Indonesia’s top ride-hail firm Go-Jek targets millennials with e-payment service

02, Feb. 2019

JAKARTA, NNA - Indonesia’s leading ride-hailing firm Go-Jek is targeting young mobile phone users to promote its e-wallet service, Go-Pay, as Southeast Asia’s largest economy tries to move toward a cashless society.

The company is also using a tie-up with schools to train and recruit young talent for its diversifying app-based services.

PT GOJEK Indonesia is collaborating with 50 vocational high schools in North Jakarta to introduce cashless financial services on campus, starting with payments at canteens and cooperatives. Go-Pay will make QR code payments available in a few months.

“Digitalization is making schools more open, so we don't need to make so much effort to enter a partnership,” Edwin Ariono, head of ecosystem expansion at Go-Pay, told reporters. “Non-cash payments have become a trend among millennials.”

The company plans to expand e-payment services to general high schools and other areas.

Half of Go-Jek's 100 million monthly transactions are processed through Go-Pay, the Nikkei Asian Review reported last year.

Go-Life, a Go-Jek group company, will also provide entrepreneurship training to vocational school students as a way to recruit graduates.

Go-Life delivers massage therapists, cleaners, beauticians, auto mechanics and other service providers to more than 1 million users in 16 cities.

Momon Sulaeman, Education Office head for North Jakarta Region II, said the collaboration will also be beneficial to the schools as the prospect of getting a job at Go-Life after graduation can attract more students.

World Bank financial inclusion data showed that about half of the adults in Indonesia owned a bank account in 2017, up from 36 percent in 2014 and 20 percent in 2011.

Physical banking is difficult in remote areas of Indonesia, where mobile banking with easy-to-use apps can play a key role in financial inclusion.

Internet users in Indonesia totaled 143 million in 2017, more than half the population of 262 million, data from the Indonesian Internet Service Provider Association showed.