Research by the Demographic Institute of FEB UI: Gojek Helps Surabaya MSMEs Survive Pandemic
Hana Fajria – Public Relations of FEB UI
DEPOK – Tuesday, (06/10/2020) On the News channel, the online media radarsurabaya.jawapos.com, published the results of a research by the Demographic Institute of FEB UI in Surabaya in an article titled “Gojek Helps Surabaya MSMEs Survive the Pandemic”. The following is the article :
Surabaya – Gojek, the leading super app in Southeast Asia, continues to support economic resilience during the COVID-19 pandemic in Surabaya. Various initiatives have been launched to help small, micro and medium enterprises (MSMEs) in Surabaya adapt to survive the COVID-19 pandemic and remain optimistic for further growth in the future.
This contribution is a continuation of the economic contribution made by Gojek. Prior to the pandemic, Gojek partners from five existing services (GoFood, GoPay, GoSend, GoCar and GoRide) contributed Rp 12.1 trillion to the economy of Surabaya in 2019. When using the method of calculating gross regional domestic income (PDRB), the 2019 production value in the Gojek digital ecosystem reached Rp 15.7 trillion or equivalent to 2.9% of Surabaya’s PDRB.
These facts were presented in a Virtual Press Conference entitled Gojek Digital Ecosystems Supporting Surabaya City Economic Resilience Through Sustainable Contribution, attended by Dr. Paksi Walandouw – Demographic Institute, Faculty of Business Economics (LD FEB); Rumayya Batubara – Research Institute of Socio-Economic Development & Lecturer (RISED) Faculty of Economics, Airlangga University; Michael Reza Say – VP Regional Corporate Affairs Gojek; and moderated by Alfianto Domy Aji, Head of Regional Corporate Affairs Gojek, East Java & Bali Nusa Tenggara.
Michael Reza Say, VP Regional Corporate Affairs Gojek said, “More than 90% of Gojek’s business partners feel greatly helped by the technology available in the Gojek ecosystem to survive the pandemic.” We believe that the ease and security of access in the activation process further supports MSME partners to start, adapt, and expand their business. In the latest GoBiz application, MSME partners can take advantage of the Mandiri Register (Independent Registration) feature to register, check verification status, and activate accounts independently. “
Michael added that besides technology, Gojek also provides non-technology support to help the resilience of MSMEs during the pandemic. “As a technology company, Gojek also provides non-technology support, such as encouraging increased demand from consumers through promo periods and training for GoFood MSMEs through the GoFood Partner Community ( KOMPAG), “he explained.
The explanation from Gojek’s VP Regional Corporate Affairs is in line with the main findings of the latest research by the Demographic Institute of the Faculty of Economics and Business, Universitas Indonesia (LD for short) entitled, “The Role of the Gojek Digital Ecosystem in the Surabaya Economy Before and During the COVID-19 Pandemic.”
Dr. Paksi C.K Walandouw – Deputy Head of LD FEB UI explained, “The existence of this research shows the importance of the role of the digital economy ecosystem in helping MSMEs, especially micro businesses, to survive the pandemic. The Pandemic certainly tests the resilience and adaptability of business players in times of crisis.
One example of the adaptations is a change in business from a traditional one to a digital one. From this research, it appears that business players are quite realistic in seeing the extensive effects of the pandemic. However, they also remain optimistic that by being in a digital ecosystem, their businesses can continue to grow and their income will return to what it was before the pandemic. “
The LD research shows how GoFood acts as an economic buffer in Surabaya for those whose income has been affected by the pandemic, especially private and professional workers. Research found that 69% of the GoFood Partners surveyed had only joined during the COVID-19 pandemic (since March 2020). Among these partners, 95% are micro-scale entrepreneurs. Furthermore, 46% of them were entrepreneurs starting their business for the first time.
LD research also found that the majority of MSME partners thought they were capable of adapting to the pandemic situation because they were in the Gojek ecosystem. MSMEs that feel able to adapt during the pandemic by becoming partners consisted 89% of GoFood’s MSME partners, 97% of GoSend’s MSME social-seller partners, and 89% of GoPay MSME partners.
This is because partners consider Gojek’s technological and non-technological solutions to help their business sustainability. GoFood MSME partners benefit from the technological features of self-promotion arrangements via the GoBiz application (71%) and the GoFood promotion period (72%). Meanwhile, social sellers using GoSend have greatly benefited from the GoSend service features in the city (82%) and the GoSend Intercity Service (37%). Meanwhile, GoPay MSME Partners benefit from the features of receiving non-cash payments (83%) and the GoBiz application (60%).
In fact, the majority of GoFood’s UMKM partners will continue to partner with Gojek for the long term (89%), because they feel they can survive with Gojek (89%). Around 88% of partners also tend to be optimistic that with Go-Jek, their business will continue to grow, their income will return to what it was before the pandemic, and be able to meet the needs of their families.
The LD Research also revealed that 86% of driver partners in Surabaya received assistance from Gojek during the Covid-19 pandemic and 82% of partners appreciated this assistance.
“The spirit of mutual cooperation is highly reflected in the Gojek ecosystem in the form of efforts to help each other amid the pandemic. Where 40% of driver partners still provide social assistance to their families, neighbors and fellow partners. Partners are also optimistic that their income will return to what it was before (69%) and 78% of driver partners are optimistic that their partnership with Gojek can meet the needs of themselves and their families. As many as 89% of driver partners will also continue their partnership with Gojek for an indefinite period of time. “
From another perspective, Rumayya Batubara – Research Institute of Socio-Economic Development & Lecturer at the Department of Economics, Airlangga University said in his presentation titled “Opportunity in the Pandemic Era” also conveyed the role of Gojek for the MSME cluster in Surabaya “The Gojek ecosystem really helps community mobility to occur, minimizing the depth of the growth contraction. Where there is mobility, economic turnaround is also present. The Gojek ecosystem is able to help expand product types, facilitate contactless transactions both using the Gojek application and Gopay, and expanding the market with GoSend which is currently able to reach between cities on Java Island, and I really appreciate the technological support that Gojek has for MSMEs in Surabaya,” he explained.
Complementing Gojek’s support for MSMEs, Gojek through the J3K initiative has involved all elements in the Gojek ecosystem (Driver Partners, GoFood Merchants and customers) to prioritize three important elements, namely Maintain Cleanliness, Health and Safety to prevent the spread of COVID-19 while providing services to customers in Surabaya.
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