say.

No more switching between tabs to manually bridge your thoughts from one interface to another.

At some point, all that back-and-forth just wears you down.

This is why software itself is starting to look like a delay, not a productivity boost.

Software was the scaffolding. AI is the elevator.

Adobe’s Awakening: When Models Matter More Than Menus

Take Adobe — a company that’s been a household name for decades. When generative AI boomed, Adobe tried to keep up by launching its own model, Firefly.

Unfortunately, Firefly flopped.

Its performance lagged behind OpenAI and Midjourney, and the creative community noticed. Adobe eventually had to open its platform and integrate outside models.

Lesson learned: having software is not enough. If your AI underperforms, your UI becomes irrelevant. Even giants must kneel to models that work.

The Hardware Renaissance: AI Builds as It Destroys

Here’s the plot twist.

While AI eats software, it simultaneously builds up something else: hardware.

To run massive AI models in real time, we need:

• Data centers
• Specialized chips
• Smart edge devices like wearables, cameras, and autonomous robots

Google’s unveiling of Android XR where their newest headsets and glasses integrates Google Gemini

Huawei also in the smart wearables space with their latest Smart Glasses 2 with AI-powered features and live interpretation feature through voice commands

 

In other words: AI is software reincarnated in physical form. It’s a brain that now needs a body.

This is why Nvidia is booming. Why Huawei is building smart glasses. Why robotics and drones are staging a comeback.

We’re not entering a post-software era. We’re entering a pre-hardware renaissance — built by AI.

Now, how does this all play out in Indonesia? In this race, we may not be building the chips just yet— but we can align with those who do.

That means partnering with the infrastructure players. Becoming part of the AI supply chain, even if we’re not hosting the mainframe ourselves. (Think: nickel for batteries, fiber for connectivity, and sovereign data policies that attract responsible AI builders.)

For Investors: Who’s Toast, Who’s Turbocharged?

Let’s get practical.

If AI eats software, then investors need to rethink what they’re betting on. Here’s how:

• Caution on Software-First Companies
  If their core moat is “we make nice dashboards,” that’s not defensible anymore. Especially if AI models can give the same value — with no interface at all.
• Look for Hardware-Adjacents
  Compute demand is exploding. From cooling companies to chip suppliers to industrial automation — hardware is hot again.
• Back AI-Native Companies
  The ones that are born in this AI-first architecture. Not bolted-on. These firms start with the question: “What can we do if the interface is human language?”

Think less SaaS. Think more intent orchestration layers.

Final Thought: What If AI Isn’t Just the End of Software — But the Start of Simplicity?

Maybe “AI eats software” sounds scary because we’ve grown up thinking software was the prize. That learning Excel made us employable. That CRM mastery meant you were “good at your job.”

But what if we’ve just been training ourselves to speak “machine”?
And now, finally, the machines speak us?

It’s not the end of software.
It’s the end of unnecessary complexity.

And that means the future of productivity may not be about working harder or coding faster — but about speaking clearly, and letting intelligence do the rest.

 

Tara Mulia and Simon Chan

Admin heyokha

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Morning, Jakarta’s prospector

We are all a prospector, in one way or another

In the old days, prospectors panned rivers for gold; today, they ride motorbikes through Jakarta’s traffic, chasing fortunes of a different kind. From freelancers to sales reps, these urban adventurers trade pickaxes for smartphones, navigating the daily chaos with grit, caffeine, and a dream.

History is full of fortune chasers—rugged gold miners, daring merchants, and scrappy dreamers turning rags to riches. As Adam Smith famously noted, it’s not the butcher’s kindness that brings you meat, but his self-interest. The world runs on hustle, not handouts.

The thrill of prospectors brings back my memory about the movie “Gold”.

Gold (2016) is a gritty adventure-drama inspired by true events, starring Matthew McConaughey as Kenny Wells, a desperate prospector who teams up with a geologist to find gold deep in the jungles of Indonesia. Their discovery triggers a whirlwind of fame, fortune, and Wall Street frenzy—until things unravel in a web of greed, illusion, and betrayal. The film captures the highs and lows of chasing wealth, reminding us how thin the line is between striking it rich and losing everything.

 

The recent gold price action to all-time highs has given birth to new wave of gold prospectors. In Jakarta and reportedly many other cities in Asia, it is a common scene to see people lining up to buy gold bars. An asset class once considered for the elderly is now once again a hot trend.

We are all gold prospectors – Indonesians queued since dawn to buy gold at its peak early April

While recent gold price action has been exhilarating, it evokes mixed feelings for many. Some may fall back on the notion that whatever becomes “mainstream on Main Street” often signals a contrarian opportunity instead. But the lingering question remains: will this time be different?

Testing the waters

I had the privilege of speaking at a seminar for the Hungrystock community in Jakarta on May 1st, 2025.

The audience was filled with fundamental investing enthusiasts. Inspired by Warren Buffett, these individuals spend hours poring over research before making their stock purchases. They also have a fondness for buying stocks on a bargain — the kind that never flinches in the face of a bear market!

The topic of the seminar? Market and Macro Outlook. The room buzzed with curiosity, skepticism, and a shared hunger for what lies beneath the surface of this resource-rich nation, but one topic kept bouncing around the room as I made my way to the stage: “Is gold price going to get any higher?”.

Five minutes into a slide deck, I decided to test the room full of around 150 savvy retail investors with a quick show of hands survey:

“Who owns gold ?”  About 8 people raised their hand (equal to 5% of the audience).

