Former education minister and founder of Gojek Nadiem Makarim was detained by Indonesian investigators on 4 September.
Anti-corruption probe
He was named as a suspect in the investigations of the US$600m Chromebook procurement case that happened during his tenure as education minister. Investigator Nurcahyo Jungkung Madyo said the case involved violation of Indonesia’s anti-corruption law.
Nadiem left his post as Gojek founder CEO in 2019 to serve as education minister under president Joko Widodo’s 2nd term. Many observers placed a lot of hope in that cabinet to drive modern changes in Indonesia’s politics.
However, the covid pandemic as well as other internal and external challenges made the reality different from what people had hoped for.
Tech boom and bust
Global tech markets were flooded with liquidity in 2020 and 2021. But when interest rates rose, that wave also crushed a number of Indonesia’s high-profile tech companies.
In recent months, investigators have detained founders and/or key executives of B2B startups eFishery and Tanihub, while seeking extradition of former CEO of P2P lender Investree who has fled to Qatar.
There are a number of other companies whose implosion is just a matter of time, and in a few cases, investors and founders have already taken measures to diffuse the time bomb.
Politics as a minefield
These corporate scandals, however, belong to a different category. The Nadiem case stands apart, even though Gojek could have been more professionally run in the years with Nadiem at the helm.
However, there are many minefields once one steps into politics, especially in a large and complex country such as Indonesia.
During its rise, Gojek (and therefore Nadiem) already stepped on many toes. As a minister trying to change the way things are done, you would inevitably run into conflict with many interest groups.
You will not always have the protection from the top.
Playing in a larger chessboard
You see similarities with reformers in ancient Chinese history (e.g. Shang Yang and Wang Anshi) or recent decades in Latin America (which I shall not name).
This reminds us of something Wang Xing, founder of Chinese food delivery player Meituan, wrote in 2018: “Good chess players usually know and accept that while they are making their own moves, they are also just pieces on a larger chessboard.”
Meituan has been an investor in Gojek since 2018.
What are the lessons for foreign founders and investors in Indonesia’s market? As one of our good friends in Indonesia once said: “Indonesia is not built for the outside world, nor should it be naturally that way”.
For foreign founders and investors, the message is simple: respect the market, add value, and build patiently. Success in Indonesia is possible – but only if you accept that you are also a piece on its larger chessboard.
Discipline and focus can pay off
GoTo, as the merged Gojek-Tokopedia entity, has actually improved drastically in the last two years, in terms of not only financial performance but also discipline and professionalism. The divesture of Tokopedia to TikTok Shop was a masterstroke, executed with speed and focus.
GoTo’s recent turnaround shows that discipline and focus can pay off.
The post Lessons from Gojek founder’s arrest first appeared on The Low Down - Momentum Works.
