Indonesian Delivery App 'Gojek' Increases Delivery Drivers' Wages by a Generous 25%

Gojek Allocates 750 Million KRW... Pays Salaries to COVID-19 Positive Drivers

[Asia Economy Jakarta, Special Correspondent Choi Sujin] Gojek, a major Indonesian tech company known for its delivery app, announced that it will provide at least 100 billion rupiah (approximately 750 million KRW) in funds to its drivers.

According to local media including The Jakarta Post on the 31st, Andre Suristio, CEO of Gojek, stated that the company will increase the wages of its employees by 25% this year. He made this decision as economic pressure intensified due to the spread of the novel coronavirus infection (COVID-19). CEO Andre said, "Due to the government's recommendation for remote work and school closures, transportation demand has sharply decreased," adding, "Thanks to their efforts, all of us can maintain our daily lives and stay at home."

This wage increase will benefit more than 1.7 million drivers operating in 167 cities across Indonesia. According to a 2018 report by the Indonesian National University Business Economics Association, the average monthly income of Gojek drivers is 4.9 million rupiah (approximately 360,000 KRW). Gojek also revealed a salary payment plan for drivers who tested positive for COVID-19. For drivers quarantined after testing positive since the 19th, the company will pay 14 days' worth of salary, including insurance and vehicle installment payments, until they return to work. In Indonesia, there are cases of direct cash support or emergency loans to assist households and small and medium-sized enterprises (SMEs) severely affected economically. Adaro Energy, a coal production company, donated 20 billion rupiah to the National Disaster Management Agency.

According to a World Bank report, only one in five Indonesians is economically stable, while about 24.8 million people, approximately 9% of the total population, survive on less than one dollar a day. Including this group, 60 million people are classified as living below the poverty line. In Indonesia, due to the spread of COVID-19, department stores are empty and factory operations have stopped. The operating rate of SMEs has dropped to 35%.