Gojek bags US$300m more in funding from Singtel Indonesia associate Telkomsel

Telkomsel invested US$150 million in November last year into Gojek.
Telkomsel invested US$150 million in November last year into Gojek.PHOTO: REUTERS

SINGAPORE (THE BUSINESS TIMES) - Telkomsel has invested an additional US$300 million (S$398 million) into ride-hailing start-up Gojek, with plans to strengthen their existing collaboration.

The Indonesian network service provider, which is a subsidiary of Telkom Indonesia and Singtel, invested US$150 million in November last year in Gojek.

Both parties said in a joint press statement on Monday (May 10) that the additional investment has the approval and support of Telkomsel's shareholders, including Telkom Indonesia and Singtel group.

Gojek group co-chief executive Andre Soelistyo said the additional investment will strengthen the collaboration between both companies. Together, they hope to accelerate Indonesia's digital transformation.

Telkomsel and Gojek will explore more opportunities to integrate their digital services and continue to work together to grow Indonesia's digital lifestyle sector, they said.

Telkomsel chief executive Setyanto Hantoro said the investment is part of the company's strategy to strengthen its three digital business pillars - digital connectivity, digital platform and digital services.

Since Telkomsel's initial investment, both companies have integrated various aspects of their services like Telkomsel's MyAds with GoBiz. In addition, they have rolled out affordable data packages for Gojek driver-partners, and also co-marketed gaming services in collaboration with Tencent, to name a few, the joint statement said.