ENHANCING PROFITABILITY AND FINANCIAL SUSTAINABILITY OF STARTUPS IN INDONESIA'S DIGITAL ECONOMY: A CASE STUDY OF PT GOTO GOJEK TOKOPEDIA TBK.

• Main Author: Anastasia Nadia, Cynthia
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/77187
• Institution: Institut Teknologi Bandung

The digital economy has witnessed remarkable growth triggered by the pandemic, with many businesses expanding their operations in the digital environment. Indonesia’s digital economy reached $77 billion in 2022 and is projected to reach approximately $130 billion by 2025, driven by the growth of e-commerce and ondemand services. However, concerns arise as many startups are going public without achieving profitability, raising questions about their long-term financial viability. PT GoTo Gojek Tokopedia Tbk. is an Indonesian startup that went public in April 2022. By December of the same year, its share price experiences a significant decline of over 70%. To address these challenges and explore opportunities, this research aims to identify potential strategies to improve GoTo's profitability, determine the means to implement these strategies, assess the intrinsic value of the company, and analyze the associated risks. The research design process begins with an identification of the business issue, focusing on GoTo's profitability problem. Research questions are formulated to explore strategies for improving profitability, understanding the intrinsic value of the company, and assessing risks. A literature review is conducted to establish theoretical foundations, followed by data collection. The external and internal business environment are analysed. These analyses inform the identification of potential strategies and enable risk analysis and financial projections. Financial projection plays a crucial role in assessing a company's value, and in this research, the Discounted Cash Flow method is employed based on projected income statements and cash flows. The analysis reveals that horizontal integration through mergers and acquisitions holds the greatest potential to enhance GoTo's profitability. By pursuing this strategy, GoTo can improve its competitive position, expand its market reach, and leverage synergies. To achieve this, GoTo must prioritize sustainable revenue growth, strategic investments, and rigorous cost management. Effective cost reduction strategies are essential to minimize financial inefficiencies and achieve the projected values.