GOJEK contributed $3b in added value to Indonesia’s economy: Study

Photo: GoJek

Ride-hailing major GOJEK is estimated to have contributed more than $3 billion (Rp 44.2 trillion) in added value to the Indonesian economy in 2018, according to a University of Indonesia study.

The study calculates added value as earnings made by GOJEK’s partners, including its drivers, talent partners, and small-medium enterprise merchants.

The study, titled ‘GOJEK’s  Impact on the Indonesian Economy,’ was conducted by the School of Demographic Study under the Faculty of Economic and Business in late 2018. The study assessed four of its services – Go-Car (car ride-hailing), Go-Food (food delivery), Go-Life (on-demand lifestyle), and Go-Ride (two-wheeler).

A previous study, conducted in 2017, found that Go-Ride and Go-Car contributed Rp 15.1 trillion in added value to the Indonesian economy.

“The increase in contribution from GOJEK to Indonesia’s economy shows that technology accelerates the digital economy. As the leader in Indonesia’s technology sector, GOJEK has proven its ability to innovate with its technology to widen earning opportunities for its partners,” associate director of the demographic study of Business and Economic Faculty at University of Indonesia Paksi C. K. Walandouw said on March 21.

The estimated added value for the Indonesian economy from Go-Ride is estimated at Rp 16.5 trillion, Go-Car at Rp 8.5 trillion, Go-Food at Rp 18 trillion, and Go-Life at Rp 1.2 trillion.

Walandouw also said Go-Food’s contribution increased three times compared to the 2017 study levels of Rp 6.9 trillion.

The study also found that the average income of GOJEK drivers and Go-Life talent was higher than the average minimum wage in nine major cities in Indonesia -Balikpapan, Bandung, Denpasar, Greater Jakarta area, Makassar, Medan, Palembang, Surabaya, and Yogyakarta.

For example, the average income of Go-Ride partners is Rp 4.9 million per month while Go-Life partners made Rp 4.8 million and Go-Car partners Rp 6 million, compared to the average monthly minimum wage in Jakarta of Rp 3.9 million.

The Faculty researchers surveyed and interviewed about 3,886 Go-Ride drivers-partners, 1,010 Go-Car driver-partners, 1,000 Go-Food merchants, and 836 Go-Life talents, who have been active on the platform for the past three months in the nine cities.

Around 93 per cent of Go-Food’s respondents said they have an online presence because of Go-Jek, while 93 per cent of them saw a surge in transaction volume, with 55 per cent of them saying their revenue increased after joining the platform.

Majority of Go-Food service respondents (72%) are micro-merchants who earn around Rp 300 million annually, while 26 per cent are small merchants with revenue between Rp 300 million and Rp 2.5 billion.

Meanwhile, the study also said Go-Life presence has increased female participation in the country’s economy. It noted that 70 per cent of Go-Life partners (Go-Massage and Go-Clean services) are women.

 

Also Read:

Indonesian unicorn GOJEK said to invest in two Indian companies

(Updated) GOJEK’s Vietnam CEO steps down, to take on advisory role

Philippines rejects GOJEK’s appeal against ride-hailing license ban

 

 

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

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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.