I suppose most of the married people forget what their wedding rings are made of.

“Who owns gold equities?” About four people raised their hand (equal to 2.6% of the audience).

This seems to indicate that gold, either in physical form or equities to be under owned to begin with. At least confined to that room.

Now this is where it gets interesting.

“Who thinks that the gold price is too high and will decline?” About 20 people raised their hand (equal to 13% of the audience).

“Who thinks that the gold price will continue to go up?” About roughly 70 people raised their hand (equivalent to 46% of the audience).

Apparently, most investors are missing the action in gold

The bottom line from this anecdotal exercise indicates that while most people are bullish on the gold price, it remains an under owned asset.

This issue is not just the retail investors. Sprott’s latest Q1-2025 commentary shows Western financial advisers sitting at their lowest gold allocation since 2019, while holdings in gold-backed ETFs remain almost 20 % below the 2020 peak.

Sources: Sprott

Central banks have not missed the game however and are the hoarding metal. Feast your eyes on the century-and-a-half roller-coaster below:

Exhibit A – “Gold’s Revenge Tour.” Gold’s share of global reserves (blue) dominated the pre-WWII era, went on a decades-long hiatus, and is now sneaking back on stage just as the dollar’s share (red) loses a few decibels.

And guess who’s buying backstage passes? Asian central banks specifically—they’ve been the biggest net buyers of bullion since the current dollar bull run kicked off in 2014.

Sources: Gainesville Coins, IMF

The Philosopher’s Nugget

Henry David Thoreau, famous American naturalist and philosopher, once said “There are a thousand hacking at the branches of evil to one who is striking at the root”. Investors, likewise, lunge at the branch called “price momentum” and ignore the root called “ownership base.” When ownership is thin, supply of new sellers is thinner still.

Over the last 10 years, freshly mined gold supply has been stagnating.

Source: World Gold Council

Global exploration budgets for new deposits actually fell 3 % last year—even with record gold prices—and it now takes an average of 15 years to shepherd a discovery from first soil sample to first pour.

Source: S&P Global

At the same time over 99 % of existing gold mines are profitable at today’s prices, with industry margins hovering near all-time highs.

Source: Metals Focus Gold Mine Cost Service

Top 10 things people ask Santa for: A time machine

After delivering the market and macro outlook presentation, I went down the stage and spoke with a few of the audience members. It seemed my impromptu survey left a mark on them as some lamented on not buying the bullion at US $1,000—or US $2,000 and wished they could go back in time to urge their past selves.

But here’s the thing – a time machine might not be needed after all – gold equities still trade at single-digit cash-flow multiples while bullion toys with record highs. As Sprott’s John Hathaway puts it, miners offer “significant torque (operational leverage) potential” versus the metal itself.

AISC margins are far higher than they were in 2018 making the HUI Index undervalued relative to gold price

Source: StockCharts

Parting Shot

As people started to file out of the hall, a gentleman approached me:

“Gold still feels risky. Don’t you think it’s overbought?” he paused then added, “But maybe the bigger risk is not owning any.”

That comment rings true now more than ever.
Fiat earned our trust once—backed by discipline, restraint, and real limits.
But over time, that trust has been stretched by endless debt and printing presses.
Gold, on the other hand, doesn’t ask for trust.
It doesn’t promise. It doesn’t default. It just is.
So maybe the real question isn’t whether gold is overbought—
but whether the paper we measure it in still deserves our trust.

 

Nicholas and Tara Mulia

 

Admin heyokha

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When the U.S. Dollar Index (DXY) dipped below the psychologically sacred 100 mark, the reaction across markets was immediate and biblical.

Bond yields erupted like a volcano no one had prepared an evacuation plan for.
Volatility rose sharply — not quite “end of the world” levels, but just enough to make traders double their coffee intake and triple-check their hedges.
Gold? Gold didn’t just rise — it strapped on a superhero cape, crashed through a few ceilings, and started flexing in slow motion.

It was, by all appearances, chaos.

And yet, there I sat—having gone through my second matcha in hand—deeply preoccupied with trying to figure out why my toast had burned on only one side.

Because here’s the thing: this wasn’t a heart attack. It was more like a long-overdue jog.

The dollar, after decades of indulgence, is simply trying to slim down. And trimming trade deficits, like trimming body fat, follows the same rule:

• Consume less than you expend

In trade-speak, that means importing less (or exporting more).

• Shed excess weight naturally

A modestly weaker dollar makes U.S. goods cheaper abroad

• Rebalance energy

Domestic factories and payrolls pick up the workload that overseas suppliers had been shouldering.

In that light, a weaker dollar isn’t a breakdown—it’s the feedback loop of a country attempting a strategic reset.

And behind that adjustment lies a bigger story: the U.S., under a Trump 2.0 presidency, is re-evaluating decades of trade dogma—not out of theory, but necessity.

Trump 1.0: Big Talk, Smaller Follow-Through

When Donald Trump took office in 2017, he promised to tear up “unfair trade deals” faster than a kid opens birthday presents.

NAFTA got rebranded as USMCA. Tariffs were slapped on China. Economists panicked.

But in practice?

• The U.S. trade deficit actually grew, from $481 billion in 2016 to $679 billion in 2020.
• Manufacturing jobs saw a brief lift before the pandemic pulled the rug out.
• The Phase One deal with China delivered photo ops but little systemic change.

Trump 1.0 was loud—but left the deeper structural incentives for offshoring intact.
Meanwhile, global rivals like China played a very different game.

