gojek’s impact on the...gojek contributed idr 55 trillion (us$ 3.85 billion)* to the indonesian...

GOJEK’s Impact on the

Indonesian Economy in 2018

Researchers:

Dr. Paksi Walandouw

Dr. Alfindra Primaldhi

I Dewa G. K. Wisana Ph.D

Aditya Harin Nugroho S.E.

Advisor:

Turro S. Wongkaren Ph.D

This study was conducted by Lembaga Demografi Faculty of Economics

and Business Universitas Indonesia (LD FEB UI) in collaboration with

GOJEK Indonesia.

1

Purpose of

Study

Analyze the direct and indirect

social and economic impact

of GOJEK partners on the

Indonesian economy

2

Subjects of

Study

Total sample: 6,732 respondents

➔ GO-RIDE partners: 3,886➔ GO-CAR partners: 1,010➔ GO-RESTO partners: 1,000➔ GO-LIFE (GO-MASSAGE and GO-

CLEAN) partners: 836

3

Margin of error (total amount of sampling

compared to total population: < 3.5%.

A sound quantitative research typically aims

for a margin of error of below 5%.

Location and

Time Period of

Study

Surveyed areas:

• Jabodetabek (Greater Jakarta)• Bandung• Yogyakarta• Surabaya • Denpasar• Medan• Balikpapan* • Makassar*• Palembang*

Research time period:

November 2018 – January 2019

*Excluding GO-LIFE 4

Executive Summary

GO-LIFE provided

opportunities for

all members of

society

GOJEK partners

felt they

benefited from

their partnership

• Majority of Micro, Small, and Medium Enterprises (MSMEs) went digital

for the first time when they joined GO-FOOD.

• MSMEs obtained benefits through their partnership with GOJEK,

including digital marketing and acceptance of non-cash payments.

GO-FOOD

elevated digital

entrepreneurship

GOJEK

contributed to

the national

economy

• GOJEK contributed IDR 55 trillion (US$ 3.85 billion) to the Indonesian

economy in 2018, assuming 100% active partners

• The average income of GOJEK partners (drivers, talent, merchants) is

higher than the average minimum wage in surveyed Indonesian cities.

• Partners felt that they could provide for their families with incomes

earned from GOJEK.

• Partners obtained benefits from their partnership with GOJEK, including

increased time spent with family; increased ability to save money; and

increased work flexibility.

• GO-LIFE provided income opportunities for women and those from

underprivileged backgrounds (elementary to high school graduates).

• GO-LIFE increased women’s participation in the digital economy;

almost half of GO-LIFE female partners were breadwinners of their

families.5

GOJEK contributed IDR 55 trillion (US$ 3.85 billion)* to the

Indonesian economy in 2018

7

The economic contribution is derived from the additional

income earned by partners after joining GOJEK platform

(GoRide, GoCar, GoFood, and GoLife).

* IDR 55 trillion is using assumption of 100% active partners

* Using a more conservative calculation of 75% active partners, GOJEK’s contribution was IDR 44.2 trillion (US$ 3 billion)

