GOTO - Free nutritious meals program boosts impact

GOTO - Free nutritious meals program boosts impact GoTo Gojek Tokopedia (GOTO) launched the "Program Makan Bergizi Gratis" (MBG), or Free Nutritious Meals Program, across 13 cities, targeting 3 mn meals for over 10,000 students. This initiative, in line with President Prabowo’s directive, is designed to assess economic impacts, meal quality, delivery efficiency, and waste reduction. CEO Patrick Walujo highlighted the program’s role in empowering UMKM, driver-partners, and digital wallets within the GoTo ecosystem, reinforcing GoTo’s commitment to national development. (Source : Kontan) Comment : The program has shown success since its trial in May 2024, as we anticipated. While we await further details, if the program continues without impacting GOTO’s margins due to the effective use of goverment available resources, it could deliver substantial benefits for GOTO. Additionally, with On-Demand Services (ODS) yielding a competitive margin of 21%, the additional 3 mn meal orders are expected to further boost profitability. Furthermore, Patrick's close relationship with President Prabowo is expected to ensure strong government support for GOTO, minimizing regulatory risks and enhancing stability.