Astra Group confirms its debut investment in digital with US$150 million (Rp2 trillion) fund for Go-Jek. The two companies are expected to make many business collaboration to develop SMEs in Indonesia.
Astra International’s President Director Prijono Sugiarto and Go-Jek’s CEO and Founder Nadiem Makarim are signing the contract. Also attending this ceremony is Minister of Communication and Information Rudiantara.
Sugiarto said, it (the fund) comes from Astra International’s internal cash. The company shows interest in Go-Jek, because Nadiem and team have a good history in managing startup unicorn in the on-demand sector.
Astra and Go-Jek are having similar factor as initial step for collaboration. Astra’s core business is in automotive, with Indonesia as its biggest market. Go-Jek, as well, is said to have more than a million drivers, 125 thousand partners, and some other achievements.
“Historically, when Nadiem entered the company three years ago, he was highly motivated. I saw Go-Jek is praised by Fortune to be local startup that is changing the world. We decided to join Go-jek because of the similar connection [in automotive] and it’s a good start the colaborate,” he said.
For Makarim, Astra’s presence as an investor is claimed to be the biggest among others in the latest funding round. Moreover, this has become Astra’s biggest investment for the digital company.
He also confirms that Astra is in the same round with Google, Temasek, and Meituan-Dianping. However, Nadiem isn’t confirming anything related to the result of the latest fundraising.
Some media claimed Go-Jek’s total funds reached $1,2-1,5 billion (Rp15-20 trillion) to compete in on-demand market facing Grab and Uber. Go-Jek was previously reported to receive investment from other locals through Blibli for around $100-120 million. In total, both companies have invested around Rp3-3,5 trillion for Go-Jek.
“The investment shows that traditionally more foreign investors invest on local startups. However, Astra has become a pioneer to proof the digital economy is real. It will be the history and others will follow. The paradigm is no longer ‘should I [invest to startup]’, but ‘when and how much’,” Makarim said.
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Original article is in Indonesian, translated by Kristin Siagian
