Googleโs big problem in Indonesia.
Yesterday I wrote about Indonesiaโs political witch hunt of former Education Minister Nadiem Makarim โ 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 Nadiemโs 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 donโt match, the motives are unbelievable, and, most importantly, the prosecution hasnโt bothered to go after Google.
If Google was bribing a minister by investing in his company, wouldnโt Indonesian authorities indict Google too? But theyโve only charged Nadiem.
The argument that Google โ a company with a nearly $2 trillion market cap โwould 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 Indonesiaโs unicorn โ a tech company at the forefront of the nationโs transformation. Google โ like Seqouia, Facebook, and many other powerhouses โ was happy to invest.
Now Google is caught in a difficult situation. Hereโs what theyโve 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?
Whatโs really going on behind the scenes is unclear. Indonesian politics is messy โ and this affair risks further damaging the nationโs global standing.
In the meantime, youโd hope Google would find the mettle to publicly support a partner in whom they bet so much.