Investing in Bank Jago, Gojek Opens a Digital Bank

On-demand service provider company Gojek invests in Bank Jago. Decacorn in this country claims, this is the first digital bank and superapp collaboration in Southeast Asia. The investment made Gojek the holder of a 22% stake in Bank Jago.

However, PT Metamorfosis Ekosistem Indonesia (MEI) and Wealth Track Technology (WTT) remained the controlling shareholder with total share ownership of 51%. Gojek co-CEO Andre Soelistyo said this corporate action is part of a long-term investment plan and strategic partnership to accelerate financial inclusion in Indonesia.

“This will strengthen Gojek’s business growth and sustainability going forward,” he was quoted as saying in a press release, Friday (18/12). He added that this partnership was a new achievement for the company in providing various solutions to everyday problems through technology.

Bank Jago will strengthen the Gojek ecosystem while opening wider access for the public to digital banking services. That way, millions of Gojek customers can open a Jago Bank account via the application.

Potential to Reach More Consumers

This collaboration also opens up the potential for collaboration with various other financial and banking institutions to reach more consumers. “Through this collaboration, we can also develop a model so that we can partner with various other banking institutions,” said Andre.

President Director of Bank Jago Kharim Siregar said this in-depth collaboration will be the key to the growth of Indonesia’s digital economy. “As a technology-based bank specifically designed with an open API system, we will also work with other digital ecosystem players to expand financial access,” he said.

Bank Jago was founded in 1992 under the name Bank Artos Indonesia. In 2020, Bank Artos changed its name to PT Bank Jago Tbk as part of the company’s transformation to become a technology-based bank. The Indonesian Decacorn has long strengthened the financial business. The company acquired Kartuku, Midtrans and Mapan in 2017.

Then, Gojek entered the fintech lending business by partnering with three partners namely Findaya, Dana Cita and Aktivaku in 2018. With Findaya, Gojek provides a ‘buy now pay later’ service or paylater.

In the investment sector, the on-demand service provider company is partnering with a technology-based mutual fund investment startup or robo advisor, Bibit in 2019. Then, hooking up with fintech, Pluang to offer gold investment last June.

For the insurance business, the jumbo startup partnered with PasarPolis to provide GoSure services at the end of last year. On the Gojek platform, this fintech insurance (insurance) provides protection for cellphone screens, travel, and motorized vehicles.

Most recently, Gojek also collaborated with Bank Central Asia (BCA) to make a device for transactions called GoBiz Plus. This machine is similar to electronic data capture or EDC, but can accept payments based on Quick Response or QR Code codes or cards. GoPay transactions continue to increase. As of October, the increase is up to 2.7 times on an annual basis (year on year / yoy).

Company Reforms Leadership

Gojek has also revamped the ranks of leadership, aka the chief level. GoPay CEO Aldi Haryopratomo will step down as of January 2021. Meanwhile, the two Co-CEOs, Kevin Aluwi and Andre Soelistyo, will share tasks. Kevin will focus on leading Gojek’s services, while Andre leads the digital and financial payment business lines.

This strengthening of management focus will be effective as of January 2021. “We will continue our role as the Co-CEO of Gojek Group, but each has a more specific scope and responsibilities going forward,” said Kevin and Andre in their official statement last November (18 / 11).

Both of them assessed that two big businesses, namely services under the Gojek brand and finance, grew stronger. Meanwhile, each portfolio requires different skills and focus. “In order to continue to drive this growth, we must have the right structure to ensure the company’s readiness for the future,” both said.