Indonesia’s jailing of Gojek founder raises fears for investor confidence

The conviction of Nadiem Makarim, a prominent Indonesian entrepreneur and cofounder of the super-app Gojek, has sparked concerns about investor confidence in Southeast Asia's largest economy. Makarim was sentenced to 10 years in prison for allegedly abusing his authority while serving as education minister under former President Joko Widodo from 2019 to 2024. Prosecutors argued that Makarim gave favorable treatment to Google, an early investor in Gojek, when procuring Chromebook laptops for schoolchildren during the COVID-19 pandemic.

The prosecution claimed Makarim inflicted state losses of $120 million by selecting devices unsuitable for remote areas with limited internet infrastructure. A panel of five judges found Makarim guilty on June 30 at the Indonesian Court for Corruption Crimes in Jakarta, following charges related to the procurement of more than one million laptops intended for schools in remote and impoverished regions. The tender process came under public scrutiny after Chromebooks proved ineffective in areas lacking reliable connectivity.

Critics argue the case against Makarim lacks sufficient evidence and represents political retribution by the administration of current President Prabowo Subianto. Analysts warn that the verdict may deter foreign investment, as international investors increasingly view legal certainty and judicial quality as essential prerequisites for capital commitment. Google denied providing inducements to win the tender and was not indicted in the case. Following the verdict, prosecutors characterized the outcome as a victory for schoolchildren deprived of equitable access to digital education.