Business Environment

Operational efficiency gains and wealth redistribution made possible by Indonesia's car-dispatch app



Green jackets and helmets are conspicuous on Jakarta's roads, and green clusters form around buildings in the morning and evening as motorcyclists wait for people to return home.

While there are still issues such as the driving skills of drivers and coexistence with conventional taxis, I would like to see the Indonesian government take the lead in creating solutions that do not compromise the convenience that has permeated the lives of Indonesians.

GO-JEK application that has penetrated into the life

I go to the office in South Jakarta by GO-RIDE and go to work by bonceng (two people on a motorbike), get Bakso delivered by GO-FOOD for lunch, go home by GO-CAR if it rains, earn GO POINT by ordering a taxi from GO-BLUEBIRD not from regular My Blue Bird app, and send a parcel in Jakarta city by GO-SEND.

My wife called GO-CLEAN once a week, the interior of my apartment was always shiny and ironed, and when I hit a tire on the curb of the parking lot and got a flat tire, I called a repairman at GO-AUTO.

In Indonesia, where transportasi berbasis aplikasi online (an online app-based dispatch business) is three steps ahead of Japan, Grab Taxi and GO-JEK will be the two major services, but there's no denying the feeling that both have usurped the market from conventional taxis (taxi conventional) and ojeks as white motorcycle taxis (called dark taxi gelap in Indonesia).

The Minister of Transportation has announced that online taxis will be required to have identification stickers affixed to them as part of a proposed regulatory amendment to allow fair competition between online taxis and conventional taxis, which should come into effect this November.

GO-SEND, which has increased labor productivity and redistributed wealth

I sent a WIFI modem by GO-SEND from my apartment in Thamrin to my friend's apartment in Senayan yesterday, but it was only Rp. 16,000 for the postage, just a peer-to-peer system where the GO-RIDE driver nearby comes to pick up the modem and sends it directly to the destination without going through the collection point.

It used to take half a day to send parcels and materials to an address in Jakarta, find a TIKI store, drive to the store, fill out a form and pay for it.

The time that I do the work of the system is the direct work time that produces added value, and the work of this movement or the delivery is the indirect work time that I want to reduce as much as possible for me originally, and my business efficiency of one week is clearly improved thanks to the service of this GO-JEK application, and when this accumulates for 30 million people in the Jakarta metropolitan area, it is imagined that the economic effect as a nation is immeasurable.

In the case of Indonesia, the idle labor force (potential labor force) of Ojek drivers, who seem to be lazy but are actually eager to work, can participate in the labor market through an online app.

Generally, macroeconomic wealth redistribution is carried out under the leadership of the government, such as tax reforms, social security systems, and public works, but GO-JEK, a private enterprise, is creating employment opportunities and even wealth redistribution (income redistribution).

By connecting ojeks (motorcycles), which used to be everywhere, online, and outsourcing the time-consuming, costly, and unproductive tasks of transportation and delivery to them with just a smartphone, we have improved business efficiency and redistributed wealth at once.

In developed countries such as Japan, when replacing existing services with new ones through technological innovation, it takes a certain amount of time for the scrap-and-build process to take place, both in terms of the software (regulation) and the hardware (infrastructure), but in developing countries such as Indonesia, because it is possible to build directly without scrapping, technological innovation is penetrating society very quickly, and the process of national growth is progressing drastically on a daily basis.