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 Analyze the direct and indirect social and economic impact Purpose of of GOJEK partners on the Study Indonesian economy
2 Total sample: 6,732 respondents
➔ GO-RIDE partners: 3,886 ➔ GO-CAR partners: 1,010 Subjects of ➔ GO-RESTO partners: 1,000 ➔ GO-LIFE (GO-MASSAGE and GO- Study CLEAN) partners: 836
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%.
3 Research time period: November 2018 – January 2019
Surveyed areas: Location and • Jabodetabek (Greater Jakarta) • Bandung Time Period of • Yogyakarta • Surabaya Study • Denpasar • Medan • Balikpapan* • Makassar* • Palembang* *Excluding GO-LIFE 4 Executive Summary
GOJEK • GOJEK contributed IDR 55 trillion (US$ 3.85 billion) to the Indonesian contributed to economy in 2018, assuming 100% active partners the national • The average income of GOJEK partners (drivers, talent, merchants) is economy higher than the average minimum wage in surveyed Indonesian cities.
GOJEK partners • Partners felt that they could provide for their families with incomes felt they earned from GOJEK. benefited from • Partners obtained benefits from their partnership with GOJEK, including their partnership increased time spent with family; increased ability to save money; and increased work flexibility.
• Majority of Micro, Small, and Medium Enterprises (MSMEs) went digital GO-FOOD for the first time when they joined GO-FOOD. elevated digital • MSMEs obtained benefits through their partnership with GOJEK, entrepreneurship including digital marketing and acceptance of non-cash payments.
• GO-LIFE provided income opportunities for women and those from GO-LIFE provided underprivileged backgrounds (elementary to high school graduates). opportunities for • GO-LIFE increased women’s participation in the digital economy; all members of almost half of GO-LIFE female partners were breadwinners of their society families. 5 6 GOJEK contributed IDR 55 trillion (US$ 3.85 billion)* to the Indonesian economy in 2018
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 7 8 GO-RIDE expanded income opportunities for driver partners from all educational backgrounds
Partners’ ages Partners' highest educational qualification 73% 25% 22% • 75% of GO-RIDE driver 20% partners were between 21- 20% 17% 16% 40 years old 15% 10% 8% 10% 10% 14% • 86% of GO-RIDE driver 4% 3% 5% 3% 0.4% 0.1% partners had a high school Did notDid attend not or Elementary school Junior high school Senior High Higher Education Did'tDid not answered answer 0% gradate/attendcomplete School diploma or lower elementary school <=20 21-25 26-30 31-35 36-40 41-45 46-50 >50 elementary school • 14% of GO-RIDE driver Top 10 Primary Occupations before becoming a Partners with Dependants GO-RIDE driver partner partners had a college education or equivalent Employees/staff at a private… 30% 13 Merchant with no Employees 12% • 30% of GO-RIDE driver Laborer 10% partners had previously Student 8% worked as private sector 87 GOJEK Partner 8% employees Miscellaneous Jobs 5% Merchant with Employees 3% • 87% of GO-RIDE driver Grab Partners 3% partners had dependents Housewife 0.4% Yes No Teacher at a private school 0.4% 9 0.0% 10.0% 20.0% 30.0% 40.0% GOJEK increased GO-RIDE driver partners’ income, expenditure and overall well-being
Average monthly income of GO-RIDE Average monthly expenditure of driver partners GO-RIDE driver partners • Average income of 50% 30% GO-RIDE driver 40% 25% partners increased 20% by 45% after 30% 15% joining GOJEK 20% 10% 10% 5% • Average 0% 0% expenditure of GO- < Rp Rp Rp Rp Rp IDRRp 3,500,001- IDR> Rp < Rp Rp Rp Rp IDRRp 2,500,001- IDRRp 3,500,001>- RpIDR 10 Average income of GO-RIDE driver partners was higher than the average minimum wage in the surveyed areas Average income of GO-RIDE Average minimum wage driver partners in Greater in Greater Jakarta Jakarta IDR 4.9 million IDR 3.9 million Average income of GO-RIDE Average minimum wage driver partners outside Greater > outside Greater Jakarta* 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 Optimism towards how well GOJEK Primary benefits felt by GO- Benefits felt by driver partners can fulfil partners’ expectations RIDE driver partners from from partnering with GOJEK Impossible Uncertain Slightly certain Certain partnering with GOJEK Can help me provide for my family 1%12% 32% 55% • Flexible working hours Can work while doing other side adequately 77% jobs • Source of income for family Able to save 40% • More time with family Can help me send my kids to school 7%10% 32% 51% Optimism level More time with family 38% • 87% were confident or Can help me have enough savings 2% 22% 43% 33% slightly confident that they More able to provide for family 35% could provide for their families adequately. More able to set own working 32% hours Can help me repay my debts 4% 21% 38% 37% • 83% were confident or Better understanding of how to slightly confident that they use a mobile phone and mobile 31% applications had enough income to Can improve my overall quality of 5% 18% 40% 37% life send their children to All of the above 9% school. 