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Jakarta Post

Gojek acquires Rp 2.25t in Bank Jago shares as part of ‘long-term investment plan’

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Fri, December 18, 2020   /   07:02 pm
Gojek acquires Rp 2.25t in Bank Jago shares as part of ‘long-term investment plan’ Staying safe: A commuter scans a code to leave her helmet at a Gojek comfort zone at Depok Baru railway station, Depok, West Java. (JP/Dhoni Setiawan )

Indonesian ride-hailing giant Gojek announced on Friday that it had increased its stake in publicly listed Bank Jago as part of its long-term investment plan and strategic partnership to strengthen its financial services.

The tech company bought a total of 1.96 billion of Bank Jago’s shares, or equal to an 18.02 percent stake in the bank, through PT Dompet Karya Anak Bangsa, which operates payment service GoPay, at a price of Rp 1,150 (8 US cents) at the negotiated market. This means Gojek spent about Rp 2.25 trillion for the shares acquisition and increased its ownership in the bank to 22.16 percent from the previous 4.14 percent.

“A technology-based bank like Bank Jago will strengthen Gojek’s ecosystem and also open wider access to digital banking services for Indonesians,” Gojek Co-CEO Andre Soelistyo said in a statement on Friday. “The collaboration will be the start of a new way to offer financial services to Gojek users, as well as to develop a model to partner with other banks.”

He added that the company’s investment in Bank Jago was part of its long-term business strategy to strengthen the growth and sustainability of Gojek’s business in the future.

Read also: Gojek, Tokopedia secure funds, vote of confidence from big firms

The move cements Gojek’s effort to strengthen its foothold in the financial services business, as well as confirms rumors in the market about its interest in Bank Jago.

Gojek’s payment service, GoPay, ranked third in user penetration after ShopeePay and OVO, according to a survey conducted by market research firm Ipsos in October. However, OVO and GoPay closely led the race in terms of user awareness.

On the other hand, publicly listed Bank Jago, previously named Bank Artos Indonesia, is a small bank that was acquired by Patrick Walujo, a venture capitalist and co-founder and managing partner of Gojek’s early backer Northstar Group, and banker Jerry Ng last year for Rp 243 billion. Patrick and Jerry plan to turn the bank into a technology-based digital bank.

Stocks of Bank Jago, traded at the Indonesia Stock Exchange (IDX) with the code ARTO, jumped 1.56 percent on Friday as the main gauge, the Jakarta Composite Index (JCI), slipped 0.15 percent.

Read also: Bank Artos denies Gojek partnership rumors as shares surge

The strategic collaboration between a bank and a technology company like Gojek is the first of its kind in Southeast Asia, Bank Jago president director Kharim Siregar said in the statement.

“This thorough collaboration will be key to Indonesia’s digital economy growth,” he said.

Kharim also stressed that the bank would still be open to partner with other digital ecosystem players to widen financial access and provide digital financial solutions to its customers.