Astra and WeLab Officially Take Over Bank Jasa Jakarta's Majority Shares

PT Astra International Tbk through its subsidiary PT Sedaya Multi Investama (Astra Financial) announced: completion of acquisition transactions Bank Jasa Jakarta (BJJ), together with WeLab through WeLab Sky Limited. The transaction settlement process is marked by receiving approval from the Financial Services Authority.

After the completion of the acquisition transaction, Astra Financial and WeLab Sky each own 49,56% of BJJ's shares and become the majority shareholder and controlling bank of the bank. Later, BJJ will be used as an innovative digital bank from Indonesia.

Separately, citing the disclosure of information on the Indonesia Stock Exchange today (19/9), Astra Financial and BJJ have signed a Share Subscription Agreement (SSA), in which SMI will subscribe to 1,13 million new shares representing 49,56 .3,87% of the total issued and paid-up capital in BJJ with a transaction value of RpXNUMX trillion.

"As of September 16, 2022, all preliminary requirements based on the SSA to complete the transaction, including OJK approval, have been met," Astra management wrote.

In an official statement, Astra President Director Djony Bunarto Tjondro said the company's investment in BJJ is in line with the group's aspiration on the financial services pillar to become a leading retail financial service provider, as well as support the development of the financial services industry and economic growth in Indonesia.

“BJJ as a digital bank, through strategy omnichannel, will complement the financial products and services offered to Astra customers. The results of the research show that around 77% of people in Indonesia are still classified as unbanked and underbanked. Through this collaboration, we hope that BJJ can meet customer needs, and accelerate financial inclusion and literacy in Indonesia," added Astra Director and Director-In-Charge Astra Financial Suparno Djasmin.

WeLab's Founder and Group CEO Simon Loong added that this strategic step includes expanding the presence of digital banks in Asia, after being first present in Hong Kong. This strategic partnership with Astra is aimed at increasing cross-border and business synergies with partners in expanding the scale and reach.

“We are enthusiastic that our long-term partner, Astra, will work with us to provide the best technology-based banking services through BJJ in Indonesia. We hope to increase customer trust through cooperation with Astra," said Loong.

Astra group financial business unit

This is not the first time the partnership between the two companies. Previously, had set up a joint venture , PT Astra WeLab Digital Arta (AWDA) in 2018 for brand MauCash. Both combine the strengths of each other, namely Astra's solid business ecosystem and WeLab's strong experience, technology and network support.

Previously, the Astra Group also had a business in the banking sector, namely Bank Permata. Then, along with other shareholders, Standard Chartered, it was sold to Bangkok Bank Public Company Limited (Bangkok Bank) in 2020. The purchase price was Rp1.346 per share or the transaction value reached Rp33 trillion. Each pocketed Rp16,83 trillion.

Astra is known to have a number of subsidiaries in the financial sector, such as finance, insurance and fintech companies. In the financing sector, Astra has Astra Credit Companies (ACC) and Toyota Astra Financial Services (TAFS) for four-wheel financing, and Federal International Finance (FIF) for two-wheel financing.

Furthermore, in the insurance sector there is Asuransi Astra Buana (AAB) for general insurance, and Astra Life for life insurance. In the digital field, there are MauCash which focuses on fintech lending, AstraPay in electronic money products, and Moxa, in the form of an application that integrates all financial needs.