As Coronavirus Continues, Gojek Bosses Donate 25% Of Their Salaries For Drivers And Partners

27/03/2020

Indonesia has urged citizens to stay at home, work from home, and avoid creating crowds using a method called 'social distancing'.

But not everyone really wants to follow the order. Not because they simply don't want to, but it's because of the fact that their income will severely be affected.

'Ojek' for example, the drivers of two-wheel taxis popular in Indonesia are known to scout the city on a daily basis, just to get through the day with enough earning.

Gojek is the largest ride-hailing of Indonesia. The decacorn with its army of 'Ojol' (Ojek Online), have made things a lot easier for many in the urban and suburban of Indonesia.

But with the government urging people to stay indoors, many drivers are apparently still away from home to work.

Gojek
A Gojek driver taking hand sanitizer. (Credit: Surya Kepri)

For this reason, Gojek's co-CEO Andre Soelistyo and those at company's senior managements and board members are donating 25% of their income for 12 months, mostly for these tireless drivers.

Others that get the compensation include Gojek's merchants and partners.

Only one out of five Indonesians is economically secure, according to the World Bank report Aspiring Indonesia. About 22 percent of the population or 25 million people in Indonesia earn under $1 a day, with over 60 million people are vulnerable to falling into poverty.

From empty malls to factory disruptions, COVID-19 is expected to cause many micro, small and medium enterprise to have their sales plunge between 30% and 35% across Indonesia from February to March 9 alone, that according to MSME Association chairman Ikhsan Ingratubun.

And here, Ojol drivers’ income averages Rp4.9 million per month, according to a survey conducted by the Demographic Institute of the University of Indonesia Economic and Business School in 2018.

The fund that is collected is meant to help support millions of Gojek drivers, merchants and partners, to help them cope with low demand as a result of the COVID-19 pandemic, until the government loosens the restriction..

With the amount that goes up to at least Rp100 billion ($6 billion), the fund is collected by a newly-established Gojek Partner Support Fund, and managed by a foundation called 'Yayasan Anak Bangsa Bisa' to ensure transparency and good governance in the disbursement of funds.

Soelistyo said that the funding comes from a quarter of the year's salaries of Gojek senior management, as well as from the budgeted salary increases for all Gojek employees this 2020.

"Transportation has seen big drops in numbers with no one going to school or working at the office. Activities on the road have declined considerably," he said in a limited media teleconference. "Drivers and merchants are selfless heroes. They work so we can stay at home, giving support for our daily activities."

The decision to donate that huge amount has been made with the consent of all Gojek employees.

Gojek
Gojek drivers are "selfless heroes" that work so people can stay at home, said co-CEO. (Credit: Tagar.id)

“We opened the opportunity for Gojek employees to contribute. The support has been great. Everyone is supportive. They see this as fitting since the life and growth of Gojek as a company really depend on the success of our partners,” Andre continued.

Gojek is the leading ride-hailing in Indonesia, founded by Nadiem Makarim who has given up his role at the company after he was appointed Minister of Education by President Joko 'Jokowi' Widodo.

The Southeast Asian on-demand multi-service platform and digital payment technology group started humble, when it became a call center for connecting consumers to courier delivery and two-wheeled ride-hailing services.

With the demand escalated, especially after the internet and mobile devices become more widely spread in Indonesia, Gojek has transformed into a 'Super App', providing more than 20 services.

The decacord in 2020 has more than 1.7 million drivers in 167 cities and districts across the Indonesian archipelago.