Indonesian telecom network Telkomsel invests $150 million in Gojek

Manish Singh
·1-min read
CORRECTION - A Gojek rider transports a passenger in Jakarta on February 2, 2017. / AFP / Bay ISMOYO / The erroneous mention[s] appearing in the metadata of this photo by Bay ISMOYO has been modified in AFP systems in the following manner: [Gojek] instead of [GrabBike], and [removes second sentence]. Please immediately remove the erroneous mention[s] from all your online services and delete it (them) from your servers. If you have been authorized by AFP to distribute it (them) to third parties, please ensure that the same actions are carried out by them. Failure to promptly comply with these instructions will entail liability on your part for any continued or post notification usage. Therefore we thank you very much for all your attention and prompt action. We are sorry for the inconvenience this notification may cause and remain at your disposal for any further information you may require. (Photo credit should read BAY ISMOYO/AFP/Getty Images)
CORRECTION - A Gojek rider transports a passenger in Jakarta on February 2, 2017. / AFP / Bay ISMOYO / The erroneous mention[s] appearing in the metadata of this photo by Bay ISMOYO has been modified in AFP systems in the following manner: [Gojek] instead of [GrabBike], and [removes second sentence]. Please immediately remove the erroneous mention[s] from all your online services and delete it (them) from your servers. If you have been authorized by AFP to distribute it (them) to third parties, please ensure that the same actions are carried out by them. Failure to promptly comply with these instructions will entail liability on your part for any continued or post notification usage. Therefore we thank you very much for all your attention and prompt action. We are sorry for the inconvenience this notification may cause and remain at your disposal for any further information you may require. (Photo credit should read BAY ISMOYO/AFP/Getty Images)

Telkomsel, Indonesia’s biggest telecom network, has invested $150 million in ride-hailing firm Gojek, the two companies said on Tuesday.

As part of the “strategic partnership,” the two firms said they will explore a “broad range of collaboration opportunities” to reach millions of Indonesians. Since 2018, Gojek and Telkomsel have maintained a deal to subsidize the cost of mobile data consumed by the ride-hailing firm's driver partners.

With more than 170 million subscribers, Telkomsel is the largest telecom operator in Indonesia. In addition to ride-hailing, Gojek has expanded to several additional businesses, including digital payments and food delivery in Indonesia.

The firm, which has raised over $3 billion to date and was valued at about $10 billion earlier this year, is backed by some of the biggest names in tech, including Facebook, Google, PayPal and Tencent. Gojek, which also serves about 170 million users, competes with just as heavily-backed firm Grab, which is reportedly in talks to raise an additional $3 billion from Alibaba.

Moreover, the two lossmaking giants, according to several reports, have renewed their talks for a merger in recent months (amid the pandemic) in a move that could theoretically help them reach profitability. Both companies have declined to comment on these supposed merger talks.

"This is a great day for Gojek and for Indonesia, as we strengthen our collaboration with Telkomsel, one of Indonesia's most forward-looking telecommunication companies. By working together, we hope to help Indonesia become a true digital powerhouse in Southeast Asia, and bring the benefits of the digital economy to millions more consumers, driver-partners and small businesses,” said Gojek co-chief executive Andre Soelistyo in a statement today.