The Richman Perspective: Free Trade’s Fine Print

Enter Balanced Trade (2014), by Jesse, Howard, and Raymond Richman.
We don’t quote it because it’s gospel—but because it captures how the U.S. might be viewing its predicament.

The Richmans argued that textbook free trade assumes everyone plays fair. But when countries embrace mercantilism, the game breaks.

Their key points:

• The U.S. hasn’t posted a goods & services surplus since 1976.
• Foreign reserves ballooned from $1.4 trillion (1995) to over $10 trillion (2013).
• America’s net international investment position flipped from +13% (1980) to –35% (2012).

And what’s more concerning: countries like China and Japan don’t spend those dollars on U.S. goods—they buy U.S. debt. As of early 2025, China holds $784.3 billion in Treasuries; Japan, $1.13 trillion. According to the Richmans, that’s not trade – that’s America exporting IOUs.

The Richmans suggest a “scaled tariff”—a self-adjusting levy pegged to bilateral deficits. Not protectionism per se, just a nudge to restore balance.

Source: U.S. Census Bureau, U.S. Bureau of Economic Analysis; U.S. International Trade in Goods and Service

But again, this is a lens, not the truth. And maybe that’s the deeper takeaway as written by this book:
The U.S. isn’t declaring trade broken—it’s trying to restore competitiveness in a world where others stopped playing by the book long ago.

Trump 2.0: Trade Policy With a Bit More Teeth

Fast-forward to today: Trump 2.0 is leaning hard into so-called “reciprocity”.
Not just at rallies, but across a Washington that’s increasingly skeptical of free-market purity.

What’s on the table:

• Targeted tariffs based on bilateral trade deficits.
• Challenges to WTO rules that limit U.S. retaliation.
• Industrial policy tied to national security, encouraging onshoring of critical supply chains.

Of course, nothing is free.
A Brookings Institution report estimated that the 2018–2019 tariffs cost American consumers $57 billion a year. But for many voters—and policymakers—some level of sacrifice now feels worth it.

Globalization might have been a perfectly beautiful idea, but according to the Richmans, it is far from perfect in reality.

Global Reverberations: Some Win, Some Whimper

If the U.S. doubles down on “balanced trade,” ripple effects will follow.

Potential Winners:

• Emerging markets: India, Vietnam, Mexico—likely alternatives to China in the new supply chain map.
• Commodities: Reshoring means higher demand for industrial metals, energy, and logistics.
• Selective U.S. sectors: Tech, pharma, and defense-related manufacturing.

Likely Losers:

• Export-reliant economies like Germany, South Korea, and Japan.
• Global investors navigating rising FX and bond volatility.

The IMF warns: if tariffs become widespread, global GDP could shrink by 0.5%.
Not world-ending, but not nothing either.

Food for Thought: Was Free Trade Ever Really Free?

The Trump 2.0 shift isn’t just about tariffs—it’s a symptom of deeper anxieties:

• If globalization weakens national resilience, is it still worth it?
• Can you really have fair trade, and what does fair trade rhetorically even really mean?
• Is consumption-driven growth sustainable when you’ve outsourced everything?

The Richmans’ thesis? Free trade without balance is like a gym membership you never use: looks virtuous, accomplishes nothing, eventually hurts your back.

But maybe it’s not even about trade. Maybe this is more of a consistent reaction from a dominant power threatened by a rising power.

Whether led by Trump or simply the prevailing mood in Washington, the world is clearly shifting toward a more fractured, competitive, less globalized future.

The rules are changing.
Act II has begun.

Fasten your seatbelt—and maybe stash a few gold coins, just in case.

 

Simon Chan and Tara Mulia

Admin heyokha

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The city was still wrapped in that pre-dawn quietness when we left Jakarta at 6 AM, the kind of calm that settles just after heavy rain. A ragtag group—friends, colleagues, and fellow travelers in the investment track—rolled out toward Sentul, an hour ride away from Jakarta,  half-awake but fully committed to spending the day sweating voluntarily.

The night’s downpour meant one thing: mud. Some of us secretly hoped for another drizzle, a convenient excuse to bail. But, in classic group fashion, everyone acted enthusiastic.

We arrived around seven, the air thick with mist. A smiling local guide sized us up, and perhaps sensing our collective overconfidence, cheerily recommended the “advanced” trail. A few uncertain glances exchanged; nods followed—because how bad could it be, really?

Braving through the mud

The trail began deceptively easy—bamboo groves, damp ferns, serene surroundings. Soon enough, though, the incline sharpened. Mud turned slick underfoot; roots became both handholds and trip hazards. Each step was carefully placed. Eyes down, minds focused. Nobody was planning more than a foot ahead.

Then came a shout:

“Stop and look!”

Reluctantly lifting our gaze from immediate challenges, we were met with a view that made jaws drop. The village below, so minuscule from up here, marked our unnoticed progress. How far we’d climbed, step by muddy step, was remarkable.

And in that quiet, reflective pause, a familiar thought struck me:

How quickly we forget the journey when momentarily slipping in the mud.

In investing, a bad season can make any investor nervous. We stare at our immediate steps—worrying over recent downturns, quick to question, quicker to criticize. But zoom out just a little, and those “terrible seasons” fade into the broader narrative—a story where money doubles, triples, even quintuples.

It’s easy to forget how far we’ve climbed when we’re busy cursing the mud.

Howard Marks had a point: “If you avoid the losers, the winners take care of themselves.” Or translated for our hike: “Manage your footing, and the peak will eventually appear.”