* 1 US$ = 14,222 per 7 August 2019

• 75% of GO-RIDE driver

partners were between 21-

40 years old


partners had a high school

diploma or lower


partners had a college

education or equivalent


partners had previously

worked as private sector

employees


partners had dependents

GO-RIDE expanded income opportunities for driver

partners from all educational backgrounds

3%

16%

22%20%

17%

10%8%

4%

0%

5%

10%

15%

20%

25%

50

Partners’ ages

9

13

87

Partners with Dependants

Yes No

0.4% 3%10%

73%

14%

0.1%

Did notgradate/attend

elementary school

Elementary school Junior high school Senior HighSchool

Higher Education Did't answered

Partners' highest educational qualification

0.4%

0.4%

3%

3%

5%

8%

8%

10%

12%

30%

0.0% 10.0% 20.0% 30.0% 40.0%

Teacher at a private school

Housewife

Grab Partners

Merchant with Employees

Miscellaneous Jobs

GOJEK Partner

Student

Laborer

Merchant with no Employees

Employees/staff at a private…

Top 10 Primary Occupations before becoming a GO-RIDE driver partner

Did not attend or

complete

elementary school

Did not answer

• Average income of

GO-RIDE driver

partners increased

by 45% after

joining GOJEK

• Average

expenditure of GO-

RIDE driver

partners increased

by 25% after

joining GOJEK

GOJEK increased GO-RIDE driver partners’ income,

expenditure and overall well-being

10

0%

10%

20%

30%

40%

50%

< Rp1.000.000

Rp1.000.001-

Rp1.500.000

Rp1.500.001-

Rp2.000.000

Rp2.000.001-

Rp2.500.000

Rp2.500.001-

Rp3.500.000

Rp3.500.001-

Rp6.000.000

> Rp6.000.000

Average monthly income of GO-RIDE driver partners

% before % after

0%

5%

10%

15%

20%

25%

30%

< Rp1.000.000

Rp1.000.001-

Rp1.500.000

Rp1.500.001-

Rp2.000.000

Rp2.000.001-

Rp2.500.000

Rp2.500.001-

Rp3.500.000

Rp3.500.001-

Rp6.000.000

> Rp6.000.000

Average monthly expenditure of GO-RIDE driver partners

% before % after

IDR1,000,001-

1,500,000

IDR 1,500,001-

2,000,000

IDR 2,000,001-

2,500,000

IDR 2,500,001-

3,500,000

IDR 3,500,001-

6,000,000

IDR

6,000,000

>

Average minimum wage

in Greater Jakarta

IDR 4.9 million IDR 3.9 million

Average income of GO-RIDE driver partners was higher

than the average minimum wage in the surveyed areas

Average income of GO-RIDE

driver partners in Greater

Jakarta

Average income of GO-RIDE

driver partners outside Greater

Jakarta


outside Greater Jakarta*

IDR 3.8 million IDR 2.8 million*

* Average minimum wage of cities outside Greater Jakarta: Bandung,

Yogyakarta, Surabaya, Denpasar, Medan, Palembang, Balikpapan,

Makassar.11

GO-RIDE driver partners received benefits and felt optimistic

about their partnership with GOJEK

12

9%

31%

32%

35%

38%

40%

77%

0% 20% 40% 60% 80% 100%

All of the above

Better understanding of how touse a mobile phone and mobile

applications

More able to set own workinghours

More able to provide for family

More time with family

Able to save

Can work while doing other sidejobs

Benefits felt by driver partners from partnering with GOJEK

5%

4%

2%

7%

1%

18%

21%

22%

10%

12%

40%

38%

43%

32%

32%

37%

37%

33%

51%

55%

0% 50% 100%

Can improve my overall quality oflife

Can help me repay my debts

Can help me have enough savings

Can help me send my kids to school

Can help me provide for my familyadequately

Optimism towards how well GOJEK can fulfil partners’ expectations

Impossible Uncertain Slightly certain Certain

Primary benefits felt by GO-

RIDE driver partners from

partnering with GOJEK

• Flexible working hours

• Source of income for

family

• More time with family

Optimism level

• 87% were confident or

slightly confident that they

could provide for their

families adequately.



had enough income to

send their children to

school.

• 83% of GO-RIDE driver partners

felt that opportunities for dialogue

with GOJEK management were

slightly fair, fair, or very fair


felt that opportunities to negotiate

with GOJEK management were

slightly fair, fair, or very fair


felt that the terms and conditions

of their partnership with GOJEK

were slightly fair, fair, or very fair

GO-RIDE driver partners felt positively about their

partnership with GOJEK

13

1%

3%

4%

12%

14%

13%

42%

45%

46%

41%

33%

32%

4%

5%

5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

General business partnershil withGO-JEK

Opprtunity to negotiate with GO-JEK

Opprtunity to have dialogue with GO-JEK

Perception of partnership with GOJEK’s Management

Very unfair unfair slightly fair fair very fair

Opportunity to negotiate with GOJEK

management

General business partnership with

GOJEK

Opportunity to have dialogue with

GOJEK management

• 66% of GO-CAR driver

partners were between

21-40 years old


partners had a high

school diploma or lower




employees


partners have

dependents

GO-CAR expanded income opportunities for partners of all

backgrounds

0%

7%

15%

21%23%

16%

11%

7%

0%

5%

10%

15%

20%

25%

50

Partners’ ages

15

6% 4%

62%

28%

0.3%

elementary school Junior high school Senior high school Vocational/Diploma Undergraduate0%

