Indonesia’s Astra launches JV with GOJEK to revive languishing car sales

Photo: Gojek

Astra International, Indonesia’s largest automobile distributor, on Thursday launched a joint venture with Go-Jek to provide cars to the ride-hailing firm.

The move, which comes on the heels of an overall $250 million investment in Go-Jek, is aimed at boosting Astra’s already-strong market dominance, despite a dismal full-year outlook for countrywide car sales.

“The outlook for the country’s overall car sales is between 1.05 million and 1.1 million units for 2019,” Astra President and Director Prijono Sugiarto told reporters, a dive from 1.5 million units sold in 2018.

“This is because the global economy is not so good and the export of CPO (crude palm oil) is low, so it risks impacting our purchasing power,” Sugiarto added.

Astra is 50.1% owned by conglomerate Jardine Cycle & Carriage.

The newly launched “GoFleet”, which comprises “thousands of cars” should help Go-Jek fight back Singapore-based rival Grab, following a new regulation prohibiting individuals from offering car-hailing services.

Launched in 2011, Go-Jek has evolved from ride-sharing to allowing its customers to make online payments and order everything from food to groceries and massage services.

The Indonesian company is currently in the middle of a targeted $3 billion fundraising round, of which Astra contributed $100 million in March, as the ride-hailing firm fights bigger rival Grab for dominance of the region.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.