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Grab contributes Rp 77.4 trillion to Indonesian economy: Research

Riza Roidila Mufti (The Jakarta Post)
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Jakarta
Sat, June 27, 2020

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R

ide-hailing firm Grab Indonesia contributed Rp 77.4 trillion (US$5.45 billion) to the Indonesian economy last year, largely thanks to its food delivery service, while providing gig work for the country’s informal workers, research released Thursday has shown.

 The research, conducted by the Centre for Strategic and International Studies (CSIS) and Tenggara Strategics, revealed that the biggest source of Grab’s contributions to the economy came from its food delivery service GrabFood, which contributed Rp 37.3 trillion of the total Rp 77.4 trillion. The overall 2019 figure marks a 58.3 percent increase from the firm’s Rp 48.9 trillion in 2018.

 The data was calculated based on the incomes of more than 5,000 surveyed Grab partners and merchants before and after joining Grab, across its four services – motorcycle taxi service GrabBike, ride-hailing service GrabCar, GrabFood and merchant GrabKios.

 “As Indonesia starts to move past COVID-19, we believe that platforms like Grab and the gig economy can support the country on its road to recovery,” said Riyadi Suparno, executive director of Tenggara Strategics, on Thursday.

 With the COVID-19 pandemic having resulted in an economic downturn, experts have warned that the country’s 70.49 million informal workers, the majority of the Indonesian workforce, are considered the most vulnerable to the impacts of the virus. Motorcycle taxi drivers association Two-Wheeled Action Movement (Garda) reported a 70 percent decrease in drivers’ daily earnings during the pandemic.

 However, the research notes that Grab has provided earning opportunities for those dealing with unemployment, like in 2019, when 31 percent of GrabBike and 26 percent of GrabCar partners had no income prior to joining Grab.

 The company’s digital platform would also aid the merchant-partners’ transition to a post-pandemic economy, Riyadi stated.

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