Home Credit, an Indonesian consumer finance company, has secured an investment of US$100 million from Mitsubishi UFJ Financial Group’s (MUFG) division in the country, according to a report by Tech in Asia. This new capital injection will be strategically allocated towards financing initiatives that are aligned with Environmental, Social, and Governance (ESG) principles. In a major move last year, MUFG announced that it intended to acquire Home Credit’s operations in both Indonesia and the Philippines, a deal that amounted to approximately US$621 million. This strategic acquisition was spearheaded by MUFG in collaboration with its affiliates, Krungsri and Adira Dinamika Multi…
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Paywatch, an earned wage access (EWA) provider, announced that it has officially expanded its services into Indonesia following its Philippines’ launch in October this year The firm revealed that it had recently partnered with an unnamed local banking partner to launch its bank-backed EWA service in Indonesia. Since the launch of that partnership, Paywatch said that it has grown within the local manufacturing and financial sectors. Paywatch now operates across 4 markets including Malaysia and South Korea serving over 300 employers and 500,000 employees and has processed over US$ 4 million a month in earned wage access across all markets…
Across Southeast Asia, Indonesia is rapidly emerging as a prominent fintech hub, a burgeoning industry that’s been growing on the back of economic growth, increased technology adoption and government support for fintech development. Data from market intelligence firm CB Insights reveal that Indonesia is currently home to seven unicorn startups, among which four fintech companies. The number is the second highest in Southeast Asia behind only Singapore, a well-known regional fintech leader, which now houses seven fintech unicorns. Indonesia’s billion-dollar fintech startups are worth a cumulative value of US$5.13 billion, and have raised a total of US$2 billion in venture…
In a move to bolster its online shopping presence in Southeast Asia, TikTok has announced a major investment of US$1.5 billion to acquire a controlling stake in Tokopedia, the e-commerce marketplace of Indonesia’s PT GoTo Gojek Tokopedia Tbk. This strategic partnership between the country’s two most popular online platforms aims to reinvigorate Bytedance-owned TikTok’s e-commerce operations, which had been halted following regulatory actions in Indonesia, the region’s largest economy. Indonesia’s decision in October 2023 to prohibit online shopping on social media platforms was a bid to safeguard smaller retailers and the privacy of user data. This resulted in the suspension…
Discussions about risk decisioning platforms often center around onboarding and loan origination. However, investing at the start of the journey is just one aspect of the puzzle. Growth relies not only on attracting new customers but also on maximising the value of existing ones. While sophisticated, automated onboarding/origination solutions are crucial, it’s equally vital to focus on the tools used for the entire decision-making process. Having a strategy-friend, end-to-end solution for decisions throughout the customer journey is invaluable. Eliminating siloed systems and easily sharing intelligence enables more accurate and faster decisions, reducing risks, and maximising growth. This enables organisations to…
The Bank Indonesia (BI) and Central Bank of the United Arab Emirates (CBUAE) have signed a Memorandum of Understanding (MOU) to enhance collaboration in various central banking sectors, including Islamic finance. This agreement, signed by BI Governor Perry Warjiyo and CBUAE Governor Khaled Mohamed Balama, builds on a 2021 pact focusing on payment systems and digital financial innovation. The MOU aims to deepen ties and facilitate the exchange of information in areas like monetary policies, macro-prudential regulation, financial stability, anti-money laundering, and counter-terrorism financing. It also extends to digital financial innovations and Islamic economic finance. The commitment follows a meeting…
The Financial Services Authority (OJK) of Indonesia has unveiled its Islamic banking roadmap to enhance the resilience and impact of the Sharia banking sector in the country. An update from the previous plan, the 2023-2027 Roadmap for the Development and Strengthening of Indonesian Sharia Banking (RP3SI) outlines strategies including the consolidation of Sharia banking institutions, strengthening risk management, and innovation to differentiate products and services. RP3SI aims to creating a healthy, efficient, and competitive Sharia banking sector that significantly contributes to the national economy and society’s welfare. Its implementation revolves around five main pillars covering supply, demand, and OJK’s internal…
Silverlake Axis, a Singapore-mainboard listed fintech and digital banking solutions provider, has announced a strategic partnership with Indonesia’s Bank Mandiri Taspen (Bank Mantap). This collaboration is part of Silverlake Axis’ expansion in Indonesia, highlighting its focus on the Indonesian market as a key area for growth. The partnership involves the deployment of Version 12 of the Silverlake Axis Integrated Banking Solutions (SIBS) across more than 390 branches of Bank Mantap, covering over 40 provinces in Indonesia. The initiative aims to contribute to the financial well-being of the region and aligns with the Financial Services Authority of Indonesia (OJK)’s vision for…
KASIKORNBANK Financial Conglomerate, through its subsidiaries, has increased its investment in PT Bank Maspion Indonesia Tbk, raising its ownership to 84.55% to be its largest shareholder. This is in line with KBank’s goal of becoming the largest bank in East Java by 2027. This latest investment increases the valuation of Bank Maspion to 15.441 billion Baht (approximately US$438 million), a significant rise of 8.0 billion Baht (US$226.8 million). Following its increased investment in Bank Maspion, the conglomerate is set to bolster its service offerings across various customer segments. With the corporate customer segment being its primary focus, KBank plans to…
Citi has officially completed the transfer of its consumer banking operations in Indonesia to United Overseas Bank Indonesia (UOBI), in a move marking its ninth and final sale in its strategic refresh plan. This sale, which includes Citi’s retail banking, credit card, and unsecured lending businesses, along with the transfer of employees, is part of the bank’s comprehensive strategy to exit consumer banking in Asia. The agreement, initially announced in January 2022, also encompassed consumer banking operations in Malaysia, Thailand, Vietnam, and Indonesia. With the completion of sales in Malaysia and Thailand on 1 November 2022, and in Vietnam on…
In a significant move to expand its presence in Indonesia, PT Bank OCBC NISP Tbk (OCBC Indonesia) has agreed to acquire a 99% stake in PT Bank Commonwealth (PTBC) from Commonwealth Bank of Australia (CBA). The deal is reportedly worth 2.2 trillion rupiah (US$ 141 million) according to The Business Times. OCBC Indonesia also intends to acquire the remaining 1.00% shares of PTBC from the other shareholders. The deal, which is subject to regulatory approvals, is expected to close in the second or third quarter of next year. The acquisition will strengthen OCBC Indonesia’s position as the fourth largest private…
Malaysian bank CIMB and Japanese finance company J Trust are interested in buying Indonesian lender Bank Commonwealth, according to Reuters. Morgan Stanley is the financial advisor on the sale. The deal could value the lender at US$400 million to US$500 million. CIMB and J Trust, who already have existing banking operations in Indonesia, have reportedly expressed interest and are looking at submitting binding bids. The lender had total assets of US$1.1 billion last year, but logged a loss of more than US$350 million in 2022.
