Gojek has acquired 22% of Indonesia’s Bank Jago as part of a strategic partnership to offer financial services in Indonesia.
The investment, made through Gojek’s payments and financial services arm, will reportedly be worth 2.25 trillion Indonesian rupiah (US$159 million). The deal also does not alter the control of Jago, with Metamorfosis Ekosistem Indonesia and Wealth Track Technology continuing to be Jago’s controlling shareholders with a combined ownership of 51 percent.
The aim of this partnership is for Jago to provide access to digital banking services through Gojek’s platform, allowing Gojek’s millions of users to instantly open a bank account with Jago and better manage their finances via the Gojek app. The partnership will also act as a model through which Gojek will go on to partner with other banking institutions to support them in reaching more customers.
Gojek has been forming multiple partnerships with various entities, going toe-to-toe with Grab following the latter’s announcement that it will invest US$2 billion into Indonesia over a period of five years.
Indonesia is home to the world’s 4th-largest unbanked population where 52% of adults (about 95 million people) do not own a bank account and a further 47 million adults are underbanked or have insufficient access to credit, investment and insurance. This represents a huge opportunity for companies like Gojek and Jago. That it has a high smartphone penetration rate of 70-80% also makes the population infrastructurally ready for digital banking.
Andre Soelistyo, Co-CEO of Gojek said,
“Our partnership with Jago marks the latest milestone in our drive to reduce daily friction for users and improve their lives through technology. It is a key part of our strategy and will underpin the growth and sustainability of our business in the long term. Jago’s tech-based banking solutions will supercharge Gojek’s ecosystem offerings and facilitate access to banking services for the mass market, thereby supporting our common vision to accelerate financial inclusion in Indonesia.
“This is the start of a new way of offering financial services to Gojek users as the collaboration will enable us to develop a process through which we can work with other banks. Our aim is to leverage more partnerships like this, to ultimately make the Gojek app a reliable resource for everyone’s financial needs.”
Karim Siregar, President Director of Bank Jago said,
“We are proud and excited to work with Gojek, which has a digital footprint that encompasses millions of consumers and businesses throughout the country. This perfectly complements Bank Jago’s deep expertise and understanding of the financial needs of Indonesians.
“We believe that this strategic collaboration between a tech-based bank like Bank Jago and a Super App like Gojek is the first of its kind in Indonesia and South East Asia and represents a new way to spur growth in digital economies. As a bank designed with an open API, we will go on to work with multiple digital ecosystems to reach a wider audience and drive our aspiration to enhance the finances of millions of people through digital financial solutions.”
Featured image: Gojek