0% 20% 40% 60% 80% 100% 0% 50% 100% 12 GO-RIDE driver partners felt positively about their partnership with GOJEK Perception of partnership with GOJEK’s Management • 83% of GO-RIDE driver partners felt that opportunities for dialogue with GOJEK management were OpprtunityOpportunity to tohave have dialogue with with GO- 4% 13% 46% 32% 5% GOJEK managementJEK slightly fair, fair, or very fair • 83% of GO-RIDE driver partners Opportunity to negotiate with GOJEK felt that opportunities to negotiate management with GOJEK management were Opprtunity to negotiate with GO-JEK 3% 14% 45% 33% 5% slightly fair, fair, or very fair • 86% of GO-RIDE driver partners felt that the terms and conditions GeneralGeneral business business partnership partnershil with with 1% 12% 42% 41% 4% of their partnership with GOJEK GOJEK GO-JEK were slightly fair, fair, or very fair 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very unfair unfair slightly fair fair very fair 13 14 GO-CAR expanded income opportunities for partners of all backgrounds Partners' highest educational qualification Partners’ ages 70% 62% 25% 23% • 66% of GO-CAR driver 21% 60% 20% 50% partners were between 15% 16% 15% 40% 21-40 years old 11% 28% 30% 10% 7% 7% 20% • 71% of GO-CAR driver 5% 0% 10% 6% 4% partners had a high 0% 0.3% 0% <=20 21-25 26-30 31-35 36-40 41-45 46-50 >50 elementary school Junior high school Senior high school Vocational/Diploma Undergraduate school diploma or lower Top 10 Primary Occupations before becoming a Partners with dependents GO-CAR driver partner • 43% of GO-CAR driver partners had previously Empoyee at a private company 30% worked as private sector Merchant with no employees 12% employees Skilled laborer 10% 10% Grab partner 8% Doesnt'sNo have Taxi driver 8% • 90% of GO-CAR driver dependent Personal driver 5% partners have HasYes dependent Merchant with employees 3% dependents Bus/mini bus driver 3% 90% Miscellaneous Jobs 0.4% Unskilled laborer 0.4% 15 0.0% 10.0% 20.0% 30.0% 40.0% GO-CAR increased driver partners’ income, expenditure and overall wellbeing Average monthly income of GO-CAR Average monthly expenditure of GO- driver partners CAR driver partners • Driver partners’ 80% 45% 70% 40% average income 60% 35% increased by 30% 50% 25% 42% after 40% 20% joining GOJEK 30% 15% 20% 10% • Driver partners’ 10% 5% 0% 0% IDR 3,500,001- IDR average < Rp Rp Rp Rp Rp Rp > Rp 16 Average income of GO-CAR driver partners was higher than the average minimum wage in the surveyed areas Average income of GO-CAR Average minimum wage in driver partners in Greater Greater Jakarta Jakarta ~IDR 6 million IDR 3.9 million Average income of GO-CAR Average minimum wage driver partners outside Greater > outside Greater Jakarta Jakarta IDR 5.5 million IDR 2.8 million* *Average minimum wage in Bandung, Yogyakarta, Surabaya, Denpasar, Medan, Palembang, Balikpapan, Makassar. 17 GO-CAR driver partners benefitted from, and felt optimistic about their partnership with GOJEK Optimism about how well GOJEK Benefits felt by driver partners from can fulfil partners’ expectations Primary benefits felt by GO- partnering with GOJEK CAR driver partners from Impossible Uncertain Slightly certain Certain Can help me provide for my 11% 31% 55% partnering with GOJEK family adequately More able to set own working 73% • Flexible working hours hours • Able to save more Can help me send my kids 10% 30% 57% Able to save 50% to school • More time with family Can help me have enough Optimism levels More time with family 41% 10% 33% 55% savings • 86% were confident or More able to provide for slightly confident that they 41% Can help me repay my family 12% 37% 48% debts could provide for their Better understanding of how families adequately. to use a mobile phone and 32% mobile applications • 87% were confident or Can help me own a car 6% 18% 73% slightly confident that they Can work while doing other 32% side jobs could earn enough income Can improve my overall 6% 22% 70% quality of life to send their children to All of the above 5% school. 