Indonesia's Astra bets on ride-hailing firm Go-Jek as car sales dive (updated)

Jardine Cycle & Carriage

18/07/2019 08:57

(Recasts throughout, adds comments)
    JAKARTA, July 18 (Reuters) - Astra International  ASII.JK ,
Indonesia's largest automobile distributor, on Thursday launched
a joint venture with Go-Jek to provide cars to the ride-hailing
firm.
    The move, which comes on the heels of an overall $250
million investment in Go-Jek, is aimed at boosting Astra's
already-strong market dominance, despite a dismal full-year
outlook for countrywide car sales.
    "The outlook for the country's overall car sales is between
1.05 million and 1.1 million units for 2019," Astra President
and Director Prijono Sugiarto told reporters, a dive from 1.5
million units sold in 2018. 
    "This is because the global economy is not so good and the
export of CPO (crude palm oil) is low, so it risks impacting our
purchasing power," Sugiarto added.
    Astra is 50.1% owned by conglomerate Jardine Cycle &
Carriage  JCYC.SI .
    The newly launched "GoFleet", which comprises "thousands of
cars" should help Go-Jek fight back Singapore-based rival Grab,
following a new regulation prohibiting individuals from offering
car-hailing services.
    Launched in 2011, Go-Jek has evolved from ride-sharing to
allowing its customers to make online payments and order
everything from food to groceries and massage services. 
    The Indonesian company is currently in the middle of a
targeted $3 billion fundraising round, of which Astra
contributed $100 million in March, as the ride-hailing firm
fights bigger rival Grab for dominance of the region.     

 (Reporting by Cindy Silviana; Editing by Kim Coghill and Sherry
Jacob-Phillips)
 ((f.potkin@thomsonreuters.com;))