10%

20%

30%

40%

50%

60%

70%


10%

90%

Partners with dependents

Doesnt's havedependent

Has dependent

0.4%

0.4%

3%

3%

5%

8%

8%

10%

12%

30%

0.0% 10.0% 20.0% 30.0% 40.0%

Unskilled laborer

Miscellaneous Jobs

Bus/mini bus driver

Merchant with employees

Personal driver

Taxi driver

Grab partner

Skilled laborer

Merchant with no employees

Empoyee at a private company

Top 10 Primary Occupations before becoming a GO-CAR driver partner

No

Yes

• Driver partners’

average income

increased by

42% after

joining GOJEK

• Driver partners’

average

expenditure

increased by

32% after

joining GOJEK

GO-CAR increased driver partners’ income, expenditure and

overall wellbeing

16

0%

10%

20%

30%

40%

50%

60%

70%

80%

< Rp1.000.000

Rp1.000.001-

Rp1.500.000

Rp1.500.001-

Rp2.000.000

Rp2.000.001-

Rp2.500.000

Rp2.500.001-

Rp3.500.000

Rp3.500.001-

Rp6.000.000

> Rp6.000.000

Average monthly income of GO-CAR driver partners

%Before %After

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

< Rp1.000.000

Rp1.000.001-

Rp1.500.000

Rp1.500.001-

Rp2.000.000

Rp2.000.001-

Rp2.500.000

Rp2.500.001-

Rp3.500.000

Rp3.500.001-

Rp6.000.000

> Rp6.000.000

Average monthly expenditure of GO-CAR driver partners

%Before %After

IDR1,000,001-

1,500,000

IDR 1,500,001-

2,000,000

IDR 2,000,001-

2,500,000

IDR 2,500,001-

3,500,000

IDR 3,500,001-

6,000,000

IDR

6,000,000

>

Average minimum wage in

Greater Jakarta

~IDR 6 million IDR 3.9 million

Average income of GO-CAR driver partners was higher than

the average minimum wage in the surveyed areas

Average income of GO-CAR

driver partners in Greater

Jakarta

Average income of GO-CAR

driver partners outside Greater

Jakarta


outside Greater Jakarta

IDR 5.5 million IDR 2.8 million**Average minimum wage in Bandung, Yogyakarta,

Surabaya, Denpasar, Medan, Palembang, Balikpapan,

Makassar.

17

Primary benefits felt by GO-

CAR driver partners from

partnering with GOJEK

• Flexible working hours

• Able to save more

• More time with family

Optimism levels



could provide for their

families adequately.



could earn enough income

to send their children to

school.