The climb continued, rhythmically challenging yet strangely meditative. Conversations bubbled up once the terrain eased—laughing, debating, and exchanging exaggerated “war stories” from past hikes. I noticed different hiking styles mirrored how people approach problems: some methodically tracking every meter of ascent, others instinctively reading the terrain, while a few trusted blindly (perhaps a little too blindly) in luck. Different methods, same muddy path.

And all the while, the trail kept throwing surprises at us. Just like the market. One minute it’s calm, the next you’re dodging another slippery slope. A bit like keeping up with tariffs in the news: Monday it’s elections, Tuesday it’s 34% tariffs, by lunch the Fed speaks, and before you finish your coffee it’s 54% tariffs. Elon tweets something, up it goes to 104%, then Trump posts on social media and suddenly it’s 145%. At some point you stop checking and just focus on not faceplanting.

   

 

No shortcuts emerged. No “cheat codes.” Just consistent, cautious steps forward—punctuated by occasional helping hands, usually just before someone slid embarrassingly backward.

By lunchtime, exhausted and muddy, we descended back to base, hunger gnawing pleasantly. The post-hike BBQ was undeservedly delicious, a payoff disproportionate to our modest morning exertion.

Driving back, staring at Jakarta’s familiar skyline, the day’s symbolism was clear as day. Progress rarely announces itself. Whether on a mountain or in a market, it’s the quiet, consistent effort that accumulates into something meaningful. A few moments may look messy. Some stretches may feel like setbacks. But give it time, step back, and the bigger picture starts to reveal itself.

Markets, much like misty mountain trails, reward patience over panic, steadiness over speed, and presence over noise.

Keep walking through the mud, and sooner or later, you’ll find yourself at heights you never expected. The view, as always, will take care of itself.

   

 

Aryo Soerjohadi

Admin heyokha

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I remember the moment vividly. I was sitting alone, eyes skimming across a late-night article when the words hit me: human intelligence may have peaked around 2012.

At first, I laughed—sharp, startled, almost too loud for the silence of the room. But it wasn’t joy that bubbled up. It was that peculiar kind of laughter we sometimes summon to soften the sting of something profoundly unsettling. Beneath the chuckle was a quiet ache, the kind of laugh you let out when the ship’s already halfway sunk and someone points out the hole – as if I had just stumbled upon an obituary for our collective potential.

Could it really be true that the year we collectively lost our minds to “Gangnam Style” marked the height of our cognitive brilliance?

Yet as I sipped my tea, the absurdity faded into uneasy plausibility. According to the OECD’s PISA score, our global yardstick for reading, math, and science, we’ve been quietly declining ever since. Adults aren’t immune either; a third of Americans reportedly struggle with basic mathematical reasoning. No wonder family dinners can spiral from civil to chaotic faster than Twitter feuds—minus character limits, but with twice the drama.

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Source: Financial Times, OECD, PISA PIAAC, and Adult Literacy and Lifeskills Survey

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But hold your despair—I’m writing this precisely to preserve our collective IQ, a modest attempt at intellectual CPR in a sea of digital distraction.

Richard Thaler and Cass Sunstein’s groundbreaking book, Nudge, introduces choice architecture—the subtle art of shaping decisions without limiting freedom. Ironically, social-media giants have mastered the dark side of that idea, nudging us toward dopamine loops that short-circuit deeper thought.

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Source: Chat GPT

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Yet the same principle also guides policy on a far larger canvas. Sovereign wealth funds are countries’ macro-nudges: vast pools of capital intended to steer windfalls into long-term prosperity. Norway’s Government Pension Fund is the poster child — transparent, disciplined, quietly compounding for future generations. Malaysia’s 1MDB is the cautionary flip side, showing how quickly the architecture crumbles when sunlight and scrutiny vanish.

Which brings us to Indonesia’s bold move: Danantara. Conceived to overhaul a sprawl of 800 state-owned enterprises, Danantara aims to nudge them — with slimmer boards, clearer incentives, and outside capital — toward sharper efficiency and healthier profits.

Take Bank Mandiri (BMRI IJ), for instance. Following their March 2025 shareholder meeting, the board slimmed dramatically from ten commissioners down to six, cutting bureaucracy and refocusing on clear, market-oriented KPIs like total returns, regional benchmarking, and asset quality. If that isn’t stock market friendly governance – I don’t know what is.

Danantara plans to shrink about 800 SOEs into a more digestible 200, shifting public-service obligations directly to the government’s budget. Recently, it even sealed a solid $4 billion partnership with Qatar Investment Authority, a rather impressive thumbs-up from abroad.

Yet, Danantara isn’t without its skeptics—and perhaps rightly so. Governance is a challenge; juggling transparency, accountability, and efficiency across a vast portfolio isn’t exactly a walk in the park. Political influence remains a lurking threat, raising fears about meddling undermining the fund’s credibility. And let’s not forget the Herculean task of merging diverse corporate cultures and systems—a bit like blending oil, water, and a dash of chili sauce and hoping for gourmet cuisine.

Still, history offers comfort here. Barton Biggs, in his insightful book Wealth, War and Wisdom, reassures us that in the long run markets rewards patience, adaptability, and strategic prudence rather than reactionary panic. Danantara’s calculated, steady adjustments resonate deeply with this historical wisdom.