The Monetary Authority of Singapore’s (MAS) Cyber Security Advisory Panel (CSAP) has raised awareness of the potential benefits and risks from the growing adoption of Generative AI (GenAI) by the financial sector. This is one of the key insights from the seventh annual meeting of MAS’ Cyber Security Advisory Panel (CSAP) on 24 and 25 October 2023. The meeting discussed global cybersecurity trends and their impact on the financial sector, securing mobile banking and payments amidst the rise of online banking scams, as well as FIs’ growing adoption of artificial intelligence (AI). As GenAI is increasingly being used by financial institutions…
The Financial Services Authority (OJK) of Indonesia has imposed restrictions on Indonesian fintech Akulaku’s buy now, pay later (BNPL) business. The restrictions are due to the company’s failure to carry out supervisory actions requested by the OJK, namely restrictions on the distribution of financing using the buy now pay later (BNPL) scheme. This means that Akulaku is prohibited from conducting any new BNPL business activities, or from providing BNPL financing to existing customers. The company is also prohibited from distributing financing through channeling or joint financing schemes. The OJK has ordered Akulaku to implement corrective action plan that it had…
Southeast Asian SME digital finance platform Funding Societies, known as Modalku in Indonesia, has teamed up with ESG fintech firm STACS. Indonesian MSMEs will be introduced to STACS’ ESGpedia platform through Funding Societies for ESG reporting and sustainable financing solutions. ESGpedia offers tools to begin their sustainability reporting and looks at providing green financing options based on their ESG data. MSMEs can use ESGpedia for free, which helps them understand and calculate their carbon emissions using factors such as fuel and electricity use. This data gives businesses and Funding Societies a clearer view of a company’s environmental impact, aiding in…
KakaoBank, a South Korean digital-only bank, is set to acquire a 10% stake in Superbank, a new digital-focused bank in Indonesia formerly known as Bank Fama. Superbank is backed by a consortium comprising Grab, Singtel, and Emtek Group. It is expected to launch its app to the public this year. KakaoBank will be collaborating in the development of Superbank’s products and services, and gain valuable experience in the Southeast Asian market. The partnership brings together KakaoBank’s digital finance and platform expertise in South Korea as well as Superbank’s backing of a strong ecosystem of partners, including Grab, Singtel, and Emtek…
Investree, an Indonesian B2B marketplace lending platform for Micro, Small and Medium Enterprises (MSMEs), has raised US$231 million in a Series D funding round. The fundraise was led by Qatar’s JTA International Holding and joined by SBI Holding, bringing its total funds raised to approximately US$280 million. Investree had previously secured US$ 23.5 million in its Series C funding round led by MUFG Innovation Partners (MUIP) and BRI Ventures in August 2022. The Indonesian lender had also established a joint venture (JV) named ‘JTA Investree Doha Consultancy’ with its lead investor. The JV is intended as Investree’s Middle East hub…
Southeast Asian superapp Grab Indonesia has appointed Ridzki Kramadibrata as a member of the Board of Commissioners, effective 1 July 2023 onwards. Ridzki joined Grab Indonesia as a Managing Director in January 2016 before he was promoted as the President from January 2019 till June this year. In his new position as a member of the Board of Commissioners, Ridzki will provide advice regarding business policies and governance of Grab Indonesia. Ridzki joined Grab in January 2016 and expanded Grab Indonesia’s operational area to 100 cities. This rapid growth continues and currently, Grab serves consumers in more than 250 cities…
Andre Soelistyo has resigned from his position as the president director of Indonesian superapp and e-commerce platform provider GoTo. The move was approved by shareholders during GoTo’s annual general meeting this year. Soelistyo, moving into the role of Commissioner, will be succeeded by Patrick Walujo as the new President Director and CEO of GoTo moving forward. Andre Soelistyo, Commissioner of GoTo said, “Under Patrick’s leadership as well as the guidance from our President Commissioner, Agus D. W. Martowardojo, I am confident that GoTo is in the strongest position to continue growing and adding value to the lives of its users.…
Earned Wage Access (EWA) service provider Paywatch has expanded its footprint to Indonesia with a partnership with Indonesia’s Bank KB Bukopin. The firm joins the growing EWA landscape in Indonesia with its rivals GajiGesa and Wagely. Paywatch is one of Pan-Asian venture capital firm Gobi Partners’ portfolio companies. Its EWA solution is licensed and recognised by regulators in its operating markets including Malaysia, South Korea and Hong Kong. The firm had expanded its operations to Malaysia in December 2022 following a US$9 million in a Pre-Series A funding round led by returning investor Third Prime. Following these fundraising efforts, Paywatch…