WeLab and Astra complete acquisition of Indonesian bank for US$510m

HONG KONG fintech company WeLab and Indonesian conglomerate Astra International, controlled by Jardine Matheson, have completed their acquisition of Indonesian commercial bank Bank Jasa Jakarta (BJJ), with plans to transform it into a digital bank. The deal was worth US$510 million, the South China Morning Post reported.

WeLab led a consortium through WeLab Sky, together with Astra subsidiary PT Sedaya Multi Investama, or Astra Financial. The consortium is backed by existing and new investors including Allianz X, Boyu Capital, Horizons Ventures, SCBX Group and TFB (Taipei Fubon Bank) Capital, according to a WeLab statement.

WeLab and Astra each hold 49.56 per cent of BJJ following the completion of the transaction. WeLab had already bought 24 per cent of BJJ in December 2021.

WeLab and Astra had in 2018 joined hands to form a fintech lending joint venture, Astra WeLab Digital Arta. WeLab founder and CEO Simon Loong said the company is focused on enhancing cross-country collaboration with partners.

The parties are targeting a rising sector that aims to serve the 77 per cent of Indonesia’s 270 million population that remains underbanked or unbanked.

Other tech companies are eyeing a slice of the pie as well, with Sea acquiring lender Bank BKE and Gojek taking a stake in Bank Jago. Singapore-based fintech firm Funding Societies and used-car platform Carro in April announced their co-investment in Indonesia’s Bank Index.