In the a race for profit, Indonesia Internet Pioneer Replaces CEO

Having helped building the company for the past eight years, Andre Soelistyo, is set to step down and will be replaced by the managing partner of private equity firm Northstar Group, Patrick Walujo.

The company Northstar is one of the earliest investors in ride-hailing pioneer Gojek, which then later went on to merge with the  e-commerce provider Tokopedia to form GoTo.  The 47 year old Walujo has been serving as a commissioner of GoTo as of late, and it’s shares climbed 7.8% in Jakarta.

The 29 year old Soelistyo helped out with the merger that created Indonesia’s biggest internet company. Since it went public back in April 2022, GoTo’s shares have fallen more than 60% due to the stiff competition that has kept Southeast Asia’s ride-hailing, delivery and fintech contenders in the red.

The company has narrowed losses heavily by cutting jobs, curbing promotional spending and tightening expense controls under Soelistyo. GoTo is currently working to convince investors that it still has a potential for growth and to make profit.

A professor at the National University of Singapore that does research on corporate governance, Mak Yuen Teen, says that investors are getting impatient, and the days of burning money and focusing on revenues are over. Walujo stepping in will probably lead to more cost cuts and a further acceleration of profitability goals.

Soelistyo initially became a member of the company as its president back in 2015, was able to assist with its fundraising efforts leading to its IPO. He will now become a commissioner, and advise GoTo in that supervisory role, the company said.

Main Image: Bloomberg