Not yet approved by Bank Indonesia, Go-Jek Submits Process for Acquisition of Fintech Companies

Bank Indonesia revealed that it has not yet approved the Go-Jek acquisition for the two fintech companies Midtrans and Kartuku, because it has not submitted a permit process to the central bank. Go-Jek itself has announce this action last week to the public.

In order to obtain approval, Go-Jek has officially submitted its acquisition plan according to the procedure today (18/12). BI only asked Go-Jek to report its planned acquisition of Midtrans and Kartuku, considering that these two companies are in the realm of central bank supervision. While Mapan is in the realm of OJK.

"As of today, they have informed that they will acquire. This has been conveyed to us. They are completing the documents according to what we want. Next BI will conduct further research before the permit is granted," explained the Director of the BI Payment System Policy and Supervision Department. Pungky Wibowo, Monday (18/12).

According to Pungky, in granting approval, the central bank always considers various aspects such as maintaining national efficiency, safeguarding the public interest, promoting industrial growth, and maintaining healthy business competition.

BI will also conduct deepening in a broader perspective by applying consolidated supervision if the company is part of a business group.

The entire assessment process will begin within 45 working days after the documents are declared complete. Thus, BI cannot confirm when the acquisition licensing process will be completed.

Pungky assessed that Go-Jek was quite cooperative by reporting directly to the central bank when BI mentioned it through a press release that was distributed last weekend (16/12), the day after Go-Jek's announcement. Go-Jek shows good faith by trying to complete the documents and other requirements to obtain an acquisition permit.

One of the two companies that will be acquired by Go-Jek has also reported to BI before the acquisition was announced.

On the other hand, Midtrans and Kartuku have not yet obtained a permit as a Payment System Service Provider (PJSP). Both are revealed to be processing as PJSP for permits payment gateway, in accordance with the PTP PBI rules issued by BI at the end of last year.

"Because they had been operating long before the new PTP PBI regulation came out, so they got a transition period to apply for a permit before May 9, 2017. They have applied before that limit and are still in the process," concluded Pungky.