Indonesia’s jailing of Gojek founder raises fears for investor confidence
A court in Indonesia sentenced Gojek co-founder Nadiem Makarim to 10 years in prison for corruption, sparking concerns about foreign investor trust in the country's economy.
One of Indonesia's most influential entrepreneurs, Nadiem Makarim, co-founder of the super-app Gojek, has been sentenced to 10 years in prison for abuse of power while serving as education minister. A panel of judges found him guilty of favouring Google, an early investor in Gojek, in the procurement of Chromebook laptops for schoolchildren during the COVID-19 pandemic. Prosecutors alleged state losses of $120 million, arguing the laptops were unsuitable for remote areas with poor internet access.
Critics say the case lacks evidence and that Makarim is a victim of political retribution under President Prabowo Subianto. Nicky Fahrizal, a researcher at CSIS in Jakarta, told Al Jazeera that the verdict, along with similar incidents, serves as a warning to investors, for whom legal certainty and judicial quality are prerequisites.
During sentencing, Judge Sunoto stated that choosing a device reliant on internet connection amid uneven infrastructure was a mismatch with needs. Makarim was acquitted of a charge of directly enriching himself, and his sentence was lower than the 18 years sought by prosecutors. One judge also issued a dissenting opinion, citing no evidence of malicious intent.
Google denied any inducements. Trissia Wijaya, a research fellow at the University of Melbourne, said Makarim's prosecution, coupled with business uncertainty under Prabowo, would erode market confidence. She noted Makarim is a symbol of startups and market optimism, and Indonesia's business environment is at a “critical juncture.”
President Prabowo denies being anti-business, insisting on rule of law. However, analysts point to declining investor confidence due to populist policies like the free lunch programme costing $15 billion this year. In June, the Indonesian rupiah hit an all-time low against the US dollar.
Some experts, like lawyer I Gusti Ngurah Bayu Pradana, argue that corruption enforcement can signal legal certainty rather than alarm. He said experienced investors fear legal uncertainty more than enforcement, and that Indonesia remains a safe investment if contracts are clear and transparent.