0% 50% 100% 0% 20% 40% 60% 80% 18 GO-CAR driver partners felt positively about their business partnership with GOJEK Perception towards partnership with GOJEK Management • 80% of GO-CAR driver Unfair Slightly fair Very fair partners felt that opportunities for dialogue with GOJEK management were slightly fair, Opprtunity to have dialogue with 19% 53% 27% fair, or very fair Opportunity to haveGOJEK dialogue with GOJEK management • 82% of GO-CAR driver partners felt that opportunities to negotiate with GOJEK OpprtunityOpportunity to tonegotiate negotiate with with GOJEK GOJEK 17% 53% 29% management was slightly fair, management fair, or very fair • 85% of GO-CAR driver General business partnership with partners felt that the terms and General business partnership with 15% 52% 33% GOJEK GOJEK conditions of their partnership with GOJEK were slightly fair, 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% fair, or very fair 19 20 GO-LIFE expanded opportunities for partners of all educational backgrounds Partners’ age Partners' highest educational 30% qualification 26% • 71% of GO-LIFE 25% 23% Higher 0.2% partners were between 20% 17% 17% Bachelor 4.1% 21-40 years old 15% Vocational/academics 4.2% 9% 10% Senior high school 59.2% • 91.5% of GO-LIFE 5% 5% 3% Junior high school 25.2% 0% partners had a high 0% Elementary school 7.2% school diploma or lower <=20 21-25 26-30 31-35 36-40 41-45 46-50 >50 -10.0% 10.0% 30.0% 50.0% 70.0% Partners with dependent Top 10 Primary Occupations before becoming • 21% of GO-LIFE a GO-LIFE partner partners had previously Employee on private company worked as private sector 10% Housewife 15% employees Skilled laborer 14% Unskilled laborer 14% Doesnt'sNoNo have • 83% of GO-LIFE dependent Trader with empoyee 7% partners had Has Miscellaneous Jobs 5% Yes dependent On call therapist 5% dependents Laborer 4% Merchant with no employees 3% 90% Merchant with employees 1% 21 0% 5% 10% 15% 20% GO-LIFE increased women's participation in the digital economy and supported them in becoming more independent Partners’ Gender Allocation of GO-LIFE partners' income 10% Families’ primary source of • >70% of GO-LIFE 30% income (supports families’ main needs) partners were female 42% 70% Families’ secondary source of • Almost 50% of female income (additional support for families’ main needs) partners were 48% breadwinners in their Female Male Personal income (personal families needs, not used for family Partners’ confidence in their ability to needs) independently provide for themselves • 95% of female GO- LIFE partners were 0% 2% 3% TidakCompletely yakin samauncertain sekali slightly certain, certain, 20% KurangRather Uncertainyakin 16% or very certain that they SedikitSlightly yakin certain could be independent AgakRather yakin certain YakinCertain 59% SangatVery certain yakin 22 GOJEK increased the income, expenditure and overall wellbeing of GO-LIFE partners Average monthly income of GO- Average monthly expenditure of LIFE partners in 6 Surveyed GO-LIFE partners in 6 Surveyed • Partners’ average Areas Areas income increased by 60% 30% 72% after joining 50% 25% GO-LIFE 40% 20% 30% 15% • Partners’ average 20% 10% spending increased 10% 5% by 19% after joining 0% 0% < Rp Rp Rp Rp Rp Rp > Rp < Rp Rp Rp Rp Rp Rp > Rp IDR 2,000,001- IDR 2,500,001- IDR 3,500,001- IDR GO-LIFE IDR1,000,001- IDR 1,500,001- IDR 2,000,001- IDR 2,500,001- IDR 3,500,001- IDR % Before % After % Before % After 23 GO-LIFE partners’ average income was higher than the average minimum wage Average income of GO-LIFE Average minimum wage in partners in Greater Jakarta Greater Jakarta IDR 4.8 million IDR 3.9 million Average income of GO-LIFE Average minimum wage partners outside Greater > outside Greater Jakarta Jakarta IDR 4.3 million IDR 3.1 million* *Average minimum wage of surveyed cities: Bandung, Yogyakarta, Surabaya, Denpasar, Medan. 