Back to the original point – what captures our online attention? Not the careful restructuring or billion-dollar partnerships, but isolated controversies or catchy headlines. Behavioral economics explains this perfectly: negativity bias and the availability heuristic lead us to equate visibility with importance. The architecture of our digital platforms nudges us toward reacting rather than reflecting.

Perhaps the renaissance we need isn’t limited to institutional reforms but extends to reclaiming our own attention and discernment. In an age of engineered distraction, the ultimate intelligence might just be knowing where to place our focus— recognizing the quieter, transformative work of initiatives like Danantara is precisely the kind of intellectual revival we need.

So next time I catch myself endlessly scrolling, half-liking forgettable posts and wondering why sock ads chase me after a single chat mention, I’ll remind myself to choose substance instead. A book that challenges my assumptions, a report that deepens understanding, or perhaps a thoughtful reflection on quieter transformations.

After all, true intelligence today isn’t just about what we know— it’s about deciding thoughtfully where to direct our attention. And perhaps, in doing so, we might start noticing transformative stories like Danantara that deserve far more than just a fleeting glance.

 

Wuddy Warsono, CFA and Tara Mulia

Admin heyokha

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Markets aren’t just driven by cold, hard numbers—they thrive on drama, narratives, and sometimes, sheer comedic timing. In a twist that’s almost poetic, Donald Trump’s iconic bestseller, The Art of the Deal, has shot back to the top of Amazon’s charts, precisely as Trump unleashes yet another tariff tornado. Coincidence? We think not. It’s almost as if investors are flipping through the pages looking for clues.

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“The Art of the Deal” shoots up in first place. Coming close in second? The same deal

Seems like it’s not just Amazon users, people truly are searching for answers in Google

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Tariffs? Again? (Quickly, because you know already and it’s changing every second anyway):

Trump’s latest trade war moves are bigger, louder, and more bewildering than ever. If fully enacted, these tariffs would hit about US$1 trillion in global trade. Notably, potential spikes in U.S. bond yields could drive refinancing costs up by nearly $900 billion, a number Trump probably wouldn’t describe as “beautiful.”

Goodbye Safe Havens, Hello Reality Check

Here’s something intriguing: investors, usually quick to grab U.S. Treasuries and U.S. dollars at the faintest whiff of trouble, are avoiding them like leftover sushi at a gas station. Rather than flocking to these classic safe havens, markets are selling off both Treasuries and the dollar.

But hold your conclusions—this bond sell-off might not necessarily signal a broader loss of faith in U.S. safe havens. Hedge funds with significant short positions might be the culprits, potentially even including Japan or China, who hold the largest and second largest holdings of U.S. Treasuries at $1.079 trillion and $706.8 billion respectively. Such strategic selling could have sent a strong message, prompting Trump to reconsider his aggressive tariff stance.

So why the sudden pause from Trump? If you crunch the numbers, the revenue from new tariffs wouldn’t offset the soaring refinancing costs of rising bond yields. Essentially, Trump might have inadvertently created a panic without tangible economic benefit, leading to this pause. His plan might have originally been to push investors from equities to bonds, driving yields down. But markets seldom follow such neat scripts. As Trump wisely noted in The Art of the Deal, “The worst thing you can possibly do in a deal is seem desperate to make it.” Maybe the bond market caught him looking a bit too eager, prompting a quick recalculation.

Distrust and the End of American Exceptionalism?

While it’s too early to confidently declare the end of American financial dominance, there’s a growing suspicion that investor trust in U.S. fiscal policy is beginning to fray, a topic we suspect and covered extensively in our recent report.

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Q3 2024 Special Report on De-dollarization found in our website

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Could it be the US is losing its financial “comfort blanket” status? With net interest payments and entitlements now gobbling up a staggering 96% of federal receipts, maybe creditors are starting to wonder if Uncle Sam is running out of couch cushions to shake loose for spare change.

The game is shifting. Trump recently said he’s “watching the bond market” and described it as “beautiful.” But beauty, Mr. Trump, is in the eye of the bondholder, and they seem increasingly nervous.

And it’s not just the money game that’s changing; global power dynamics are shifting too. This is the first time since 1945 that the rule-based order is under significant strain. China is centralizing and solidifying its role as America’s prime challenger, while the US responds with nationalist policies. This rivalry threatens the international order, complicating collaboration that the U.S. has been building since the end of World War 2 on existential threats like climate change, pandemics, and cyber security. But hey, why worry about global crises when there’s real estate in Greenland to talk about? As Trump wrote himself in the book, “Location is everything”. We should have known it’s simply prime real estate for him.

Trump’s transactional approach—think buying Greenland or reclaiming the Panama Canal—reflects a divided American electorate. One half cheers nationalism; the other yearns for liberal internationalism. Meanwhile, mounting debt, military spending, and stagnant wages have fractured the political center, turning global leadership into a spectacle.

Calm Before the CAPEX Storm?

While the tariff tornado seems to have momentarily calmed, businesses are stuck wondering: How do you plan long-term investments when policy changes faster than Trump’s Twitter mood? Perhaps the answer lies in reading the “Art of the Deal” (1987) Granted this book was published in the 90s, but hey, people rarely change right? Unanswered questions linger, and that uncertainty might be the new normal.

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Viral AI image: Essential reading for President Xi

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Speaking of Confidence… China’s Feeling Pretty Good!

Ironically, amidst Trump’s tariff tempest, China appears surprisingly calm. Xi Jinping’s government has spent years reducing its economic dependence on America, now directing less than 15% of its exports to America—down from nearly 20% in 2017, and recent domestic economic boosts have cushioned the blow. Heck, China’s prime minister recently bragged about an animated film, Ne Zha 2, smashing box-office records beating every Disney and Pixar film —apparently a stronger economic indicator than we thought.