GO-CAR driver partners benefitted from, and felt optimistic

about their partnership with GOJEK

18

5%

32%

32%

41%

41%

50%

73%

0% 20% 40% 60% 80%

All of the above

Can work while doing otherside jobs

Better understanding of howto use a mobile phone and

mobile applications

More able to provide forfamily

More time with family

Able to save

More able to set own workinghours

Benefits felt by driver partners from partnering with GOJEK

6%

6%

12%

10%

10%

11%

22%

18%

37%

33%

30%

31%

70%

73%

48%

55%

57%

55%

0% 50% 100%

Can improve my overallquality of life

Can help me own a car

Can help me repay mydebts

Can help me have enoughsavings

Can help me send my kidsto school

Can help me provide for myfamily adequately

Optimism about how well GOJEK can fulfil partners’ expectations



partners felt that opportunities

for dialogue with GOJEK

management were slightly fair,

fair, or very fair


partners felt that opportunities

to negotiate with GOJEK

management was slightly fair,

fair, or very fair


partners felt that the terms and

conditions of their partnership

with GOJEK were slightly fair,

fair, or very fair

GO-CAR driver partners felt positively about their business

partnership with GOJEK

19

15%

17%

19%

52%

53%

53%

33%

29%

27%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

General business partnership withGOJEK

Opprtunity to negotiate with GOJEK

Opprtunity to have dialogue withGOJEK

Perception towards partnership with GOJEK Management

Unfair Slightly fair Very fair

General business partnership with

GOJEK

Opportunity to negotiate with GOJEK

management

Opportunity to have dialogue with

GOJEK management

• 71% of GO-LIFE

partners were between

21-40 years old

• 91.5% of GO-LIFE

partners had a high

school diploma or lower

• 21% of GO-LIFE



employees

• 83% of GO-LIFE

partners had

dependents

GO-LIFE expanded opportunities for partners of all

educational backgrounds

0%

5%

17%

23%26%

17%

9%

3%

0%

5%

10%

15%

20%

25%

30%

50

Partners’ age

21

10%

90%

Partners with dependent

Doesnt's havedependent

Hasdependent

NoNo

Yes

7.2%

25.2%

59.2%

4.2%

4.1%

0.2%

-10.0% 10.0% 30.0% 50.0% 70.0%

Elementary school

Junior high school

Senior high school

Vocational/academics

Bachelor

Higher


1%

3%

4%

5%

5%

7%

14%

14%

15%

0% 5% 10% 15% 20%

Merchant with employees

Merchant with no employees

Laborer

On call therapist

Miscellaneous Jobs

Trader with empoyee

Unskilled laborer

Skilled laborer

Housewife

Employee on private company

Top 10 Primary Occupations before becoming a GO-LIFE partner

• >70% of GO-LIFE

partners were female

• Almost 50% of female

partners were

breadwinners in their

families

• 95% of female GO-

LIFE partners were

slightly certain, certain,

or very certain that they

could be independent

GO-LIFE increased women's participation in the digital

economy and supported them in becoming more independent

0% 2% 3%

16%

59%

20%

Partners’ confidence in their ability to independently provide for themselves

Tidak yakin sama sekali

Kurang yakin

Sedikit yakin

Agak yakin

Yakin

Sangat yakin22

10%

48%

42%

Allocation of GO-LIFE partners' income

Families’ primary source of income (supports families’ main needs)

Families’ secondary source of income (additional support for families’ main needs)

Personal income (personalneeds, not used for familyneeds)

70%

30%

Partners’ Gender

Female Male

Completely uncertain

Rather Uncertain

Slightly certain

Rather certain

Certain

Very certain

• Partners’ average

income increased by

72% after joining

GO-LIFE

• Partners’ average

spending increased

by 19% after joining

GO-LIFE

GOJEK increased the income, expenditure and overall

wellbeing of GO-LIFE partners

23

0%

10%

20%

30%

40%

50%

60%

< Rp1.000.000

Rp1.000.001-

Rp1.500.000

Rp1.500.001-

Rp2.000.000

Rp2.000.001-

Rp2.500.000

Rp2.500.001-

Rp3.500.000

Rp3.500.001-

Rp6.000.000

> Rp6.000.000

Average monthly income of GO-LIFE partners in 6 Surveyed

Areas

% Before % After

0%

5%

10%

15%

20%

25%

30%

< Rp1.000.000

Rp1.000.001-

Rp1.500.000

Rp1.500.001-

Rp2.000.000

Rp2.000.001-

Rp2.500.000

Rp2.500.001-

Rp3.500.000

Rp3.500.001-

Rp6.000.000

> Rp6.000.000

Average monthly expenditure of GO-LIFE partners in 6 Surveyed

Areas

% Before % After

IDR1,000,001-

1,500,000

IDR 1,500,001-

2,000,000

IDR 2,000,001-

2,500,000

IDR 2,500,001-

3,500,000

IDR 3,500,001-

6,000,000

IDR

6,000,000

>

Average minimum wage in

Greater Jakarta

IDR 4.8 million IDR 3.9 million

GO-LIFE partners’ average income was higher than the

average minimum wage

Average income of GO-LIFE

partners in Greater Jakarta

Average income of GO-LIFE

partners outside Greater

Jakarta


outside Greater Jakarta

IDR 4.3 million IDR 3.1 million**Average minimum wage of surveyed cities: Bandung, Yogyakarta,

Surabaya, Denpasar, Medan.

