General trading company Astra International has invested US$150 million in Go-Jek, Indonesian ride-hailing platform. Through the investment, Astra aims to combine its automotive expertise with Go-Jek’s reach with consumers, according to a press statement.
The two organisations will also explore how they can work together to deliver economic growth for Indonesia through productivity gains. This includes bringing people into the formal economy and aiding product and service innovation that will create new markets.
Prijono Sugiarto, president director of Astra International, added that through the collaboration, the company also wishes to create value within its existing business while also accelerating its digital initiatives. Sugiarto added that the company is at the forefront of Indonesia’s digital economy, and is led by a strong Indonesian management team.
“We are excited to work with a national champion like Go-Jek because it has a social mission to improve the welfare of Indonesians. This is aligned with our commitment to support the development of micro, small and medium enterprises. Technology has a significant role to play in achieving this and we are convinced of the transformative power of digitally-focused companies like Go-Jek.”
“We are grateful for the support of Astra, our two organizations share a common belief – that by working together, we can accelerate economic development and improve life for millions of people across the country,” Nadiem Makarim, CEO and founder of Go-Jek, said.
Also weighing in was Andre Soelistyo, president and co-founder of Go-Jek, who added that Astra will support Go-Jek as it accelerates its pace of innovation.
The move follows Google's recent confirmation of its investment into Go-Jek, which was earlier tipped to be in the investment round along with Singapore’s Temasek Holdings, according to Reuters sources. This also saw companies such as Meituan-Dianping is also taking part in the round, along with existing investors such as global private equity firms KKR & Co LP and Warburg Pincus LLC. This is to raise around US$1.2 billion in total.