Capturing new growth opportunities in Indonesia’s fast-accelerating digital economy
The idea of “ride-hailing” or “mobility tech” was unheard of a decade ago, but it has since changed many aspects of our daily lives, including the way we commute and procure goods and services. In Southeast Asia, the online ride-hailing market reached approximately US$11 billion in value in 2020, and is expected to quadruple to US$42 billion by 20251.
At the heart of this thriving mobility evolution in Southeast Asia are start-ups that successfully penetrate everyday life with the ubiquitous usage of smartphones and digital devices in the region. Recognising the trend in digital transformation as part of its ambition to enable progress and contribute positively to the development of Indonesia, Jardine Cycle & Carriage’s 50.1%-owned Astra made a total investment of US$250 million in Gojek in 2018 and 2019. This marks a major investment in a technology company by Astra. The investment augments Astra’s already-strong automotive presence in Indonesia.
Founded in 2010, Gojek initially started as a call centre with a fleet of only 20 motorcycle-taxi drivers and later launched its mobile application in 2015 with four services. Today, Gojek has evolved into a leading on-demand, multi-service tech platform, providing access to over 20 services ranging from transport, payments, food delivery, logistics and many more. In 2019, Gojek became ASEAN’s first decacorn.
In July 2019, a joint venture between Astra and Gojek called GoFleet was launched. As a fully integrated mobility solution for drivers of door-to-door online transportation services in Indonesia, GoFleet provides high quality vehicle rental, maintenance, repair, insurance services, as well as vehicle monetisation through advertising. Each vehicle operated under GoFleet is pre-installed with Astra’s fleet management software, supported by ride-hailing technology in the Gojek app. Drivers can enjoy peace of mind by leaving vehicle rental, maintenance and repair to GoFleet, focusing instead on providing the best service for their customers.
The collaboration enhances Astra’s leadership in the automotive value chain, as well as its position as a trusted and reliable partner for the transportation needs of families, companies and the people of Indonesia. Supported by Gojek’s technological expertise, the partnership opens up greater income-earning opportunities for Indonesians through alternative business avenues such as courier delivery and ride-hailing services, encouraging the growth of local small businesses and the improvement of livelihoods in Indonesia’s flourishing economy.
In line with JC&C’s efforts to elevate communities in Southeast Asia and Astra’s continued commitment to contributing to Indonesia’s growth, these new initiatives are likely to provide a boost for Indonesia’s digital economy. With approximately 171.3 million active internet users2, Indonesia has one of the highest number of internet users in the world, and the increasingly connected digital population in the country will continue to leverage technology to gain greater accessibility to consumer goods and services.
1 Value of the online ride hailing market in Southeast Asia from 2015 to 2020 and a forecast for 2025 (Statista, 9 December 2020)
2 Internet usage in Indonesia - statistics & facts (Statista, 14 October 2020)