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Ne Zha 2 is the first animated movie to pass $2 billion at the global box office

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Beijing’s matching tariff strategy is textbook game theory: whatever the U.S. does, China mirrors, seeking equilibrium in escalating tensions.

But China’s boldness could have another layer: it might be leveraging its massive Treasury holdings to signal its capability and willingness to cause disruption. If hedge fund selling is indeed partly influenced by China, it’s clear Beijing is signaling to Trump: “We can cause panic too.”

Now, Back to Trump and Roy Cohn’s Playbook

Trump’s mentor, the infamous Roy Cohn, laid out three strategies: attack relentlessly, deny everything, and always claim victory. Trump’s recent comments echo this playbook perfectly.

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Roy Cohn and Donald Trump played by Jeremy Strong and Sebastian Stan in the film “The Apprentice”

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Attack, Attack, Attack: Trump lashed out on social media, accusing China of economic exploitation, recently tweeting: “China continues its theft! They must pay!”

Admit Nothing, Deny Everything: When economists warned tariffs were hurting Americans, Trump tweeted dismissively, “Tariffs are great! They’re filling our coffers!”

Always Claim Victory, Never Admit Defeat: Trump recently boasted, “China is begging to negotiate, tariffs working beautifully!” Meanwhile, economists nervously glanced at GDP forecasts.

Wrapping It All Up

So, what’s the moral of this chaotic tale? Trump’s tariffs are doing more than rattling markets—they’re reshaping global economic confidence and challenging America’s longstanding financial dominance. And while Trump watches the bond market thinking it’s a masterpiece, the rest of us might want to buckle up—because this is less beautiful and more… abstract art.

With the bond market now more comedy than classic, investors might find themselves laughing to cope—because in today’s world, humor might just be the best investment strategy available.

Tara Mulia

Admin heyokha

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In an era where environmental consciousness is no longer optional but essential, global corporations are stepping up to embrace sustainability. Multinational brands like Adidas are leading the charge by integrating recycled materials into their products, demonstrating that eco-friendly practices can coexist with profitability and mass production. Adidas’s commitment to using recycled polyethylene terephthalate (rPET) in their footwear and apparel not only reduces plastic waste but also sets a precedent for other industry giants to follow.

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More than 96% of polyester used in Adidas products are recycled (left)

Adidas partners with Parley for the Oceans to repurpose ocean plastic waste for their shoes (right)

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But what happens when smaller businesses adopt the same mindset? Can they scale sustainable efforts effectively while maintaining profitability? At Heyokha, we’ve been exploring this question and are inspired by companies that prove it’s possible. One such example is Impack Pratama (IMPC IJ), an Indonesian company revolutionizing the construction industry with innovative and sustainable solutions. IMPC’s approach to sustainability goes beyond profit—it’s rooted in addressing real-world challenges, empowering communities, and creating products that solve systemic issues.

 

Transforming Waste into Innovation

At the heart of IMPC’s sustainability push is its ability to turn waste into value. Instead of viewing plastic waste as a problem, the company sees an opportunity to create high-quality, durable products that reduce landfill contributions.

One of its latest innovations is a roofing product made entirely from 100% recycled plastic waste, set to launch this year, through its subsidiary PT Sirkular Karya Indonesia (SKI). This product provides a safer alternative to asbestos roofing, which remains widely used in Indonesia despite its well-documented health risks. Asbestos exposure is linked to fatal diseases such as mesothelioma, lung cancer, and asbestosis, causing over 200,000 deaths annually worldwide, according to the World Health Organization (WHO).

IMPC’s new roofing product not only addresses the asbestos crisis but also aligns with its broader commitment to integrating Environmental, Social, and Governance (ESG) principles into its business model. By repurposing plastic waste into durable, functional materials, IMPC is demonstrating how circular economy principles can be effectively implemented in the construction sector.

IMPC has taken a major step forward in sustainability through its partnership with Marubeni, a global conglomerate committed to environmental initiatives. Together, they are advancing plastic waste recycling by developing infrastructure to upcycle various types of plastic waste into new construction materials. This collaboration aims to significantly reduce landfill waste, promote resource efficiency, and create innovative solutions that serve both environmental and industrial needs.

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Marubeni Corporation signing MOU (memorandum of understanding) with IMPC through its subsidiary PT Sirkular Karya Indonesia (SKI) on December 6, 2024

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By working with Marubeni, IMPC is scaling up recycling technology, ensuring that waste materials are not just discarded but transformed into valuable, reusable resources. This initiative reinforces the company’s mission to make sustainability a core component of industrial progress.

 

The Solar Dryer Dome: Boosting Livelihoods Sustainably

One standout example of IMPC’s commitment to sustainability is the Solar Dryer Dome (SDD), a joint project with Covestro, leading manufacturer of high-quality polymer materials. This innovative solution is designed to support rural farmers and fishermen by providing a cost-effective and efficient way to dry their produce. In tropical regions like Indonesia, where humidity often compromises the quality of harvested crops and fish, traditional drying methods are prone to spoilage and inefficiency.

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IMPC’s Solar Dryer Domes in action with farmers drying a variety of spices and fishes

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IMPC’s Solar Dryer Dome addresses these challenges by leveraging solar energy to provide a controlled drying environment, significantly reducing wastage and improving productivity. Farmers and fishermen using the domes can increase their income as they preserve their produce better, fetch higher prices, and enter markets they couldn’t previously access due to hygiene and quality concerns.

