Gojek Increases Stake in PT Bank Jago

The Indonesian ride-hailing giant paid about $159.5 million for the bank's shares

Ifeanyi Macdonald Ugochukwu
Ifeanyi Macdonald Ugochukwu

Gojek has bought a slice of Jago for about $159.5 million in its biggest investment in financial services to date.  According to a stock exchange filing, Gojek's payments and financial services arm, GoPay, bought almost 1.96 billion shares at 1,159 rupiah per share. The internet firm already held an existing stake of 4.14% in PT Bank Jago. The additional investment increases Gojek's holding in the bank from 4.14% to 22.16%.

Gojek's Founder, Nadiem Makarim. Image Source: Bloomberg

The recent investment into Jago reflects Gojek's ambition of accelerating its forays into fintech. Gojek's goal is to let users open Jago bank accounts and manage their finances through its app.

Indonesia is home to the world's fourth largest unbanked population. 52% of adults (about 95 million people) do not own a bank account. According to a statement from Gojek, another 47 million adults have limited access to financial services.

Gojek apps have, as of June, been downloaded by users 190 million times. These users span the region of five Southeast Asian countries where Gojek now operates.

Indonesia in Focus:

Population: 270.6 million (2019)

GDP: $1.1 trillion (2019)

GDP Per Capita: $11,441 (2019)

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Ifeanyi Macdonald Ugochukwu

Credit Risk Officer | Development economics enthusiast | Entrepreneur