LPEM UI: GoTo contributes up to 2.2% of Indonesia’s GDP in 2022

The study was conducted by University of Indonesia’s Institute for Economics and Social Research (LPEM UI), in which it projected GoTo Group added between Rp 349 trillion to Rp 428 trillion to the national economy.

The figure is equivalent to 1.8% to 2.2% of Indonesia’s GDP last year and was the result of the company’s along with its driver and merchant partners activities within the GoTo ecosystem.

LPEM UI researcher Prani Sastiono said that GoTo also managed to create new jobs, reduce poverty as well as income gap for many Indonesians.

“This contribution is very significant given the current uncertainty in the global economy caused by high inflation and the Russia-Ukraine war,” she said during a press conference on Wednesday.

The research also found that overall, GoTo’s business activity through its merchants and sellers created new jobs for 1.1 million to 1.7 million people within the Indonesian workforce. The figure is equal to around 0.8% to 1.2% of the total workforce last year.

GoTo’s presence was also associated with a decrease in Gini coefficient of 0.012 point or 4.43% on average in regencies/cities where Gojek and Tokopedia, two of GoTo’s subsidiaries that operated its on-demand services and e-commerce business, coexist.

“This means that GoTo managed to get 24,666 people out of poverty or equal to 1% of the total reduction of people living in poverty in 2015 to 2022,” Prani said.

GoTo’s presence is also associated with decrease in Gini coefficient of 0.012 point or 4.43% on average in regencies and cities where Gojek and Tokopedia coexist.

LPEM UI Head Chaikal Nuryakin also added that the study found a correlation between the duration of GoTo’s presence with the positive economic impact in the certain city and regency.

“This means that the longer the time that GoTo is present in a regency or city, the faster the reduction in poverty and income gap compared to other regions where GoTo is not present,” he said.

He also added that the study was conducted due to the fact that GoTo is considered as an interesting case study as it is the biggest digital ecosystem in Indonesia with millions of partners and merchants scattered across the country, while its platforms are used daily by many Indonesians.

Coordinating MInister for Economic Affairs Airlangga Hartarto conveyed his appreciation to GoTo’s contribution and real impact to the national economy, especially in creating new jobs through its MSME partners’ business, reducing poverty and income gap.

“I hope GoTo can continue to create product and services innovation that can be beneficial for millions of driver partners, MSME partners and consumers in Indonesia while consistently transforming MSME to participate in the digital ecosystem,” he said.

GoTo Commissioner Agus D. W. Martowardojo hoped that GoTo’s mutual cooperation spirit, which is a unique characteristic of the company, could bring better change for the country.

“GoTo’s positive impact to Indonesia’s economy last year is in line with the company’s positive performance, as well as transaction and income growth as it inches closer to reach profitability,” he said.

Meanwhile, GoTo CEO Andre Soelistyo emphasized that GoTo economic contribution did not come from the company’s business activity alone.

“The business owners, including driver, seller and merchant partners within the GoTo ecosystem are the heroes in creating positive contributions for the economy. We merely act as a bridge that enables them to grow their business and income,” Andre said.

He added that to be able to make a positive contribution to the economy and help the partners within its ecosystem, GoTo needed to achieve financial independence.