1. Startups

Astra and WeLab Refine Commitment to Bringing Bank Jasa Jakarta to Digital Transformation

Astra through PT Sedaya Multi Investama annexed 49,56% stake in Bank Jasa Jakarta; Previously WeLab already held 24% stake

PT Astra International Tbk (IDX: ASII) announced its acquisition of PT Bank Jasa Jakarta (BJJ). In signing the Shares Subscription Agreement (SSA), Astra through PT Sedaya Multi Investama acquired 1,138 million shares or approximately 49,56% of the total issued and paid-up capital.

Based on information disclosure on the Indonesia Stock Exchange (IDX), Astra disbursed Rp3,87 billion in this transaction. Meanwhile, this agreement was signed on July 1, 2022.

Corporate Secretary Gita Tiffani Boer said the transaction was aimed at developing Sedaya Multi Investama's business and investment.

In addition, the company also announced that Welab Sky Limited (WeLab) as a shareholder of Bank Jasa, will also increase its share ownership there. After completing the transaction, WeLab will pocket 49,56% of the total issued and paid-up capital at Bank Jasa Jakarta.

In December 2021, WeLab is known to have been holding 24% stake in Bank Jasa Jakarta. This corporate action strengthens their commitment to build and operate a digital bank. Considering the potential is still great, including to reach the public, unbankable.

In a report published by DSInnovate titled "The Rise of Digital Banking in Indonesia", it is stated that the size of the digital banking market, globally its value is estimated to have reached $12,1 billion in 2020 and will grow to $30,1 billion in 2026 with a CAGR of 15.7%.

According to the OJK, the financial inclusion index in Indonesia reached 76,19% in 2019. In addition, the adoption of banking products continues to increase from year to year. Until 2020, there are 351,7 million registered accounts in 110 banks (96 conventional banks, 14 Islamic banks). Meanwhile, in Indonesia, there are currently 12 digital bank applications that can be used by the public.

List of digital banks and prospective digital banks in Indonesia. Source: DSInnovate Report

Astra and WeLab bisnis business relationship

Astra's business relationship with Welab has been established since 2018 when the two companies formed a joint venture (j) which is engaged in fintech lending, Astra WeLab Digital Arta. On the same occasion, the company also released the Maucash application, offering two loan products, Maucepat and Mauringan.

WeLab is a startup p2p loans which operates in three countries through seven financial product brands, including WeLend and WeLab Bank in Hong Kong; WeLab Digital, Taoxinji, Gugu Wallet, and Tianmian Tech in China; and Maucash in Indonesia.

WeLab Bank has 50 million users and more than $10 billion in loans. Meanwhile, WeLab has 150 users digital banking of Hong Kong.

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Meanwhile, Bank Jasa Jakarta is a retail bank that offers savings products, loans, and banking services. BJJ has 11 sub-branches and three cash offices with ATM networks incorporated in the Prima network in all major cities in Indonesia.

Strengthen Astra's digital product ecosystem

The Astra Group began to carry out digital transformation several years ago. This transformation uses three main strategies, namely modernizing core business, create new, innovative sources of income, and invest in products in the digital ecosystem. Several digital products that have been included in Astra's digital product ecosystem include CariParkir, Sejalan, Movic, SEVA and mo88i .

Throughout 2021, Astra is increasingly strengthening its digital product ecosystem. In the first quarter of 2021, a subsidiary of Astra Financial launched the Moxa application aka Mobile Experience by Astra Financial. The company has also launched AstraPay which can already be used in the Astra Group ecosystem. The following are the details of digital products that have been included in the Astra ecosystem.

ProductCategoryResearch
AstraPayFintechAstra Financial
MoxaFintechAstra Financial
MaucashFintechAstra Welab Digital Arta
mo88iMarketplace (used cars)Autoraya Compatibility (Mobil88)
SearchParkingTransportation (navigation)AstraDigital
Seva.idMarketplace (new and used cars)AstraDigital
MovicTransportation (car rental)AstraDigital
in lineTransportation (ride sharing)AstraDigital
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