Astra Invests Hefty Sums in Go-Jek, Exploring Insurance, Vehicle Leasing Businesses

Indonesian diversified conglomerate Astra International announced on Monday (12/02) that it has invested Rp 2 trillion ($150 million) to explore venturing into car and motorcycle leasing and insurance. (JG Photo/Dion Bisara)

By : Reuters | on 2:25 PM February 12, 2018
Category : Business, Corporate News

[Updated at 2:52 p.m. to correct lead and add information]

Jakarta. Indonesian diversified conglomerate Astra International announced on Monday (12/02) that it has invested Rp 2 trillion ($150 million) to explore venturing into car and motorcycle leasing and insurance.

"We have yet to have a fix business model [with Astra], but we are leaning towards two-wheel and four-wheel business leasing, or provide insurance to the motorists," Nadiem Makarim told reporters on Monday (12/02).

Astra's investment announcement is part of Google's investment strategy in the country's first unicorn, as the tech giant is reportedly pumping an investment into a total of $1.2 billion fundraising round. Singapore-owned investor Temasek also participated in the round.

"Astra's investment is the biggest among other investors [that participated in the round]," Nadiem said.

Go-Jek president and co-founder Andre Soelistyo said that Astra's investment will be allocated to expand consumer-driven, partners/drivers and Go-Food business innovation.

"Go-Jek will also develop its online-to-offline business [in the future]," said Andre.

Astra International president director Priyanto Sugiarto said the company used internal cash to fund the investment.

"We are excited to be the part of Go-Jek business. As one of the major players in the digital economy, Go-Jek will add value to the company and accelerate Astra's digital business. We see that Go-Jek is special, its development is significant," said Priyanto.

The investment will help Go-Jek compete with deep-pocketed rivals as players rapidly expand their app-based services and digital payments in Southeast Asia.

With additional reporting from Reuters

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