Research by the Demographic Institute of FEB UI: In 2019, the Gojek Ecosystem Contributes to the Denpasar Economy and Helps MSMEs Surviving the Pandemic

Research by the Demographic Institute of FEB UI: In 2019, the Gojek Ecosystem Contributes to the Denpasar Economy and Helps MSMEs Surviving the Pandemic

Hana Fajria – Public Relations of FEB UI

DEPOK – Wednesday, (7/10/2020) Online media balitribune.co.id, published the results of a research by the Demographic Institute of FEB UI in Denpasar, in an article titled “Research of the UI Demographic Institute: In 2019, Gojek Ecosystem Contributes to Denpasar Economy and Helps MSMEs To Survive the Pandemic“. Following is the research     :

Denpasar – The Demographic Institute of the Faculty of Economics and Business, Universitas Indonesia (LD FEB UI) explained that the contribution of Gojek partners to Denpasar’s Gross Regional Domestic Product (PDRB) in 2019 amounted to  6.7 trillion Rupiah or contributed   12% of Denpasar’s PDRB. If calculated using the added value method to Denpasar’s economy, Gojek contributed 5.8 trillion Rupiah in 2019.

The results of this research are part of a research entitled “Gojek’s contribution to the economy of Denpasar City.” The research also found that the turnover of MSMEs joining GoFood in 2019 increased 23%, the turnover of GoSend social sellers increased 16%, and the turnover of GoPay MSMEs increased 18% since joining Gojek. Meanwhile, 80% of GoFood MSMEs also experienced an increase in transaction volume and 99% of them got new customers.

This explanation was revealed in a Virtual Press Conference titled      Gojek Digital Ecosystems to Support Denpasar City’s Economic Resilience Through Sustainable Contribution, which was attended by I Dewa G. K. Wisana, Ph.D. – LDUI researcher, I Made Artana S.Kom MM – Founder and Chair of STMIK Primakara Michael Reza Say – VP Regional Corporate Affairs Gojek; and moderated by Alfianto Domy Aji, Head of Regional Corporate Affairs Gojek, East Java & Bali Nusa Tenggara.

Michael Reza Say Gojek VP Regional Corporate Affairs  said, “More than 90% of Gojek’s business partners feel greatly helped by the technology available in the Gojek ecosystem to survive the pandemic. We believe that the ease and security of access in the activation process further supports MSME partners to start, adapt, and expand their business. In the latest GoBiz application, MSME partners can take advantage of the Mandiri Register (Independent Registration) feature to register, check verification status, and activate accounts independently.”

Michael added that besides technology, Gojek also provides non-technology support to help the resilience of MSMEs during the pandemic. “As a technology company, Gojek also provides non-technology support, such as encouraging increased demand from consumers through promo periods and training for GoFood MSMEs through the GoFood Partner Community ( KOMPAG),” he explained.

I Dewa GK Wisana, Ph.D – Researcher at the FEB UI Demographic Institute explained, “This research shows that the digital economy, like Gojek, in normal times before the pandemic has great potential to help drive regional economies, such as Denpasar, through increasing the turnover of GoFood MSMEs; GoPay MSMEs , and GoSend social sellers     . In a period of economic recovery during the pandemic, the role of the digital economy will be increasingly important to become a growth partner for MSMEs. Gojek also accelerates the digitization and financial inclusion of MSMEs, as shown by data that GoFoo, also led MSMEs to obtain digital businesses for the first time (87%) and use non-cash payments (51%). Meanwhile, since joining Gojek, 57% of GoRide and 71% GoCar partners regularly save. “

Not only has an impact on MSMEs in the Gojek ecosystem, MSMEs outside the Gojek ecosystem, such as providers of raw materials in the market and vehicle repair shops have also benefited from the presence of Gojek in Denpasar, by experiencing an increase in turnover by 6%.

Dewa added that the presence of Gojek in Denpasar also had a domino effect in other sectors. The multiplier impact, or the indirect contribution of Gojek’s presence to Denpasar’s PDRB in 2019, amounted to Rp 739 billion. This is calculated from the income of MSMEs outside the Gojek ecosystem (such as workshops used by driver partners, or market traders who sell raw materials to GoFood partners) after Gojek started to operate in Denpasar.

In addition to examining the impact of the Gojek Ecosystem towards Denpasar economy in 2019, this research also shows that 86% of GoRide and GoCar driver partners in Denpasar received at least one type of social assistance from Gojek during the COVID-19 pandemic. The majority of driver partners who received assistance (83%) appreciated the assistance from Gojek.

Dewa further explained, “Even though 76% of driver partners are worried about COVID-19, almost half or around 49% driver partners show that they still care about providing social assistance to families, communities in need, religious institutions, and to fellow Gojek partners. In addition, the majority of driver partners remain optimistic that by continuing their partnership with Gojek, their income will return to what they were before the pandemic (71%), and they will still be able to meet their needs and their families (77%). The good relationship with Gojek is also reflected by 89% of driver partners who say they will continue their partnership with Gojek”.

At the national level, the 2019 research showed that before the pandemic, Gojek partners from five services (GoFood, GoPay, GoSend, GoCar and GoRide) contributed Rp 104.6 trillion to the Indonesian economy in 2019. When using the method of calculating gross domestic income (GDP) ), the production value in the Gojek digital ecosystem during 2019 is equivalent to 1% of Indonesia’s national GDP.

LD FEB UI research was carried out in several regions of Indonesia using quantitative methods through face-to-face interviews to observe Gojek’s contribution in 2019 (Denpasar City, N = 601). Meanwhile, research during the COVID-19 pandemic was carried out through an online survey in the same area in May-July 2020 (Denpasar City, N = 3226).

Determination of research respondents was carried out by simple random sampling of active partners in the Gojek database. The sample of this research is representative of the population of GoCar and GoRide driver partners; GoFood and GoPay MSME partners; and social seller MSME partners using GoSend services. For other MSMEs outside the Gojek ecosystem (workshops, market traders) in the study area, the purposive sampling method was used. This research is one of the studies with the largest scale and coverage in the Indonesian digital economy industry during the pandemic.

On the other hand, I Made Artana S.Kom MM – Founder and Chair of STMIK Primakara explained, “In today’s challenging conditions, creativity is the key word to always see the opportunities that exist. Therefore, looking at the research results submitted, I see GoFood MSME & MSME Social Seller GoSend partners as an alternative opportunity in the Gojek ecosystem. I have recently seen the collaboration with Kajar and Disdukcapil of Denpasar City as a concrete step towards realizing creativity through synergies that provide benefits to the community.

Complementing Gojek’s support for MSMEs, Gojek through the J3K initiative has involved all elements in the Gojek ecosystem (Driver Partners, GoFood Merchants and customers) to prioritize three important elements, namely Maintain Cleanliness, Health and Safety to prevent the spread of COVID-19 while providing services to customers in Denpasar.

Source: https://balitribune.co.id/content/riset-lembaga-demografi-ui-tahun-2019-ekosistem-gojek-berkontribusi-ke-perekonomian-denpasar

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