Commentary: On Gojek and Nadiem Makarim

Dear Readers,

When news broke that Gojek co-founder Nadiem Makarim was stepping down as CEO, my messaging apps got a little busier than usual. After much discussion, I observed that there are two general thoughts about this development. In summary:

1. It’s bad

It looks like the CEO jumped ship: Gojek is locked in a heated battle with Grab, so the timing of Makarim’s departure isn’t great. Being part of the cabinet and scaling Indonesia is all good – it could allow Makarim to make a bigger impact, and founders love that. But wouldn’t it be better to wait until the company has a stronger foundation?

Basically, the timing could have been better. But is there ever a perfect time for founders to call it a day? Makarim’s seemingly “sudden exit” and putting group president Andre Soelistyo and co-founder Kevin Aluwi in charge as co-CEOs could result in a bumpy transition for Gojek. But this may not even be accurate, as several sources told me that this was all discussed and planned well ahead of time. 😮

Also, will Makarim’s departure rock investors’ confidence as Gojek continues to raise capital? That’s certainly a legit concern.

2. It’s good

Makarim will be in a better position to help Gojek because politics and tech do intertwine. And some speculated that Makarim will become the ultimate “lobbyist-in-chief” even if Gojek has issued a statement that he won’t retain any executive or advisory role at the company. He still holds stakes at Gojek, though.

But should he want to get his political career off to a good start, staying neutral will serve him better – at least for now. Grab and SoftBank have made significant contributions to Indonesia’s economy, so it’s understandable that President Joko Widodo said that Grab is the country’s fifth unicorn. Makarim will likely have to nod and agree with him in public, but maybe he can also talk about how Gojek has boosted economic growth as they chit-chat during private kopi sessions. ☕ (Hey, that’s a fair statement and not just an empty boast.)

Makarim’s final masterstroke?

Personally, I think this could be advantageous for Gojek in the long run. Change might be exactly what it needs. Leaving his post, joining the Indonesian government, and making way for fresh leadership perspectives could be Makarim’s final masterstroke as Gojek’s CEO. I’ve talked to several Gojek employees – both in leadership and rank-and-file positions – who say they aren’t concerned at all. It’s business as usual at the company.

Data: Tech in Asia

The reality is, it’s hard for Gojek to fight Grab head-on in every category. If Gojek can’t win on capital raise, it has to win by execution. And good execution means that it can’t keep doing the same things and expect a markedly different outcome. While the company is already expanding aggressively outside of its core business with ventures such as GoPlay, these moves could be seen as Gojek taking its eyes off the prize. Only time will tell if it will be successful.

There are also conversations that as Indonesia’s minister of education and culture, Makarim’s influence could be limited. But no one knows that for sure, and it’s too early for predictions.

One thing is certain, though. It’s been an amazing ride for Nadiem Makarim, a journey that most founders can only dream of. It feels like it was only yesterday when I saw Makarim in Jakarta, pitching at a startup event. But actually, that was in 2011. Nearly a decade later, Gojek has made a huge economic impact on Indonesia, and Makarim will continue to bring about change in the country – this time, as a government official.

Gojek is definitely thinking differently, and that’s awesome. I’m excited to see what happens next.

Bonus speculation: Could a Grab and Gojek merger be possible now? Makarim could maybe ease the anti-competition ruling in Indonesia? 🤔