Beyond supplying the domes, IMPC actively trains communities to use them effectively, teaching proper packaging methods that enhance product value and maintain hygiene. This hands-on approach fosters a sense of ownership and pride, ensuring that users maximize the benefits of the technology.

 

Sustainable Solutions Beyond Roofing

IMPC’s sustainability efforts extend beyond roofing. The company through its subsidiary, PT Sirkular Karya Indonesia (SKI), dedicated to creating eco-friendly building products, has developed several other eco-conscious products that redefine how plastic waste can be upcycled into valuable materials:

Ecolite & Alcotuff: Durable and Affordable Solutions

• Ecolite, a cost-effective clear roofing material, provides a practical alternative to polycarbonate, often used to cover drying areas and outdoor spaces. The product is made by going through an upcycling process using PET bottles.

Ecolite roofing materials                           Ecolite in application

 

• Alcotuff, an Aluminum Composite Panel (ACP), is widely used in commercial building facades. What sets it apart? The core is made from upcycled plastic bags, layered between aluminum sheets to create a robust, lightweight structure.

Alcotuff used at the Java Innovation Center and Gastronomy Park at Surakarta

Alcotuff used at the Whoosh train station at Padalarang

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By incorporating waste-derived materials into these products, IMPC not only reduces plastic pollution but also enhances the affordability and accessibility of construction solutions.

This initiative mirrors the efforts of global brands like Patagonia, which incorporates recycled materials into their outdoor gear, and Nike, which has introduced sustainable collections using recycled plastics. These companies illustrate how sustainability can be scaled, but SKI shows that even smaller businesses can develop products that meet ESG criteria without compromising on quality or profitability.

IMPC’s business model through SKI embraces a circular economy approach, ensuring that materials are recycled and reused within the product lifecycle. This strategy not only minimizes waste but also maximizes efficiency and cost-effectiveness, making sustainable practices financially viable.

 

Eco-Friendly Applications: Sustainable Innovation Meets Tradition

Another testament to IMPC’s sustainability vision is their eco-friendly Alderon and Adaron plafond, developed under Unipack Plasindo (UPC), an IMPC subsidiary. These ceiling products are designed to merge modern innovation with environmental responsibility. Constructed from recyclable uPVC material, these ceiling panels are not only durable and functional but also contribute to a circular economy by reducing waste.

One notable application of these plafonds can be seen in a mosque in Semarang, where they were used to enhance the interior while maintaining harmony with the building’s traditional architecture. The choice of recyclable materials aligns with the values of environmental stewardship while also addressing the growing demand for green construction materials.

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Alderon and Adaron ceiling products used at a mosque in Semarang

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What makes this product remarkable is its scalability. While the initial use case might be in a single building, the potential for widespread adoption is vast, particularly in a country like Indonesia, where infrastructure development is accelerating. From urban projects to rural construction, IMPC’s plafonds represent a sustainable alternative that does not compromise on quality or design.

 

Scaling Impact: A Blueprint for Industrial Sustainability

IMPC’s Solar Dryer Dome, new roofing product, and eco-friendly plafond products illustrate that sustainability can be both impactful and scalable. They also highlight a critical lesson for businesses of all sizes: integrating environmental and social considerations into core operations doesn’t have to come at the expense of profitability. Instead, it can unlock new markets, drive innovation, and create value that extends far beyond financial metrics.

Looking forward, sustainability is not a journey that can be undertaken alone. The scalability of sustainable efforts hinges on the collective action of corporations, small businesses, communities, and governments. While global brands have the resources to set industry standards, companies like IMPC prove that meaningful change can come from any level of the business ecosystem.

At Heyokha, we are proud to spotlight companies like IMPC, whose groundbreaking work inspires change across industries. Their example reminds us that meaningful progress stems from collective efforts—be it a global brand like Adidas incorporating rPET into their products or a local company like IMPC revolutionizing the construction industry.

Sustainability isn’t just a corporate responsibility; it’s a necessary evolution that businesses of all scales must embrace. By investing in sustainable practices today, we pave the way for a future that prioritizes the well-being of people and the planet, ensuring prosperity for generations to come.

Let IMPC’s journey inspire businesses everywhere to ask: If they can do it, why can’t we? The path to a sustainable future is open to all who are willing to take the first step.

 

Tara Mulia

Admin heyokha

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Waste is a design flaw. Turning a blind eye doesn’t make it disappear—it ensures it thrives. Neglecting waste is like sweeping dust under the rug – the more you ignore it, the more it piles up until the problem is impossible to contain.

In a world increasingly driven by metrics and measurable gains, waste is often overlooked because addressing it lacks immediate incentives. Yet waste can mean opportunity, and in many cases, it translates directly into thriving businesses. For instance, the global scrap metal market is valued at a staggering US$ 407 billion, while the recycled polyethylene terephthalate (rPET) market—primarily from bottled plastics—exceeds US$ 10 billion.

This is the case of WeDoo, a circular economy consulting and engineering company based in the paradise island of Bali, Indonesia.

The neglected monster beneath the ocean

Bali, the paradise island, is known for many things – from its harmonious culture and culinary experiences to its vibrant markets and, of course, – its beaches and diving sites.

