Telkomsel’s Investment in Gojek Is Key to Stay Competitive in Global Stage: Economist

The Jakarta Globe
July 8, 2022 | 10:38 am
SHARE
A group of teenagers playing with their phones in Medan, North Sumatera, last April. (Antara Photo/Septianda Perdana)
A group of teenagers playing with their phones in Medan, North Sumatera, last April. (Antara Photo/Septianda Perdana)

Jakarta. Recently, there have been a lot of discussions regarding Telkomsel's investment in Indonesia's ride-hailing decacorn Gojek, now known as GoTo Gojek Indonesia, after a record-breaking merger with local e-commerce giant Tokopedia.

It is interesting to see this from an economic and investment perspective, as the global telecommunication sector is facing many challenges with voice and message revenue continuing to decline.

On the other hand, Indonesia's internet economy continues to swell, reaching $70 billion and signifying an optimistic projection of $146 billion, according to the economy SEA 2021 report by Google, Temasek, and Bain. 

Harris Turisno, an economist and member of the House of Representatives Commission VI, overseeing trade, industrial, investment, cooperatives, small and medium scale enterprises, and state-owned enterprises affairs, weighed in on the discussion.

Advertisement

Harris, who is also a working committee member in Indonesia's Stated Owned Enterprise investment in sharing economy company, said Telkomsel's investment in Gojek is necessary to overcome the decline in the voice and message business.

Telkomsel needs to find a new revenue stream to support its sustainable business growth as a telco company. The investment in Gojek, the largest base ride-hailing in Indonesia, brought synergy more than business profit. 

Harris stated that the collaboration between these two giant companies could bring social and economic value to the more extensive base. For instance, they could collaborate on a synergy program where Gojek drivers or SMEs use Telkomsel as their provider and provide special packages.

"Telkomsel invested in Gojek at a lower price than [the company's] IPO price," referring to GoTo Gojek Indonesia's Rp 13.7 trillion ($913.9 million) initial public offerings last April. 

"It showed that there's a lot of potential growth in the future and unrealized gain or loss in the capital market is part of the business activities," Harris said. 

He said many Telkomsel peers in the global market executed this type of investment to stay competitive.

"A sharing economy company like Gojek is not for a short-term but long-term business plan as it's not only considering gain or loss but sustainable growth that will support company fundamentally and continue to contribute to the Indonesian economy," Harris said.

Tags: Keywords:
SHARE

Related Articles


Business May 28, 2025 | 1:24 pm

Telkom Names Former XL Axiata Chief Dian Siswarini as New CEO

Former XL Axiata boss Dian Siswarini steps in as Telkom’s new CEO, replacing Ririek Adriansyah in leadership shake-up.
Business May 28, 2025 | 8:33 am

GOTO Announces Board Shake-Up, Cancels Private Placement Amid Market Shift

Another key agenda item for the June 18 meeting is a share buyback plan worth up to Rp 3.33 trillion ($204.6 million).
Special Updates May 22, 2025 | 4:15 pm

Enthusiasm Soars High at Digiland Run 2025

As many as 12,500 people took part at Digiland 2025.
Business Apr 29, 2025 | 6:41 pm

GoTo Turns Profitable in Q1 2025 as Fintech and On-Demand Units Surge

GoTo posts Rp393 billion adjusted EBITDA profit in Q1 2025, fueled by fintech and on-demand growth; shares rise 3.88% to Rp85.
Business Mar 13, 2025 | 10:44 am

GoTo’s Losses Shrink 96 Percent in 2024 as Growth and Cost Cuts Pay Off

GoTo cut net losses by 96% in 2024, reporting record revenue and strong GTV growth, but full profitability remains out of reach.

The Latest


Business 2 hours ago

Indonesia Reassesses $24 Billion Refinery Project with Russia’s Rosneft

Seven years after launch, the Pertamina-Rosneft project in East Java faces an investment review over limited progress
Special Updates 3 hours ago

Cross-Sector Collaboration Key to Free Meal Program

The private sector can also play a role in helping the Prabowo Subianto government carry out the ambitious free meal program.
Business 3 hours ago

Garuda Indonesia Secures $405 Million Loan from Danantara

Garuda Indonesia will use the shareholder loan from Danantara for maintenance and inspection work.
Special Updates 4 hours ago

Pegadaian Takes Home 2025 Innovative Future Finance Awards

Pegadaian also took home the 2025 Best CEO for the Financial Services Industry category.
News 5 hours ago

Tariff Talks Don’t Mean Jakarta Should Keep Quiet on US Joining Israel-Iran War

The US has inserted itself to the Israel-Iran war, but Indonesia has yet made an official statement regarding the conflict's developments.
COPYRIGHT © 2025 JAKARTA GLOBE. ALL RIGHTS RESERVED