Indonesia sentences Gojek founder to 10 years in prison in controversial graft case

By Stanley Widianto and Heru Asprihanto

JAKARTA, June 30 (Reuters) – An Indonesian court on Tuesday ruled that Nadiem Makarim, co-founder of tech firm Gojek and a former education minister, was guilty in a corruption case and sentenced him to 10 years in prison.

The case has been controversial with Makarim, 41, fiercely protesting his innocence  – a position that has found support from academics both in Indonesia and internationally, some of whom say the case against him appears to be politically motivated.

The verdict also has the potential to further undermine investor confidence in Indonesia. The rupiah and stocks have slumped this year after cuts to outlooks from credit ratings agencies on unpredictable policymaking and governance concerns, while index provider MSCI is weighing whether to downgrade Southeast Asia’s biggest economy due to market transparency concerns.

ORDERED TO PAY $45 MILLION OR FACE ANOTHER FIVE YEARS

Makarim, who served as education minister from 2019 to 2024 under the previous administration of Joko Widodo, was accused of profiting from the government’s decision to purchase Google Chromebook laptops for schools, leading to $125 million in state losses.

Chief Judge Purwanto Abdullah, presiding over the ruling at Indonesia’s Corruption Court in Jakarta, said a panel of judges had found Makarim guilty of abuse of authority and of causing state losses. He was found not guilty of directly seeking to enrich himself.

Makarim, once one of the biggest stars of Indonesia’s tech startup scene, was also fined 1 billion rupiah and ordered to return over 800 billion rupiah ($45 million) that the judges said was an amount he personally gained from the deal. Failing to return the money would add five years to his prison sentence, the judges said.

Flanked by family and friends, Makarim tearfully vowed to appeal.

“The judges couldn’t even look me in the eye,” he said, adding he could not pay the amount ordered under the ruling.

SHOCKED BY ‘AGGRESSIVENESS’ OF PROSECUTION

Prosecutors alleged that Google’s investment in Gojek’s parent company influenced the procurement decision and that Makarim created tender specifications that only fit the Chrome system to “make Google the sole controller of the education ecosystem in Indonesia”.

Google was not indicted.

Makarim rejected the allegations, saying there was no personal enrichment and that Google’s investment in Gojek’s parent company was not connected to the procurement.

He said in an interview with Reuters after the verdict that he was shocked by the “aggressiveness” of the prosecution.

“There seems to be a vengeance against me to make sure I do not go free,” he said.

“It is so absurd and ridiculous that there was no flow of funds,” he added. “It’s as if the facts of the case were completely ignored.”

Makarim has previously said the case was likely motivated by sweeping reforms he carried out during his time as education minister that cut into long-established corruption opportunities, while acknowledging that his leadership style at the time had ruffled feathers.

LEGAL QUESTIONS

Legal experts have questioned the case against Makarim.

Tim Lindsey, a law professor at the University of Melbourne and an expert on Indonesia’s legal system, said the charges alleging that Makarim’s actions caused state losses conflated inefficiency and taking risks with corruption.

The verdict “has the potential to cause more damage to the country’s image with investors and aggravate existing concerns about the integrity of the legal system,” Lindsey added.

British billionaire Richard Branson has also weighed in on the case, saying on LinkedIn that Makarim “should be celebrated for what he achieved, not prosecuted on trumped-up charges that seem politically motivated.”

Dozens of Gojek motorcycle taxi drivers, clad in the company’s signature green jackets, gathered outside the court carrying banners that read “Free him … No other option.”

Driver Agus Subianto, 57, called the verdict unjust. 

“He’s not alone, there are a lot of drivers who stand behind him,” he said.

($1 = 17,875.0000 rupiah)

(Reporting by Stanley Widianto and Heru Asprihanto; Additional reporting by Gibran Peshimam; Editing by David Stanway and Edwina Gibbs)