Gojek bosses waive 25% of annual salary for drivers and partners as COVID-19 deals explode – Business


Esther Samboh (The Jakarta Post)

Jakarta ●
Tue 24 March 2020

2020-03-24
16:06
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Gojek, technology, pilots, ojol, COVID-19, coronavirus, CSR, donation, foundation, charity, fund, Indonesia
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Local tech giant Gojek has announced that it will provide at least 100 billion rupees (US $ 6 million) to help drivers cope with weak demand resulting from the COVID-19 pandemic.

Gojek co-CEO Andre Soelistyo said funding came from salaries for Gojek’s senior management – a quarter of the year’s salary – and budgeted salary increases for all Gojek employees this year. The funds will be returned to drivers and other partners who are facing the economic pressures of the pandemic.

Andre said the company established the Gojek Partner Support Fund on Tuesday, which will be managed by a new foundation, Yayasan Anak Bangsa Bisa, to ensure transparency and good governance in the disbursement of funds.

“Transportation has seen a sharp decline in numbers with no one going to school or working in the office. Activity on the road has decreased significantly, ”Andre said on a limited-to-media conference call. “Drivers and traders are selfless heroes. They work so that we can stay at home, supporting our daily activities. “

The decision to donate 25 percent of the annual salaries of senior employees and salary increases for all Gojek employees for the year was made with the consent of all Gojek employees.

“We have opened up the possibility for Gojek employees to contribute. The support has been tremendous. Everyone is united. They see it as appropriate because the life and growth of Gojek as a company really depends on the success of our partners, ”said Andre.

Read also: Economy of partial lockdown to contain the spread of the coronavirus

Gojek currently has more than 1.7 million drivers in 167 cities and districts of the Indonesian archipelago. Drivers’ income averages 4.9 million rupees per month for the carpooling service, according to a survey conducted by the Demographic Institute of the University of Indonesia’s School of Economics and Business in 2018.

The announcement builds on a previous initiative that provides income assistance for drivers who have tested positive for COVID-19, which began on March 19. Gojek will provide an allowance to its driver-partners for 14 days and put payments owed by its partners on hold, including for insurance coverage and vehicle installments, until they are cleared to return to work. .

“Tip generously to the online motorcycle taxi drivers who have served us,” Vivi Alatas, senior development economist, wrote on her Twitter account, one of the ways people can help ease the economic shock on the most vulnerable Indonesians.

Also Read: What We Can Do To Help Those Affordably Affected By COVID-19: The Economist’s Perspective

Businesses around the world and in Indonesia have unveiled financial assistance measures, including direct cash donations and emergency loans, to families and small businesses hardest hit by the widespread economic downturn from the COVID pandemic. 19.

On Monday, coal producer PT Adaro Energy Tbk donated Rs 20 billion to the National Disaster Mitigation Agency (BNPB) to help the country contain COVID-19. Tech giant Facebook announced on March 18 that it would provide $ 100 million in cash grants and advertising credits to up to 30,000 eligible small businesses in the more than 30 countries where Facebook operates.

“It is high time for companies to do massive CSR [corporate social responsibility] and working hand in hand to help more people and vulnerable people, while helping the government to ensure that the offer is ready, ”said Vivi.

Also Read: Raise Deficit to 5%, Cut Taxes for the Rich in Exchange for Required COVID-19 Donations: Home

Only one in five Indonesians is economically secure, according to World Bank report Budding indonesia. About 24.8 million Indonesians live on less than US $ 1 a day – 9.22 percent of the population – and more than 60 million face poverty.

From empty shopping malls to factory outages, COVID-19 is expected to drop micro, small and medium-sized enterprises (MSMEs) sales across Indonesia by 30-35% from February to March 9 alone, said the president of the Association of MSMEs, Ikhsan Ingratubun. (ydp)

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