24

• 97% of partners

experienced an increase in

income

• 97% of partners

experienced an increase in

customers

• 100% of partners felt more

skilled in their field of work

• 94% of partners received

training to improve their

skills

GO-LIFE partners experienced various benefits, including

increased skills through additional training from GO-LIFE

25

15%

13%

13%

12%

15%

19%

22%

15%

82%

84%

76%

86%

83%

60%

76%

85%

0 0.2 0.4 0.6 0.8 1

-Increase of income

-Gained new customers

-More free time, less work hours

-Better able to set own workinghours

-Better understanding ofdigital/technological applications

-Obtained necessary workingequipment

-Felt more purpose at work

-Became more skilled/capable atwork

Perception of partnership with GOJEK

Have not experienced at all Have not really experienced

Experienced Slightly Experienced substantially

94%

6%

GO-LIFE partners who have received additional training

from GOJEK

Yes

No

GO-LIFE partners felt optimistic about their partnership

with GOJEK

26

10%

10%

13%

4%

4%

30%

27%

32%

18%

19%

58%

60%

50%

76%

77%

0% 20% 40% 60% 80% 100%

Can improve my overall quality of life

Can help me repay my debts

Can help me have enough savings

Can help me send my kids to school

Can help me provide for my family adequately

Optimism Level


• 96% of partners were

rather confident or confident

that they could provide for

their families adequately



that they could send their

children to school



that being a GO-LIFE

partner would increase their

overall quality of life

GO-FOOD has become an entry point into the digital

economy for Micro, Small, Medium Enterprises (MSMEs)

• 72% of MSME partners

were classified as “micro

enterprises” with

revenue of less than IDR

300 million/year


started accepting non-

cash payments after

becoming a GO-FOOD

partner


went online because of

their partnership with

GO-FOOD

28

59%

3%

19%

18%

Only a physical store

Only online store

Both physical store and online store

Semi permanent store

0% 10% 20% 30% 40% 50% 60% 70%

How was the business run before becoming a GO-FOOD partner?

72%

26%

1% 1%

Classification of respondents’ revenue(based on Indonesia Law 20/2008 on MSMEs)

< 300 million(micro)

300 million – 2.5 billion (small)

2.5 billion – 50 billion (medium)

Confidential

23%

75%

2%

When MSME partners first used electronic payments

Before becoming aGOJEK partner

After becoming aGOJEK partner

Did not answer

GO-FOOD increased revenues for MSME partners

• 55% of MSME

partners saw their

revenue

classification

increase after joining

GO-FOOD

• 85% of MSME

partners invested

revenues earned from

GO-FOOD back into

their businesses.

29

0%

10%

20%

30%

40%

Rp 15.000.000

MSME weekly revenue(% change from before to after joining GO-FOOD)

Before After

1%

2%

2%

2%

5%

6%

9%

14%

59%

0% 10% 20% 30% 40% 50% 60% 70%

Other

Training for employess

Increased vehicles company's transport

Gave back to community

improved insurance for employees

Hired more employees

Increased employees' salaries

Purchased equipment for the business

Reinvested in the business

If you experienced an increase in revenue after becoming a GOJEK merchant, how did you spend the increased revenue?

Increased

Increased company’s transport

GO-FOOD helped its MSME partners increase their

transaction volume and customer base


experienced an

increase in transaction

volume


experienced an

increase in transaction

volume of at least 10%


reported that they had

received new customers

since joining the GO-

FOOD platform

26%

74%

0% 20% 40% 60% 80%

10%

Increase in Transaction Volume (% change from before to after

joining GO-FOOD)

30

7%

93%

1%

0% 20% 40% 60% 80% 100%

Remained the same

Increased

Decreased

Difference in Transaction Volume(% change from before to after joining

GO-FOOD)

5%

3%

3%

4%

11%

9%

21%

95%

97%

97%

96%

89%

91%

79%

0% 20% 40% 60% 80% 100%

Increased business popularity

Increased sales frequency

Increased revenue

Increased number of customers

Increased outreach

More positive responses from customers

Improved customer satisfaction

Perceptions of change after becoming a GO-FOOD partner

No Change Increased

GO-FOOD’s ability to increase market access via technology

is viewed by MSMEs as their primary reason for joining


joined GO-FOOD to

increase marketing

• 78.5% of MSME

partners joined GO-

FOOD to adopt new

technology


felt that GO-FOOD

treated them fairly and

advantageously

31

2%

46%

25%

27%

Perceptions of MSMEs about the terms of their partnership with GOJEK / GO-FOOD

-Slightly weak / slightlydisadvantageous

-Equal

-Slightly strong / slightlyadvantageous

-Strong / advantageous

78%

22%

Joined GO-FOOD because they wanted to adopt technological advancements

Yes

No

90%

10%

Joined GO-FOOD because they wanted to increase marketing

Yes

No

Thank you

gojek’s impact on the...gojek contributed idr 55 trillion (us$ 3.85 billion)* to the indonesian...

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