Gojek founder warns of investor fears in Indonesia graft defense plea

Former Indonesian education minister Nadiem Makarim, also the founder of the startup Gojek, warned on June 2 that legal uncertainties in Indonesia are deterring investors. He delivered his final defense plea in a high-profile corruption case where prosecutors allege he caused $125.64 million in state losses through improper laptop procurement for schools during the COVID-19 pandemic.

Prosecutors sought an 18-year prison sentence for Makarim, accusing him of enriching himself by around $60 million through the procurement of Chromebooks and Chrome OS for schools between 2020 and 2022. They claim he manipulated tender specifications to favor Google, making it the sole controller of the education ecosystem. Prosecutors also alleged that Google's investment in Gojek's parent company influenced the procurement, citing Makarim's meetings with Google representatives.

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Experts and witnesses have said: there were no state losses, no law violations, no self-enrichment or enriching others as well as corporations, no mens rea.

However, Makarim denied all involvement, asserting that experts and witnesses found no state losses, law violations, or self-enrichment. He argued that Google's investment in Gojek was separate from the procurement, with most investments predating his ministerial appointment. He expressed concern that his case creates a bad precedent, frightening young professionals and businesses away from Indonesia due to the criminalization of professionals and legal uncertainties.

Three officials linked to the ministry have already received jail sentences of up to four and a half years for their involvement in the case. Makarim, a Harvard Business School graduate, stated tearfully that young professionals fear becoming the next victims, and the business community views his trial as a negative signal.

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Young professionals are scared that they can become the next victims. Business communities see a bad precedent from this case because they don’t understand why the case was put on trial.