Twitter will open an office in Jakarta, Indonesia, within the next three to six months, Adam Bain, the company’s global president for revenue and partnerships told the Wall Street Journal. While he declined to provide details, he said that the focus for the office will be on sales and business development.
“You look at Indonesia and you see the size of the audience there and how they’re using Twitter, and it’s super-invigorating,”, Bain said to the Journal.
Over the past year, Twitter employees from various divisions of the company and been visiting the country almost on a regular basis, primarily seeking to find out how Indonesians use the service and how it compared to other services such as Facebook, WhatsApp and Line.
Indonesia is home to more than 20 million Twitter users and Jakarta has been repeatedly referred to as the capital of Twitter based on the frequency and density of the tweets originating from the city.
The Journal noted that according to internal Twitter data, the recent Indonesian general and presidential elections spurred 95 million tweets since January.
The company’s presence in Indonesia is expected to help it understand the market behavior and make it easier to work with advertisers, clients, marketers, and content producers.
Digital advertising spend in Indonesia is expected to rise significantly over the next several years but will remain a small portion of overall advertising expenditure as noted by reports from emarketer and Yahoo-Mindshare.
While its Twitter usage activity is off the charts, Indonesia has yet to be a major source of revenue for the company. Its top income-generating region remains North America despite having 75 percent of its users located outside of the United States. Outside of its home country, Twitter’s revenue was $102 million in the quarter ending June 2014, which the company says makes up for 33 percent of the total.
Twitter’s advertising revenue according to its quarterly report in July amounted to $277 million, which was an increase of 129 percent year on year, 81 percent of which was from mobile advertising.
Its data licensing revenue totaled $35 million for the second quarter, a 90 percent increase over the same period the year before.
The company however has yet to score its first profit, recording a loss of $145 million, nearly 3.5 times larger than the same period last year.
The company expects to earn $1.3 billion for all of 2014 with earnings to be north of $330 million.