What you need to know:
In December of 2020 Bank Jago announced that it would be receiving a major investment from the Gojek investment arm. Jago was founded in 1992 in Bandung under the name PT Bank Artos. Up until 2019, the bank offered traditional products before going through a restructuring in June 2020. The new focus of the bank is a technology first with the tagline “A Bank for everyone to grow together. With the Gojek IPO and Tokopedia merger on the horizon in December of 2020 Gojek announced a $159m investment in Bank Jago. The result was a 22% stake in the bank by Gojek.
Why it matters:
Today the purpose of this investment became more evident, Gojek intends to embed the bank directly into the Gojek app. This will allow the roughly 170m Gojek users to be able to sign up for Bank Jago services directly from the app. This investment and integration should continue to see a rise in the overall valuation for Bank Jago as the fourth largest bank in the country. For Gojek this means a growing list of fintech services at a critical moment in the countries financial development. Internet penetration in Indonesia as of 2021 sits at roughly 77%. Contrast that with the percentage of people in Indonesia with a bank account at 52%.
To put it simply Gojek has positioned itself to be a major player in nearly every facet of the Indonesian economy. If the Gojek and Tokopedia merger go ahead this year, and with the Bank Jago embedding the company will be well-positioned for an incredible IPO.
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