The Business Times
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HOCK LOCK SIEW

GoTo’s new CEO inherits a tough balancing act

Claudia Chong

Claudia Chong

Published Wed, Jun 21, 2023 · 05:00 AM
    • GoTo – formed through the merger of ride-hailing and delivery service Gojek with e-commerce platform Tokopedia – grew its gross revenue 14% to six trillion rupiah. The key challenge for GoTo is in ensuring that the pursuit of profits does not come at the expense of healthy growth.
    • GoTo – formed through the merger of ride-hailing and delivery service Gojek with e-commerce platform Tokopedia – grew its gross revenue 14% to six trillion rupiah. The key challenge for GoTo is in ensuring that the pursuit of profits does not come at the expense of healthy growth. PHOTO: BT FILE

    INDONESIA’S biggest technology company, GoTo, appears on track to hit profitability targets. Since GoTo announced a narrowed first-quarter net loss and positive contribution margin in April, shares in the company have climbed about 18 per cent on the Indonesia Stock Exchange.

    Market observers seem optimistic that the company can keep up its momentum. GoTo is aiming to bring adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) into the black by the fourth quarter of 2023. But the key challenge for the group, and its new CEO Patrick Walujo, is in ensuring that the pursuit of profits does not come at the expense of healthy growth.

    GoTo’s on-demand services and e-commerce segments are already experiencing declines in gross transaction value (GTV) ever since cost cuts set in.

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