Indonesia may see more partnerships and mergers between start-ups operating in the country following merger talks between ride hailing firm Gojek and e-commerce platform Tokopedia as they seek efficiencies of scale.

Willson Cuaca, cofounder and managing partner of East Ventures, an early backer of Tokopedia, said the COVID-19 pandemic had forced start-ups to think less with their egos and more with a collaborative spirit.

“COVID-19 is a major cause that forces bigger start-ups to plan strategically,” he wrote on Tuesday.

The pandemic has disrupted businesses and supply chains throughout the world, including in Indonesia. However, several start-ups and technology companies have managed to grow during the outbreak as consumers turn to digital services to fulfill their daily needs.

The e-Conomy SEA 2020 report by Google, Temasek and Bain & Company predicted that Indonesia’s digital economy would grow 11 percent year-on-year to US$44 billion last year despite the headwinds and would grow to $124 billion by 2025.

“Platforms are now refocusing on their core businesses to prioritize a path to profitability, and they are addressing consumers’ broad range of needs through partnerships,” the report read.

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