Google’s big problem in Indonesia.
Yesterday I wrote about Indonesia’s political witch hunt of former Education Minister Nadiem Makarim — who is spending Xmas in jail, away from his wife and kids.
Prosecutors allege (with extremely flimsy evidence, to be clear) that Nadiem colluded with Google. How so?
The accusation is that Nadiem’s ministry bought Google Chromebooks for Indonesian schools. In return, Google invested in his ride-hailing company, GoJek.
The allegations of this supposed corrupt quid pro quo are without any basis in fact. The timelines don’t match, the motives are unbelievable, and, most importantly, the prosecution hasn’t bothered to go after Google.
If Google was bribing a minister by investing in his company, wouldn’t Indonesian authorities indict Google too? But they’ve only charged Nadiem.
The argument that Google — a company with a nearly $2 trillion market cap —would risk a massive international corruption scandal (and violating the US Foreign Corrupt Practices Act) for a project worth less than 0.1% of its annual revenue is the primary reason many observers find the prosecution's case weak.
GoJek was Indonesia’s unicorn — a tech company at the forefront of the nation’s transformation. Google — like Seqouia, Facebook, and many other powerhouses — was happy to invest.
Now Google is caught in a difficult situation. Here’s what they’ve said:
"Although we cannot comment on an ongoing investigation, we are committed to complying with all applicable laws, including those in Indonesia."
Pretty standard no comment. But if this charade goes on, can Google remain on the sidelines?
What’s really going on behind the scenes is unclear. Indonesian politics is messy — and this affair risks further damaging the nation’s global standing.
In the meantime, you’d hope Google would find the mettle to publicly support a partner in whom they bet so much.
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