Bank Jago: The Business Potential of the GoTo-TikTok Partnership Will Only Be Seen in the Early Quarter of 2024

As one of the GoTo Group ecosystem partners, PT Bank Jago Tbk (IDX: ARTOS) admits that it has not yet fully assessed how GoTo's collaboration with TikTok can benefit their banking business.

In session mediagathering yesterday (12/12), Bank Jago President Director Arief Harris Tandjung admitted that he did not know the details of the agreement between GoTo and TikTok, especially the impact on all its strategic partners. However, he believes this collaboration can provide benefits for Bank Jago's business.

"TikTok and Tokopedia are two ecosystems E-commerce largest in Indonesia. If the two are combined, [it can drive] greater GMV. There is potential that can be optimized, especially since our partnership with GoTo is extensive. Maybe in Q1 or Q2 2024 we can assess "The potential for cooperation between the two is for Bank Jago," said Arief.

PT GoTo Gojek Tokopedia Tbk (IDX: GOTO) and ByteDance have just made it official strategic partnership by combining businesses E-commerce Tokopedia and TikTok Shop. To support its operational activities, TikTok disbursed an investment of $1,5 billion (around Rp. 23,4 trillion) into Tokopedia.

Minister of Trade Zulkifli Hasan, when kick-off Tokopedia-TikTok's initial partnership yesterday (13/12), said it would give Tokopedia and TikTok a trial period of up to four months to carry out the partnership E-commerce this, while looking at the impact on small traders in Southeast Asian countries. "Technology is not an easy thing, it may take some effort to perfect it," he said according to reports Reuters,

Jago Bank Partnership and Gojek (at that time not yet joined GoTo) was established through the acquisition of share ownership at the end of 2020. To date, Bank Jago has synergized with a number of GoTo Group services, including opening a Jago account in the application Gojek, financing (financing), partner management merchant (GoBiz), and the latest product GoPay Savings by Jago.

Arief revealed that his total customers have now reached 9 million users. "We are targeting users of the GoPay Tabungan by Jago service to reach 500 thousand by the end of 2023. This trend is in line with indications of an increase in daily transactions of up to 50%," he added.

Based on the financial report in Q3 2023, Bank Jago pocketed a net profit of IDR 50,29 billion or grew 24% compared to the same period last year. Bank Jago has collected third party funds (DPK) amounting to IDR 10,3 trillion or an increase of 41% (YoY).

On the same occasion, Bank Jago Director Sonny Christian Joseph also revealed that he was preparing a digital loan product through the Jago application. This product is targeted to be commercial next year. "

"We support GoTo Financial loans because basically menggunakan engine Champion. We are also in the process Development loan from the Jago application. These two loan products target different segments. "We hope that our [loan disbursement] growth will be better in 2024. Our partners are increasingly solid, now there are 17 financial institutions."