Indonesian ride-hailing and delivery firm Gojek announced on Tuesday that it is cutting the salaries of its senior management by 25 percent for the next 12 months. The money thus saved will be donated to a fund set up specifically to support the financial stability of its drivers until the crisis is over. In addition, the firm has, with the consent of its full-time employees, cut all budgeted salary increases for the year and is donating the savings to the fund. Gojek is also encouraging its corporate partners to donate.
Demand for the firm’s transportation services has plunged and is expected to remain almost flat as Jakarta, where Gojek is based, declared a state of emergency last week. All tourist spots and entertainment venues have been closed, and strict limits have been placed on the operational hours and passenger capacity of public transport. Companies are encouraged to reduce the number of people in the office as far as possible.
In the Tuesday statement, Gojek joint CEOs Andre Soelistyo and Kevin Aluwi said that while the pandemic has created huge challenges for the company, their problems are nothing compared to what the drivers, merchants, and service providers are facing. Every company, they pointed out, has a responsibility to provide employees and society as much support as possible.
Gojek has close to two million drivers across Indonesia, providing ride-hailing, delivery, and grocery shopping services. Each driver earns perhaps US$300 a month. Since the Covid-19 outbreak began, the company has been trying to ensure that the drivers’ income is not excessively affected, including educating them about health and safety precautions and providing income assistance.