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Go-Jek’s expansion hurdles a lesson for Indonesia

Adimas Nurahmatsyah (The Jakarta Post)
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Jakarta
Mon, April 8, 2019

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Go-Jek’s expansion hurdles a lesson for Indonesia Green helmet with Go-Jek logo. (Shutterstock.com/findracadabra )

T

he growth of one of Indonesia’s tech unicorns, Go-Jek, never fails to amaze observers. Not only has it successfully introduced the practical application of sharing economy concepts to traditional ojek (motorcycle taxi) drivers and opened job opportunities for millions of motorcycle owners, but it has also had a significant derivative impact on the economy in general.

For example, Go-Jek provided opportunities to and built bridges between various small and medium enterprises, mostly in the food and beverage sector, and expanded consumer bases.

The poster child of Indonesia’s emerging economy, Go-Jek wrestled its way into highly competitive markets such as Singapore last year. When the company announced its ventures into the Vietnamese and Thai markets around the same period, one could argue that “it was about time” or even ask: “What took them so long?”

However, early this year, media reported that the Philippines’ authority denied Go-Jek entry into the country and, last month, the Philippines maintained its stance on denying Go-Jek’s request to own more than 40 percent of its local investment vehicle.

One might wonder why the transportation unicorn struggled to acquire Manila’s approval when they have done so successfully in more exciting and competitive markets in the region. Apart from the regulatory aspect, one of the emerging questions is on what the Indonesian government has done to support Go-Jek’s expansion efforts.

President Joko “Jokowi” Widodo put a heavy emphasis on government support for Indonesian unicorns during one of the 2019 presidential debates. How do his subordinates translate this?

Communications and Information Minister Rudiantara has offered his support to negotiate with his counterparts in the Filipino government.

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