24 GO-LIFE partners experienced various benefits, including increased skills through additional training from GO-LIFE Perception of partnership with GO-LIFE partners who have GOJEK received additional training from GOJEK Have not experienced at all Have not really experienced • 97% of partners Experienced Slightly Experienced substantially experienced an increase in -Became more skilled/capable at 15% 85% 6% work income Yes -Felt more purpose at work 22% 76% No • 97% of partners -Obtained necessary working 19% 60% equipment experienced an increase in -Better understanding of 15% 83% customers digital/technological applications -Better able to set own working 12% 86% hours 94% • 100% of partners felt more -More free time, less work hours 13% 76% skilled in their field of work -Gained new customers 13% 84% • 94% of partners received -Increase of income 15% 82% training to improve their skills 0 0.2 0.4 0.6 0.8 1 25 GO-LIFE partners felt optimistic about their partnership with GOJEK Optimism Level Impossible Uncertain Slightly certain Certain Can help me provide for my family adequately 4% 19% 77% • 96% of partners were rather confident or confident that they could provide for Can help me send my kids to school 4% 18% 76% their families adequately • 94% of partners were Can help me have enough savings 13% 32% 50% rather confident or confident that they could send their children to school Can help me repay my debts 10% 27% 60% • 88% of partners were rather confident or confident Can improve my overall quality of life 10% 30% 58% that being a GO-LIFE partner would increase their 0% 20% 40% 60% 80% 100% overall quality of life 26 27 GO-FOOD has become an entry point into the digital economy for Micro, Small, Medium Enterprises (MSMEs) Classification of respondents’ revenue When MSME partners first used (based on Indonesia Law 20/2008 on MSMEs) electronic payments • 72% of MSME partners 1% 1% 2% were classified as “micro < 300 million Before becoming a (micro) enterprises” with 23% GOJEK partner 26% 300 million – 2.5 revenue of less than IDR billion (small) After becoming a 300 million/year 2.5 billion – 50 GOJEK partner 72% billion (medium) 75% Confidential Did not answer • 75% of MSME partners started accepting non- cash payments after How was the business run before becoming a GO- becoming a GO-FOOD FOOD partner? partner Semi permanent store 18% • 93% of MSME partners went online because of Both physical store and online store 19% their partnership with Only online store 3% GO-FOOD Only a physical store 59% 0% 10% 20% 30% 40% 50% 60% 70% 28 GO-FOOD increased revenues for MSME partners MSME weekly revenue (% change from before to after joining GO-FOOD) 40% 30% 20% • 55% of MSME 10% partners saw their 0% revenue Reinvested in the business 59% • 85% of MSME Purchased equipment for the business 14% partners invested Increased employees' salaries 9% revenues earned from Hired more employees 6% GO-FOOD back into Increasedimproved insurance for employees 5% their businesses. Gave back to community 2% IncreasedIncreased vehicles company’scompany's transport 2% Training for employess 2% Other 1% 29 0% 10% 20% 30% 40% 50% 60% 70% GO-FOOD helped its MSME partners increase their transaction volume and customer base Difference in Transaction Volume Increase in Transaction Volume • 93% of MSME partners (% change from before to after joining (% change from before to after GO-FOOD) joining GO-FOOD) experienced an increase in transaction Decreased 1% >10% 74% volume Increased 93% <=10% 26% Remained the same 7% 0% 20% 40% 60% 80% • 74% of MSME partners 0% 20% 40% 60% 80% 100% experienced an Perceptions of change after becoming a GO-FOOD partner increase in transaction volume of at least 10% No Change Increased Improved customer satisfaction 21% 79% • 96% of MSME partners More positive responses from customers 9% 91% reported that they had Increased outreach 11% 89% Increased number of customers 4% 96% received new customers Increased revenue 3% 97% since joining the GO- Increased sales frequency 3% 97% FOOD platform Increased business popularity 5% 95% 0% 20% 40% 60% 80% 100% 30 GO-FOOD’s ability to increase market access via technology is viewed by MSMEs as their primary reason for joining Joined GO-FOOD because they wanted to Joined GO-FOOD because they wanted to adopt technological advancements increase marketing • 90% of MSME partners 22% 10% joined GO-FOOD to Yes increase marketing Yes No No 78% • 78.5% of MSME 90% partners joined GO- FOOD to adopt new Perceptions of MSMEs about the terms of technology their partnership with GOJEK / GO-FOOD 2% -Slightly weak / slightly • 98% of MSME partners disadvantageous felt that GO-FOOD 27% -Equal treated them fairly and 46% -Slightly strong / slightly 25% advantageous advantageously -Strong / advantageous 31 Thank you