• GoTo contributed IDR 259.6 trillion to IDR 392 trillion to Indonesia's GDP in 2023.

• GoTo's impact on Indonesia's GDP can be seen in the five sectors driving Indonesia's GDP in 2023.

• From 2015-2023, GoTo helped to suppress Indonesia's unemployment rate by 8.25% per year, reaching 21% in  areas outside Java.

• GoTo encourages increased digital inclusion in areas outside Java and Bali, contributing to the increase in digitally savvy Indonesian workers.

Jakarta, 5 June 2024 – PT GoTo Gojek Tokopedia Tbk (GoTo), the largest digital ecosystem in Indonesia, continues to make a positive contribution to national economic growth, especially in five key sectors: retail, manufacturing, food and beverage, information and communication technology (ICT ), and transportation.

The latest report from the Institute for Economic and Community Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI), estimates that GoTo Group contributed IDR 259.6 trillion to IDR 392 trillion to Indonesia's GDP in 2023.

This figure comes from the added value generated from the activities of companies and business partners in the GoTo ecosystem, specifically, its driver partners and merchants (MSMEs). The results of this study are also based on the classification of 17 sectors from the BPS-Statistics Indonesia (BPS). This contribution value does not reflect GoTo's total gross transaction value (GTV).

According to the LPEM UI study, GoTo’s impact can be seen in the five sectors driving Indonesia's GDP in 2023. The five sectors are, first, retail: wholesale and retail trade, repair of motor vehicles and motorbikes (through GoTo's core business in on-demand services and e-commerce), with a value reaching IDR 154.7 trillion to IDR 175.4 trillion.

Second, manufacturing, which comes from the indirect impact of business activities carried out by GoTo merchants, with an estimated value of IDR 17.4 trillion to IDR 45.1 trillion.

Third, information and communication technology from GoTo’sbusiness as a digital platform, with an estimated value of IDR 17.41 trillion to IDR 24.56 trillion.

Fourth, accommodation and food and beverage activities from GoFood services, with a value of IDR 12.40 trillion to IDR 19.68 trillion.

Fifth, transportation and warehousing from GoTo’s on-demand and logistics services, with an estimated value of IDR 12.43 trillion to IDR 21.08 trillion.

GoTo's Contribution to the Five Sectors Driving Indonesia's GDP in 2023

Chaikal Nuryakin, Ph.D, Head of LPEM FEB UI, noted that GoTo has consistently made a significant contribution to Indonesia's economic growth, despite Indonesia's GDP growth slowing down due to the global economic challenges.

In 2023, based on BPS data, Indonesia's economy managed to grow by 5.05%, lower than the figure of 5.31% in 2022. This is in line with estimates due to the global economic slowdown and domestic activity being affected by inflation.

This year, the Indonesian government is optimistic that Indonesia’s economy will grow at a higher rate of 5.2%. In the first quarter of 2024, the Indonesian economy grew by 5.11% year on year (YoY).

Several global institutions have also provided projections for Indonesia's economic growth, with the IMF estimating that Indonesia will grow at 5.0% this year, while the World Bank and OECD have provided estimates of 4.9% and 5.1% respectively.

“2024 will be marked by significant global challenges. However, we still see good potential for Indonesia's economic growth, supported by strong domestic consumption and government spending. We also believe that GoTo, with the support of its broad ecosystem, will continue to contribute significantly to the national economy," said Chaikal, in an official statement in Jakarta on Wednesday (5/6/2024).

Patrick Walujo, GoTo’s CEO, said, "As a homegrown company, it is our aim to be the pride of Indonesia and contribute to the country’s growth. We believe that technology can help society to achieve a better future, especially when the technology that is developed benefits people from all levels of society."

GoTo also continues to strive to provide opportunities and empower millions of driver partners and local MSMEs so that they can grow and succeed, while supporting the development of Indonesia's digital economy.

“GoTo was born in Indonesia, and developed by Indonesians to benefit the Indonesian people. The positive impact that the company has on the national economy is something that we are very grateful for, and it also motivates us to ensure that GoTo continues growing sustainably, so that we can bring greater benefits to more people."

