Indonesia's Astra Increased Investment in GO-JEK US$100M
Astra International President Director Priyono Sugiarto delivers speech at the Astra-Go-Jek Collaboration event (Image credit : Go-Jek)

JAKARTA (TheInsiderStories) – Indonesia conglomeration company, PT Astra International Tbk (IDX: ASII) increasing its investment participation in multi-platform provider GO-JEK with worth of US$100 million. In total, the publicly listed has invested to the operator amounting to $250 million.

At the same time, GO-JEK and Astra also formed a joint venture to encourage the development of a four-wheel ride-hailing business that is expected to help increase the availability of online transportation services door to door for the community.

The joint venture formed by both parties will provide thousands of fleet units with a vehicle operational management system supported by the Astra Fleet Management System and hailing ride technology in the GO-JEK‘ application, specifically the GO-CAR service.

This company will provide opportunities for partners to provide high-quality online door-to-door transportation services to customers while at the same time achieving reasonable revenue through GO-CAR services.

Astra’ President Director Prijono Sugiarto said in a written statement today (03/04), the formation of a joint venture and the company’ participation in the series-F funding showed the automotive producer’ trust in GO-JEK, as well as a concrete manifestation of cooperation exploration to create synergy with Astra’s automotive business.

“We hope this collaboration can help the wider community enter the formal economic sector so that it can improve people’s welfare and have a positive impact on Indonesia’s economic growth. This is in line with Astra’s aspirations to prosper with the nation,” he said.

At present, Indonesia has the most rapid growth rate of the digital economy in Southeast Asia. With an annual compound growth rate of 49 percent in the 2015-2018 periods, Indonesia’ digital economy sector is expected to reach $100 billion in 2025 from $27 billion in 2018.

The strategic partnership between Astra and GO-JEK is expected can maximize the potential of Indonesia to continue to be the forerunner of the digital economy that is at the forefront of the Southeast Asia region.

Meanwhile, the CEO and Founder of GO-JEK Nadiem Makarim added, the potential of the digital economy in Southeast Asia, especially Indonesia, must be maximized by business people by combining strength in each industry.

“The combined strength of Astra in the automotive sector and technology in the field of technology through this collaboration is expected to open up more opportunities for the community to have a source of income, so as to be able to improve welfare,” he stated.

As informed, launched in January 2015, GO-JEK is now one of the leading players in Southeast Asia for the digital and mobile consumption sector. The unicorn has developed into a super app that forms an ecosystem for ease of transactions, connecting millions of consumers with millions of driver, business partner, and service providers.

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