Visual: Indonesian carmaker Astra’s deep digital push

PT Astra International (Astra) has traditionally been known for automobiles – it makes vehicles and distributes brands such as Toyota, Daihatsu, and BMW in Indonesia. But like many other conglomerates, it has also dipped its toes into the country’s tech industry.

Perhaps Astra’s most notable investment is in Gojek – the conglomerate participated in the latter’s US$1.5 billion funding round in 2018. The following year, it injected another US$100 million into the super app to form a joint venture that later resulted in Gofleet, an all-in mobility solution.

But through its subsidiary Astra Ventura, the North Jakarta-based firm has also funded other startups, including online produce marketplace Sayurbox and healthtech platform Halodoc earlier this year. Astra also has a presence in the fintech space through e-wallet AstraPay and online lending startup MauCash, which the conglomerate runs with Hong Kong’s WeLab.

Like Indonesia’s other conglomerates, Astra’s entry into tech is one way to future-proof its traditional businesses – something that has gotten more urgent as its performance was hit by declining sales of motorcycles, cars, and automotive components at the beginning of the Covid-19 pandemic.

Investments aside, Astra is also exploring new sources of growth by launching its own digital services. Its subsidiary, Astra Digital, founded in 2018, has launched a variety of businesses that intersect with Astra’s automotive line. These include car and property marketplace Seva, parking directory CariParkir, ride-sharing platform Sejalan, and car rental service Movic.

As more and more customers opt to buy cars online rather than offline, Astra has responded by tailoring its marketing strategy to this change in consumer behavior – a major driver of the group’s digital advancement. According to Astra Digital CEO Tet Fa Djap, the change in consumer behavior required a “mixed-marketing” approach, which combines showrooms and online displays – something that’s perhaps exemplified by startups like Carsome and Carro.

“Astra recognizes that it must actively participate in the digital space by presenting digital channels, products, and services [wrapped] in such a way so it can excel in that space,” Djap says.

A version of this article was originally published by Rizqi Maulana on Tech in Asia Indonesia.