UI Research: Gojek Contributes Rp4.6 trillion to Palembang’s Economy
DEPOK – Wednesday, (16/09/2020) sumsel.antaranews.com published an article about the results of research conducted by researchers of the Demography Institute, FEB UI (LD FEB UI), in Palembang. The article, entitled “UI Research: Gojek Contributes Rp4.6 Trillion to Palembang’s Economy“, appeared in the Economy section. Below is the complete article.
Palembang (ANTARA) – Research conducted by the Demography Institute, Faculty of Economics and Business, Universitas Indonesia, has found that Gojek contributes up to Rp4.6 trillion to Palembang’s economy.
Deputy Head of the Demography Institute, DR Paksi CK Walandouw, said in a press release issued on Wednesday that the research was conducted before the COVID-19 pandemic broke out using two methods.
The first method assessed the contribution of Gojek partners to the regional gross domestic product (Produk Domestik Regional Bruto, PDRB), which reached Rp4.6 trillion.
The second method determined the added value to Palembang’s economy calculated from the difference in partner drivers’ earnings before and after they joined the Gojek ecosystem, which reached Rp5.7 trillion.
He noted that the Gojek ecosystem increased the added value of all sectors of Palembang’s economy or regional GDP by up to 3 percent in 2019.
Quoting the research results, Paski revealed that micro, small and medium enterprises (MSMEs) have seen their turnover increase by up to 30 percent since they joined GoFood.
GoSend and GoPay partners have seen their turnover increase by 41 percent and 17 percent, respectively. Meanwhile, all GoFood partners have reported an increase in transaction volume while 94 percent said they have acquired new clients, which has direct implications on economic growth, he said.
According to Paski, Gojek has also increased the turnover of MSMEs outside the Gojek ecosystem such as fresh produce suppliers and vehicle repair shops by 65 percent.
MSMEs not incorporated in the Gojek ecosystem also benefit from the use of the domestic app in Palembang, he said.
Economic Digitalization a la Gojek
The application, which started as a platform offering on-demand transport service and has evolved into an ecosystem with a range of services such as GoFood and GoSend, can no longer be ignored because of their benefits.
This is especially true amid the pandemic that has made digital economy become the most important part and lifestyle of the majority of people.
The development of MSMEs is also closely linked to the digital system. Therefore, Paski said that Gojek’s important role in driving the growth of MSMEs through its active participation in accelerating the digitalization of MSMEs and financial inclusion should be appreciated.
Citing an example, he pointed out that research data showed that GoFood was the pioneer of MSME digitalization, with 96 percent of MSMEs have gone digital and 90 percent of them using non-cash payment system.
In addition, 46 percent of GoRide partners and 47 percent of GoCar partners routinely save their money after they joined Gojek, he added.
LD FEB UI researcher Alfindra Primaldhi revealed that although 83 percent of partner drivers are concerned about COVID-19, more than one-third (40 percent) said they still care for others and provide social aid for relatives, people in need, religious institutions and peer partners.
The majority of partner drives are also optimistic that by continuing their partnership with Gojek, they will be able to earn the same amount of income before the pandemic (72 percent) and will be able to provide for their family (77 percent). Good relations with Gojek are also reflected in the number of partner drivers (90 percent) who said they will continue the partnership with Gojek.
National research in 2019 also showed that before the pandemic, Gojek partners in five services (GoFood, GoPay, GoSend, GoCar dan GoRide) contributed Rp104.6 triliun to Indonesia’s economy in 2019. When measured based on the GDP calculation, the production value of Gojek’s digital ecosystem in 2019 was equivalent to 1 percent of Indonesia’s GDP.
The LD FEB UI research was conducted in Greater Jakarta (Jabodetabek), Medan, Palembang, Bandung, Yogyakarta, Semarang, Surabaya, Bali and Makassar. The research was conducted using a quantitative method through face-to-face interviews to assess Gojek’s contribution in 2019 (Palembang city, N = 651). During the COVID-19 pandemic, the research was conducted online in the same cities from May to July 2020 (Palembang city, N = 3624).