Digital Inclusion and Unemployment Rates

The results of the LPEM UI study also show that between 2015-2023, GoTo contributed to a reduction in Indonesia's unemployment rate at the regency/city level by an average of 8.25% per year.

In 2023, Indonesia's open unemployment rate will decrease by 6.8% from 2022 or around 570,856 people. Based on the calculations above, GoTo's contribution to reducing open unemployment is therefore equivalent to 47,083 people in 2023.

GoTo's contribution to the reduction in the unemployment rate is greater in areas outside Java, at approximately 21% of the total reduction in unemployment in these areas.

In addition, GoTo is also contributing to the increase in digital inclusion in areas outside Java and Bali, by empowering more Indonesian workers to use the internet.

Between 2018-2023, LPEM UI's calculation results show that on average, the presence of GoTo at the city/regency level increases the number of digitally savvy workers by 2.2%–3.1%. Specifically for areas outside Java and Bali, the impact of GoTo's presence is correlated with an increase in the number of digital talents by 3.3-4.25% in that period.

LPEM also identified GoTo's impact on the growth of digital talent and technology companies as a whole through a qualitative study involving GoTo alumni, the Ministry of Communication and Information, the Ministry of Manpower, the Ministry of Industry, and university representatives.

The results of the study show that digital platforms such as GoTo have inspired former workers and the wider community to build their own businesses, supported by exposure to company founders and international standard talent.

Chaikal noted that digital platforms such as GoTo can have a positive influence in increasing the availability of digital talent in Indonesia. This is done by  expanding access to technology and learning platforms, while strengthening the diversity and skills possessed by the workforce.

"Digital platforms like GoTo have the opportunity to contribute to the development of digital talent by accelerating the digital transformation process. By holding bootcamps, utilizing learning and job platforms, establishing institutions/associations, and supporting government policies, GoTo is enabling Indonesians to have easier access to information on job vacancies in the digital sector."

Apart from that, digital platforms are also able to encourage the growth of tech entrepreneurs in four key ways, namely by providing inspiration, developing relationships, helping them to develop a business mindset, and providing technical skills. "This positive impact can be seen from the availability of various tech entrepreneur training programs in Indonesia," said Chaikal.

For this study, LPEM FEB UI researchers used all GoTo transactions, including Tokopedia transactions and other Gojek merchant partners such as  GoFood and GoMart merchants, obtained from surveys as the main data source in forming shock or stimulus values ​​for the economic impact calculation model using the Input-Output method.

As for the study methodology, GoTo’s impact in reducing unemployment rates and developing digital talent is based on econometric modeling and is therefore tied to the scope and limitations of the study. The study uses GTV data, labor force data for 2015-2023, and data related to digital talent from the 2018-2023 National Labor Force Survey (Sakernas) from the BPS-Statistics Indonesia (BPS).

The analysis was carried out using the "panel event studies" or "difference-in-difference with staggered design" methods in analyzing income inequality, poverty levels, and indicators related to job creation and new businesses. Meanwhile, unemployment is measured using the unemployment rate which is the ratio of people who are not working compared to the workforce.

-END-

About LPEM UI

LPEM FEB UI is a research institute under the Faculty of Economics and Business, University of Indonesia (FEB UI) and is one of the largest research and academic communities at the University of Indonesia.

For further purposes, you can contact us via email to:

marcom@lpem-feui.org cc: lpem@lpem-feui.org and marcom.lpemfebui@gmail.com.

About GoTo Group

GoTo is the largest digital ecosystem in Indonesia. GoTo's mission is to ‘empower progress' by offering technology infrastructure and solutions that help everyone to access and thrive in the digital economy. The GoTo ecosystem provides a wide range of services including mobility, food delivery, groceries and logistics, as well as payments, financial services, and technology solutions for merchants. The ecosystem also provides e-commerce services through Tokopedia and banking services through its partnership with Bank Jago.

For further information please contact:

Chaikal Nuryakin - chaikal.nuryakin@ui.ac.id

Corporate Affairs, GoTo Group - corporate.affairs@gotocompany.com