JAKARTA: GRAB Indonesia generated 77.4 trillion rupiah to the economy last year, providing gig work for many via its platforms.
Food delivery service GrabFood proved to be the star service under the company, reaping 37.3 trillion rupiah from the total, according to The Jakarta Post.
This was revealed in a study by the Centre for Strategic and International Studies and Tenggara Strategics.
The study found that the figures for last year marked a 58.3 per cent increase from the firm's 48.9 trillion rupiah generated in 2018.
The data was calculated based on the incomes of more than 5,000 Grab partners and merchants surveyed before and after joining the platform across its four services — motorcycle taxi service GrabBike, ride-hailing service GrabCar, GrabFood and GrabKios, a platform that provides access to traditional shops.
Tenggara Strategics executive director Riyadi Suparno said the findings provided some consolation as the country battled the Covid-19 pandemic crisis.
"As Indonesia starts to move past Covid-19, we believe that platforms like Grab and the gig economy can support the country on its road to recovery," Riyadi said.
Experts warned that the country's 70.49 million informal workers, the majority of Indonesia's workforce, were the most vulnerable to economic downturn.
Motorcycle taxi riders association Two-Wheeled Action Movement reported a 70 per cent decrease in drivers' daily earnings during the pandemic.
Despite that, the study noted that Grab had provided earning opportunities for those dealing with unemployment, like last year when 31 per cent of GrabBike and 26 per cent of GrabCar partners had no income prior to joining the online platform.
The company also aided merchant-partners' transition to a post-pandemic economy, Riyadi said.
"Being digital-ready will be more important than ever in the new normal."
Earlier this month, Grab Indonesia introduced a new app called GrabMerchant aimed as a one-stop service platform that allows micro, small and medium enterprises (MSMEs), including those in the food and beverage sector, to digitally manage their operational hours, orders, employees, menus and promotions.
Centre for Strategic and International Studies' Economics Department chief, Yose Rizal Damuri, said Grab, as a digital platform, played a supporting role during the large-scale social restrictions (PSBB).
"We see how digital platforms and gig work help logistics activities during the PSBB, like with the services offered by Grab with goods delivery."
Tenggara Strategics researcher Stella Kusumawardhani said based on the 2019 findings, GrabFood also helped small businesses expand at minimal cost.
"Unlike the conventional restaurant, where additional investment is required to increase capacity at their dine-in locations, we found that 48 per cent of GrabFood merchants could increase their sales without the need to spend on additional costs," Stella said.
Grab Indonesia managing director Neneng Goenadi welcomed the study, saying that under the current economic uncertainty, the company could help the country's economic recovery through the digitalisation of MSMEs.
"It is part of our commitment to support the prosperity of gig workers and the MSMEs joining our ecosystem, as well as benefiting the Indonesian people."