LinkAja Receives Strategic Funding from Mitsui

LinkAja announced the acquisition of strategic investment from Mitsui & Co., Ltd. (Mitsui) with an undisclosed amount. This is the first investment achieved LinkAja from global scale companies. Mitsui is the third non-BUMN investor, after Grab and Gojek on LinkAja.

Through this corporate action, Mitsui can develop its digital financial business, accelerating strategic collaboration between the BUMN ecosystem and Mitsui in the fields of IT, retail and other businesses. The two companies can also combine various potential and unique competitive advantage to be able to contribute to the digital economy in Indonesia.

In an official statement, Deputy Minister of BUMN Kartika Wirjoatmodjo welcomed the strategic investment commitment from Mitsui as a global investor to LinkAja. It was also stated that the LinkAja business model is a business model that can be bought in by international parties.

President Director of PT Mitsui Indonesia Shinichi Kikuchihara added that Mitsui has been present in Indonesia since 1901 by opening an office in Surabaya. As the digitalization process continues, the party is starting to deepen its focus on the value of the digital economy, including digital finance.

"As a company with a strong business foundation and a solid shareholder ecosystem, we believe that Mitsui and LinkAja can mutually contribute to the development of the digital financial industry in Indonesia," he said, Wednesday (27/3).

In Indonesia, Mitsui operates in strategic sectors, such as Infrastructure & Energy, Mobility, Steel, Food & Retail Chemistry, and Information & Communication Technology (ICT). Some of the companies invested by Mitsui are Bussan Auto Finance (motorcycle retail financing) and convertible bond subscription at CT Corp.

LinkAja President Director Yogi Rizkian Bahar said that his party believes that strategic collaboration is the key in digital business. Mitsui has invested in various industries in Indonesia, so they have a large and diverse ecosystem.

"We are confident that Mitsui's strategic investment will be mutually beneficial not only for both parties, but also for users, stakeholders, and contribute to the development of the digital financial industry in Indonesia. "This trust from global investors will also increase investor confidence, including the possibility of other investors entering," said Yogi.

Previously delivered, after pivoting business model and cost efficiency strategies, LinkAja succeeded in achieving significant improvements in business performance with positive EBITDA for two consecutive quarters at the end of 2023. This year, the company is still focusing on BUMN synergies.

In February 2023, as part of strengthening its strategic role as a payment platform, LinkAja launched the Loyalty Points Exchange Program in the BUMN ecosystem, through AKHLAK Point.

A number of state-owned companies that have joined in the joint development of loyalty exchange cooperation include PT Telekomunikasi Selular (Telkomsel), PT Pertamina Patra Niaga, PT Garuda Indonesia (Persero), PT Bank Negara Indonesia (Persero), PT Bank Mandiri (Persero), PT Bank Rakyat Indonesia (Persero), and PT Bank Tabungan Negara (Persero).

This step is a continuation of the BUMN-specific LinkAja skin application, which is used as an integrated communication media channel for BUMN employees and distributes incentive funds to more than 200 thousand employees. This is done to strengthen focus Business to Business to Consumer (B2B2C).

The above initiatives are a strong commitment to collaborative synergy between LinkAja and BUMN, as well as improving the digital ecosystem for efficiency and effectiveness, as well as providing added value to the consumer journey.