Society Increasingly Dependent on GOTO Ecosystem Services
By : Abraham Sihombing | Monday, November 07 2022 - 11:02 IWST
GoTo is a blend of Gojek and Tokopedia. (Photo: republika.co.id)
INDUSTRY.co.id - Jakarta - The business growth space of PT GoTo Gojek Tokopedia Tbk (GOTO) is still wide. Viral due to the large number of people uploading proof of transactions in high value on the Gojek application that is happening lately only represents consumers of big cities from the largest digital ecosystem company in Indonesia.
“In tier-1 cities, GOTO services have arguably become people’s daily lives,” said the CEO of Sucor Sekuritas, Bernadus Wijaya, in responding to the crowded actions of netizens in the viral trend of uploading evidence of total expenditure transactions on the Gojek application, one of which is celebrity Amanda Monopo with a total expenditure of Rp253.774 million for the transaction period from November 2, 2021 to November 2, 2022.
Besides Amanda there are many more people in general doing the same thing posts so that they are trending on Twitter. They realize that the services of the GOTO ecosystem have become part of their daily lives so that they record high average transactions.
Bernad said, what is reflected in social media is that only the consumer community in big cities. Not yet to tier-2 cities and beyond which is the space for GOTO's future expansion and growth. “Because the penetration is not too high outside the big city,” Bernad continued.
Tier-2 cities and beyond are one of the big spaces for transaction growth in the GOTO ecosystem as digital access is evenly distributed to all regions in Indonesia.
In the current economic situation, one of which is an increase in inflation so that it is followed by a policy of increasing interest rates, Bernad assessed, some GOTO services, especially from the on-demand business, will be more resilient. “Because it already has stickiness for its users,” Bernad said.
While related to its stock price, Bernad sees that technically GOTO is already oversold so there is an opportunity for a rebound. “In the medium term, the overall movement of technology stocks is under pressure due to high interest rate hikes,” Bernad disclosed.
Meanwhile, the Associate Director of Research Pilarmas Investindo, Maximilianus Nicodemus, explained, the high number of individual transactions on the Gojek application and other GOTO ecosystem platforms seemed to confirm the research conducted by RedSeer as published when GOTO conducted its IPO. “In total, GOTO services account for two-thirds of all total public expenditure,” he said.
Nico, as he is familiarly called, assessed that many GOTO services have indeed become part of people's daily needs. It is also reflected in GOTO's financial performance until the first semester of 2022.
GOTO's gross revenue in the first half of 2022 increased by 49% to Rp10.7 trillion compared to the same period in the previous year of Rp7.19 trillion (proforma). GOTO's net revenue was recorded at Rp3.39 trillion, raised by 73% compared to the first half of 2021 of Rp1.96 trillion.
In terms of Gross Transaction Value (GTV) on a quarterly basis, specifically in the second quarter of 2022, the GOTO’s GTV reached Rp150.5 trillion or exceeded the target launched on a quarterly basis ranging from Rp142-150 trillion.
“GOTO is the owner of the largest ecosystem in Indonesia. Not only the ecosystem but also the User Experience (EU) they built. Then we’re quite dependent on the application. And the increase in users continues to occur, especially the potential opportunities for the digital economy are very large. This is a market for GOTO which has a large ecosystem and high engagement rate. GOTO has become a need and not a desire,” Nico emphasized.
In the medium and long term, Nico sees GOTO as not only supported by existing business fundamentals but also other business innovations, one of which is included in the electric vehicle ecosystem. Especially motorcycles. “The government has expected electric vehicles to dominate in 2023, this is a momentum for GOTO. When the economy recovers, GOTO can lead electric vehicles,” Nico added. (*)