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Manta Ray swims through the obstacles of plastic waste

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Amidst the serene beauty of the nutrient-rich blue waters at Nusa Penida  – an island just off the coast of Bali – Valerine saw something disturbing during her diving session: plastic waste floating alongside the majestic marine life. This moment not only saddened her but ignited a drive to address the mounting waste problem in Indonesia’s waters. As she watched the fish struggle to swim through the debris, Valerine knew she had to act.

“It was the beginning, and I felt the urge to do something about it. I felt very sorry for what humans have done and it was like hearing the fishes speaking to me asking what we can do about it,” Valerine passionately shared.

That encounter became the “inception moment” for Valerine Chandrakesuma’s journey to create WeDoo.

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Valerine Chandrakesuma, founder of WeDoo, showcasing her latest plastic extrusion machine

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The ground up

Our personal encounter with Valerine took place in October, an ideal time to experience the beauty of Bali where the weather was neither too hot nor bogged down by rain. We visited the WeDoo workshop in Sukawati, a location renowned for its vibrant art market.

The WeDoo workshop exuded simplicity with Valerine and her small team working diligently in a modest facility. She personally oversees operations and handles the mechanical intricacies of the machineries with a hands-on approach that sets her apart – she is no ordinary womanpreneur!

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WeDoo’s machine workshop

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We were inspired by Valerine’s warmth, passionate energy and her in-depth knowledge of every piece of machinery in her workshop. This was even more impressive considering that her background is not even in engineering but in architecture.

During her studies at the University of British Columbia, Valerine began experimenting with ways to recycle and reuse materials. Alongside friends, she joined the MELT Collective in Canada in 2018, sourcing basic machines like ovens and shredders from online marketplaces like Craigslist to melt and transform plastic waste. Despite setbacks, including the dissolution of her team due to COVID-19, the dream of bringing these innovations to Indonesia stayed alive.

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Valerine passionately walked us through her machine blueprints. Admittedly, most of it was beyond our understanding at first, but the drawings had an IKEA-style comprehensibility that gave us a glimmer of hope!

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In 2022, as borders reopened, Valerine returned to Bali and partnered with a like-minded individual equally passionate about waste management. Together, they set out to create a company that could empower Indonesian islands to handle their waste sustainably. Although her partner left shortly after, Valerine carried forward the mission, establishing WeDoo officially in January 2023.

Turning waste into value

WeDoo’s core philosophy centers on the power of “small and many” solutions. Indonesia’s vast archipelago, with over 17,000 islands, presents unique challenges for waste management due to its decentralized geography.

Rather than relying on centralized waste processing, WeDoo focuses on building localized recycling systems. Their machines—designed to shred, compress, and melt —enable communities to process organic, plastic, and even glass waste on-site, transforming it into valuable resources. This approach minimizes environmental impact, reduces transportation costs, and generates economic value at the local level.

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Valerine and the Wedoo Team with one of their latest machines – the “Extruder Pro Max”, designed to make construction materials out of waste

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One of WeDoo’s key innovations is its baler machines, which compact large amounts of plastic into stackable cubes, making it easier and more cost-effective to transport and resell.

These machines, along with shredders, CNC cutters, and other custom-made equipment, enable clients like Sungai Watch, an environmental organization with a mission to stop plastic from going into the ocean, to manage plastic waste sustainably across Bali and Java. For small businesses and local NGOs, WeDoo’s machines provide a much-needed toolset to address waste management efficiently.

A vision for every island

Valerine envisions a future where each island in Indonesia has the tools and resources to manage its own waste in a sustainable way. WeDoo has designed over 50 types of machines, from large bailers for major operations to smaller, low-cost units that can be used in community centers and schools. Their clients range from hospitality groups, like Potato Head to social initiatives such as Yayasan Kaki Kita, which creates affordable prosthetics from recycled plastics.

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Yayasan Kaki Kita produces prosthetic legs from recycled plastic bottle caps to empower those who lost their limbs from diabetes or disabilities

Potato Head recycling their plastic waste using WeDoo’s machines into furniture for their hotels

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In each collaboration, WeDoo tailors its approach, recognizing the unique waste profiles and community needs across Indonesia. For example, the company recently built a conveyor system for Besakih Temple, Bali’s largest temple, to manage offerings waste—primarily unopened candies—which can now be sorted and composted.

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WeDoo machine upcycles bottle caps – silent culprits often thrown away because they are difficult to recycle

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The Balance Between Profit and Purpose

As a for-profit entity, WeDoo recognizes the need to balance financial sustainability with its environmental mission. This approach ensures that the company can continue to provide durable, impactful solutions without compromising on quality. By charging affordable rates and keeping certain machines at a lower price for rural communities, WeDoo makes its services accessible to those who need them most.

WeDoo has big plans for the future. With 20 machine categories and a steady demand from clients, the company is already outgrowing its current workspace and is looking to scale up operations. Educational programs, community outreach, and collaborations with NGOs are all part of their ongoing efforts to instill a culture of recycling and sustainability across Indonesia.

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Waste made into beautiful art – Wedoo’s collaboration with artist Aharimu

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An inspiration

What makes WeDoo truly special is Valerine’s relentless passion. From bottle caps to blueprints, her vision transforms challenges into opportunities and waste into a powerful testament to the potential of human ingenuity. Here at Heyokha, we find it essential to highlight and support ventures like WeDoo. Valerine and her team’s commitment to sustainability not only benefits the environment but also empowers communities and transforms industries. These stories remind us that lasting change requires both innovation and dedication, and that the future belongs to those who invest in building a better world today.

 

Tara Mulia and Nicholas

 

Admin heyokha

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