According to sources close to the matter, Alibaba’s strongest competition in Chinese e-commerce, JD.com is in discussion to enter into a significant investment in Tokopedia. PT Tokopedia the Indonesian company could help JD.com to propel and fast track its growth into Southeast Asia’s chief economy.

According to a source that declined to be identified due to the confidential nature of the deal, JD is said to be in the primary phase of discussions and plans to invest millions of dollars in what has become one of Indonesia’s most prominent internet based market places.

“JD’s possible investment may push Indonesia’s Tokopedia past the billion dollarassessment mark,” said Robert Stutgart at China based BHB Equity

A fruitful agreement with Tokopedia will transfer JD’s rivalry with Alibaba Group Holding Ltd. to Indonesia, an oil-plentiful nation of 260 million that is currently experiencing a rise in smartphone use and middle class prosperity. The move by JD can be seen as a wily one. It would be buying into a local partner before the possible breaking into the region by Amazon.com.

China’s top two e-commerce companies have both invested sizeable amounts of funds into Southeast Asia, notably with Alibaba’s purchase of a majority stake in Lazada Group in 2016.

In contrast to Alibaba and contemporary Chinese internet colossus Tencent Holdings Ltd., Beijing-based JD has managed to develop its business model organically, relying on its own systems of transporters and delivery-personnel to regulateservice and quality. The firm, supported by Wal-Mart Stores Inc., had similarly opted to grow the Indonesian tranche of its business from the ground up.

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