GoTo CEO unfazed by VinFast’s entry into Indonesia’s transport market
[JAKARTA] GoTo chief executive officer Patrick Walujo remains confident despite the arrival of VinFast in Indonesia’s transportation sector and does not view the Vietnamese electric vehicle (EV) company as a direct competitor.
“We compete with them in Vietnam. They’ve launched a good product, and we believe they will be competitive in Indonesia,” he said at the DealStreetAsia: Indonesia PE-VC Summit 2025 on Thursday (Jan 16).
Walujo highlighted that while VinFast’s business model centres around automotive manufacturing, Gojek focuses on providing ride-hailing services, underscoring the difference in their approaches.
“They come from an automotive manufacturing background, while we focus on offering app-based transportation services, with the flexibility to provide customers with a variety of vehicle brands,” he explained.
The comments come amid increased competition in the country’s ride-hailing market.
VinFast, through its electric taxi subsidiary Xanh SM, recently launched in the Indonesian market, making South-east Asia’s largest economy its second international destination after Laos.
The company also offers an electric taxi booking service via its custom-built online platform, allowing customers to easily book rides through the app.
This move reflects VinFast’s ambition to expand beyond its home market of Vietnam and tap Indonesia’s growing demand for eco-friendly transportation solutions.
VinFast signed a memorandum of understanding (MOU) with Gojek – the ride-hailing platform owned by GoTo – last year to provide an electric vehicle fleet in Indonesia.
However, with little progress on the collaboration, VinFast chose to independently launch Xanh SM in the country.
Walujo pointed out that the electric vehicle market is now one of the most competitive globally. “The EV market is now saturated with options, especially from China, which offers lower prices. Therefore, flexibility in offering a variety of vehicle brands to customers is key to our strategy,” he said.
Last year, GoTo made the bold decision to pull out of Vietnam, redirecting its focus to its core markets in Indonesia and Singapore. Despite significant cost-cutting measures, including thousands of staff layoffs and steep reductions in marketing spend, the company has yet to achieve positive net income.
Succession plans
Walujo, who took the reins in 2023, has recently committed to extending his contract as CEO for another five years, after shareholders asked him to continue in the role following GoTo’s significant financial growth and operational milestones under his leadership.
However, he is open to the possibility that, in the future, a successor may be found to lead GoTo towards profitability in the near term.
“If there is a better person who can take over, I’d be more than happy to pass the baton,” he said.
Since taking the helm two years ago, Walujo has led key transformations in the company’s financial performance, most notably by selling 75 per cent of GoTo’s shares in Tokopedia to TikTok for about 23.3 trillion rupiah (S$1.9 billion). However, under his leadership, GoTo’s shares have declined by about 40 per cent.
In the third quarter of 2024, GoTo reported a 74 per cent year-on-year growth in gross transaction value, reaching 72 trillion rupiah. This was fuelled by a 34 per cent annual increase in revenue, totalling 4.7 trillion rupiah.
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