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

One of Indonesia's most influential business lobbies has urged the government to tighten its regulations on foreign ownership, taxation and user privacy at local digital startups to prevent domination by foreign entities. (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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