Pegipegi, an Indonesian online travel app (OTA) that commenced operations in 2012, has announced its closure on 11 December 2023. After nearly 12 years of service, Pegipegi bid farewell, attributing its decision to the competitive landscape within the OTA industry.
“A nearly 12-year journey as your travel solution is an invaluable experience for Pegipegi. However, with a heavy heart, Pegipegi must bid farewell today, 11 December 2023,” stated a press release on their website on 12 December 2023.
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Before its closure, Pegipegi assured customers that their purchased tickets and bookings on the website remained valid. Customers could utilize their transportation tickets for check-ins or opt for refunds or rescheduling by contacting Pegipegi via email.
In 2023, four other startups in Indonesia had already ceased operations. The persistent effects of the ‘tech winter’ phenomenon continue to impact the industry. According to the Ministry of Information and Informatics, digital startup funding in Asia witnessed a drastic 60% decrease by 2023. Consequently, many startups faced cash flow issues, leading to their potential closures.
Here is the list of four startups in Indonesia that officially closed in 2023:
1. Pegipegi
PT Go Online Destinations, known as Pegipegi, has been operating as an online travel application since 2012, facilitating accommodation reservations for 7,000 hotels, 20,000 flight routes, and 1,600 train routes. Its journey was backed by three major companies, including PT Alternative Media, Recruit Holdings, and Altavindo. Notably, in 2018, it was acquired by Jet Tech Innovation Ventures based in Singapore.
2. Rumah.com
On 1 December 2023, Rumah.com, a subsidiary of PropertyGuru based in Singapore, announced the cessation of its operations. Hari V. Krishnan, the CEO, extended gratitude to the agents and all stakeholders who collaborated over the past decade, as shared directly on their website.
3. CoHive
In early 2023, CoHive, a platform offering co-working spaces for remote workers in Indonesia, ceased operations. Established in 2015, CoHive managed 30 coworking locations across various Indonesian cities like Jakarta, Medan, Yogyakarta, and Surabaya. The closure stemmed from changing work trends with people shifting to on-site work (WFO) and the conclusion of the COVID-19 pandemic.
4. JD.ID
On 31 March 2023, JD.ID, an e-commerce company affiliated with its parent company in China, ceased its operations. Commencing in December 2022, JD.ID initiated a series of employee layoffs, and by February 2023, it officially stopped all its services.
