Telkomsel, the leading telecommunications provider in Indonesia, has made a $150 million investment in Gojek, a prominent ride-hailing company, as announced by both organizations on Tuesday.

The companies stated that this “strategic alliance” will involve investigating a “wide spectrum of potential collaborative efforts” aimed at serving a vast number of people throughout Indonesia. Gojek and Telkomsel have had an existing agreement since 2018 to provide financial assistance for the mobile data expenses of Gojek’s driver partners.

Telkomsel currently boasts a subscriber base exceeding 170 million, establishing it as Indonesia’s largest telecommunications operator. Gojek’s business has grown beyond ride-hailing to encompass various sectors, including digital payment solutions and food delivery services within Indonesia.

To date, the company has secured over $3 billion in funding and was recently assessed to be worth approximately $10 billion. Gojek’s investors include major technology companies such as Facebook, Google, PayPal, and Tencent. Serving around 170 million customers, Gojek faces competition from Grab, another well-funded organization reportedly seeking an additional $3 billion in investment from Alibaba.

Reports suggest that these two companies, both currently operating at a loss, have revisited discussions regarding a potential merger in recent months, particularly during the pandemic, as a possible path toward achieving profitability. However, both organizations have refrained from providing any commentary on these reported merger discussions.

In a statement released today, Andre Soelistyo, Gojek’s co-chief executive, commented, “This marks a significant milestone for Gojek and for Indonesia, as we reinforce our partnership with Telkomsel, a highly innovative telecommunications leader in Indonesia. Through our combined efforts, we aim to position Indonesia as a leading digital hub in Southeast Asia and extend the advantages of the digital economy to a greater number of consumers, driver-partners, and small businesses.”