Ride-hailing pioneer becomes new education minister in Indonesia

Ride-hailing Pioneer Becomes New Education Minister In Indonesia

Indonesian President Joko Widodo’s new cabinet on October 23 appointed 35-year-old Nadiem Makarim, the co-founder and CEO of ride-hailing firm Gojek, as education and culture minister. He resigned from the company and will be succeeded by Gojek president Andre Soelistyo and other co-founder Kevin Aluwi.

Gojek confirmed that Makarim, who was born in Singapore but has Indonesia citizenship, would not retain “any executive or advisory role” with the company. However, a spokesperson later indicated that he will hold on to his stake in Gojek as a “passive shareholder.”

Investors say that Widodo’s choice of Makarim, a graduate of Brown University and Harvard Business School, both in the US, was a welcome signal that the president will focus on developing the booming technology sector in Southeast Asia’s largest economy.

The Indonesian leader has repeatedly pledged to invest in bridging the acute skills shortage faced by the country’s startups. While Indonesia’s Internet economy is forecast to grow to more than $100 billion by 2025, it produces only 278 engineers per million people a year, according to consultancy A.T. Kearney.

Gojek, which acts as one-stop app through which users can make online payments and order food and services, is one of Indonesia’s five unicorns – companies that have reached $1 billion in valuation without tapping the stock markets.

The company raised over $1 billion earlier this year from backers including Alphabet’s Google and Chinese tech giants Tencent and JD and is currently valued at $10 billion. It employs 3,000 staff and operates with more than one million drivers and 125,000 merchant partners.

Last year, Gojek announced it will invest $500 million in its international expansion to Vietnam, Thailand, Singapore and the Philippines, starting with ride-hailing, then further replicating the multiple-service business model in Indonesia.

Other unicorns in Indonesia are travel site Traveloka, market places Bukalapak and Tokopedia and Grab-backed fintech firm OVO, which competes with Gojek’s own payments platform Gopay for the top spot in Indonesia’s multi-billion dollar online payments market. Market observers expect that five-year old startup Ruangguru, Indonesia’s largest online tutoring platform, will join their ranks within one to two years.

Share your vote!


Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Indonesian President Joko Widodo’s new cabinet on October 23 appointed 35-year-old Nadiem Makarim, the co-founder and CEO of ride-hailing firm Gojek, as education and culture minister. He resigned from the company and will be succeeded by Gojek president Andre Soelistyo and other co-founder Kevin Aluwi. Gojek confirmed that Makarim, who was born in Singapore but has Indonesia citizenship, would not retain “any executive or advisory role” with the company. However, a spokesperson later indicated that he will hold on to his stake in Gojek as a “passive shareholder.” Investors say that Widodo’s choice of Makarim, a graduate of Brown University...

Ride-hailing Pioneer Becomes New Education Minister In Indonesia

Indonesian President Joko Widodo’s new cabinet on October 23 appointed 35-year-old Nadiem Makarim, the co-founder and CEO of ride-hailing firm Gojek, as education and culture minister. He resigned from the company and will be succeeded by Gojek president Andre Soelistyo and other co-founder Kevin Aluwi.

Gojek confirmed that Makarim, who was born in Singapore but has Indonesia citizenship, would not retain “any executive or advisory role” with the company. However, a spokesperson later indicated that he will hold on to his stake in Gojek as a “passive shareholder.”

Investors say that Widodo’s choice of Makarim, a graduate of Brown University and Harvard Business School, both in the US, was a welcome signal that the president will focus on developing the booming technology sector in Southeast Asia’s largest economy.

The Indonesian leader has repeatedly pledged to invest in bridging the acute skills shortage faced by the country’s startups. While Indonesia’s Internet economy is forecast to grow to more than $100 billion by 2025, it produces only 278 engineers per million people a year, according to consultancy A.T. Kearney.

Gojek, which acts as one-stop app through which users can make online payments and order food and services, is one of Indonesia’s five unicorns – companies that have reached $1 billion in valuation without tapping the stock markets.

The company raised over $1 billion earlier this year from backers including Alphabet’s Google and Chinese tech giants Tencent and JD and is currently valued at $10 billion. It employs 3,000 staff and operates with more than one million drivers and 125,000 merchant partners.

Last year, Gojek announced it will invest $500 million in its international expansion to Vietnam, Thailand, Singapore and the Philippines, starting with ride-hailing, then further replicating the multiple-service business model in Indonesia.

Other unicorns in Indonesia are travel site Traveloka, market places Bukalapak and Tokopedia and Grab-backed fintech firm OVO, which competes with Gojek’s own payments platform Gopay for the top spot in Indonesia’s multi-billion dollar online payments market. Market observers expect that five-year old startup Ruangguru, Indonesia’s largest online tutoring platform, will join their ranks within one to two years.

Share your vote!


Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

NO COMMENTS

Leave a Reply