Future Chart of Gojek Business in Indonesia

Go-Pay is now an important part of the use of Indonesia's digital money today. Based on Go-Jek
data, 30% of e-money transactions in Indonesia occur on the Go-Pay platform. GoJek users have
also begun to utilize money transfer facilities within Go-Pay. As of November 2017 yesterday, at
least Rp.570 million flowed from Go-Jek users in Jabodetabek to various regions in Indonesia.
Go-Pay's actions in the future will certainly be more massive. This is reflected in their steps to
acquire three financial companies in early December, namely Midtrans, Kartuku, and Mapan.
So far, the three companies have processed total transactions of more than Rp67.5 trillion per
year through credit cards, debit cards and digital wallets. Nadiem Makarim (Chief Executive
Officer of Go-Jek) said the acquisition was a big leap in Go-Jek to master multiplatform
technology that focuses on digital payments. He hopes that Go-Pay will continue to lead the
digital wallet service industry and independent payment process. "This initiative is a strategic
step in strengthening our foundations and steps in the Indonesian technology industry," Nadiem
said. Owning a Vehicle Besides Go-Jek, Grab is also seriously working on the e-money market.
Grab has now collaborated with PT Visionet International to use the OVO license. This
collaboration is carried out so that Grab can comply with regulations related to Bank Indonesia
permits related to the use of digital money. In addition to OVO, Grab has also partnered with
Yusuf Mansur, PayTren's mobile payment application, and acquired Kudo. According to startup
observer Edward Ismawan Chamdani, the Go-Jek and Grab steps are indeed needed for future
development. "There are two important things that make a startup business large and
sustainable," said the man who served as Ideosource's CEO. The first thing is the customer
lifetime value, and the second is the customer's exponential value. "The more a service is needed
and user habits have been established, the startup will have a higher value," he said.
Moreover, the online transportation industry has a relatively easy barrier to entry and customers
have the tendency to choose the cheapest. "For the long term, the lifetime value and costs
incurred [in the online transportation industry] are not as attractive as e-money or payment
services," Edward added. Edward himself saw that Go-Jek and Grab had the potential to enlarge
their dominance in the world of e-money. "Grab and Go-Jek are very easy to build user habits
using e-money services," said Edward. When the custom is formed, the amount of funds in the
user's wallet will increase. As a result, it will be very easy for Go-Jek to attract merchants into
the Go-Pay ecosystem. Especially if you look in the mirror from a story from other parts of the
world, there must be a companion service to encourage the success of an e-money. "For example
Paypal-eBay, AliPay-Alibaba, or Wechat Pay-Wechat," added Edward. The importance of online
transportation for Indonesian people makes Go-Jek and Grab relatively have a "vehicle" that can
be relied upon to drive the success of their e-money.
Threaten the Bank? When an online transportation company aggressively enters the realm of e-
money, does that mean the bank's position is threatened? According to banking observers, Irianto
Kusumadjaja, this should not be a concern. "Because Go-Pay transactions are generally small
nominal transactions and this is a substitute for cash transactions," said the man who has more
than 20 years of banking experience. Irianto actually saw that the presence of Go-Pay and Grab
would help the banking industry. "Because the provision of cash at the bank will decrease and
ultimately the handling cost for cash will also be reduced, plus the bank does not need to provide
an ATM just to serve customers taking cash," he said.